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

hello I'm John Furrier with thecube and welcome to this special presentation of the cube and Horizon 3.ai they're announcing a global partner first approach expanding their successful pen testing product Net Zero you're going to hear from leading experts in their staff their CEO positioning themselves for a successful Channel distribution expansion internationally in Europe Middle East Africa and Asia Pacific in this Cube special presentation you'll hear about the expansion the expanse partner program giving Partners a unique opportunity to offer Net Zero to their customers Innovation and Pen testing is going International with Horizon 3.ai enjoy the program [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're here with Jennifer Lee head of Channel sales at Horizon 3.ai Jennifer welcome to the cube thanks for coming on great well thank you for having me so big news around Horizon 3.aa driving Channel first commitment you guys are expanding the channel partner program to include all kinds of new rewards incentives training programs help educate you know Partners really drive more recurring Revenue certainly cloud and Cloud scale has done that you got a great product that fits into that kind of Channel model great Services you can wrap around it good stuff so let's get into it what are you guys doing what are what are you guys doing with this news why is this so important yeah for sure so um yeah we like you said we recently expanded our Channel partner program um the driving force behind it was really just um to align our like you said our Channel first commitment um and creating awareness around the importance of our partner ecosystems um so that's it's really how we go to market is is through the channel and a great International Focus I've talked with the CEO so you know about the solution and he broke down all the action on why it's important on the product side but why now on the go to market change what's the what's the why behind this big this news on the channel yeah for sure so um we are doing this now really to align our business strategy which is built on the concept of enabling our partners to create a high value high margin business on top of our platform and so um we offer a solution called node zero it provides autonomous pen testing as a service and it allows organizations to continuously verify their security posture um so we our company vision we have this tagline that states that our pen testing enables organizations to see themselves Through The Eyes of an attacker and um we use the like the attacker's perspective to identify exploitable weaknesses and vulnerabilities so we created this partner program from a perspective of the partner so the partner's perspective and we've built It Through The Eyes of our partner right so we're prioritizing really what the partner is looking for and uh will ensure like Mutual success for us yeah the partners always want to get in front of the customers and bring new stuff to them pen tests have traditionally been really expensive uh and so bringing it down in one to a service level that's one affordable and has flexibility to it allows a lot of capability so I imagine people getting excited by it so I have to ask you about the program What specifically are you guys doing can you share any details around what it means for the partners what they get what's in it for them can you just break down some of the mechanics and mechanisms or or details yeah yep um you know we're really looking to create business alignment um and like I said establish Mutual success with our partners so we've got two um two key elements that we were really focused on um that we bring to the partners so the opportunity the profit margin expansion is one of them and um a way for our partners to really differentiate themselves and stay relevant in the market so um we've restructured our discount model really um you know highlighting profitability and maximizing profitability and uh this includes our deal registration we've we've created deal registration program we've increased discount for partners who take part in our partner certification uh trainings and we've we have some other partner incentives uh that we we've created that that's going to help out there we've we put this all so we've recently Gone live with our partner portal um it's a Consolidated experience for our partners where they can access our our sales tools and we really view our partners as an extension of our sales and Technical teams and so we've extended all of our our training material that we use internally we've made it available to our partners through our partner portal um we've um I'm trying I'm thinking now back what else is in that partner portal here we've got our partner certification information so all the content that's delivered during that training can be found in the portal we've got deal registration uh um co-branded marketing materials pipeline management and so um this this portal gives our partners a One-Stop place to to go to find all that information um and then just really quickly on the second part of that that I mentioned is our technology really is um really disruptive to the market so you know like you said autonomous pen testing it's um it's still it's well it's still still relatively new topic uh for security practitioners and um it's proven to be really disruptive so um that on top of um just well recently we found an article that um that mentioned by markets and markets that reports that the global pen testing markets really expanding and so it's expected to grow to like 2.7 billion um by 2027. so the Market's there right the Market's expanding it's growing and so for our partners it's just really allows them to grow their revenue um across their customer base expand their customer base and offering this High profit margin while you know getting in early to Market on this just disruptive technology big Market a lot of opportunities to make some money people love to put more margin on on those deals especially when you can bring a great solution that everyone knows is hard to do so I think that's going to provide a lot of value is there is there a type of partner that you guys see emerging or you aligning with you mentioned the alignment with the partners I can see how that the training and the incentives are all there sounds like it's all going well is there a type of partner that's resonating the most or is there categories of partners that can take advantage of this yeah absolutely so we work with all different kinds of Partners we work with our traditional resale Partners um we've worked we're working with systems integrators we have a really strong MSP mssp program um we've got Consulting partners and the Consulting Partners especially with the ones that offer pen test services so we they use us as a as we act as a force multiplier just really offering them profit margin expansion um opportunity there we've got some technology partner partners that we really work with for co-cell opportunities and then we've got our Cloud Partners um you'd mentioned that earlier and so we are in AWS Marketplace so our ccpo partners we're part of the ISP accelerate program um so we we're doing a lot there with our Cloud partners and um of course we uh we go to market with uh distribution Partners as well gotta love the opportunity for more margin expansion every kind of partner wants to put more gross profit on their deals is there a certification involved I have to ask is there like do you get do people get certified or is it just you get trained is it self-paced training is it in person how are you guys doing the whole training certification thing because is that is that a requirement yeah absolutely so we do offer a certification program and um it's been very popular this includes a a seller's portion and an operator portion and and so um this is at no cost to our partners and um we operate both virtually it's it's law it's virtually but live it's not self-paced and we also have in person um you know sessions as well and we also can customize these to any partners that have a large group of people and we can just we can do one in person or virtual just specifically for that partner well any kind of incentive opportunities and marketing opportunities everyone loves to get the uh get the deals just kind of rolling in leads from what we can see if our early reporting this looks like a hot product price wise service level wise what incentive do you guys thinking about and and Joint marketing you mentioned co-sell earlier in pipeline so I was kind of kind of honing in on that piece sure and yes and then to follow along with our partner certification program we do incentivize our partners there if they have a certain number certified their discount increases so that's part of it we have our deal registration program that increases discount as well um and then we do have some um some partner incentives that are wrapped around meeting setting and um moving moving opportunities along to uh proof of value gotta love the education driving value I have to ask you so you've been around the industry you've seen the channel relationships out there you're seeing companies old school new school you know uh Horizon 3.ai is kind of like that new school very cloud specific a lot of Leverage with we mentioned AWS and all the clouds um why is the company so hot right now why did you join them and what's why are people attracted to this company what's the what's the attraction what's the vibe what do you what do you see and what what do you use what did you see in in this company well this is just you know like I said it's very disruptive um it's really in high demand right now and um and and just because because it's new to Market and uh a newer technology so we are we can collaborate with a manual pen tester um we can you know we can allow our customers to run their pen test um with with no specialty teams and um and and then so we and like you know like I said we can allow our partners can actually build businesses profitable businesses so we can they can use our product to increase their services revenue and um and build their business model you know around around our services what's interesting about the pen test thing is that it's very expensive and time consuming the people who do them are very talented people that could be working on really bigger things in the in absolutely customers so bringing this into the channel allows them if you look at the price Delta between a pen test and then what you guys are offering I mean that's a huge margin Gap between street price of say today's pen test and what you guys offer when you show people that they follow do they say too good to be true I mean what are some of the things that people say when you kind of show them that are they like scratch their head like come on what's the what's the catch here right so the cost savings is a huge is huge for us um and then also you know like I said working as a force multiplier with a pen testing company that offers the services and so they can they can do their their annual manual pen tests that may be required around compliance regulations and then we can we can act as the continuous verification of their security um um you know that that they can run um weekly and so it's just um you know it's just an addition to to what they're offering already and an expansion so Jennifer thanks for coming on thecube really appreciate you uh coming on sharing the insights on the channel uh what's next what can we expect from the channel group what are you thinking what's going on right so we're really looking to expand our our Channel um footprint and um very strategically uh we've got um we've got some big plans um for for Horizon 3.ai awesome well thanks for coming on really appreciate it you're watching thecube the leader in high tech Enterprise coverage [Music] [Music] hello and welcome to the Cube's special presentation with Horizon 3.ai with Raina Richter vice president of emea Europe Middle East and Africa and Asia Pacific APAC for Horizon 3 today welcome to this special Cube presentation thanks for joining us thank you for the invitation so Horizon 3 a guy driving Global expansion big international news with a partner first approach you guys are expanding internationally let's get into it you guys are driving this new expanse partner program to new heights tell us about it what are you seeing in the momentum why the expansion what's all the news about well I would say uh yeah in in international we have I would say a similar similar situation like in the US um there is a global shortage of well-educated penetration testers on the one hand side on the other side um we have a raising demand of uh network and infrastructure security and with our approach of an uh autonomous penetration testing I I believe we are totally on top of the game um especially as we have also now uh starting with an international instance that means for example if a customer in Europe is using uh our service node zero he will be connected to a node zero instance which is located inside the European Union and therefore he has doesn't have to worry about the conflict between the European the gdpr regulations versus the US Cloud act and I would say there we have a total good package for our partners that they can provide differentiators to their customers you know we've had great conversations here on thecube with the CEO and the founder of the company around the leverage of the cloud and how successful that's been for the company and honestly I can just Connect the Dots here but I'd like you to weigh in more on how that translates into the go to market here because you got great Cloud scale with with the security product you guys are having success with great leverage there I've seen a lot of success there what's the momentum on the channel partner program internationally why is it so important to you is it just the regional segmentation is it the economics why the momentum well there are it's there are multiple issues first of all there is a raising demand in penetration testing um and don't forget that uh in international we have a much higher level in number a number or percentage in SMB and mid-market customers so these customers typically most of them even didn't have a pen test done once a year so for them pen testing was just too expensive now with our offering together with our partners we can provide different uh ways how customers could get an autonomous pen testing done more than once a year with even lower costs than they had with with a traditional manual paint test so and that is because we have our uh Consulting plus package which is for typically pain testers they can go out and can do a much faster much quicker and their pain test at many customers once in after each other so they can do more pain tests on a lower more attractive price on the other side there are others what even the same ones who are providing um node zero as an mssp service so they can go after s p customers saying okay well you only have a couple of hundred uh IP addresses no worries we have the perfect package for you and then you have let's say the mid Market let's say the thousands and more employees then they might even have an annual subscription very traditional but for all of them it's all the same the customer or the service provider doesn't need a piece of Hardware they only need to install a small piece of a Docker container and that's it and that makes it so so smooth to go in and say okay Mr customer we just put in this this virtual attacker into your network and that's it and and all the rest is done and within within three clicks they are they can act like a pen tester with 20 years of experience and that's going to be very Channel friendly and partner friendly I can almost imagine so I have to ask you and thank you for calling the break calling out that breakdown and and segmentation that was good that was very helpful for me to understand but I want to follow up if you don't mind um what type of partners are you seeing the most traction with and why well I would say at the beginning typically you have the the innovators the early adapters typically Boutique size of Partners they start because they they are always looking for Innovation and those are the ones you they start in the beginning so we have a wide range of Partners having mostly even um managed by the owner of the company so uh they immediately understand okay there is the value and they can change their offering they're changing their offering in terms of penetration testing because they can do more pen tests and they can then add other ones or we have those ones who offer 10 tests services but they did not have their own pen testers so they had to go out on the open market and Source paint testing experts um to get the pen test at a particular customer done and now with node zero they're totally independent they can't go out and say okay Mr customer here's the here's the service that's it we turn it on and within an hour you're up and running totally yeah and those pen tests are usually expensive and hard to do now it's right in line with the sales delivery pretty interesting for a partner absolutely but on the other hand side we are not killing the pain testers business we do something we're providing with no tiers I would call something like the foundation work the foundational work of having an an ongoing penetration testing of the infrastructure the operating system and the pen testers by themselves they can concentrate in the future on things like application pen testing for example so those Services which we we're not touching so we're not killing the paint tester Market we're just taking away the ongoing um let's say foundation work call it that way yeah yeah that was one of my questions I was going to ask is there's a lot of interest in this autonomous pen testing one because it's expensive to do because those skills are required are in need and they're expensive so you kind of cover the entry level and the blockers that are in there I've seen people say to me this pen test becomes a blocker for getting things done so there's been a lot of interest in the autonomous pen testing and for organizations to have that posture and it's an overseas issue too because now you have that that ongoing thing so can you explain that particular benefit for an organization to have that continuously verifying an organization's posture yep certainly so I would say um typically you are you you have to do your patches you have to bring in new versions of operating systems of different Services of uh um operating systems of some components and and they are always bringing new vulnerabilities the difference here is that with node zero we are telling the customer or the partner package we're telling them which are the executable vulnerabilities because previously they might have had um a vulnerability scanner so this vulnerability scanner brought up hundreds or even thousands of cves but didn't say anything about which of them are vulnerable really executable and then you need an expert digging in one cve after the other finding out is it is it really executable yes or no and that is where you need highly paid experts which we have a shortage so with notes here now we can say okay we tell you exactly which ones are the ones you should work on because those are the ones which are executable we rank them accordingly to the risk level how easily they can be used and by a sudden and then the good thing is convert it or indifference to the traditional penetration test they don't have to wait for a year for the next pain test to find out if the fixing was