(funky music) >> Announcer: Live from San Francisco celebrating 10 years of high tech coverage it's "theCUBE" covering Vmworld 2019 brought to you by VMware and its ecosystem partners >> John: Hey welcome back everyone its "theCUBE" live coverage here of VMworld 2019. We're in Moscone North in San Francisco, California. I'm John Furrier, Dave Vellante. Our tenth year covering VMworlds. The last show that's still around since "theCUBE" started. EMC World's now a part of Dell Technology World so VMworld was our first show of "theCUBE" in 2010 and we're here with then the Senior Director now the CMO of VMware Robin Matlock. Great to have you. Thanks for coming. 10 years ago we were across the street at the South. The first ever "CUBE", now 10 years later, what a run. Thanks for coming on. Appreciate it. >> Robin: Well how 'about the fact that this is number 11 VMworld for me so I think we're on, like, number 16 or so for VMworld so, yeah, we've driving been this ship for a while and it's still going strong. >> John: And, you know, when you came in the studio we did a little preview video and one of the things we talked about and you jumped on was this notion of resiliency around VMware. I want to get into that because the keynote this year I thought really used some of his primetime real estate to highlight Tech for Good and really some of the efforts around that so 1. Shareholder value, you guys have been doing great. Stock prices up. But in this era of, you know, corporate responsibility and accountability, this Tech for Good message is real. You guys have been doing it for a while. It's not new, it's not like you're doing it for fashion, it's the real deal and it was a big part of the keynote. >> Robin: It was. In fact, it was really a highlight for part of the keynote for me personally. I mean, I think when it's in our DNA, and that is consistent with our values, and we've been at that for some time. We have values that are all about, you know, customer and community and that's who we are. We also have very high aspirations that of course we have to be performant. We have to perform well as a business and deliver shareholder value but that isn't enough. You know, I do think that Pat leads this narrative that we as a company have to think about giving back more than we take. And it's not just PowerPoint slides, it's real. We empower our employees. I hope you enjoyed the story about Callum Eade swimming the English Channel all for a cause that he chose. He raised the money, he drove that and VMware just opens up those opportunities to allow our employees to do that so I think, we think it's a really important topic, we tried to give it a lot of air time, and give a way for the attendees to connect with it and see what they could take action against. >> John: And also, you guys are also voted one of the best places to work. Your campus in Palo Alto, beautiful and it is a great place to work. But this is the ethos, but it's still competitive and had Carl Eschenbach recently in our studios in Palo Alto and he made a comment he's like, "You know, I've been at VMware "for many, many years", now he's a VC at Sequoia Capital, and Carl said, "You know, everyone's been "trying to kill VMware. This is going to VMware, "that's going to kill virtuals." The resiliency just around the staying power of the product and technology leadership happens. This year it's containers, the attendees are excited by it, the numbers are up, 20,000 people here. Still evolution on the technology side, still great community. >> Robin: Yeah, I mean I think, you know resiliency is in the fabric of VMware but I think innovation is what is the secret sauce and we know in Silicon Valley you better innovate and keep moving forward or you're going to find yourself kind of, left out and, you know, Pat's been an incredible visionary. He's got a team of leaders that are very confident, strong technological disrupters. I mean some of the big acquisitions that we announced just last Thursday at earnings that we are educating folks here about, the intent to acquire Pivotal, the intent to acquire Carbon Black, you know, further that we'll either do it organically or we will acquire interesting combinations of companies to drive unique value to our customers. So I think there was a whole bunch of that today. >> Dave: We were talking in "theCUBE" earlier, Robin, about how now it's a post-virtual machine world and if we go back to 2009, which was my first VMworld as well, Paul Maritz at the time said we're building this software mainframe. Now, of course, you got promoted and I'm sure killed that mainframe from all marketing but (laughs) so well done but you kind of evolved the software-defined data center vision. But one of the takeaways for me from the keynote was this notion of any workload, any app , which was kind of the vision back then and now in a cloud which the cloud wasn't as prominent then. And so from a marketing standpoint you've really, the vision has been consistent but now with all these acquisitions you're making you're really embracing a much broader vision and your marketing message has to evolve as well. >> Robin: To support that, I think the fact that our vision has been incredibly consistent for many years now, I mean, that's Pat's leadership kind of setting that foundation for the company. My job as a marketer is to help find the way to articulate that in a way that's consumable and people understand. But what's happened over the years is we deliver on that vision 'cause, you know, a vision it's not all perfect, we don't have every piece of it or it's not all optimized. All of these moves year after year are just validating and supporting the delivery of that vision to our customers and I think the big moves this year are no different, whether it's Tanzu for Kubernetes, whether it's the Carbon Black acquisition idea, whether it's Pivotal, these are just steps along a journey that's going to deliver on our vision which is delivering any application on any cloud consumed by any device, all with security intrinsically built in the fabric. >> Dave: Well and the gauntlet that you lay down this year in talking to your practitioner audience was that technologists who master multi-cloud will own the next decade. Okay. That kind of says it all, right? And that is a strong message that you're sending to your buyers, to your practitioners so. >> Robin: Yeah, and I think the people that are right here at VMworld, these are the kinds of technologists that have that opportunity in front of them. That's why this whole notion of make your mark it's like, lean into this opportunity. Betting on VMware, building your career on virtualization has opened up many opportunities. It went from compute to storage to networking. It's now into multi-cloud. These are incredible opportunities and these technologists are the ones that can deliver this value for their enterprises. >> Dave: And there's diversity in the messages, you know, all the major cloud players say, "Well no. Just our cloud." You guys are pushing in a new direction. I mean that's what leaders are supposed to do, right? >> Robin: Our strategy has always been about choice, you know, we've really been advocates of letting customers choose the path that's right for them and we know in this cloud war that we're all a part of that customers they are choosing. Some are leaning into AWS, some are leaning into Azure, some are biased towards IBM. Our job is really to enable them to have a rich, powerful experience without friction, efficiently, and operate those workloads in any of those environments. >> John: Have you seen any demographic shift in your primary audience because obviously the operating side, even with Kubernetes, they love it, containers, a messaging channel that's in and of itself but still containers seems to be that next step function with Kubernetes that VM's brought to computing. But when you bring in the dev and the ops that's where it starts to get magical when the operating's got to meet up with the developers. That's been the theme. cloud-Native. All this enablement's coming in. Has there been a shift in demographics to your audience? >> Robin: Well it is an evolving journey, if you will, and yes but it's still, I think we have a long ways to go. We are largely still have an infrastructure audience here, there's a mobility crowd here, there's a cloud architect crowd here. The new audiences are going to be the platform architects that dev/ops community and we do have shifts in that but I would say that's part of the value as we bring Pivotal into the family, we can now merge these audiences and, I think, do a much formidable job at that. >> John: It's interesting, Telco will have them on later. 