effective they weren't just the next scan and say Yes closed vulnerability is gone the time is really valuable and if you're doing any devops Cloud native you're always pushing new things so pen test ongoing pen testing is actually a benefit just in general as a kind of hygiene so really really interesting solution really bring that global scale is going to be a new new coverage area for us for sure I have to ask you if you don't mind answering what particular region are you focused on or plan to Target for this next phase of growth well at this moment we are concentrating on the countries inside the European Union Plus the United Kingdom um but we are and they are of course logically I'm based into Frankfurt area that means we cover more or less the countries just around so it's like the total dark region Germany Switzerland Austria plus the Netherlands but we also already have Partners in the nordics like in Finland or in Sweden um so it's it's it it's rapidly we have Partners already in the UK and it's rapidly growing so I'm for example we are now starting with some activities in Singapore um um and also in the in the Middle East area um very important we uh depending on let's say the the way how to do business currently we try to concentrate on those countries where we can have um let's say um at least English as an accepted business language great is there any particular region you're having the most success with right now is it sounds like European Union's um kind of first wave what's them yes that's the first definitely that's the first wave and now we're also getting the uh the European instance up and running it's clearly our commitment also to the market saying okay we know there are certain dedicated uh requirements and we take care of this and and we're just launching it we're building up this one uh the instance um in the AWS uh service center here in Frankfurt also with some dedicated Hardware internet in a data center in Frankfurt where we have with the date six by the way uh the highest internet interconnection bandwidth on the planet so we have very short latency to wherever you are on on the globe that's a great that's a great call outfit benefit too I was going to ask that what are some of the benefits your partners are seeing in emea and Asia Pacific well I would say um the the benefits is for them it's clearly they can they can uh talk with customers and can offer customers penetration testing which they before and even didn't think about because it penetrates penetration testing in a traditional way was simply too expensive for them too complex the preparation time was too long um they didn't have even have the capacity uh to um to support a pain an external pain tester now with this service you can go in and say even if they Mr customer we can do a test with you in a couple of minutes within we have installed the docker container within 10 minutes we have the pen test started that's it and then we just wait and and I would say that is we'll we are we are seeing so many aha moments then now because on the partner side when they see node zero the first time working it's like this wow that is great and then they work out to customers and and show it to their typically at the beginning mostly the friendly customers like wow that's great I need that and and I would say um the feedback from the partners is that is a service where I do not have to evangelize the customer everybody understands penetration testing I don't have to say describe what it is they understand the customer understanding immediately yes penetration testing good about that I know I should do it but uh too complex too expensive now with the name is for example as an mssp service provided from one of our partners but it's getting easy yeah it's great and it's great great benefit there I mean I gotta say I'm a huge fan of what you guys are doing I like this continuous automation that's a major benefit to anyone doing devops or any kind of modern application development this is just a godsend for them this is really good and like you said the pen testers that are doing it they were kind of coming down from their expertise to kind of do things that should have been automated they get to focus on the bigger ticket items that's a really big point so we free them we free the pain testers for the higher level elements of the penetration testing segment and that is typically the application testing which is currently far away from being automated yeah and that's where the most critical workloads are and I think this is the nice balance congratulations on the international expansion of the program and thanks for coming on this special presentation really I really appreciate it thank you you're welcome okay this is thecube special presentation you know check out pen test automation International expansion Horizon 3 dot AI uh really Innovative solution in our next segment Chris Hill sector head for strategic accounts will discuss the power of Horizon 3.ai and Splunk in action you're watching the cube the leader in high tech Enterprise coverage foreign [Music] [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're with Chris Hill sector head for strategic accounts and federal at Horizon 3.ai a great Innovative company Chris great to see you thanks for coming on thecube yeah like I said uh you know great to meet you John long time listener first time caller so excited to be here with you guys yeah we were talking before camera you had Splunk back in 2013 and I think 2012 was our first splunk.com and boy man you know talk about being in the right place at the right time now we're at another inflection point and Splunk continues to be relevant um and continuing to have that data driving Security in that interplay and your CEO former CTO of his plug as well at Horizon who's been on before really Innovative product you guys have but you know yeah don't wait for a breach to find out if you're logging the right data this is the topic of this thread Splunk is very much part of this new international expansion announcement uh with you guys tell us what are some of the challenges that you see where this is relevant for the Splunk and Horizon AI as you guys expand uh node zero out internationally yeah well so across so you know my role uh within Splunk it was uh working with our most strategic accounts and so I looked back to 2013 and I think about the sales process like working with with our small customers you know it was um it was still very siled back then like I was selling to an I.T team that was either using this for it operations um we generally would always even say yeah although we do security we weren't really designed for it we're a log management tool and we I'm sure you remember back then John we were like sort of stepping into the security space and and the public sector domain that I was in you know security was 70 of what we did when I look back to sort of uh the transformation that I was witnessing in that digital transformation um you know when I look at like 2019 to today you look at how uh the IT team and the security teams are being have been forced to break down those barriers that they used to sort of be silent away would not commute communicate one you know the security guys would be like oh this is my box I.T you're not allowed in today you can't get away with that and I think that the value that we bring to you know and of course Splunk has been a huge leader in that space and continues to do Innovation across the board but I think what we've we're seeing in the space and I was talking with Patrick Coughlin the SVP of uh security markets about this is that you know what we've been able to do with Splunk is build a purpose-built solution that allows Splunk to eat more data so Splunk itself is ulk know it's an ingest engine right the great reason people bought it was you could build these really fast dashboards and grab intelligence out of it but without data it doesn't do anything right so how do you drive and how do you bring more data in and most importantly from a customer perspective how do you bring the right data in and so if you think about what node zero and what we're doing in a horizon 3 is that sure we do pen testing but because we're an autonomous pen testing tool we do it continuously so this whole thought I'd be like oh crud like my customers oh yeah we got a pen test coming up it's gonna be six weeks the week oh yeah you know and everyone's gonna sit on their hands call me back in two months Chris we'll talk to you then right not not a real efficient way to test your environment and shoot we saw that with Uber this week right um you know and that's a case where we could have helped oh just right we could explain the Uber thing because it was a contractor just give a quick highlight of what happened so you can connect the doctor yeah no problem so um it was uh I got I think it was yeah one of those uh you know games where they would try and test an environment um and with the uh pen tester did was he kept on calling them MFA guys being like I need to reset my password we need to set my right password and eventually the um the customer service guy said okay I'm resetting it once he had reset and bypassed the multi-factor authentication he then was able to get in and get access to the building area that he was in or I think not the domain but he was able to gain access to a partial part of that Network he then paralleled over to what I would assume is like a VA VMware or some virtual machine that had notes that had all of the credentials for logging into various domains and So within minutes they had access and that's the sort of stuff that we do you know a lot of these tools like um you know you think about the cacophony of tools that are out there in a GTA architect architecture right I'm gonna get like a z-scale or I'm going to have uh octum and I have a Splunk I've been into the solar system I mean I don't mean to name names we have crowdstriker or Sentinel one in there it's just it's a cacophony of things that don't work together they weren't designed work together and so we have seen so many times in our business through our customer support and just working with customers when we do their pen tests that there will be 5 000 servers out there three are misconfigured those three misconfigurations will create the open door because remember the hacker only needs to be right once the defender needs to be right all the time and that's the challenge and so that's what I'm really passionate about what we're doing uh here at Horizon three I see this my digital transformation migration and security going on which uh we're at the tip of the spear it's why I joined sey Hall coming on this journey uh and just super excited about where the path's going and super excited about the relationship with Splunk I get into more details on some of the specifics of that but um you know well you're nailing I mean we've been doing a lot of things on super cloud and this next gen environment we're calling it next gen you're really seeing devops obviously devsecops has already won the it role has moved to the developer shift left is an indicator of that it's one of the many examples higher velocity code software supply chain you hear these things that means that it is now in the developer hands it is replaced by the new Ops data Ops teams and security where there's a lot of horizontal thinking to your point about access there's no more perimeter huge 100 right is really right on things one time you know to get in there once you're in then you can hang out move around move laterally big problem okay so we get that now the challenges for these teams as they are transitioning organizationally how do they figure out what to do okay this is the next step they already have Splunk so now they're kind of in transition while protecting for a hundred percent ratio of success so how would you look at that and describe the challenge is what do they do what is it what are the teams facing with their data and what's next what are they what are they what action do they take so let's use some vernacular that folks will know so if I think about devsecops right we both know what that means that I'm going to build security into the app it normally talks about sec devops right how am I building security around the perimeter of what's going inside my ecosystem and what are they doing and so if you think about what we're able to do with somebody like Splunk is we can pen test the entire environment from Soup To Nuts right so I'm going to test the end points through to its I'm going to look for misconfigurations I'm going to I'm going to look for um uh credential exposed credentials you know I'm going to look for anything I can in the environment again I'm going to do it at light speed and and what what we're doing for that SEC devops space is to you know did you detect that we were in your environment so did we alert Splunk or the Sim that there's someone in the environment laterally moving around did they more importantly did they log us into their environment and when do they detect that log to trigger that log did they alert on us and then finally most importantly for every CSO out there is going to be did they stop us and so that's how we we do this and I think you when speaking with um stay Hall before you know we've come up with this um boils but we call it fine fix verifying so what we do is we go in is we act as the attacker right we act in a production environment so we're not going to be we're a passive attacker but we will go in on credentialed on agents but we have to assume to have an assumed breach model which means we're going to put a Docker container in your environment and then we're going to fingerprint the environment so we're going to go out and do an asset survey now that's something that's not something that Splunk does super well you know so can Splunk see all the assets do the same assets marry up we're going to log all that data and think and then put load that into this long Sim or the smoke logging tools just to have it in Enterprise right that's an immediate future ad that they've got um and then we've got the fix so once we've completed our pen test um we are then going to generate a report and we can talk about these in a little bit later but the reports will show an executive summary the assets that we found which would be your asset Discovery aspect of that a fix report and the fixed report I think is probably the most important one it will go down and identify what we did how we did it and then how to fix that and then from that the pen tester or the organization should fix those then they go back and run another test and then they validate like a change detection environment to see hey did those fixes taste play take place and you know snehaw when he was the CTO of jsoc he shared with me a number of times about it's like man there would be 15 more items on next week's punch sheet that we didn't know about and it's and it has to do with how we you know how they were uh prioritizing the cves and whatnot because they would take all CBDs it was critical or non-critical and it's like we are able to create context in that environment that feeds better information into Splunk and whatnot that brings that brings up the efficiency for Splunk specifically the teams out there by the way the burnout thing is real I mean this whole I just finished my list and I got 15 more or whatever the list just can keeps growing how did node zero specifically help Splunk teams be more efficient like that's the question I want to get at because this seems like a very scale way for Splunk customers and teams service teams to be more so the question is how does node zero help make Splunk specifically their service teams be more efficient so so today in our early interactions we're building customers we've seen are five things um and I'll start with sort of identifying the blind spots right so kind of what I just talked about with you did we detect did we log did we alert did they stop node zero right and so I would I put that you know a more Layman's third grade term and if I was going to beat a fifth grader at this game would be we can be the sparring partner for a Splunk Enterprise customer a Splunk Essentials customer someone using Splunk soar or even just an Enterprise Splunk customer that may be a small shop with three people and just wants to know where am I exposed so by creating and generating these reports and then having um the API that actually generates the dashboard they can take all of these events that we've logged and log them in and then where that then comes in is number two is how do we prioritize those logs right so how do we create visibility to logs that that um are have critical impacts and again as I mentioned earlier not all cves are high impact regard and also not all or low right so if you daisy chain a bunch of low cves together boom I've got a mission critical AP uh CPE that needs to be fixed now such as a credential moving to an NT box that's got a text file with a bunch of passwords on it that would be very bad um and then third would be uh verifying that you have all of the hosts so one of the things that splunk's not particularly great at and they'll literate themselves they don't do asset Discovery so dude what assets do we see and what are they logging from that um and then for from um for every event that they are able to identify one of the cool things that we can do is actually create this low code no code environment so they could let you know Splunk customers can use Splunk sword to actually triage events and prioritize that event so where they're being routed within it to optimize the Sox team time to Market or time to triage any given event obviously reducing MTR and then finally I think one of the neatest things that we'll be seeing us develop is um our ability to build glass cables so behind me you'll see one of our triage events and how we build uh a Lockheed Martin kill chain on that with a glass table which is very familiar to the community we're going to have the ability and not too distant future to allow people to search observe on those iocs and if people aren't familiar with it ioc it's an instant of a compromise so that's a vector that we want to drill into and of course who's better at Drilling in the data and smoke yeah this is a critter this is an awesome Synergy there I mean I can see a Splunk customer going man this just gives me so much more capability action actionability and also real understanding and I think this is what I want to dig into if you don't mind understanding that critical impact okay is kind of where I see this coming got the data data ingest now data's data but the question is what not to log you know where are things misconfigured these are critical questions so can you talk about what it means to understand critical impact yeah so I think you know going back to the things that I just spoke about a lot of those cves where you'll see um uh low low low and then you daisy chain together and they're suddenly like oh this is high now but then your other impact of like if you're if you're a Splunk customer you know and I had it I had several of them I had one customer that you know terabytes of McAfee data being brought in and it was like all right there's a lot of other data that you probably also want to bring but they could only afford wanted to do certain data sets because that's and they didn't know how to prioritize or filter those data sets and so we provide that opportunity to say hey these are the critical ones to bring in but there's also the ones that you don't necessarily need to bring in because low cve in this case really does mean low cve like an ILO server would be one that um that's the print server uh where the uh your admin credentials are on on like a printer and so there will be credentials on that that's something that a hacker might go in to look at so although the cve on it is low is if you daisy chain with somebody that's able to get into that you might say Ah that's high and we would then potentially rank it giving our AI logic to say that's a moderate so put it on the scale and we prioritize those versus uh of all of these scanners just going to give you a bunch of CDs and good luck and translating that if I if I can and tell me if I'm wrong that kind of speaks to that whole lateral movement that's it challenge right print serve a great example looks stupid low end who's going to want to deal with the print server oh but it's connected into a critical system there's a path is that kind of what you're getting at yeah I use Daisy Chain I think that's from the community they came from uh but it's just a lateral movement it's exactly what they're doing in those low level low critical lateral movements is where the hackers are getting in right so that's the beauty thing about the uh the Uber example is that who would have thought you know I've got my monthly Factor authentication going in a human made a mistake we can't we can't not expect humans to make mistakes we're fallible right the reality is is once they were in the environment they could have protected themselves by running enough pen tests to know that they had certain uh exposed credentials that would have stopped the breach and they did not had not done that in their environment and I'm not poking yeah but it's an interesting Trend though I mean it's obvious if sometimes those low end items are also not protected well so it's easy to get at from a hacker standpoint but also the people in charge of them can be fished easily or spearfished because they're not paying attention because they don't have to no one ever told them hey be careful yeah for the community that I came from John that's exactly how they they would uh meet you at a uh an International Event um introduce themselves as a graduate student these are National actor States uh would you mind reviewing my thesis on such and such and I was at Adobe at the time that I was working on this instead of having to get the PDF they opened the PDF and whoever that customer was launches and I don't know if you remember back in like 2008 time frame there was a lot of issues around IP being by a nation state being stolen from the United States and that's exactly how they did it and John that's or LinkedIn hey I want to get a joke we want to hire you double the salary oh I'm gonna click on that for sure you know yeah right exactly yeah the one thing I would say to you is like uh when we look at like sort of you know because I think we did 10 000 pen tests last year is it's probably over that now you know we have these sort of top 10 ways that we think and find people coming into the environment the funniest thing is that only one of them is a cve related vulnerability like uh you know you guys know what they are right so it's it but it's it's like two percent of the attacks are occurring through the cves but yeah there's all that attention spent to that and very little attention spent to this pen testing side which is sort of this continuous threat you know monitoring space and and this vulnerability space where I think we play a such an important role and I'm so excited to be a part of the tip of the spear on this one yeah I'm old enough to know the movie sneakers which I loved as a you know watching that movie you know professional hackers are testing testing always testing the environment I love this I got to ask you as we kind of wrap up here Chris if you don't mind the the benefits to Professional Services from this Alliance big news Splunk and you guys work well together we see that clearly what are what other benefits do Professional Services teams see from the Splunk and Horizon 3.ai Alliance so if you're I think for from our our from both of our uh Partners uh as we bring these guys together and many of them already are the same partner right uh is that uh first off the licensing model is probably one of the key areas that we really excel at so if you're an end user you can buy uh for the Enterprise by the number of IP addresses you're using um but uh if you're a partner working with this there's solution ways that you can go in and we'll license as to msps and what that business model on msps looks like but the unique thing that we do here is this C plus license and so the Consulting plus license allows like a uh somebody a small to mid-sized to some very large uh you know Fortune 100 uh consulting firms use this uh by buying into a license called um Consulting plus where they can have unlimited uh access to as many IPS as they want but you can only run one test at a time and as you can imagine when we're going and hacking passwords and um checking hashes and decrypting hashes that can take a while so but for the right customer it's it's a perfect tool and so I I'm so excited about our ability to go to market with uh our partners so that we understand ourselves understand how not to just sell to or not tell just to sell through but we know how to sell with them as a good vendor partner I think that that's one thing that we've done a really good job building bring it into the market yeah I think also the Splunk has had great success how they've enabled uh partners and Professional Services absolutely you know the services that layer on top of Splunk are multi-fold tons of great benefits so you guys Vector right into that ride that way with friction and and the cool thing is that in you know in one of our reports which could be totally customized uh with someone else's logo we're going to generate you know so I I used to work in another organization it wasn't Splunk but we we did uh you know pen testing as for for customers and my pen testers would come on site they'd do the engagement and they would leave and then another release someone would be oh shoot we got another sector that was breached and they'd call you back you know four weeks later and so by August our entire pen testings teams would be sold out and it would be like well even in March maybe and they're like no no I gotta breach now and and and then when they do go in they go through do the pen test and they hand over a PDF and they pack on the back and say there's where your problems are you need to fix it and the reality is that what we're going to generate completely autonomously with no human interaction is we're going to go and find all the permutations of anything we found and the fix for those permutations and then once you've fixed everything you just go back and run another pen test it's you know for what people pay for one pen test they can have a tool that does that every every Pat patch on Tuesday and that's on Wednesday you know triage throughout the week green yellow red I wanted to see the colors show me green green is good right not red and one CIO doesn't want who doesn't want that dashboard right it's it's exactly it and we can help bring I think that you know I'm really excited about helping drive this with the Splunk team because they get that they understand that it's the green yellow red dashboard and and how do we help them find more green uh so that the other guys are in red yeah and get in the data and do the right thing and be efficient with how you use the data know what to look at so many things to pay attention to you know the combination of both and then go to market strategy real brilliant congratulations Chris thanks for coming on and sharing um this news with the detail around the Splunk in action around the alliance thanks for sharing John my pleasure thanks look forward to seeing you soon all right great we'll follow up and do another segment on devops and I.T and security teams as the new new Ops but and super cloud a bunch of other stuff so thanks for coming on and our next segment the CEO of horizon 3.aa will break down all the new news for us here on thecube you're watching thecube the leader in high tech Enterprise coverage [Music] yeah the partner program for us has been fantastic you know I think prior to that you know as most organizations most uh uh most Farmers most mssps might not necessarily have a a bench at all for penetration testing uh maybe they subcontract this work out or maybe they do it themselves but trying to staff that kind of position can be incredibly difficult for us this was a differentiator a a new a new partner a new partnership that allowed us to uh not only perform services for our customers but be able to provide a product by which that they can do it themselves so we work with our customers in a variety of ways some of them want more routine testing and perform this themselves but we're also a certified service provider of horizon 3 being able to perform uh penetration tests uh help review the the data provide color provide analysis for our customers in a broader sense right not necessarily the the black and white elements of you know what was uh what's critical what's high what's medium what's low what you need to fix but are there systemic issues this has allowed us to onboard new customers this has allowed us to migrate some penetration testing services to us from from competitors in the marketplace But ultimately this is occurring because the the product and the outcome are special they're unique and they're effective our customers like what they're seeing they like the routineness of it many of them you know again like doing this themselves you know being able to kind of pen test themselves parts of their networks um and the the new use cases right I'm a large organization I have eight to ten Acquisitions per year wouldn't it be great to have a tool to be able to perform a penetration test both internal and external of that acquisition before we integrate the two companies and maybe bringing on some risk it's a very effective partnership uh one that really is uh kind of taken our our Engineers our account Executives by storm um you know this this is a a partnership that's been very valuable to us [Music] a key part of the value and business model at Horizon 3 is enabling Partners to leverage node zero to make more revenue for themselves our goal is that for sixty percent of our Revenue this year will be originated by partners and that 95 of our Revenue next year will be originated by partners and so a key to that strategy is making us an integral part of your business models as a partner a key quote from one of our partners is that we enable every one of their business units to generate Revenue so let's talk about that in a little bit more detail first is that if you have a pen test Consulting business take Deloitte as an example what was six weeks of human labor at Deloitte per pen test has been cut down to four days of Labor using node zero to conduct reconnaissance find all the juicy interesting areas of the of the Enterprise that are exploitable and being able to go assess the entire organization and then all of those details get served up to the human to be able to look at understand and determine where to probe deeper so what you see in that pen test Consulting business is that node zero becomes a force multiplier where those Consulting teams were able to cover way more accounts and way more IPS within those accounts with the same or fewer consultants and so that directly leads to profit margin expansion for the Penn testing business itself because node 0 is a force multiplier the second business model here is if you're an mssp as an mssp you're already making money providing defensive cyber security operations for a large volume of customers and so what they do is they'll license node zero and use us as an upsell to their mssb business to start to deliver either continuous red teaming continuous verification or purple teaming as a service and so in that particular business model they've got an additional line of Revenue where they can increase the spend of their existing customers by bolting on node 0 as a purple team as a service offering the third business model or customer type is if you're an I.T services provider so as an I.T services provider you make money installing and configuring security products like Splunk or crowdstrike or hemio you also make money reselling those products and you also make money generating follow-on services to continue to harden your customer environments and so for them what what those it service providers will do is use us to verify that they've installed Splunk correctly improved to their customer that Splunk was installed correctly or crowdstrike was installed correctly using our results and then use our results to drive follow-on services and revenue and then finally we've got the value-added reseller which is just a straight up reseller because of how fast our sales Cycles are these vars are able to typically go from cold email to deal close in six to eight weeks at Horizon 3 at least a single sales engineer is able to run 30 to 50 pocs concurrently because our pocs are very lightweight and don't require any on-prem customization or heavy pre-sales post sales activity so as a result we're able to have a few amount of sellers driving a lot of Revenue and volume for us well the same thing applies to bars there isn't a lot of effort to sell the product or prove its value so vars are able to sell a lot more Horizon 3 node zero product without having to build up a huge specialist sales organization so what I'm going to do is talk through uh scenario three here as an I.T service provider and just how powerful node zero can be in driving additional Revenue so in here think of for every one dollar of node zero license purchased by the IT service provider to do their business it'll generate ten dollars of additional revenue for that partner so in this example kidney group uses node 0 to verify that they have installed and deployed Splunk correctly so Kitty group is a Splunk partner they they sell it services to install configure deploy and maintain Splunk and as they deploy Splunk they're going to use node 0 to attack the environment and make sure that the right logs and alerts and monitoring are being handled within the Splunk deployment so it's a way of doing QA or verifying that Splunk has been configured correctly and that's going to be internally used by kidney group to prove the quality of their services that they've just delivered then what they're going to do is they're going to show and leave behind that node zero Report with their client and that creates a resell opportunity for for kidney group to resell node 0 to their client because their client is seeing the reports and the results and saying wow this is pretty amazing and those reports can be co-branded where it's a pen testing report branded with kidney group but it says powered by Horizon three under it from there kidney group is able to take the fixed actions report that's automatically generated with every pen test through node zero and they're able to use that as the starting point for a statement of work to sell follow-on services to fix all of the problems that node zero identified fixing l11r misconfigurations fixing or patching VMware or updating credentials policies and so on so what happens is node 0 has found a bunch of problems the client often lacks the capacity to fix and so kidney group can use that lack of capacity by the client as a follow-on sales opportunity for follow-on services and finally based on the findings from node zero kidney group can look at that report and say to the customer you know customer if you bought crowdstrike you'd be able to uh prevent node Zero from attacking and succeeding in the way that it did for if you bought humano or if you bought Palo Alto networks or if you bought uh some privileged access management solution because of what node 0 was able to do with credential harvesting and attacks and so as a result kidney group is able to resell other security products within their portfolio crowdstrike Falcon humano Polito networks demisto Phantom and so on based on the gaps that were identified by node zero and that pen test and what that creates is another feedback loop where kidney group will then go use node 0 to verify that crowdstrike product has actually been installed and configured correctly and then this becomes the cycle of using node 0 to verify a deployment using that verification to drive a bunch of follow-on services and resell opportunities which then further drives more usage of the product now the way that we licensed is that it's a usage-based license licensing model so that the partner will grow their node zero Consulting plus license as they grow their business so for example if you're a kidney group then week one you've got you're going to use node zero to verify your Splunk install in week two if you have a pen testing business you're going to go off and use node zero to be a force multiplier for your pen testing uh client opportunity and then if you have an mssp business then in week three you're going to use node zero to go execute a purple team mssp offering for your clients so not necessarily a kidney group but if you're a Deloitte or ATT these larger companies and you've got multiple lines of business if you're Optive for instance you all you have to do is buy one Consulting plus license and you're going to be able to run as many pen tests as you want sequentially so now you can buy a single license and use that one license to meet your week one client commitments and then meet your week two and then meet your week three and as you grow your business you start to run multiple pen tests concurrently so in week one you've got to do a Splunk verify uh verify Splunk install and you've got to run a pen test and you've got to do a purple team opportunity you just simply expand the number of Consulting plus licenses from one license to three licenses and so now as you systematically grow your business you're able to grow your node zero capacity with you giving you predictable cogs predictable margins and once again 10x additional Revenue opportunity for that investment in the node zero Consulting plus license my name is Saint I'm the co-founder and CEO here at Horizon 3. I'm going to talk to you today about why it's important to look at your Enterprise Through The Eyes of an attacker the challenge I had when I was a CIO in banking the CTO at Splunk and serving within the Department of Defense is that I had no idea I was Secure until the bad guys had showed up am I logging the right data am I fixing the right vulnerabilities are my security tools that I've paid millions of dollars for actually working together to defend me and the answer is I don't know does my team actually know how to respond to a breach in the middle of an incident I don't know I've got to wait for the bad guys to show up and so the challenge I had was how do we proactively verify our security posture I tried a variety of techniques the first was the use of vulnerability scanners and the challenge with vulnerability scanners is being vulnerable doesn't mean you're exploitable I might have a hundred thousand findings from my scanner of which maybe five or ten can actually be exploited in my environment the other big problem with scanners is that they can't chain weaknesses together from machine to machine so if you've got a thousand machines in your environment or more what a vulnerability scanner will do is tell you you have a problem on machine one and separately a problem on machine two but what they can tell you is that an attacker could use a load from