5G was a big part of the keynote as well >> Robin: Yeah. >> John: A new opportunity, a new affinity group there. >> Robin: Without a doubt, I mean, the whole Edge and Telco clouds are really opening up new entirely new markets. The Telco, the 5G, we do think that's going to be a very significant wave and is going to create new opportunity for new application types, new fundamental architectures that we can now merge between Telco and Enterprise so we think it's really a rich ground for innovation. >> John: You mentioned Pivotal, I think that's more of they were already in the fold, now they're officially in the fold with Dell Technologies but your other acquisitions, there's a lot of them. You got to kind of bring them into the fold so is there the marketing playbook do you have an off-site meeting and you just give them the playbook? How do you handle all the integrations? 'Cause that's always a big challenge. IT integration, messaging integration, again it helps if they're on the fault line of the value proposition but >> Yeah. >> John: What's your strategy to integrate all these companies? >> Robin: Well, you know, any time you're doing a lot of mergers and acquisitions you definitely have to think very strategically about integration and then sometimes you want to integrate fully, right away and sometimes you want to let an acquired company be stand-alone for a little while. Got to get used to the culture a bit-- >> John: Like Velocloud? >> Robin: Velocloud is kind of independent-- >> John: They've got their own building. >> Robin: within the networking team. AirWatch was held very independent for a couple of years. Some other ones are just tuck-ins. You just bring 'em right into the family, you just merge 'em in, it just depends on the size, the scope, the culture and the strategy. I think we take a very purposeful approach to M&A integration and we don't really have a one-size-fits-all strategy. Depends on the circumstances. >> Dave: So follow up on that because clearly there's an engineering culture here at VMware and take the Carbon Black example for instance you talked about how you guys have sort of pretested it with AppDefense but from your standpoint, how do you think about the architecture of the marketing and the messaging? I think you answered it in part. It was sometimes it makes sense to keep it separate sometimes but when you think about the vision do you look at it and say, "Okay this plugs nicely into the vision "and so here's what I'm going to do?" How integrated is it with the rest of the sort of decision-making process? >> Robin: Well, you know, I would take the position that all these acquisitions are plugging into the vision. They are that's why we're buying them because they are very aligned to our strategy and vision. Now I have the challenge as a marketer to deal with a lot of different brands that are coming into the family. I mean, how and when do I consolidate and kind of unite the brands and that is a journey that we're going to be on. We'll take some time to do that. You don't want to rush things in that regard. I think it's very important that the market sees one VMware, one vision and strategy, you know, if it's delivered in a product and it's through an acquisition as a different brand that's okay, we can work on that over time but as long as we're laying out one strategy and vision to the marketplace and just showing these are evidence of proof points of that journey. >> John: Yeah. I mean, you guys, you're pretty clear. Your strategy is to evaluate, understand where they are in the value chain of what you're trying to do. Unlike others like IBM which brings companies in quickly, makes them IBM, you guys are a little bit different, You'll play with whatever the market will give you. That's pretty much what I hear you're saying. >> Robin: Well for example, Carbon Black, experts in security, you know. I think we want to capitalize on that expertise. We want to protect that expertise. They've already been partnering with AppDefense now for some period of time rather than, you know, it's like which one is >> Right. >> Robin: consuming the other (laughing) so our strategy is let's combine AppDefense with Carbon Black and then start working with Patrick and Carbon Black to merge that into the-- >> Yeah. >> Dave: Organizationally, I think that's, at least what I read >> Yeah. >> Dave: was you can set up essentially a cloud security division, right, that Patrick is going to >> That Patrick is going to run. >> Dave: run, so >> That's right. >> John: Okay so VMworld 2019, what's the update here? Give us some factoids, some of the exciting things happening here. We're in the meadow, there's birds chirping here. This is Moscone North, nice build-out, always good build-outs here. Moscone, we're back in from Vegas but what's going on? Labs, activities-- >> Robin: We've got it >> Give the-- >> Robin: all, John >> Give us the highlights. >> Dave: Klingons >> That's right. >> Robin: First of all you've got two great days of keynotes, right, those are really important highlights. Tomorrow we're going to do some really interesting things, demo, technical, deep dive. Great guest celebrity speakers, right, We're going with the sports theme this year and elite athletes and what they're giving back to the world with Lindsey Vonn and Steve Young. But here for the program we have the Hands-On Labs are on fire. They broke records on Sunday so I know they've been really well-attended and consumed. We have over 600 break-outs, so many it's mind-boggling. We have 230 sponsors in the Solutions Exchange and that's probably a place where you can go not just to get the VMware stuff but get that good exposure and lay of the land of the entire ecosystem. And they're all showcasing their innovation. What's new, what's the latest. So I think those give people a really good quick snapshot in one week, you can pretty much get an overview of the entire industry. >> John: Are there any must-sees in your opinion? >> Robin: (breathing in) Oh-- >> John: Or that people are talking about? >> Robin: I think for sure you got to get into this Kubernetes stuff. If you don't come out of this week of VMworld with a good handle on what is Tanzu, what's Tanzu Mission Control, what are we doing with the Heptio acquisition, what is PKS evolution happening, I think you would be missing something if you don't really grok that. Project Pacific work, Kubernetes in vSphere, tightly integrated, so that's a must-do. I think there's a lot happening in the networking space, right. Pat was pretty bold up there about, you know, what is the opportunity relative to network virtualization and the time is now so I think you've really got to get into that from the data center to the Edge to the cloud. Network transformation's hot. And then of course I think the cloud and I think we're really clear on hybrid-cloud and multi-cloud and how to really think about those environments and how, if you're architecting cloud for your company, what you want to be thinking about, what are we doing across multi-cloud, and, you know, I think all that hybrid-cloud stuff, it's all there. >> Dave: As we move to this, you know, this post-VMworld, VMware world how do you-- >> Robin: Is there a post-VMware world? >> Dave: What role, post-virtual-- >> John: Oh look at that, there we go. (laughing) >> Robin: I don't think there's a post-VMware world. >> Dave: Post-VM. I mean virtual machines. >> Robin: Virtualization. >> John: Are you changing the name to container world? >> Robin: No. (laughing) >> Dave: Right, exactly. So what (laughing) yeah what specifically are you guys doing to sort of educate folks, I mean, obviously you've got a lot of Kubernetes sessions, et cetera but just in terms of helping people sort of transform their skill sets into infrastructures of code, being able to take advantage of Kubernetes, you know, we've seen some things in the industry at events like this where you know, guys learn how to program in Python or, you know, whatever it is >> Right. >> Dave: Are there specific plans to do that? Is that actually happening at the event or? >> Robin: Well that's part of what all this content is about, I mean, you know, 600 break-out sessions aren't about, you know, compute virtualization. You can find those but this is about all these different dimensions, right? Whether it's what