machine one plus a low from machine two to equal to critical in your environment and what attackers do in their tactics is they chain together misconfigurations dangerous product defaults harvested credentials and exploitable vulnerabilities into attack paths across different machines so to address the attack pads across different machines I tried layering in consulting-based pen testing and the issue is when you've got thousands of hosts or hundreds of thousands of hosts in your environment human-based pen testing simply doesn't scale to test an infrastructure of that size moreover when they actually do execute a pen test and you get the report oftentimes you lack the expertise within your team to quickly retest to verify that you've actually fixed the problem and so what happens is you end up with these pen test reports that are incomplete snapshots and quickly going stale and then to mitigate that problem I tried using breach and attack simulation tools and the struggle with these tools is one I had to install credentialed agents everywhere two I had to write my own custom attack scripts that I didn't have much talent for but also I had to maintain as my environment changed and then three these types of tools were not safe to run against production systems which was the the majority of my attack surface so that's why we went off to start Horizon 3. so Tony and I met when we were in Special Operations together and the challenge we wanted to solve was how do we do infrastructure security testing at scale by giving the the power of a 20-year pen testing veteran into the hands of an I.T admin a network engineer in just three clicks and the whole idea is we enable these fixers The Blue Team to be able to run node Zero Hour pen testing product to quickly find problems in their environment that blue team will then then go off and fix the issues that were found and then they can quickly rerun the attack to verify that they fixed the problem and the whole idea is delivering this without requiring custom scripts be developed without requiring credential agents be installed and without requiring the use of external third-party consulting services or Professional Services self-service pen testing to quickly Drive find fix verify there are three primary use cases that our customers use us for the first is the sock manager that uses us to verify that their security tools are actually effective to verify that they're logging the right data in Splunk or in their Sim to verify that their managed security services provider is able to quickly detect and respond to an attack and hold them accountable for their slas or that the sock understands how to quickly detect and respond and measuring and verifying that or that the variety of tools that you have in your stack most organizations have 130 plus cyber security tools none of which are designed to work together are actually working together the second primary use case is proactively hardening and verifying your systems this is when the I that it admin that network engineer they're able to run self-service pen tests to verify that their Cisco environment is installed in hardened and configured correctly or that their credential policies are set up right or that their vcenter or web sphere or kubernetes environments are actually designed to be secure and what this allows the it admins and network Engineers to do is shift from running one or two pen tests a year to 30 40 or more pen tests a month and you can actually wire those pen tests into your devops process or into your detection engineering and the change management processes to automatically trigger pen tests every time there's a change in your environment the third primary use case is for those organizations lucky enough to have their own internal red team they'll use node zero to do reconnaissance and exploitation at scale and then use the output as a starting point for the humans to step in and focus on the really hard juicy stuff that gets them on stage at Defcon and so these are the three primary use cases and what we'll do is zoom into the find fix verify Loop because what I've found in my experience is find fix verify is the future operating model for cyber security organizations and what I mean here is in the find using continuous pen testing what you want to enable is on-demand self-service pen tests you want those pen tests to find attack pads at scale spanning your on-prem infrastructure your Cloud infrastructure and your perimeter because attackers don't only state in one place they will find ways to chain together a perimeter breach a credential from your on-prem to gain access to your cloud or some other permutation and then the third part in continuous pen testing is attackers don't focus on critical vulnerabilities anymore they know we've built vulnerability Management Programs to reduce those vulnerabilities so attackers have adapted and what they do is chain together misconfigurations in your infrastructure and software and applications with dangerous product defaults with exploitable vulnerabilities and through the collection of credentials through a mix of techniques at scale once you've found those problems the next question is what do you do about it well you want to be able to prioritize fixing problems that are actually exploitable in your environment that truly matter meaning they're going to lead to domain compromise or domain user compromise or access your sensitive data the second thing you want to fix is making sure you understand what risk your crown jewels data is exposed to where is your crown jewels data is in the cloud is it on-prem has it been copied to a share drive that you weren't aware of if a domain user was compromised could they access that crown jewels data you want to be able to use the attacker's perspective to secure the critical data you have in your infrastructure and then finally as you fix these problems you want to quickly remediate and retest that you've actually fixed the issue and this fine fix verify cycle becomes that accelerator that drives purple team culture the third part here is verify and what you want to be able to do in the verify step is verify that your security tools and processes in people can effectively detect and respond to a breach you want to be able to integrate that into your detection engineering processes so that you know you're catching the right security rules or that you've deployed the right configurations you also want to make sure that your environment is adhering to the best practices around systems hardening in cyber resilience and finally you want to be able to prove your security posture over a time to your board to your leadership into your regulators so what I'll do now is zoom into each of these three steps so when we zoom in to find here's the first example using node 0 and autonomous pen testing and what an attacker will do is find a way to break through the perimeter in this example it's very easy to misconfigure kubernetes to allow an attacker to gain remote code execution into your on-prem kubernetes environment and break through the perimeter and from there what the attacker is going to do is conduct Network reconnaissance and then find ways to gain code execution on other machines in the environment and as they get code execution they start to dump credentials collect a bunch of ntlm hashes crack those hashes using open source and dark web available data as part of those attacks and then reuse those credentials to log in and laterally maneuver throughout the environment and then as they loudly maneuver they can reuse those credentials and use credential spraying techniques and so on to compromise your business email to log in as admin into your cloud and this is a very common attack and rarely is a CV actually needed to execute this attack often it's just a misconfiguration in kubernetes with a bad credential policy or password policy combined with bad practices of credential reuse across the organization here's another example of an internal pen test and this is from an actual customer they had 5 000 hosts within their environment they had EDR and uba tools installed and they initiated in an internal pen test on a single machine from that single initial access point node zero enumerated the network conducted reconnaissance and found five thousand hosts were accessible what node 0 will do under the covers is organize all of that reconnaissance data into a knowledge graph that we call the Cyber terrain map and that cyber Terrain map becomes the key data structure that we use to efficiently maneuver and attack and compromise your environment so what node zero will do is they'll try to find ways to get code execution reuse credentials and so on in this customer example they had Fortinet installed as their EDR but node 0 was still able to get code execution on a Windows machine from there it was able to successfully dump credentials including sensitive credentials from the lsas process on the Windows box and then reuse those credentials to log in as domain admin in the network and once an attacker becomes domain admin they have the keys to the kingdom they can do anything they want so what happened here well it turns out Fortinet was misconfigured on three out of 5000 machines bad automation the customer had no idea this had happened they would have had to wait for an attacker to show up to realize that it was misconfigured the second thing is well why didn't Fortinet stop the credential pivot in the lateral movement and it turned out the customer didn't buy the right modules or turn on the right services within that particular product and we see this not only with Ford in it but we see this with Trend Micro and all the other defensive tools where it's very easy to miss a checkbox in the configuration that will do things like prevent credential dumping the next story I'll tell you is attackers don't have to hack in they log in so another infrastructure pen test a typical technique attackers will take is man in the middle uh attacks that will collect hashes so in this case what an attacker will do is leverage a tool or technique called responder to collect ntlm hashes that are being passed around the network and there's a variety of reasons why these hashes are passed around and it's a pretty common misconfiguration but as an attacker collects those hashes then they start to apply techniques to crack those hashes so they'll pass the hash and from there they will use open source intelligence common password structures and patterns and other types of techniques to try to crack those hashes into clear text passwords so here node 0 automatically collected hashes it automatically passed the hashes to crack those credentials and then from there it starts to take the domain user user ID passwords that it's collected and tries to access different services and systems in your Enterprise in this case node 0 is able to successfully gain access to the Office 365 email environment because three employees didn't have MFA configured so now what happens is node 0 has a placement and access in the business email system which sets up the conditions for fraud lateral phishing and other techniques but what's especially insightful here is that 80 of the hashes that were collected in this pen test were cracked in 15 minutes or less 80 percent 26 of the user accounts had a password that followed a pretty obvious pattern first initial last initial and four random digits the other thing that was interesting is 10 percent of service accounts had their user ID the same as their password so VMware admin VMware admin web sphere admin web Square admin so on and so forth and so attackers don't have to hack in they just log in with credentials that they've collected the next story here is becoming WS AWS admin so in this example once again internal pen test node zero gets initial access it discovers 2 000 hosts are network reachable from that environment if fingerprints and organizes all of that data into a cyber Terrain map from there it it fingerprints that hpilo the integrated lights out service was running on a subset of hosts hpilo is a service that is often not instrumented or observed by security teams nor is it easy to patch as a result attackers know this and immediately go after those types of services so in this case that ILO service was exploitable and were able to get code execution on it ILO stores all the user IDs and passwords in clear text in a particular set of processes so once we gain code execution we were able to dump all of the credentials and then from there laterally maneuver to log in to the windows box next door as admin and then on that admin box we're able to gain access to the share drives and we found a credentials file saved on a share Drive from there it turned out that credentials file was the AWS admin credentials file giving us full admin authority to their AWS accounts not a single security alert was triggered in this attack because the customer wasn't observing the ILO service and every step thereafter was a valid login in the environment and so what do you do step one patch the server step two delete the credentials file from the share drive and then step three is get better instrumentation on privileged access users and login the final story I'll tell is a typical pattern that we see across the board with that combines the various techniques I've described together where an attacker is going to go off and use open source intelligence to find all of the employees that work at your company from there they're going to look up those employees on dark web breach databases and other forms of information and then use that as a starting point to password spray to compromise a domain user all it takes is one employee to reuse a breached password for their Corporate email or all it takes is a single employee to have a weak password that's easily guessable all it takes is one and once the attacker is able to gain domain user access in most shops domain user is also the local admin on their laptop and once your local admin you can dump Sam and get local admin until M hashes you can use that to reuse credentials again local admin on neighboring machines and attackers will start to rinse and repeat then eventually they're able to get to a point where they can dump lsas or by unhooking the anti-virus defeating the EDR or finding a misconfigured EDR as we've talked about earlier to compromise the domain and what's consistent is that the fundamentals are broken at these shops they have poor password policies they don't have least access privilege implemented active directory groups are too permissive where domain admin or domain user is also the local admin uh AV or EDR Solutions are misconfigured or easily unhooked and so on and what we found in 10 000 pen tests is that user Behavior analytics tools never caught us in that lateral movement in part because those tools require pristine logging data in order to work and also it becomes very difficult to find that Baseline of normal usage versus abnormal usage of credential login another interesting Insight is there were several Marquee brand name mssps that were defending our customers environment and for them it took seven hours to detect and respond to the pen test seven hours the pen test was over in less than two hours and so what you had was an egregious violation of the service level agreements that that mssp had in place and the customer was able to use us to get service credit and drive accountability of their sock and of their provider the third interesting thing is in one case it took us seven minutes to become domain admin in a bank that bank had every Gucci security tool you could buy yet in 7 minutes and 19 seconds node zero started as an unauthenticated member of the network and was able to escalate privileges through chaining and misconfigurations in lateral movement and so on to become domain admin if it's seven minutes today we should assume it'll be less than a minute a year or two from now making it very difficult for humans to be able to detect and respond to that type of Blitzkrieg attack so that's in the find it's not just about finding problems though the bulk of the effort should be what to do about it the fix and the verify so as you find those problems back to kubernetes as an example we will show you the path here is the kill chain we took to compromise that environment we'll show you the impact here is the impact or here's the the proof of exploitation that we were able to use to be able to compromise it and there's the actual command that we executed so you could copy and paste that command and compromise that cubelet yourself if you want and then the impact is we got code execution and we'll actually show you here is the impact this is a critical here's why it enabled perimeter breach affected applications will tell you the specific IPS where you've got the problem how it maps to the miter attack framework and then we'll tell you exactly how to fix it we'll also show you what this problem enabled so you can accurately prioritize why this is important or why it's not important the next part is accurate prioritization the hardest part of my job as a CIO was deciding what not to fix so if you take SMB signing not required as an example by default that CVSs score is a one out of 10. but this misconfiguration is not a cve it's a misconfig enable an attacker to gain access to 19 credentials including one domain admin two local admins and access to a ton of data because of that context this is really a 10 out of 10. you better fix this as soon as possible however of the seven occurrences that we found it's only a critical in three out of the seven and these are the three specific machines and we'll tell you the exact way to fix it and you better fix these as soon as possible for these four machines over here these didn't allow us to do anything of consequence so that because the hardest part is deciding what not to fix you can justifiably choose not to fix these four issues right now and just add them to your backlog and surge your team to fix these three as quickly as possible and then once you fix these three you don't have to re-run the entire pen test you can select these three and then one click verify and run a very narrowly scoped pen test that is only testing this specific issue and what that creates is a much faster cycle of finding and fixing problems the other part of fixing is verifying that you don't have sensitive data at risk so once we become a domain user we're able to use those domain user credentials and try to gain access to databases file shares S3 buckets git repos and so on and help you understand what sensitive data you have at risk so in this example a green checkbox means we logged in as a valid domain user we're able to get read write access on the database this is how many records we could have accessed and we don't actually look at the values in the database but we'll show you the schema so you can quickly characterize that pii data was at risk here and we'll do that for your file shares and other sources of data so now you can accurately articulate the data you have at risk and prioritize cleaning that data up especially data that will lead to a fine or a big news issue so that's the find that's the fix now we're going to talk about the verify the key part in verify is embracing and integrating with detection engineering practices so when you think about your layers of security tools you've got lots of tools in place on average 130 tools at any given customer but these tools were not designed to work together so when you run a pen test what you want to do is say did you detect us did you log us did you alert on us did you stop us and