is Kubernetes, fundamentals, how you think about that in what kind of environment you're running. And I think that's the spirit of what VMworld is about. It's about hands-on, it's about meet the experts, it's about sessions, it's about the ecosystem, it's about having that all at your disposal in one week. >> You forgot something. >> Oh did I? >> The parties. >> The party? >> Everyone >> Well that's not helping your technical-- >> Everyone >> Aptitude >> Everyone knows VMworld has great parties at night and that's where all the action, you guys work hard/play hard one of the ethos of VMware culture. >> Robin: That's right, that's right. Well, we do work hard/play hard because this is intense, right? These guys are trying to jam as much as they can into four days and so we got to let off a little steam and OneRepublic is on stage on Wednesday night. We're going to have a great time. But I do think it's on the back drop of them here they are just like sponges trying to absorb this information. >> John: My final question is, and you guys brought it up in the keynote, around the tech industry good, bad, and Pat says neutral, it's how you shape the technology. Really a call to action and a strategic imperative to be more proactive in accountability and driving change for good. So I got to ask you about the word trust. I've seen a lot of marketing around companies always try to market around trust. Now more than ever the trust, whether it's fake news, company responsibility to security, which is a big part of what you guys do. How do you see that a marketer and what's the conscience of VMware because trust is certainly a big part of what you guys do. Is that a marketing, going to be a marketing ethos? Is it built into everything? Just curious how you personally feel about the word trust. >> Robin: Yeah, well first of all, I think it's foundational to doing good, healthy business. I think you got to be very careful as a marketer to market trust. I think you need to demonstrate your trustworthiness. You need to be consistent. You need to be credible. You need to be there when the times are tough. You need to be, you know, not always asking for something in return and if you earn trust you don't really have to say it. I believe we can position our validity and our credibility proven, you know, having customers say that we're trustworthy, having customers articulate >> Yeah >> Robin: why they depend on us, I believe that's more effective for our customers and, at the end of the day, probably more authentic. >> John: Yeah, and I think people, yeah that tends to be the track record of people who say it maybe haven't earned it, right, earning it's the better marketing strategy-- Yeah, I think these 20,000 (laughing) people are saying it as they show up here with their time and energy and investment. And I think our customers, you heard from a lot of customers on stage today. Gap, Freddie Mac, Verizon, there'll be more tomorrow. You know, I think there's over 100 customers in these sessions here and they're here advocating because they trust VMware. >> John: Well they run their business on you guys. Dave had a survey hey did, just published it yesterday, the spend is not going down. I mean the cloud impacts your business, you're getting into the cloud so that's pretty obvious but just overall the business is healthy >> Oh very >> John: for VMware (laughing) >> Robin: Very healthy. And you know we do that by really trying to have a balanced approach. It is about shareholder value but it's about tech as a force for good, we're passionate about that and ultimately we put customers at the center of our thinking, of our decisions, of our behaviors, and I think that ultimately keeps rewarding us. >> John: Well, Robin, it's been great to work with you over the past 10 years. Continue on. I think you guys have earned the trust, certainly the proof is in the results, and, you know, it is what it is, and the community votes with their wallet on the product and their participation so congratulations. >> Robin: Well if that's an indicator, I think we're getting a pretty good report card. >> John: Thanks, yeah. (laughing) >> Thanks for inviting me. Love being here, guys. Take care. >> John: Alright, Robin Matlock, CMO of VMware here inside "theCUBE" for our 10th year but also as VMware goes to the next level step function with virtualization to containers, Kubernetes, big theme here, I'm John with Dave Vallente, stay with us for more coverage after this short break. (funky music)

>> Live from Las Vegas. It's theCUBE. Covering VMworld 2018. Brought to you by VMware, and its ecosystem partners. >> Hello everyone. Welcome back to theCUBE live coverage here in Las Vegas for VMworld 2018. It's our ninth year covering VMworld. Since 2010 we've covered every VMworld. Been with the journey and the transformation of VMworld. I'm John Furrier with Dave Vellante. We've got two sets here in the middle of VM village. And we wouldn't be here if it wasn't for CMO Robin Matlock, who's on theCUBE right now. Welcome back. Great to see you. >> I'm happy to be here guys, again. >> Again, great. >> Thanks for the support, for bringing theCUBE here. The community has been responding positively to the coverage because you guys had so much content here this year. As Pat said, a lot of the fruits been blooming off the tree from all the investments in product. And business is good. >> Good, we're keeping you guys busy I hope. Yep. It's been good. >> So what's going on? Let's get the numbers. We always get it out of the way. How many people are here at the event? We're at the Mandalay Bay. What's the story? >> Yeah, it's a great audience this year. We're definitely seeing some nice growth. We're well over 21,000 here today. Covering all segments of the market. Covering Asia Pacific. The Americas. Also executives as well as our true-blue IT practitioners. >> You got CIOs and practitioners with the hands-on labs, a range of audience personas. >> Yeah, it kind of goes from the practitioner base up. Your mid-level management, VPs, IT decision makers, CIOs. We really have a very wide variety. >> And the theme this year is? >> Possible begins with you. >> (laughs) Okay. >> Yeah, I popped into the CIO event last night. >> Yeah? >> And it was pretty high quality folks. I don't recall, you know, five, six, seven years ago seeing that kind of emphasis and that kind of seniority at the event. Did I just miss it, or is that new? >> No. It's been evolving over the years. I mean, at VMworld's core it is a technical conference Right? So I would say the base of the volume of the program is still catered towards a real, hands-on, technical practitioner and middle management. But we are seeing more business executives come. They want to know what their teams are exploring. They want to understand vision. And I think VMware's value proposition to enterprises is growing and therefore, it's starting to be more of a business conversation. So that is a segment of the audience that is growing. >> And you're nurturing that. Also you're making sure the hands-on labs are the best of the best. I saw Eric Nielsen has this new VMware code thing going on. >> Yes. >> Here at a little hack-a-thons happening. >> So a lot of mix in the community. The community is still robust. The ecosystem floor probably has more energy than I've seen since probably 2012 or something like that. Last time I've seen it this massive. 