from there what you want to see is okay what are the techniques that are commonly used to defeat an environment to actually compromise if you look at the top 10 techniques we use and there's far more than just these 10 but these are the most often executed nine out of ten have nothing to do with cves it has to do with misconfigurations dangerous product defaults bad credential policies and it's how we chain those together to become a domain admin or compromise a host so what what customers will do is every single attacker command we executed is provided to you as an attackivity log so you can actually see every single attacker command we ran the time stamp it was executed the hosts it executed on and how it Maps the minor attack tactics so our customers will have are these attacker logs on one screen and then they'll go look into Splunk or exabeam or Sentinel one or crowdstrike and say did you detect us did you log us did you alert on us or not and to make that even easier if you take this example hey Splunk what logs did you see at this time on the VMware host because that's when node 0 is able to dump credentials and that allows you to identify and fix your logging blind spots to make that easier we've got app integration so this is an actual Splunk app in the Splunk App Store and what you can come is inside the Splunk console itself you can fire up the Horizon 3 node 0 app all of the pen test results are here so that you can see all of the results in one place and you don't have to jump out of the tool and what you'll show you as I skip forward is hey there's a pen test here are the critical issues that we've identified for that weaker default issue here are the exact commands we executed and then we will automatically query into Splunk all all terms on between these times on that endpoint that relate to this attack so you can now quickly within the Splunk environment itself figure out that you're missing logs or that you're appropriately catching this issue and that becomes incredibly important in that detection engineering cycle that I mentioned earlier so how do our customers end up using us they shift from running one pen test a year to 30 40 pen tests a month oftentimes wiring us into their deployment automation to automatically run pen tests the other part that they'll do is as they run more pen tests they find more issues but eventually they hit this inflection point where they're able to rapidly clean up their environment and that inflection point is because the red and the blue teams start working together in a purple team culture and now they're working together to proactively harden their environment the other thing our customers will do is run us from different perspectives they'll first start running an RFC 1918 scope to see once the attacker gained initial access in a part of the network that had wide access what could they do and then from there they'll run us within a specific Network segment okay from within that segment could the attacker break out and gain access to another segment then they'll run us from their work from home environment could they Traverse the VPN and do something damaging and once they're in could they Traverse the VPN and get into my cloud then they'll break in from the outside all of these perspectives are available to you in Horizon 3 and node zero as a single SKU and you can run as many pen tests as you want if you run a phishing campaign and find that an intern in the finance department had the worst phishing behavior you can then inject their credentials and actually show the end-to-end story of how an attacker fished gained credentials of an intern and use that to gain access to sensitive financial data so what our customers end up doing is running multiple attacks from multiple perspectives and looking at those results over time I'll leave you two things one is what is the AI in Horizon 3 AI those knowledge graphs are the heart and soul of everything that we do and we use machine learning reinforcement techniques reinforcement learning techniques Markov decision models and so on to be able to efficiently maneuver and analyze the paths in those really large graphs we also use context-based scoring to prioritize weaknesses and we're also able to drive collective intelligence across all of the operations so the more pen tests we run the smarter we get and all of that is based on our knowledge graph analytics infrastructure that we have finally I'll leave you with this was my decision criteria when I was a buyer for my security testing strategy what I cared about was coverage I wanted to be able to assess my on-prem cloud perimeter and work from home and be safe to run in production I want to be able to do that as often as I wanted I want to be able to run pen tests in hours or days not weeks or months so I could accelerate that fine fix verify loop I wanted my it admins and network Engineers with limited offensive experience to be able to run a pen test in a few clicks through a self-service experience and not have to install agent and not have to write custom scripts and finally I didn't want to get nickeled and dimed on having to buy different types of attack modules or different types of attacks I wanted a single annual subscription that allowed me to run any type of attack as often as I wanted so I could look at my Trends in directions over time so I hope you found this talk valuable uh we're easy to find and I look forward to seeing seeing you use a product and letting our results do the talking when you look at uh you know kind of the way no our pen testing algorithms work is we dynamically select uh how to compromise an environment based on what we've discovered and the goal is to become a domain admin compromise a host compromise domain users find ways to encrypt data steal sensitive data and so on but when you look at the the top 10 techniques that we ended up uh using to compromise environments the first nine have nothing to do with cves and that's the reality cves are yes a vector but less than two percent of cves are actually used in a compromise oftentimes it's some sort of credential collection credential cracking uh credential pivoting and using that to become an admin and then uh compromising environments from that point on so I'll leave this up for you to kind of read through and you'll have the slides available for you but I found it very insightful that organizations and ourselves when I was a GE included invested heavily in just standard vulnerability Management Programs when I was at DOD that's all disa cared about asking us about was our our kind of our cve posture but the attackers have adapted to not rely on cves to get in because they know that organizations are actively looking at and patching those cves and instead they're chaining together credentials from one place with misconfigurations and dangerous product defaults in another to take over an environment a concrete example is by default vcenter backups are not encrypted and so as if an attacker finds vcenter what they'll do is find the backup location and there are specific V sender MTD files where the admin credentials are parsippled in the binaries so you can actually as an attacker find the right MTD file parse out the binary and now you've got the admin credentials for the vcenter environment and now start to log in as admin there's a bad habit by signal officers and Signal practitioners in the in the Army and elsewhere where the the VM notes section of a virtual image has the password for the VM well those VM notes are not stored encrypted and attackers know this and they're able to go off and find the VMS that are unencrypted find the note section and pull out the passwords for those images and then reuse those credentials across the board so I'll pause here and uh you know Patrick love you get some some commentary on on these techniques and other things that you've seen and what we'll do in the last say 10 to 15 minutes is uh is rolled through a little bit more on what do you do about it yeah yeah no I love it I think um I think this is pretty exhaustive what I like about what you've done here is uh you know we've seen we've seen double-digit increases in the number of organizations that are reporting actual breaches year over year for the last um for the last three years and it's often we kind of in the Zeitgeist we pegged that on ransomware which of course is like incredibly important and very top of mind um but what I like about what you have here is you know we're reminding the audience that the the attack surface area the vectors the matter um you know has to be more comprehensive than just thinking about ransomware scenarios yeah right on um so let's build on this when you think about your defense in depth you've got multiple security controls that you've purchased and integrated and you've got that redundancy if a control fails but the reality is that these security tools aren't designed to work together so when you run a pen test what you want to ask yourself is did you detect node zero did you log node zero did you alert on node zero and did you stop node zero and when you think about how to do that every single attacker command executed by node zero is available in an attacker log so you can now see you know at the bottom here vcenter um exploit at that time on that IP how it aligns to minor attack what you want to be able to do is go figure out did your security tools catch this or not and that becomes very important in using the attacker's perspective to improve your defensive security controls and so the way we've tried to make this easier back to like my my my the you know I bleed Green in many ways still from my smoke background is you want to be able to and what our customers do is hey we'll look at the attacker logs on one screen and they'll look at what did Splunk see or Miss in another screen and then they'll use that to figure out what their logging blind spots are and what that where that becomes really interesting is we've actually built out an integration into Splunk where there's a Splunk app you can download off of Splunk base and you'll get all of the pen test results right there in the Splunk console and from that Splunk console you're gonna be able to see these are all the pen tests that were run these are the issues that were found um so you can look at that particular pen test here are all of the weaknesses that were identified for that particular pen test and how they categorize out for each of those weaknesses you can click on any one of them that are critical in this case and then we'll tell you for that weakness and this is where where the the punch line comes in so I'll pause the video here for that weakness these are the commands that were executed on these endpoints at this time and then we'll actually query Splunk for that um for that IP address or containing that IP and these are the source types that surface any sort of activity so what we try to do is help you as quickly and efficiently as possible identify the logging blind spots in your Splunk environment based on the attacker's perspective so as this video kind of plays through you can see it Patrick I'd love to get your thoughts um just seeing so many Splunk deployments and the effectiveness of those deployments and and how this is going to help really Elevate the effectiveness of all of your Splunk customers yeah I'm super excited about this I mean I think this these kinds of purpose-built integration snail really move the needle for our customers I mean at the end of the day when I think about the power of Splunk I think about a product I was first introduced to 12 years ago that was an on-prem piece of software you know and at the time it sold on sort of Perpetual and term licenses but one made it special was that it could it could it could eat data at a speed that nothing else that I'd have ever seen you can ingest massively scalable amounts of data uh did cool things like schema on read which facilitated that there was this language called SPL that you could nerd out about uh and you went to a conference once a year and you talked about all the cool things you were splunking right but now as we think about the next phase of our growth um we live in a heterogeneous environment where our customers have so many different tools and data sources that are ever expanding and as you look at the as you look at the role of the ciso it's mind-blowing to me the amount of sources Services apps that are coming into the ciso span of let's just call it a span of influence in the last three years uh you know we're seeing things like infrastructure service level visibility application performance monitoring stuff that just never made sense for the security team to have visibility into you um at least not at the size and scale which we're demanding today um and and that's different and this isn't this is why it's so important that we have these joint purpose-built Integrations that um really provide more prescription to our customers about how do they walk on that Journey towards maturity what does zero to one look like what does one to two look like whereas you know 10 years ago customers were happy with platforms today they want integration they want Solutions and they want to drive outcomes and I think this is a great example of how together we are stepping to the evolving nature of the market and also the ever-evolving nature of the threat landscape and what I would say is the maturing needs of the customer in that environment yeah for sure I think especially if if we all anticipate budget pressure over the next 18 months due to the economy and elsewhere while the security budgets are not going to ever I don't think they're going to get cut they're not going to grow as fast and there's a lot more pressure on organizations to extract more value from their existing Investments as well as extracting more value and more impact from their existing teams and so security Effectiveness Fierce prioritization and automation I think become the three key themes of security uh over the next 18 months so I'll do very quickly is run through a few other use cases um every host that we identified in the pen test were able to score and say this host allowed us to do something significant therefore it's it's really critical you should be increasing your logging here hey these hosts down here we couldn't really do anything as an attacker so if you do have to make trade-offs you can make some trade-offs of your logging resolution at the lower end in order to increase logging resolution on the upper end so you've got that level of of um justification for where to increase or or adjust your logging resolution another example is every host we've discovered as an attacker we Expose and you can export and we want to make sure is every host we found as an attacker is being ingested from a Splunk standpoint a big issue I had as a CIO and user of Splunk and other tools is I had no idea if there were Rogue Raspberry Pi's on the network or if a new box was installed and whether Splunk was installed on it or not so now you can quickly start to correlate what hosts did we see and how does that reconcile with what you're logging from uh finally or second to last use case here on the Splunk integration side is for every single problem we've found we give multiple options for how to fix it this becomes a great way to prioritize what fixed actions to automate in your soar platform and what we want to get to eventually is being able to automatically trigger soar actions to fix well-known problems like automatically invalidating passwords for for poor poor passwords in our credentials amongst a whole bunch of other things we could go off and do and then finally if there is a well-known kill chain or attack path one of the things I really wish I could have done when I was a Splunk customer was take this type of kill chain that actually shows a path to domain admin that I'm sincerely worried about and use it as a glass table over which I could start to layer possible indicators of compromise and now you've got a great starting point for glass tables and iocs for actual kill chains that we know are exploitable in your environment and that becomes some super cool Integrations that we've got on the roadmap between us and the Splunk security side of the house so what I'll leave with actually Patrick before I do that you know um love to get your comments and then I'll I'll kind of leave with one last slide on this wartime security mindset uh pending you know assuming there's no other questions no I love it I mean I think this kind of um it's kind of glass table's approach to how do you how do you sort of visualize these workflows and then use things like sore and orchestration and automation to operationalize them is exactly where we see all of our customers going and getting away from I think an over engineered approach to soar with where it has to be super technical heavy with you know python programmers and getting more to this visual view of workflow creation um that really demystifies the power of Automation and also democratizes it so you don't have to have these programming languages in your resume in order to start really moving the needle on workflow creation policy enforcement and ultimately driving automation coverage across more and more of the workflows that your team is seeing yeah I think that between us being able to visualize the actual kill chain or attack path with you know think of a of uh the soar Market I think going towards this no code low code um you know configurable sore versus coded sore that's going to really be a game changer in improve or giving security teams a force multiplier so what I'll leave you with is this peacetime mindset of security no longer is sustainable we really have to get out of checking the box and then waiting for the bad guys to show up to verify that security tools are are working or not and the reason why we've got to really do that quickly is there are over a thousand companies that withdrew from the Russian economy over the past uh nine months due to the Ukrainian War there you should expect every one of them to be punished by the Russians for leaving and punished from a cyber standpoint and this is no longer about financial extortion that is ransomware this is about punishing and destroying companies and you can punish any one of these companies by going after them directly or by going after their suppliers and their Distributors so suddenly your attack surface is no more no longer just your own Enterprise it's how you bring your goods to Market and it's how you get your goods created because while I may not be able to disrupt your ability to harvest fruit if I can get those trucks stuck at the border I can increase spoilage and have the same effect and what we should expect to see is this idea of cyber-enabled economic Warfare where if we issue a sanction like Banning the Russians from traveling there is a cyber-enabled counter punch which is corrupt and destroy the American Airlines database that is below the threshold of War that's not going to trigger the 82nd Airborne to be mobilized but it's going to achieve the right effect ban the sale of luxury goods disrupt the supply chain and create shortages banned Russian oil and gas attack refineries to call a 10x spike in gas prices three days before the election this is the future and therefore I think what we have to do is shift towards a wartime mindset which is don't trust your security posture verify it see yourself Through The Eyes of the attacker build that incident response muscle memory and drive better collaboration between the red and the blue teams your suppliers and Distributors and your information uh sharing organization they have in place and what's really valuable for me as a Splunk customer was when a router crashes at that moment you don't know if it's due to an I.T Administration problem or an attacker and what you want to have are different people asking different questions of the same data and you want to have that integrated triage process of an I.T lens to that problem a security lens to that problem and then from there figuring out is is this an IT workflow to execute or a security incident to execute and you want to have all of that as an integrated team integrated process integrated technology stack and this is something that I very care I cared very deeply about as both a Splunk customer and a Splunk CTO that I see time and time again across the board so Patrick I'll leave you with the last word the final three minutes here and I don't see any open questions so please take us home oh man see how you think we spent hours and hours prepping for this together that that last uh uh 40 seconds of your talk track is probably one of the things I'm most passionate about in this industry right now uh and I think nist has done some really interesting work here around building cyber resilient organizations that have that has really I think helped help the industry see that um incidents can come from adverse conditions you know stress is uh uh performance taxations in the infrastructure service or app layer and they can come from malicious compromises uh Insider threats external threat actors and the more that we look at this from the perspective of of a broader cyber resilience Mission uh in a wartime mindset uh I I think we're going to be much better off and and will you talk about with operationally minded ice hacks information sharing intelligence sharing becomes so important in these wartime uh um situations and you know we know not all ice acts are created equal but we're also seeing a lot of um more ad hoc information sharing groups popping up so look I think I think you framed it really really well I love the concept of wartime mindset and um I I like the idea of applying a cyber resilience lens like if you have one more layer on top of that bottom right cake you know I think the it lens and the security lens they roll up to this concept of cyber resilience and I think this has done some great work there for us yeah you're you're spot on and that that is app and that's gonna I think be the the next um terrain that that uh that you're gonna see vendors try to get after but that I think Splunk is best position to win okay that's a wrap for this special Cube presentation you heard all about the global expansion of horizon 3.ai's partner program for their Partners have a unique opportunity to take advantage of their node zero product uh International go to Market expansion North America channel Partnerships and just overall relationships with companies like Splunk to make things more comprehensive in this disruptive cyber security world we live in and hope you enjoyed this program all the videos are available on thecube.net as well as check out Horizon 3 dot AI for their pen test Automation and ultimately their defense system that they use for testing always the environment that you're in great Innovative product and I hope you enjoyed the program again I'm John Furrier host of the cube thanks for watching

>> Announcer: TheCube presents HPE Discover 2022, brought to you by HPE. >> Welcome back to HPE Discover 2022, theCube's continuous wall to wall coverage, Dave Vellante with John Furrier. Keith Basil is here as the General Manager for the Edge Business Unit at SUSE. Keith, welcome to theCube, man good to see you. >> Great to be here, it's my first time here and I've seen many shows and you guys are the best. >> Thanks you. >> Thank you very much. >> Big fans of SUSE you know, we've had Melissa on several times. >> Yes. >> Let's start with kind of what you guys are doing here at Discover. >> Well, we're here to support our wonderful partner HPE, as you know SUSE's products and services are now being integrated into the GreenLake offering. So that's very exciting for us. >> Yeah. Now tell us about your background. It's quite interesting you've kind of been in the mix in some really cool places. Tell us a little bit about yourself. >> Probably the most relevant was I used to work at Red Hat, I was a Product Manager working in security for OpenStack and OpenShift working with DOD customers in the intelligence community. Left Red Hat to go to Rancher, started out there as VP of Edge Solutions and then transitioned over to VP of Product for all of Rancher. And then obviously we know SUSE acquired Rancher and as of November 1st, of 2020, I think it was. >> Dave: 2020. >> Yeah, yeah time is flying. I came over, I still remained VP of Product for Rancher for Cloud Native Infrastructure. And I was working on the edge strategy for SUSE and about four months ago we internally built three business units, one for the Linux business, one for enterprise container management, basically the Rancher business, and then the newly minted business unit was the Edge business. And I was offered the role to be GM for that business unit and I happily accepted it. >> Very cool. I mean the market dynamics since the 2018 have changed dramatically, IBM bought Red Hat. A lot of customers said, "Hmm let's see what other alternatives are out there." SUSE popped its head up. You know, Melissa's been quite, you know forthcoming about that. And then you acquire Rancher in 2020, IPO in 2021. That kind of gives you another tailwind. So there's a new market when you go from 2018 to 2022, it's a completely changed dynamic. >> Yes and I'm going to answer your question from the Rancher perspective first, because as we were at Rancher, we had experimented with different flavors of the underlying OS underneath Kubernetes or Kubernetes offerings. And we had, as I said, different flavors, we weren't really operating system people for example. And so post-acquisition, you know, one of my internal roles was to bring the two halves of the house together, the philosophies together where you had a cloud native side in the form of Rancher, very progressive leading innovative products with Rancher with K3s for example. And then you had, you know, really strong enterprise roots around compliance and security, secure supply chain with the enterprise grade Linux. And what we found out was SUSE had been building a version of Linux called SLE Micro, and it was perfectly designed for Edge. And so what we've done over that time period since the acquisition is that we've brought those two things together. And now we're using Kubernetes directives and philosophies to manage all the way down to the operating system. And it is a winning strategy for our customers. And we're really excited about that. >> And what does that product look like? Is that a managed service? How are customers consuming that? >> It could be a managed service, it's something that our managed service providers could embrace and offer to their customers. But we have some customers who are very sophisticated who want to do the whole thing themselves. And so they stand up Rancher, you know at a centralized location at cloud GreenLake for example which is why this is very relevant. And then that control plane if you will, manages thousands of downstream clusters that are running K3s at these Edge locations. And so that's what the complete stack looks like. And so when you add the Linux capability to that scenario we can now roll a new operating system, new kernel, CVE updates, build that as an OCI container image registry format, right? Put that into a registry and then have that thing cascade down through all the downstream clusters and up through a rolling window upgrade of the operating system underneath Kubernetes. And it is a tremendous amount of value when you talk to customers that have this massive scale. >> What's the impact of that, just take us through what happens next. Is it faster? Is it more performant? Is it more reliable? Is it processing data at the Edge? What's the impact of the customer? >> Yes, the answer is yes to that. So let's actually talk about one customer that we we highlighted in our keynote, which is Home Depot. So as we know, Kubernetes is on fire, right? It is the technology everybody's after. So by being in demand, the skills needed, the people shortage is real and people are commanding very high, you know, salaries. And so it's hard to attract talent is the bottom line. And so using our software and our solution and our approach it allows people to scale their existing teams to preserve those precious human resources and that human capital. So that now you can take a team of seven people and manage let's say 3000 downstream stores. >> Yeah it's like the old SRE model for DevOps. >> Correct. >> It's not servers they're managing one to many. >> Yes. >> One to many clusters. >> Correct so you've got the cluster, the life cycle of the cluster. You already have the application life cycle with the classic DevOps. And now what we've built and added to the stack is going down one step further, clicking down if you will to managing the life cycle of the operating system. So you have the SUSE enterprise build chain, all the value, the goodness, compliance, security. Again, all of that comes with that build process. And now we're hooking that into a cloud native flow that ends up downstream in our customers. >> So what I'm hearing is your Edge strategy is not some kind of bespoke, "Hey, I'm going after Edge." It connects to the entire value chain. >> Yes, yeah it's a great point. We want to reuse the existing philosophies that are being used today. We don't want to create something net new, cause that's really the point in leverage that we get by having these teams, you know, do these things at scale. Another point I'm going to make here is that we've defined the Edge into three segments. One is the near Edge, which is the realm of the-- >> I was going to ask about this, great. >> The telecommunications companies. So those use cases and profiles look very different. They're almost data center lite, right? So you've had regional locations, central offices where they're standing up gear classic to you machines, right? So things you find from HPE, for example. And then once you get on the other side of the access device right? The cable modem, the router, whatever it is you get into what we call the far Edge. And this is where the majority of the use cases reside. This is where the diversity of use cases presents itself as well. >> Also security challenges. >> Security challenges. Yes and we can talk about that following in a moment. And then finally, if you look at that far Edge as a box, right? Think of it as a layer two domain, a network. Inside that location, on that network you'll have industrial IOT devices. Those devices are too small to run a full blown operating system such as Linux and Kubernetes in the stack but they do have software on them, right? So we need to be able to discover those devices and manage those devices and pull data from those devices and do it in a cloud native way. So that's what we called the tiny Edge. And I stole that name from the folks over at Microsoft. Kate and Edrick are are leading a project upstream called Akri, A-K-R-I, and we are very much heavily involved in Akri because it will discover the industrial IOT devices and plug those into a local Kubernetes cluster running at that location. >> And Home Depot would fit into the near edge is that correct? >> Yes. >> Yeah okay. >> So each Home Depot store, just to bring it home, is a far Edge location and they have over 2,600 of these locations. >> So far Edge? You would put far Edge? >> Keith: Far Edge yes. >> Far edge, okay. >> John: Near edge is like Metro. Think of Metro. >> And Teleco, communication, service providers MSOs, multi-service operators. Those guys are-- >> Near Edge. >> The near edge, yes. >> Don't you think, John's been asking all week about machine learning and AI, in that tiny Edge. We think there's going to be a lot of AI influencing. >> Keith: Oh absolutely. >> Real time. And it actually is going to need some kind of lighter weight you know, platform. How do you fit into that? >> So going on this, like this model I just described if you go back and look at the SUSECON 2022 demo keynote that I did, we actually on stage stood up that exact stack. So we had a single Intel nook running SLE Micro as we mentioned earlier, running K3s and we plugged into that device, a USB camera which was automatically detected and it loaded Akri and gave us a driver to plug it into a container. Now, to answer your question, that is the point in time where we bring in the ML and the AI, the inference and the pattern recognition, because that camera when you showed the SUSE plush doll, it actually recognized it and put a QR code up on the screen. So that's where it all comes together. So we tried to showcase that in a complete demo. >> Last week, I was here in Vegas for an event Amazon and AWS put on called re:Mars, machine learning, automation, robotics, and space. >> Okay. >> Kind of but basically for me was an industrial edge show. Cause The space is the ultimate like glam to edge is like, you're doing stuff in space that's pretty edgy so to speak, pun intended. But the industrial side of the Edge is going to, we think, accelerate with machine learning. >> Keith: Absolutely. >> And with these kinds of new portable I won't say flash compute or just like connected power sources software. The industrial is going to move really fast. We've been kind of in a snails pace at the Edge, in my opinion. What's your reaction to that? Do you think we're going to see a mass acceleration of growth at the Edge industrial, basically physical, the physical world. >> Yes, first I agree with your assessment okay, wholeheartedly, so much so that it's my strategy to go after the tiny Edge space and be a leader in the industrial IOT space from an open source perspective. So yes. So a few things to answer your question we do have K3s in space. We have a customer partner called Hypergiant where they've launched satellites with K3s running in space same model, that's a far Edge location, probably the farthest Edge location we have. >> John: Deep Edge, deep space. >> Here at HPE Discover, we have a business unit called SUSE RGS, Rancher Government Services, which focuses on the US government and DOD and IC, right? So little bit of the world that I used to work in my past career. Brandon Gulla the CTO of of that unit gave a great presentation about what we call the tactical Edge. And so the same technology that we're using on the commercial and the manufacturing side. >> Like the Jedi contract, the tactical military Edge I think. >> Yes so imagine some of these military grade industrial IOT devices in a disconnected environment. The same software stack and technology would apply to that use case as well. >> So basically the tactical Edge is life? We're humans, we're at the Edge? >> Or it's maintenance, right? So maybe it's pulling sensors from aircraft, Humvees, submarines and doing predictive analysis on the maintenance for those items, those assets. >> All these different Edges, they underscore the diversity that you were just talking Keith and we also see a new hardware architecture emerging, a lot of arm based stuff. Just take a look at what Tesla's doing at the tiny Edge. Keith Basil, thanks so much. >> Sure. >> For coming on theCube. >> John: Great to have you. >> Grateful to be here. >> Awesome story. Okay and thank you for watching. This is Dave Vellante for John Furrier. This is day three of HPE Discover 2022. You're watching theCube, the leader in enterprise and emerging tech coverage. We'll be right back. (upbeat music)

(upbeat music) >> Welcome to this CUBE Conversation. This is part of the second season of the AWS startup showcase, season two, episode one. I'm Dave Nicholson, and I am joined with a very special guest, CEO and co-founder of Tidelift, Mr. Donald Fischer. Donald, welcome to the CUBE. >> Thanks David. Really glad to be here. >> So, first and foremost, tell us about Tidelift. >> Happy to, yeah, so, at Tidelift we're on a mission. Our mission is to make open source software work better for everyone, and when we say that, we mean, make it work better for all the organizations and governments and everybody that depends on open source software to build the applications that we all rely on. But also part of our mission, is making open source work better for the creators of open source. The independent open source maintainers, who are behind so many of those building blocks, technology building blocks that our commerce industry and society is comprised of these days. They've got a hard task to hold up all of that stuff and make sure that it meets, you know, professional grade standards and that we can all rely on it. And so, we want to do our part to help both sides of that equation. >> Fantastic, well, I want to double click on a few of the things that you said, but I think I want to format this by starting out with a little role play between the two of us, if you don't mind. I know you're CEO, but for the sake of this, you're going to be the CIO and I'm going to be the CEO, and we're going to play off some recent events here. So, hey Donald, come on in, sit down. Listen, I want to talk to you about this whole log shell, log for something, or another thing that's going on. So, let me get this straight. Our multinational Fortune 500 company is dependent upon software, that's free, and somehow we've been running this and the people who maintain it, do it for free, we don't pay for it, but somehow this has opened us up to a threat from people who can log into a system we're using to keep track of stuff, and then, what's going on? By the way, you're fired, but I want to know if, I want to know if you can stay on for the next 90 days to train your replacement, but, explain to me what's going on with this whole open-source nonsense? >> Yeah. Don't panic boss. Only about 70 or 80% of the software in our enterprise that is third-party open source software. So, there's definitely, like 20 or 30% that's not, and we're on top of it. Now, yeah, I think it's a, you know, you're right to say, we are completely dependent on this software, that's being created by these, you know, amazing folks on the internet. Boss, you told me that we had to have a global corporation here with modern digital customer experience. We're not going to be able to do it using Microsoft front page from 1997, and there's no other path to take than to build with modern building blocks. And today in, you know, the modern era, that means building on open source packages and technologies across a whole slew of language, ecosystems, like JavaScript and Java PHP, Ruby, Python, .NET, Rust, Go, we use all of it here, boss, and, we don't get to have a business unless we do. >> Okay, so, I didn't understand a word that you just said, but it was enough to convince me to let you keep your job. So, end-scene, we're not getting paid scale wages to do this, Donald, so I think we can go back to our normal personas. So, how does Tidelift play into all of this? I'd really want to hear about this concept of what an open source maintainer is, because these are largely volunteers, aren't they, in terms of the maintenance that they're doing? >> Yeah, so, I mean, open source, there's a lot of different models for open source software development. There certainly are a number of foundational open source projects, certainly at the infrastructure level, like operating systems, databases and things like that, that tend to be, you know, predominantly driven