2012, remember Dave, was pounding. And then this year, it's just, the lift is big. Where's that coming from. >> Yeah. You know I think it's coming from a lot of things and there's no one silver bullet. First of all, VMware is just doing really well. Right? The company is very performing. It's success for our customers that've really come to buy into our strategy and our vision. And they have a veracious appetite to learn. And this is the place. You want to understand where the industry is going. You are technical and you want to be on the edge of the latest and greatest. VMworld is the place to come. So I think we're hitting on many different categories of technology. And it's all pulled together here. So it's one week where you can go from networking, to storage, to management, automation, cloud, mobility. It's all right here. >> And you guys always kind of keep a low profile in the market. You don't over amplify, over play your hand and grandstand too much on the marketing side. Which as always been the DNA of VMware. But this year, you've got Amazon coming on stage again. Andy Jassy returns to do a major announcement that Amazon, really for the first time, is building a product for VMware, on VMware, on premises. Pat's on stage. So you see the commitment from the two companies, the biggest public cloud provider, and the biggest operator of virtualized infrastructure and private cloud, partnering and performing. So I think that really kind of put a lot of wind in your sails. I mean, a lot of people are talking about it. It's been pretty much the top news story, the impact of that relationship. How has that affected VMworld? The announcements are, it seems like more announcements than ever before. How has that relationship changed you guys? >> Well I definitely think, we're several years into it now, and we are seeing the fruits of that effort. A couple of thoughts. First of all, the AWS relationship is not our sole element of our cloud strategy, but it's a big pillar of our cloud strategy. And I think, at the end of the day, by understanding our vision for how we can help deliver a bridge to the public cloud, the hybrid cloud, it is giving our customers the license and the comfort and the confidence to continue to invest. Whether it's in their data center or is in their public cloud. So there's something about just having that clarity of vision and strategy that unleashes potential, even in the data center. I think the second thing, to me, what was so significant with this Amazon announcement with VMware. Is you are now talking about public cloud services running on Primm. The line between public and private. The line between on premise and off premise is fading. It's blurring. We're going to get to a point where we're just going to talk about what's the workload, and what's a service I need to deliver the workload. Okay, and then I can consume those services in different ways, and what's the right way to consume those services. But it's not a monopoly on an off premise, or a monopoly on an on premise. It's a blur. And I think that's going to be in the best interest of customers, because I think it's going to really boil down to what is the workload, what are the services I need, and I have a lot of options on how to consume that. And I'm all for that. I think it's going to be great. >> Well, I got to say, John and I have watched this evolution for for now, as he said, this is our ninth year. You guys have done a great job of really being calm about all the things that were supposedly going to kill you. (laughter) Open stack, open source, cloud, Kubernetes, containers. You've embraced them all. I mean, I know cloud for a while was a little bit confusing. But now it's a real tailwind for you guys. I mean, great job there. And I think a lot of that is sort of how you've dealt with it internally, messaged it externally. I wonder if you could just address that for a minute. >> Yeah. You know, I love that observation about VMware, because that speaks to two big concepts: resiliency and innovation. In this industry you have to be constantly innovating. And if you get too protective of the market that you're in, you start to get into a cocoon. And then people are innovating around you and they're making you obsolete, and you're not even seeing it happen. I think VMware has a veracious appetite for innovation. And we are pushing, and pushing, and pushing. And we're never relaxed. We are always, you know, often pleased but not satisfied. Right? It's like you're never, ever done. And that keeps us being open to innovating, where once we might have been protective. It's like don't worry, things will change. We'll innovate on top of that. It's alright, a new environment. We'll innovate in that context. And I think we're very good about that. And then the other thing I think is resiliency. In this industry, there's not that many that can go from decade to decade and still be highly relevant. But you have to have the grit, and you have to have the kind of gorilla appetite that you will continue to reinvent yourself, listen to your customers, bring your ecosystem along, and partner like nobody else. And in the end you'll deliver more value. >> You know, that's a great point. I love that comment. That's going to be a highlight on our highlight reel for sure. I'll add, and love to get your reaction to, how you guys have maintained the community vibe and the ecosystem vibe. Again, to Dave's point, this is core. Pat said on earlier today, you know, "we're always going to have an open ecosystem." That's been the core DNA of VMware. So, and you also have a really strong community, hence the technical focus. These tech oriented folks, they love the tech. And they speak up a lot, you know that. They speak well. >> Oh yeah. They're vocal. >> They let you know when it's not right. But you guys embrace it. That hasn't changed. That's been a positive. How do you do it? >> Yeah, that's exactly right. I think we have, over the years, just built ecosystem into our core DNA. It's now defined by who we are and how we do things. And, you know, going back to your Amazon comment, I think that is simply an example, we know how to partner. We've been at it for 20 years. And it's just been part of how we perceived the requirements to be successful. And because of that it's now, we're just good at it. We get it. And the reason we're good at it is because we very much understand it's bi-directional. You can only win when you win together. >> You know, one other thing I want to point out, and at least give you guys some props while you're here and get your reaction to it is, we've done a little bit more cube with you guys, outside of the scope of the event. We did a lot of women in tech leadership events. We were invited to the first radio event where they opened it up to some press. So we got a glimpse inside >> Internal engineering kind of conference, yup. >> It's a total R&D, it's with all the technologies being incubated, it's a really great thing. Also being on campus, you guys are always consistently voted the best place to work, you got the innovation in the R&D, and you've just got a great workforce. So, that is also a cultural thing within VMware, right? 'Cause Pat said, we're going to continue to drive technology products, and sales and marketing for customers. Your reaction? >> Yeah, I think people are at the heart of great businesses. Right? And we have to create an environment where people can do their best work. Radio is a wonderful example. So that's an internal conference for our engineering teams. But what it is about building community within our engineering community. How do they explore new things? How do they take risks? And explore and innovate and try new things. And then how do they share that with their colleagues from all over the world. And I think that's just part of our value system is creating these kind of communities internally and externally. >> You opened it up to press, talk about taking a risk. >> That was a first time, yeah. >> That was the first time you've ever opened it up to some press outlets. We were one of three. But it was a peek. That's a risk. >> It is a risk. And I think the idea there is that being protective is not really helpful. That what you need to do is to really be open. That there's so much to deliver value and innovate. There's not reason to be so secretive. It's more about how can we feed of each others ideas. How can we plant seeds and see if these things are going to resonate. We don't know for sure these new emerging things are going to work or not. So the more we get feedback early, I think the faster we'll innovate. It'll accelerate innovation. It won't hold it back. >> Well, and your point about the ecosystem is right on. Sanjay made the point about ROI today. I thought that was really interesting data. About 10x was a conservative return number in the 100s of billions if not trillion of dollars that you've sort of paid forward through the ecosystem to the end customers. It's powerful. >> Very powerful. And at the end of the day, we need to just continue to focus on delivering more and more economic value, right? Whether it's cost savings, whether it's being able to fuel new innovation, whether it's consolidation. At the end of the day we all have to get more done with less and have more value and more impact. >> Well it's interesting to see you being in Amazon into this ecosystem, because you said you guys partnering is part of your DNA. You know, generally Amazon's partnerships have been come on into the marketplace, right? And now, they're diving into this world. Bringing their technology on prem. Which was