by vendors, software vendors, you know, like you can think of Red Hat, VMware organizations like that. But when you get up to the application development world, teams, building, you know, websites, web applications, mobile applications, most of the building blocks at that tier in these a programming language ecosystems, most of the software there is actually being created, that enterprise organizations use, is being created by individual, independent, open source maintainers, where it's not their day job, it's a side hustle for them. And it's a really interesting question, like, how did we get here? You know, why are these folks doing it? It sort of rhymes with the question I asked myself years ago, like, who's typing all this stuff into Wikipedia, and why? Like, it's amazing resource, I'm so glad it's there, but why are they doing this, right? And it turns out that there's a bunch of motivations there's some cynical motivations for the open source maintainers that people attribute that are practical too, you know, people say your GitHub repository is your resume in as a modern developer, things like that helps you get a reputation, you can use that to get a job. But, when we've talked to the maintainers of the most widely used open source packages, and by that, I mean, thousands of packages that every major organization that builds software relies on, the main reason why they do it is actually impact. We find we've actually done direct surveys of this audience and the reason why they spend their nights and weekends and carve out time, where they could be, you know, getting paid to do something else or going skiing or going to the beach, is it really feels good to have this activity that they put out into the world, and, you know, they know that folks use this stuff and rely on it, and there's a pride in their work and the impact that they're making. But the challenge with this model is that when it's only an impact and pride, and sort of a, you know, a good feeling driven effort, it means that maybe all of the things that organizations might want their standards that organizations might want their software to meet doesn't get done, right? Like it's one thing, if you've got a job as a software engineer, building corporate software, or even as a, you know, a maintainer at a corporate open source company, and you have a checklist of, you know, standard enterprise software development, commercial grade software development tasks that you need to be completing, if you're doing it as a side hustle for good reasons, like impact and, you know, releasing your creative juice, you might not get to some of the more boring aspects of commercial software engineering, like security engineering and some of the documentation and release engineering and, you know, making sure there's structured metadata around all the elements of it. And then that's the gap that we're really trying to fill at Tidelift, by connecting these two audiences. >> Yeah. How? How? You want to fill the gap, you want to connect the audiences, but, how do you do that? >> Yeah, perfect, so, we do it by paying the maintainers, paying the open source maintainers, actual dollars, or the currency of their preference, and what we're paying them for is not just to sort of hack on their projects, or hack on their projects more, we're asking them to help us ensure that the software that the organizations that we work with depend on meets certain specific concrete enterprise standards, and those standards fall into three categories, security, licensing, and maintenance. So, on the security front, you know, a baseline standard, there is making sure that we have known versions of the open source packages that are free of known defects, right? So there's like a catalog of known security defects that the industry uses called the National Vulnerability Database, you may have seen the terminology CVE referred to in passing, that's the identifier for these things. So, we work with the open-source maintainers to make sure that we've figured out, mapped out, which versions of software packages are impacted by known security vulnerabilities. And then we also look forward and make sure that we have a plan in place for what happens in the future when there are security vulnerabilities. So, you know, traditional commercial software, there's a security response team, who's kind of standing by 24/7, ready to respond, and then there's a defined protocol of what's going to happen, in terms of what's called responsible disclosure, telling the right folks in the right sequence, that there is a vulnerability causing there to be a patch version of the software available, communicating that through, you know, traditional commercial software vendors for, you know, years have been doing that internally, that doesn't exist by default for volunteer, you know, part-time open source, independent open source maintainers. So we fill that gap and we pre-wire that with them to make sure that that first track security is can be buttoned up. >> So, you're paying them, are you and your co-founders wealthy philanthropists that are just doing this, or what's the business model here? Now you're pulling these people who were doing it for free, they're happy, but how does that translate into a business model for Tidelift. >> Perfect, so, the work that they're doing, you know, I talked a little bit about security, we also do similar things on those other attributes, like licensing, making sure that the licenses are completely accurate, and we kind of know who wrote the software, et cetera, and then maintenance, is it being proactively cared for going forward? Is somebody still on the case with these projects? Now, the result of all of that work, is we create a vetted catalog of known good open source releases that we've vetted with the experts, often the individuals and teams that wrote the code in the first place, usually, we vet that it meets these enterprise standards. That's a really useful tool for organizations that are building with that. So, the way that we convey that to organizations that are building software in a useful way is we have a SAS service software, that as a service platform, that's what Tidelift is, and basically, the teams that use this stuff, they plug us into their software development process, typically alongside other tools that they might have, like CI/CD tools that are running tests on their application logic, they'll plug in Tidelift into their release process to ensure that those, the 70 or 80% of the software that they ship, that comes from GitHub, comes from the Python package index, or NPM, or the Maven Central Repository for Java, we're vetting that that meets their enterprise standards and ensuring that the ingredients, the building blocks that go into their applications are known good and vetted to these concrete standards. And they are, you know, this is an unsolved problem for almost every serious organization. There's a couple of, you know, over-performing organizations, like Google has done some amazing internal work on this, Amazon has an incredible dedicated team that does this internally for Amazon developers, very few other organizations, even some of the largest multinational companies have a dedicated internal function doing this comprehensively and systematically. Tidelift is that function that these organizations can use. They can work with us and our network, our unique network of hundreds of these independent open source maintainers, to ensure that there is a feed of known good vetted packages to go into their applications. >> So, were maintainers going in and auditing, and editing, and vetting software that was essentially created by others? That's one question, and then the other question that kind of goes along with that is, are you vetting a gold copy of something and saying, this software meets certain criteria, you should feel okay using it, that's one thing. Validating that the actual distribution, you know, the actual code that's being executed in their enterprise is secure and hasn't been tampered with is another thing. So where do you sit in that distribution channel or that supply chain? >> Sure, so, on the distribution front, you can think of us, we're sort of a GPS system that your application developers can use to know which versions of software are going to meet your enterprise standards. We don't create a separate world where we have our own, you know, side copy of the entire development ecosystem. It's not what these organizations want. They don't want to use some weird enterprise world set of open source packages, they want to just, you know, type NPM install have the, you know, software flow into their organization, but they also want it to not have no insecurity vulnerabilities in it, and they don't want to get bitten two weeks or two years later with a license violation, because there was kind of fuzzy, or incomplete data around the open source license. So what we do is, we help them consume the open source software, you know, knowing that it's been vetted to these standards. And then we also work with the open source community to cause the software to be changed to meet those standards, right? So back to the first part of your question, We work with a lot of projects with the prime maintainers, often the authors, as I said, and we've actually been extending our model over the years to work with these open source maintainers to cover not just their own project, but, some of those neighboring projects, right? Like the core projects that their project depends on, other projects that are co-used with them, they have a lot of expertise, and also, you know, relationships with the surrounding open source community there. So, they're working with us as curators, if you will, our ambassadors that help us get on the community and cover as much of the landscape as possible. >> And, so, what's the relationship with AWS? This is, you know, we're talking here as part of the AWS startup showcase season two, episode one, which is, that's actually pretty cool. So we need to, you know, the challenge here is, season one was awesome, much like Ted Lasso, season two, we have big shoes to fill here, Donald. So, what's the-- >> We got to up our game. >> (laughs) What's the relationship with AWS? And, I mean, why would they call you out as someone interesting for us to talk to? >> Yeah, so, we've had a great relationship that we've been investing in, and working on together with AWS. So, every one of AWS's customers faces this challenge around the software workloads that they're deploying on AWS. You know, it's just, you can't argue against the fact that the vast majority of the application software in the modern world is comprised majority of this third-party open source software. And so, it's really important whether it's running on a device, you know, an Edge device, or whether it's running in a Cloud data center, that those applications meet these standards, especially on the security front. So, AWS recognizes this need and opportunity for their customers, and so we've been working really well jointly with them. We're glad to say that we're an ISV, and AWS ISV accelerate partner now, which gives us the ability to co-engage with AWS and work together to solve mutual customers challenges, and we've had a great time working with the AWS team to help scale up our efforts to get the word word out around this important area, and then more importantly, give organizations the tools to address it and make sure that they have a comprehensive strategy for managing their open source in place. >> Fantastic, Donald, we're up against time, but I do have a 10 second answer I'd like from you. Tidelift, is that a reference to a rising tide lifting all boats, or is it an admonishment not to build a house on the beach in Malibu? >> It's the former, you know, think about this network of independent open source maintainers, working together, a rising tide lifts all boats. >> Eight seconds, that was like four seconds. Perfect. Donald Fischer, from Tidelift, thank you so much. For me, Dave Nicholson here at the CUBE. This has been a CUBE Conversation, as part of AWS's startup showcase, season two, episode one. Come to the CUBE for the best in tech coverage. (soft music)

>> From the Aria Resort in Las Vegas, it's theCUBE. Covering AWS marketplace. Brought to you by Amazon Web Services. >> Hey, welcome back everybody, Jeff Frick here with theCUBE. We are kicking off three crazy days at AWS re:Invent. It is the place to be the week after Thanksgiving. There's got to be 50,000 people, we haven't got the official word, but it's packed and it kicks off tonight with a reception. We're here at the AWS Marketplace and Service Catalog Experience over at the Aria, in the quad, come check us out. A lot of good stuff going on. A lot of fun stuff going on. And we're excited to have first time to theCUBE, he's Nathan Dyer, Senior Product Manager for Tenable. Great to see you. >> Jeff, great to be here. Thanks for having me. >> Yeah, have the energy the opened the doors the people are streaming in. >> I don't know if it's the food or the drinks or the vendors. >> All of the above. Probably more the food and the drinks. All right. So give us an overview of Tenable for people who aren't familiar with the company. >> Yeah, so Tenable, we are the cyber exposure company. We help organizations assess, manage, and measure their cyber risk across their entire organization, across their monitored tax surface. And so what we try to do is help answer four fundamental questions around security. How exposed are we? How do we prioritize based on risk, how are we doing over time from a measurement standpoint, and then how do we compare with our peers? And so, if you haven't heard of Tenable, chances are you've heard of Nessus, which is one of our flagship brands. Nessus just turned 20 years young earlier this year. If you're pen tester, if you're a consultant if you're a practitioner, you know Nessus. But over the years we've added some other brands as well. Security Center which is now renamed Tenable.sc which is our On-Prem vulnerability management solution. And then tenable.io which was released in 2017 which is our cloud based vulnerability management solution and built on AWS. >> Right. So I was doing some research, I love your guys' little mantra here, it's security for code, for clouds and containers. You got all the C's there. The containers, you know, what's going on with Docker over the last couple of years and now obviously the huge groundswell with Kubernetes, you know this container thing, depending on who you talk to has been around for a long time but it certainly didn't have the momentum. How's the kind of the growth of the container world impacted the securities base? >> Oh, it's massive. Containers are everywhere. In fact there's a strong affinity to cloud and containers. So a lot of our large AWS customers love containers. They've been dabbling with containers for quite some time. They're moving more and more workloads to be containerized and on Kubernetes, Dockers, et cetera. From a securities standpoint that introduces a lot of challenges, right. They're short lived life cycles of docker containers make it very hard for us in security to assess or discover them. They're part of the whole immutable infrastructure phenomenon, so you can't patch it in production, right. Infrastructure is code. You have to tear down the container, fix the image and then redeploy. So from our perspective, we think you have to secure containers by focusing on the container image. Specifically as developers are spinning up new code, compiling new builds, creating new container images, is it running quality assurance checks? Security has to be a critical part of that quality assurance process. As you're doing integration tests, unit testing, API testing, security has to be a critical test looking for vulnerabilities and malwares is part of that process. >> But the rate of change in those images is pretty high. I mean, the rate of deployments is super high, but like you said a lot of them have short life spans, they're up or they're down. So, have people baked that in to their process? I mean, obviously, I hope they are. Or how are you helping them to make sure that security is a really key piece to that image. Because once that image goes out it has access to all kinds of things. >> So, the new news with containers, and then by focusing on the image it forces security teams to talk to their development peers. In order to secure DevOps and secure containers, security has to be embedded into continuous integration, into continuous delivery cycles or systems. And if you're focusing on development, you have a much greater chance of making sure that vulnerable container images are not escaping into the wild. And you guys should get a hold of those vulnerable images and make sure they adhere to policies before they're released into production. So that's the new news. >> Well, it's funny because you reference the DevOps. 'Cause DevOps has now been around for a while and clearly is the way the code gets deployed in a very rapid iteration. So they're some significant lessons from the DevOps security angle that you're now using then on the container side. Yeah, well first thing with secure DevOps and Devops in general, is that you have to get the developers and security teams to talk. You have to have a shared understanding of what makes each other tick. What are the goals, what are the responsibilities, priorities, understand each other and it turns out there's actually a lot of shared understanding and mutual benefit between infosec and application developments. When security is focused on solving for vulnerabilities and looking for security issues, that's improving code quality. That's removing some of the software defects from the development code and developers love that. They love producing high quality code. On the flip side, security teams can learn a lot about agile development. DevOps principles. Bringing DevOps into the security discipline, and help security teams start to leverage automation and continuous testing, continuous delivery, and make them much more scalable and productive in their organizations. So there's a lot of mutual of understanding there. >> Right. So I'd imagine there's a lot of, kind of similarities between classic waterfall and the moat, versus now kind of the DevOps and the continuous and ongoing constant process. >> That's exactly right. >> Yeah. So we're here at the AWS Marketplace. So you guys are selling through the marketplace, how has that been for the company? How has the experience been working with the AWS marketplace team? >> Oh, it's been great. I mean, Amazon is a great partner to work with. Tenable.io which is our cloud based vulnerability management solution is built on Amazon. We have a great relationship with Amazon engineers. Now for the marketplace, we've been selling Nessus for quite some time through the marketplace. So if you're a Nessus subscriber, if you're a tenable.io or securities center or tenable.sc subscriber, you get access to unlimited Nessus scanners and you can provision them very easily through the marketplace. It's super easy. Just recently, we now unveiled tenable.io through the marketplace and so far it's been a great success. Now customers who prefer to buy through Amazon marketplace AWS marketplace, can do so with a couple of clicks and be provisioned and get up and running with tenable.io. It's super easy, you can learn about the product. Kick the tires with a free evaluation, and really provision the product very simply. >> Yeah, I would imagine the touch from your guys side goes down significantly when they're just coming right through the marketplace. >> Exactly. That's the idea. Make it super easy for customers to invest in tenable.io and get a great experience in doing it. >> What about your own sales guys though. Is there a little channel conflict? They're like hey come one, I want to sell hat thing, we don't want to go through Amazon. >> Not at all. Our mantra is we want our customer to purchase through the channel they're comfortable with. And if they want to purchase through the AWS marketplace we have a channel for them, if they want to go through our three chair model we have obviously a great experience there as well. >> And clearly Amazon brings a lot of customer eyeballs to the table. >> They're a great partner. >> So, just before we wrap, you guys came out with the vulnerability intelligence report. I wonder if you can share some of the highlights of the things. You guys are obviously keeping track of this, you talked about benchmarking against your peers. And I know there's also a lot of sharing of information within security companies, to kind of know what the bad guys are and some of the patterns and best practices. So, I'm wondering if you can share some of the current trends. What are you seeing? How's the landscape changing? >> Well first of all, we have phenomenal tenable research team. They're phenomenal in terms of the data science, in terms of the vulnerability intelligence. We have a wealth of data in our hands from various deployments and so there's a lot of great number crunching and analysis we can generate from that. What we discovered in the vulnerability and intelligence report, is that security teams are just bombarded with vulnerabilities, literally, bombarded. Last year in 2017 we saw over 15,000 CVE's and unique vulnerabilities hitting the marketplace or hitting the industry. And by the end of this year we're expected to be between 18,000 and 19,000 vulnerabilities. So the trend is just going up, up, up. I think what makes matters worse though, is that when you start looking at those 19,000 vulnerabilities, over 60% of those vulnerabilities are classified as either high risk or critical. >> 65%? >> Around 60%. >> Of the, what was the numerator? 