heresy five years ago. You never would've seen Amazon do that. So, do you think you can teach Amazon something about partnering, humbly? >> Well, I'll let Amazon comment on that as opposed to me. >> Amazon's got a lot of partners, Dave. They've got thousands of partners. >> But, you know, I'm going to go back, I can't speak for Amazon on what their learning journey has been. I do feel confident that VMware, we are good at partnering, and I think we build good partnerships. >> My final question for you is community. Obviously, as people grow there's a demand for more cloud advocates, more cloud engineers, cloud architects. You guys always had a nice lock on that constituent. But we're seeing a lot of competition hire away people from communities. How do you maintain that community fabric when potentially they might be migrating to other communities. Is it through open source? Dirk Hohndel is leading the efforts with open source. Saw him last night. How are you thinking about maintaining an open, but yet inviting community when people potentially are being migrating around different communities. >> Yeah, I think you have to look at communities as personalities, and kind of the DNA of a community. And it's not a one-size-fits-all. When you're in the dev ops world, you need to act and behave and engage a certain way. You need to bring a certain type of content to that. Trust me, they don't want a lot of marketing in those conversations, right? When in enterprise class, you might be dealing with a different type of DNA. It's about proven, stability, security, resiliency. So there's a little different nature of the community and the dialogue there. I think our philosophy is you got to bring the right content to the people. And it's different, but make sure you understand the needs of the community. And we don't own these communities, right? These are volunteer, people do this because they care, and they want to and they're passionate about it. Our job is to foster that passion. Help make them effective, let them share amongst themselves. They are going to move around communities, we just want to be a part of it. We're not trying to own it, we're trying to be a part of it. >> That's the key, you try to get a land grab ownership, that's when they run. >> I don't think that's what it's about. I think it's really just about, what is the sense of community? What does the word mean? It means coming together, it means sharing, it means helping each other, it means people with like-minded needs and wants and interests. >> Robin, thanks for coming on Cube. I know you're super busy. Thanks for sharing. >> Always. >> Final word, just overall impressions so far. Are you happy the way things are going? The conference is phenomenal. Everything going smooth? >> You know, I couldn't be more excited about what's happened here so far. We're only into day two. For me, a couple of the highlights is how now the industry is starting to talk about tech as a force for good. So now we're starting to move out of the conversation of just the technologies, and the products, and the impact. But what are we collectively doing to make this world a better place. That's a new dialog. And I got so much positive response from Malala today. From, you know, some of the things that we're talking about impact on the world. And I think these just nothing but upside and opportunity for us. >> And that speaks to the culture, you guys are very inspirational. Love the tech for good. People want to work for a company that's doing tech for good, as well as making a profit. >> So do I. >> Thanks for coming on, appreciate it. >> You bet, you guys. >> Thanks, Robin. >> We're doing our best for good here on theCUBE by bringing the great voices in the community and also the executives bringing the content to you here. Two stages, ninth year covering VMworld. We're here with Robin Matlock the CMO. Stay tuned. I'm John Furrier, and Dave Vellante. We'll be back with more coverage. Stay with us.

>> Announcer: Live from Las Vegas, it's The Cube. Covering VMworld 2017, brought to you by VMware and its ecosystem partner. >> Okay welcome back everyone, live here on the VMvillage at VMworld 2017. It's The Cube's exclusive three day coverage, day three, kicking off. We're here with Robin Matlock, CMO of VMware. Great to see you with my co-host Dave Vellante. How are you? >> Good hi guys. >> Day three. >> Good to be here. >> We know that you got this thing down, this whole VMworld cadence. Day two is always a great networking night, a lot of different events going on. And then you kind of make it like a light morning, no Keynotes, by design I'm sure. >> David: Yeah thanks for that. >> The attendees really, to be honest, they want the breakout sessions and the lab. So you give them, when we do Keynotes, they don't have that opportunity to do that. So Wednesday and Thursday there's not very little to compete with that. They can get to those breakout sessions. >> Okay great, give us some of the inside, the numbers, attendees. What's going on this year? What's different about this year? If there's anything different or it's the same formula. Give us some of the data. >> Yeah you know, it's going to be interesting as we kind of leave the event and get a little bit of more postmortem insight, but my perception being in the middle of it is the energy this year is, there's a tipping point. We are at some inflection point in this industry, and you can just feel it here at VMware and VMworld. I think that, you know, kind of some of the partnerships that we highlighted on stage has just changed people's perspective about what's really going on in this industry and really what's VMware's role in it. >> Yeah new vibe too, I mean VMware. We were talking about the transformation of Vmware as a company, and from its roots to where it is now. And then just in the ecosystem just in the past two years alone, you're seeing almost like the eye of the storm and then all of a sudden now a new ecosystem vibe is here which is clarity. They kind of know what's going on. The cloud thing is decided, and they know what to expect there. And so people seem to be getting back down to business. >> Yeah I think first of all ecosystem is such a vital part of VMware's culture and success and history, but when any market goes through a massive disruption, it impacts everything, right? It starts with the customer, what they're trying to do with their business, but then all of us on the technology side, we're having to shift and adapt and change. And that means also our relationships with each other is shifting and adapting. You know, I think you're right. I think there is a lot of historical legacy, and many of our relationships are very strong. And I think those are going to continue to be very strong, but you're seeing a lot of new brands step in, whether that's the Google's or the Amazon's, kind of take a new role. >> This is new blood both on the ecosystem and also employees within VMware. We noticed some new Keynote folks on stage, some great women in tech now, a lot of ladies in tech going on at VMware. You guys done a great work there just want to give you a prop on that. >> Yeah, you know I actually, thank you for acknowledging that because it's so important that we drive diversity and inclusion in our industry. And we all know as an industry, we're not performing particularly well in that department. >> Actually I was told by my Cube guest one time, it's actually been changed. It's inclusion and diversity now. They kind of move the I first. That's what I was schooled on, but no, but this is important. Inclusion has always been part of VMware, But you guys are doing more of it now. >> And we're working hard and trust me those were conscious choices about thinking about who is the messenger for our narrative and our story from customers to employees. Want to make sure that we're representing, you know, the diverse world that we live in. >> So I got to ask you a question, sorry to interrupt but Sanjay was on. He's talking about the relationship with Amazon, now you got Google. I interviewed Sam Ramji yesterday after his Keynote here. And VMware goes to the Amazon events. You don't see Microsoft go to Amazon events, and Google going to Amazon events. So VMware is going to all the now cloud events. Kind of changes how you do the community as people start collaborating with Google now. You got Microsoft. You have Amazon. How is that changing some of your marketing tactics? If any or does it change at all? >> I think it's, first of