18,000? >> Of those 18,000 to 19,000 vulnerabilities, are classified as high risk or critical risk. So, that's a lot of fire drills that security teams need to chase. And so, what we're trying to achieve is helping our customers, helping the market at large understand what are the true risks out there, not the theoretical risks. What are the actual cyber risks. Meaning what are the vulnerabilities that could be easily exploitable, that have exploit kits already developed. We have our data science team looking at the characteristics of vulnerabilities and which ones would be leveraged by the bad guys and which ones would not be. And we significantly boil that number down so that organizations can focus on only 5% of the number of vulnerabilities that they otherwise would be chasing without changing their overall security risk to the organization. So, prioritization is super, super critical for those organizations. >> Nathan I think we all that separating the signal from the noise. (laughs) >> Jeff, well thanks for having me. >> Nathan, thank you very much, it's great to see you and have a great show. >> Thanks. You too. >> All right, I'm Jeff he's Nathan, you're watching theCUBE. We are at the AWS marketplace and service catalog experience at the Aria, at the quad. Come on by. We're serving free food and drink. See you next time. (lively music)

>> Announcer: Live from Las Vegas, it's theCUBE. Covering Dell Technologies World, 2018. Brought to you by Dell EMC and its ecosystem partners. >> Welcome back to Vegas, everybody. We're rocking. We are rocking. Dave Vellante here with Keith Townsend. This is theCUBE, the leader, get into it! Live tech coverage. (laughing) >> We in the club! >> We are in the club. The Chads are here, Chad Dunn, Chad Sakac. Chad Dunn is VP of Product Management and Marketing at Dell EMC, and Chad Sakac, needs no introduction, although new role with Pivotal. >> Sakac: Yeah. >> Awesome. >> It's exciting man, it's great to be back, like come on, some things change, some things stay the same. It's always good to be on theCUBE. >> So tell us about the new role, let's start there. I know you've talked a lot about it, but you haven't with me, so. >> Yeah, so, in a nutshell, as I was trying to think what do I do next in my career? You know, we had built amazing things in the converged platform and solutions division, VxRail, massive success. >> Dunn: Yep. >> Those things moving into the parts of Dell EMC for more scale and velocity, which is simple. If you imagine the future of tomorrow, you'd go and say, what percentage of infrastructure going to be hyper-converged? Answer, a lot, and it's going to need to have a velocity that's very similar to a server, because what percentage of servers are going to be HCI? Answer, a lot. And so it was a very natural kind of, time to go and say, how do we optimize this thing? And then that gave me a weird, unique, once in a lifetime moment, where I could go and say, what do I want to do? My wife said, I'm telling you a long answer, and you probably want the short one. My wife said-- >> Dunn: You don't know any other kind. (laughing) >> This is Chad skills. >> "Chad, you've been on the road for 13 years, "your children are now 12 and 14, "they're going to be here in the nest "for like another four years, "take time off, I'll go out to work, "you be a stay-at-home dad." That was actually, like, option A. Option B was, there's so much cool stuff going on in the ecosystem, join a startup, do a CEO gig, whatever, and then stay in the family and a ton of support from Michael and from Jeff Clarke and from Pat Gelsinger and Rob Mee, and there was, like, do this at Dell EMC, do this at VMware, do this at Pivotal. And what I realized was the Pivotal thing gave me the opportunity to do the startup-like thing, discover some new parts of my own career, so move up the stack, and do one thing that I've always done, which is be at the intersection of the companies. Because PKS is, fundamentally, an effort that is 50/50, VMware and Pivotal, just like VxRail is a 50/50, VMware, Dell EMC effort. >> Right, right. >> So it was the obvious choice and then I had to have that uncomfortable discussion with my wife that said, "Unfortunately, sweetheart, "I'm back on the road." She said, "Fine! "But at least take one month off "before you go from one thing to the other." We went to Hawaii, surfed. >> Oh nice. >> It was awesome. >> You bring the kids? >> Oh, yeah. >> Beautiful. >> It was awesome. But in any case, it's a, you know, in the same way that when we started VxRail, we were like, how do we go from a market where we're currently not the leader, and quickly accelerate, become number one, in a two-year period? And that requires running fast and iterating. The same thing goes with PKS, PCF and PAS is number one for that universe, but we're not currently number one for the enterprise container distribution. So, that's OK, I like that, now I'm determined and stubborn to make sure that PKS is the best enterprise Kubernetes and container platform. >> Chad D, you were talking off camera about the interest in VxRail, sounds like it's off the charts. >> Absolutely. I mean a ridiculous number of customer meetings that we have here at the show this week. I think it's over 200 customer meetings, just on VxRail, and VxRack SDDC, you know, the VMware hyper-converged stack. And, you know, more and more on Pivotal PCF and PKS. >> Yeah so let's talk about that. You got the guys that are sort of, born Cloud-native and the guys that are trying to transform, they need infrastructure to help them do both, they need partnerships, so lay it out for us. >> So, Keith, you and I have gone on Twitter and talked about this, there's this nature amongst the IT ecosystem, where everybody wants the answer to be A or B. >> Keith: Yes, we do. >> Right, A or B. >> Keith: Yes. >> Yeah A sucks, B is awesome. And you know, debates raged about, you remember like, the era of Doka is going to destroy VMware, you remember that? >> I remember that, seems like just yesterday. >> Because it was just yesterday. (laughing) But what's happened now is everyone's realized that's stupid, that the reality is that Kernel-Mode VMs and containers are going to co-exist, and in fact, the majority of containers are actually going to be deployed on Kernel-Mode hypervisors. >> Netflix's biggest story is optimizations from AWS. They're able to save tons of money by running containers inside of VMs. >> Sakac: Yeah. >> Dunn: Absolutely. >> And, you know, I was laughed at a couple of years ago, when I said, you know what, containers and VMs go together, like peanut-butter and jelly, and it does. >> It does and so, look, does it change what people want from the Kernel-Mode virtualization layer? Yeah. So, things like DRS, that are really important if all you do is a Kernel-Mode VM is less important, when resource management is done by something like Kubernetes, but that's a refinement. And so, what we're trying to do now is now that everyone's gotten over the emotion, and what I call the bar-fights, where we're getting into stupid arguments, you know, that are not about something that matters, and now people are getting down to the brass tacks of, how do I make this go? They're realizing, I'm going to use off-prem and on-prem, I'm going to have Kernel Mode VM's and I'm going to have containers, how do I make that work, how do I build a hybrid model that will work for both of those scenarios? And then, frankly, our job as IT practitioners and the vendor ecosystem is to make this as easy as we can. >> Well, you guys know this better than I do, people want to use existing processes and procedures, they don't want to throw that stuff out, I mean I think of it, I remember Big Data and Hadoop that the killer application was sequel. Right, I mean even in the Blockchain world now. >> Sakac: Yep. >> Everybody's talking about writing in JavaScript, right, you've got expertise built up, you don't throw that away. >> No, and I think when you look at the people who are trying to deploy containers on premises, they don't want to worry about the infrastructure, right, they want to look at the new, play with the new, cool things, they want to play with Kubernetes, they want to play with containers as service. They don't want to talk about, OK, well what infrastructure do I need, how do I make those choices? They want something that is very much automated and very much scale-out so it can react the same way that their application does. >> So let's talk about that, let's talk about VxRail, Kubernetes, PKS. If I'm a Cloud-Native guy, I don't care about infrastructure but there has to be infrastructure. So where's the meeting of that conversation? Dell technologies run best on Dell technologies. >> So, again, I'm going to try and force myself to give short answers, because it's so not natural for me. I'm sorry, fellas. When Pivotal engages with the customer, we go and we say, "We give you a platform, PaaS, PKS "and the Function Service," and they say, "What should I run it on?" And the first answer that comes out of someone's mouth is it doesn't matter, you can run it on any cloud you want, which is true on one level. But then if you look at our on-premises projects, the thing that's the biggest holdup is infrastructure that is too rigid, too slow, doesn't work right, is busted. And they're like, damn it, if I want to focus my energies elsewhere, I have to have a base-stack that is just easy and done, right? >> So, help break up the long chat answers. One argument is, you know what, just give someone 128 gig VM, a bunch of vCPUs, and that simplifies the infrastructure. Where does that break? >> It breaks immediately when someone says, I need to add more total compute, or storage, or network, or memory, to my Kubernetes pot. Kubernetes goes, great, I'd like to basically make the cluster bigger, because I've got this resource demand. Then it looks down and says, infrastructure, are you there? And if the answer is, no, it's like, wah wah. Right? (laughing) So what we've managed to do is we've managed with VxRail to go and say, we've made an easy button based off of the customer-standard which is the VMware stack, it's not only something they can count on, they can easily add it, so if they want to add raw compute, storage, or network. It also adds in small increments, so you don't have to have a giant block of infrastructure to go in, you know, so you can grow your Kubernetes cluster, you can grow your physical infrastructure, simple, easy, done. And the biggest part is that Kubernetes makes deploying containers easy, however, PKS makes deploying and versioning Kubernetes easy, VxRail makes deploying and versioning the vSphere stack easy. Easy, plus easy, plus easy, equals easy. >> So is it like a quasi-elastic-beanstalk here? >> Elastic beanstalk, OK. (laughs) >> Is that fair? >> Or maybe a plastic beanstalk, where, you know, it could hold its shape. >> You know, elastic beanstalk is a PaaS, right, but the long and the short of it is is that if you get the abstraction that you need, Kernel Mode VM or container, the container is in a VM, if the whole stack is prescriptive and easy and works, then you can redeploy time, money, and resources, on the things that matter. And that Pivotal ready architecture, which is PCF, on VxRail, is that easy button on-prem. >> So, Chad, the production staff may regret me asking this question, but I have to know this. You're known in the industry for these blog polls talking about face-melting technologies. (laughing) What is face-melting about PKS, and VxRail, gimme some classic Chad. >> I'll give you face-melting. Facemelting to someone who's looking at a container platform and you're looking at Kubernetes is that without them knowing, without them knowing or doing anything, the Bosch part of what PKS does- >> Keith: Oh, Bosch. >> Is basically doing updates, like four times a day, blowing up the entire environment and recreating it and no-one has touched a damn thing, step one. The next thing that's face-melting is that their ability to update the infrastructure, can be done at tens of thousands of sites via API calls. So I'll give you another fascinating example. Kubernetes is generally thought-of as mostly a data-center thing, we've had fascinating interest from retail and other use cases, where they're like, look I get it, I want a Kubernetes, that I could deploy in a store. >> Keith: Yeah. >> And then you go and say, well, do you have a great DevOps practice in the store, in Topeka, Kansas? The answer is, no. But if I say I can basically drive all of the platform updates, including the infrastructure, at thousands of stores around the globe, that's pretty face-melting, no-one else can do that. >> Exactly, and look we see, you know, lots of pockets of Cloud Native popping up in accounts, and a lot of times IT doesn't even know where they're at. You know, these are things that are going to go from a line of business, and all of a sudden become production, have to become production, and IT needs a way to manage that. Rail gives them a way to go in and manage that infrastructure, at a scalable way, and move it from a line of business, into production. >> I'll give you another face-melting, do you mind? >> I'm not calling the shots. >> Bring it on. >> Is your face OK? >> My face is getting there. >> I want to see it like, melted Keith, just melted. People have asked me is that a good thing? And, yeah, it's a great thing. (laughing) So, we were talking about a particular customer, I dunno whether we can name them, can we name them? >> I don't know if we could, I haven't asked. >> OK so-- >> What industry? >> Financial Services. >> And, basically, they use the PCF stack on VxRail, and they're currently using it, for pre-prod. >> Exactly, so they're building all the testing applications to test their classic applications, that are running on VxBlock. >> So they've got a production environment that's like, big, classic, VxBlock, also my former baby, so and I love all my children equally, right. What they are finding is that the simplicity of the PCF on the VxRail Model, is so wonderful and fast and great. But when they want to try and do a capacity add on a VxBlock, or to do an update, like an RCM, it's a lot harder here than it is over here, right. I guarantee at that customer, what they're eventually going to discover is this has been awesome, we're going to keep using VxBlock for something else, but we're not going to deploy PCF, PaaS and PKS, on a VxBlock. >> Exactly, and this is going to trigger refactoring of all those workloads, that say, can I refactor these to be Cloud Native, right. If I can iterate my testing that quickly, can I iterate my production applications that quickly. >> And the ROI on that refactoring is? Fill in the blank. >> No, no it is like a thousand to one. So, again, this is a very hard thing to imagine. >> Talk about business impact. Not financial, but-- >> I'll give you one example that I'm so happy that they actually posted this to YouTube, because the customer's voice in this is incredible. If you YouTube, From zero to 12 million, T-mobile. OK, so this is not me saying it, you can go and you can see it themselves. T-mobile basically, and to all of you T-mobile, you know, subscribers out there, anyone of you guys use T-mobile? I use T-mobile, so, in any case, they have a single, giant, Java app that has a thousand functions in it, right. So, just imagine one app, sitting on a app server, like web-sphere or whatever, and inside that app, there's a thousand API calls, functions, and purposes, right. And because it's so big and monolithic, but this is critical, this is like the thing that runs their ordering systems and like, subscriber functions. It's the heart of the business that any time they needed to update it, to do like a patch, would take seven months. If they wanted to scale it, so like the iPhone launch is coming up, we need to get like three times as much capacity to handle all these iPhone orders in September, it would take them seven months of planning, work et cetera et cetera. >> Sure. >> Sakac: Everyone goes, I could visualize that. Right? >> Right. >> They took one function, just one, and pulled it out, and they said, we're going to do a project, we're going to take this function called, Get Usage, which, as you can imagine, basically pulls up the subscriber's usage data, and we're going to make it into a small micro-service, and we're going to run it on a PaaS, OK. Within five months, that function was getting used 12 million times a day, and they were able to do three CVE updates, so in other words, a Critical Vulnerability Patch, comes out, they were able to do it in real-time. They have eight platform operators, just eight, that are supporting 5,000 developers, sorry 500 developers. Eight, 500. Now, if you look at that and go, what does it mean for them? Well, they reduced the number of outages by almost 90%, the time for an outage went down by 63%, the developers and the dev-ops team are now happy, because this thing auto-scales itself. >> Dave: Ching ching. >> Ching ching, ching, right? >> Right, dudes, we got to go. Chad squared, thank you so much for coming on. >> Thank you, Guys. >> You OK? >> I'm good. >> Your face is melted. >> Your face melted? >> I have water. >> Splash it on your face to bring it back. >> Really, always great seeing you guys, thank you so much. >> Thanks, Dave, it's always good to be on here. >> Thanks very much. Keep right there, everybody, we'll be right back to wrap, right after this short break. (soft music)