all, our marketing tactics they're always grounded in one thing. What's the business outcome we're trying drive? What's our business strategy? And then we think about what's the right marketing strategy to get us there. And look, we've been very vocal and very consistent. We believe the world will be made up of multiple clouds, right? We believe in a multi-cloud world. We think our customers are going to consume cloud services from a variety of cloud providers. And what we're all about is creating a common operating environment that lets you run, manage, connect, and secure clouds, workloads on any cloud, consumed by any device. And that means we got to be present. Where these other clouds and their customers are engaging VMware needs to be present, so that's what's driving my strategy. >> So that's clear, that's really clear. Clarity is a real theme to me anyway of this year. But when you think about, maybe a related question on the marketing and the narrative, the broader narrative, the lows in this industry sometimes are low 'cause of external factors sometimes they're self-inflicted. And the highs are really high. And you guys are on a real high right now, so it's like your North Star is sort of that customer focus that value piece. So when you think about the changes that are going on and the ecosystem and it's reforming, do you try to sort of capture that momentum and ride it, or do you sort of try to stay steady stream from a marketing pro's perspective. >> Well I think absolutely we want to ride momentum, and I think, but first you have to have your fundamentals. I think all of it, we believe we create momentum. We create our own momentum. We're not responding to momentum. We're creating it. Now are we doubling down? Are we paying attention to what is resonating and what customers are saying that's important to me? Well yeah, then we'll kind of be agile and invest and really accelerate in particular areas. I do think Vmware has tremendous momentum, but I think we've been working on that for a long time. I don't think it's some short term thing that's happened. I think we've been building great momentum now quarter after quarter for quite a while. >> Sort of a self-powered machine is essentially what you're saying, but I do feel as though, and tell me if you agree, that the clarity with respect to, say for instance the AWS announcement, and the customer clarity we've been talking about it all week, with the notion that I'm not just going to bring my data into the cloud. I got to bring the cloud to my business model. And I think there's a reality that has set in. Have you seen those two factors sort of help you, help customers understand your vision better? What if you could comment? >> Yeah I think first of all, there's some level of just maturity that is happening. These things have been, three years ago they were so new, and we got really involved. And we started playing around, and we started some things and testing some things, and listening to more customers. And I think customers are going through their journey. So all of us I think are kind of on our spectrum of maturing and that helps drive clarity. I think VMware has a vision, and it's consistent. It really hasn't changed for many many years. We were advocating hybrid cloud long long ago. And so now what you're seeing is the delivery against that vision. So clarity you can start getting more and more focused because you keep making the next step forward and delivering on the vision that you set out. >> Well the best come through. You can see as it shapes that sort of happening. Which ones are not and then you, okay that's not working let's keep this going. >> And Dave just your point about customers. I think for us, we're always really deeply committed to staying connected to our customers. So the validation that customers are putting on stage and talking about that's really evidence of just that they validated our strategy and that as we're making these next milestones, they're in it with us. And I think that's a really important thing that we're constantly being responsive to. What are they're requirements as they learn more and digest this stuff more. >> One of the challenges that comes up with communities that are robust as VMware has and VMworld. Communities' have always been the strength. And the ecosystem's part of the community. Is as the world grows, open source is growing. Communities are growing. There's always been the talk that oh Reinvent's the new VM world. And then VMworld just never goes away. It's still a robust show. You guys continue to do a great job, but now you start to see these communities come together Reinvent and VMworld. Google now put an olive branch out there with you guys. I still haven't seen the Microsoft piece come together yet, but it's clear that Amazon Web Services and VMware have synergy, Andy Jassy's on stage with you guys. So you have to challenge the team to still be collaborative across the communities. How do you balance that from a marketing standpoint? Because they do compete, Amazon, Microsoft, Google, kind of compete. >> But if you look at VMware's position in that landcape, we are the common operating environment that lets you run, manage, connect and secure any workload on any cloud. And sure they're going to compete, and they're going to compete fairly, and they're going to go try to win in the market. Our job is not to help or break that. Our job is to let customers decide which of those clouds makes sense for their business and ensure they have a common operating environment. >> John: I think we used the word arms dealer yesterday. I don't think he was going for that. >> Well but you, VMware. >> That's not going to pass the marketing test just so you know. >> We like it 'cause it's good Cube material. >> But VMware has a point of view, and you have to assert that point of view as a leader, or you have to be subservient to those other leaders. And it doesn't appear that you want to be subservient. And there is a stack war that's emerging, and you are at the center of that and you can either lead it or you can follow it. >> And I think we all bring a different set of strengths to the table. At the end of the day, VMware as had incredible success in the enterprise and within the enterprise data center. And that is our forte and we're going to leverage that. And what we are the experiences, the training, the expertise that our customers have, they want to capitalize on that. They don't want to throw that out the window, and they don't need to. We're going to enable them to capitalize on that and use that in these other cloud environments and get the benefit from those cloud providers while not giving up some of the benefits they've been enjoying for years. >> Well and the technology matures very quickly, and we're seeing that. You guys address some of the cloud native stuff, but the people process stuff doesn't mature nearly as quickly, you know. Somebody said the other day, and I thought it was a great quote, "You're moving at the speed of the CIO." which is just really underscores that you can't get out ahead and over-rotate or you're going to lose that customer base. >> I would argue that the CIO probably needs to pick up the pace a bit. Because he's got to move, or she, at the speed of business. >> Dave: It's hard. >> And that's fast as Pat was saying, this is the slowest day of your life going forward today. And the next day's going to be faster. >> Exactly. >> Well props to Pat. We'll have him on at one because he's having a great year. Congratulations for really VMware. You guys did your homework. You made some calls, some decisions, certainly with the cloud thing that was a good call. And then you continue to make your bets. >> We've never been afraid of being decisive and making big bets. That's what staying relevant is all about. >> Well Robin, we made a bet on VMworld years ago. You made a bet on us, and we're proud to work with you. And thanks for your support for the Cube. >> Robin: Love the partnership with you guys. >> And Andy Jassy the same with AWS. We made a bet on them and they're didn't understand it. Now here it is, and soon to be Google's. So thanks so much for your support. >> Alright, well here's to adapting and being versatile in this crazy industry of ours. >> How about making the bets? Here at Vmworld 2017, that's the theme making the choices are clear, make the bets. This is The Cube bringing you all the action from VMworld 2017. We'll be back with more live coverage after this short break.

hello everyone I'm John for with the cube we are here on the ground at VMware's corporate headquarters in beautiful Palo Alto for a special presentation I'm joined with Robyn Matlock who's the chief marketing officer of VMware good to see you hi John nice to see you to our special cube on the ground getting all the data was a lot closer to get to just a little walk yeah I love this campus you guys had the most amazing facility one that voted one of the best places to work so it's good parking is always a hassle play I'll ago that garage anyway um how are you doing great so 2016's come to a close had a great vacation I heard New Zealand amazon reinvent you guys had a big presence Pat Gelsinger was up on stage with Andy Jassy on a fireside chat keynote interesting world of that we live in as they say interesting times VMware and Amazon with a strategic relationship certainly has impacted the market market attention on VMware's cloud strategy now comes into picture how's that affecting how you guys are talking to customers you know I think it's just been a tremendous you know last several weeks and frankly of course we've been preparing for this for months and months but the market has been very responsive to the news of these two great companies coming together and the you know announced in 10 of how our technologies are going to work better and the feedbacks been so positive I think at the end of the day this just opens up many avenues for customers they love VMware they love Amazon helping make their experience as they integrate those worlds together is just a win-win for them so I person very excited about it and we're getting great feedback you know you you've always lived in this world with VMware and I always compare fiemme words like Facebook where whenever there's a changed is a revolt right as always it's always naysayers and also people complaining now when you guys did the deal with Amazon people are speculating but in reality it's the culture there's no clash there there's really a geek culture on both sides what's your thoughts on that do you see it the same way and what's your observation of you know the VMware culture because you know you do a lot of digging into the data you run vmworld is reinvent is being called a cloud version of vmworld kind of coming together those two cultures your thoughts on the two I mean I think there's a couple of different dimensions to that question from a cultural standpoint the two companies actually have very similar cultures in the sense that they really value engineering innovation these are disruptive companies and they also both I think we can say focus on the customer it's all about customer value customer impact and when you keep your customer at the forefront of all the decision-making that you do it's really easy to make the right choices because you're doing on the benefit of that customer and and hey change is a constant and that's the one thing we can count on and those of us in the industry that don't change usually don't have a great outcome in the end right changes part of delivering more value to our customers yeah Jay volante s2 I wasn't there at the Dell Dell world this year once at the Grace Hopper event was awesome awesome event but the dell event they asked Michael about vmware always we always like they ask michael dell vmware and also jeremy burton talked about the messaging around dell technologies which is simply just a holding company I guess I'm structure but the people are trying to get the message out on what Dell technologies and you guys out CR as Michael said the crown jewel of Dell technologies talk about the strategic alignment with Dell technologies how does that affect your job and has it affect the positioning of how vmware is visa videl technologies delhi MC but also your growing ecosystem sure so you know first of all we had a great relationship with Dell prior to this acquisition for you know well over a decade right so the two companies knew each other very well of course we have a rich history with emc you know for us strategically VMware's being run much like it was before it's an independent company michael has been very consistent about that his behavior is consistent his you know message of the market is consistent this message of customers and partners is consistent VMware remains an independent company our ecosystem is one of our crown jewels and Michael's been very consistent in making sure that that ecosystem is protected and knows that vmware is going to operate in the best interest of their customers and that ecosystem and so for us in a lot of ways it feels really comfortable of course we're looking for opportunity right we're looking for the upside and we are seeing tremendous opportunity with Dell technologies to make sure that our joint customers have a better together experience than ever before and we look at those as incremental opportunities and we're very committed to that but at the end of the day that's a really important part of our ecosystem is Dell technologies but it's not a replacement of you always had a good eye for marketing I see the way you guys do your events and vmware's ecosystem you're always tested people always going to hold your feet to the fire you had a very active community when you look at the changes that are going on with the Amazon we heard Pat Gelson around stage again Andy Jesse both reiterating the same ethos that you listen to customers and the customers are saying that they want to have some cloud the one put VMware in the cloud how is that gonna change how you mark it in position and talk to customers yeah well we you know we've been talking about hybrid cloud computing for a long time so you know for us this is really about how its evolving and becoming more tangible and more real you're probably very familiar with the fact that we've positioned our cross cloud architecture at vmworld and our story with Amazon is very supportive of what that whole architecture was about it's about hey I'm standing up a stack in my private you know datacenter and this is my private cloud and I want to run that stack as is in other cloud environments I want compatibility between the different cloud providers that I leverage and what I'm doing here within my firewall and that's all very consistent under our vision and strategy about this cross cloud architecture I mean for customers it shouldn't feel like very siloed separate experiences environments different tools different experiences different skill sets they should be able to leverage their resources to be able to deliver these workloads in whatever cloud environment they choose and that's really cornerstone to our cloud strategy and Amazon's a major option for customers to extend into the Amazon Cloud but we also have the IBM cloud that's available to them we have over 4,000 service providers that provide specialty cloud services that are available to our customers the whole idea is that we unify this and make this a seamless experience and that's what that crossed out architecture is all about that's a great point Sanjay poonen brought that up q But reinvent around connecting the digital Islands so how is that changing if anything or is it the game still the same on the digital transformation on those solutions is the unification cross cloud the fundamental piece of it is there more to the story what's the essence of this digital transformation yeah I mean I think first of all at the heart of digital transformation is software right that is enabling this kind of unified approach and so that's kind of one point the second point is really the value for customers in the end user is about applications and then the question is how do you deliver those apps in all types of apps right we need the new modern apps the stuff that works on our cell phones and our iPads we also need the ERP systems and the mission critical systems and all that needs to be delivered in a seamless experience what I T and enterprise need is more options about where to put those workloads what's the right place for those workloads based on whatever their requirements are geography service levels back up discovery you know disaster recovery whatever their requirements are they need flexibility but they also need control and governance and management in a really efficient way and so I think at the heart of it is how you deliver apps to users in a much more expedient fashion as we come down to the end of 2016 we're looking at 2017 what's the vibe internally at VMware and what's your outlook for 2017 now CVM world will be again a the big tent event not sure what your thoughts are that was probably working on right now but is there any thoughts can you share any color around how you guys see 2017 or what's the conversations between you jeremy burden the folks within the core teams around the outlook for 27 you know I think people are feeling really bullish on VMware we're exiting the year in a position of great strength it's been a great year from a revenue standpoint it's been a great year from a emerging technology standpoint we're getting critical mass in some of the you know smaller businesses like network virtualization and you know software-defined storage with virtual san and hyper converged infrastructure you're seeing a lot of great traction our customers are speaking that you know they're out on stage with us they're really advocating and evangelized and the value that they're getting from their VMware invest and you know the bottom line is is we're executing across the world we have really strong you know footprint across all the regions and everybody's performing so I feel like the momentum is really theme for theme emerging for 2017 that's sauteing around in your marketing brain in terms of what you might feel happening yeah you know John I'm not gonna debut that right here watching things up our sleeves but you know at the heart of it this notion of unifying clouds is gonna be centerpiece to our strategy in 2017 and we are working on some new interesting ways of packaging it that but the whole cross cloud architecture truly is a driving force for us in 2017 and how we keep delivering that to customers and new and fresh ways and our ecosystem as well making sure they can deliver that has anything about the Amazon of announcements on web service announcement because you had Pat Gallagher and Andy Jassy and that was really kind of a big shocker for everyone I think I mean you can get it now you look back but they both onstage and II Jesse never comes down to San Francisco to do a press event pretty big announcement for Amazon to stand on the stain stage as vmware and same for you guys this opens up a whole nother dimension any surprises anything that's changed in your world that you can share that's been positive or concerns or comments from customers that that this relationship has changed with you well I think you know what our Amazon relationship does is kind of solidify that our position in the cloud is you know very viable because at the end of the day these are the leader and private cloud and the leader in public cloud coming together to deliver more hybrid cloud value to our customers now remember we also had announcement with IBM earlier in the year and I think this is just kind of reiterating this notion that what we've done in the private cloud is very special adds a lot of value to customers but they want this in public cloud environments and the more that we can make that seamless and easy and consumable for our customers the more we can take the complexity out of it the easier it is for them to govern it you know the more value this is for customers obviously Amazon's the brand in public cloud and I think that relationship has just made everybody more relevant both VMware & M's I'm very customer centric to it turns out you guys operates not like a magical Doremi worked on it yeah what Sanjay and the team exactly well Robin thanks so much for come on our special on the ground here we are on the ground here the VMware head coach Robin Matlock the CMO of VMware here telling us her thoughts on 2017 looking back the momentum of 2016 I'm John furrier thanks for watching

why from the mandalay bay convention center in las vegas it's the kue covering vmworld 2016 brought to you by vmware and its ecosystem sponsors now here's your host John furrier hey welcome back everyone we are here live in Las Vegas at the mandalay bay convention center in the hang space at vmworld 2016 i'm john fervid SiliconANGLE is our flagship program the cube where we go out to the events and extract the signal it annoys this is our seventh year covering vmworld and every year it gets bigger and better the cube and the guests on the content and I'm here with the person who's made it happen from day one Robyn Matlock was the CMO of VMware first of all congratulations on a great event and thank you for supporting the cube for seven years it's been fantastic and it gets better every year you well I'm thrilled to be here and you know a huge fan of the cube you're an integral part of the program so here we go again John we're ingesting all the day that we're analyzing and we're providing great great videos a lot of volume but what an interesting thing I want to get your take on because you have written the vmworld bus for a very long time don't remind me it's changed and grown and one of the conversations we've had all week is what I've been calling ecosystem two point oh what is the ecosystem going to evolve into for vmware and vm world and it's been interesting and so on to get your take on and one of the things that it was striking was what pat kelsey has said to me yesterday on the cube interview was VMware's not only if not a prop one product company anymore it has grown to be a multiple set of products on technologies which has created a diverse and growing community absolutely can you add some color to that because this has been it's always been the community is very strong in VMware vmworld and VMware so but it's evolving that's honestly shifting and changing it in bad way it's just growing and morphing can you comment on there I think it's a really interesting topic it's in it's a rich topic because it as VMware's business is changing first of all our value about the community has never changed I mean we really value an ecosystem our customers wanted expect that we work and play really well with the variety of technologies that are in their but of course is our business in portfolio has grown and expanded the nature of the types of companies that are engaged in and around as shifts and changes to and if it doesn't then we're probably all going to have some issues down the road so I think it's a lot like driven from customers what do they want all of us vendors to do to work together so their life is easier yeah and the other thing David's lawyer is the CTO Wikibon is very technical comment that it's the best vmworld ever from a statement of direction standpoints very clear that the data center role that vmware has and this intercloud in which we call Pat calls it cross cloud is a real rich area for innovation and growth oh I think we're just on the cusp of the potential of that so you heard us talk about the cross cloud architecture and we broke that down into a few things like the VMware cloud foundation that's recension the software-defined data center stack all with lifecycle management that you can consume on-premise and off premises the IBM partnership the opportunity for the V clutter network partners I mean there's just so many the size O's are involved in this it's just really it's almost like a whole economy that can integrate into this broader you know offering I guess with all that in mind how are you managing the logistics because you know it's pretty obvious at vmworld is back in Vegas Moscone is pretty much under construction for the next few years you're going to be here for a couple more years yes here for a couple more you learn and it's just growth in this community what's how do you do that what's the key keys to that you know I think first of all it's about really making sure you're connecting with your customers and your partners and it's about experiences right it's making sure that you're getting them the rich content this is a technical conference so we're going to be measured by did we showcase and engage our audience with the right kind of technical information give them hands-on access to the things that they want to learn and further their careers and you know I always use that it's like we've got to stay close to our customers so any feedback that you've heard positive areas to work on what are your thoughts and as you look back now it's day three looking out over the past few days and we can I say one of the things I'm most proud of and I am seeing it in the Twittersphere is the fact that we had a lot of customers do the talking customers do the showing there were over a hundred summer's here this week on panels in labs in keynotes on videos all talking about their experiences and this group of people they want to hear from their colleagues in their peers so I think customers really helped us this time tell our story and help people understand what does this mean for their business so customers coming on today on the cube so you continue to watch if you're out there I got to ask you the question because one of the things I every every cube event I always have my little puzzle pieces I want to try to figure out how know where the puzzle corners are and I've been asking all the VMware executives kind of hidden question but it's basically this what does VMware scan for and I've been kind of getting a couple different answers so you're obviously CMO so you're going to be right on message I want to get your thoughts on that but before your answer the best answer came from a former VMware employee Steve arid who is the CTO now he's a venture capitalist and just off the cuff II just said VMware likes to make complexity go away they want to simplify complexity create abstraction layers and that's essentially the theme of the show here so it's that how do you guys talk about that because the customers want to see the direction of VMware what is the official messaging what is is that is he on targeting me sees that you kind of made it comment like it's in the DNA of VMware I would agree that you know simplifying complexity is in our DNA I think it's a little bit hard to say that today's IT world though is simple III think we all have a long journey to really make IT simple I think we're about unleashing the innovation from IT and in order to do that you have to simplify the complicated so they can focus on the strategic right but I would say and our core what we're really about is how do we unleash that potential and remove obstacles simplify complexity to ensure they can contribute to their businesses with the most impact at the accelerated pace as possible that's why i think pats across cloud is interesting because that is certainly probably one of the most complex things to do absolutely to the cross cloud and only getting more complicated i think that's what we're seeing now you know fast for the cloud era is maturing but what we're finding now is businesses have many clouds they have SAS applications they have their private cloud they have multiple public clouds they have managed cloud services and we know we've been down this route before in the old compute server world managing these silos can become extremely complicated so I think right now we're already thinking about how do we drive this and simplify this other comment from our analyst kick off this morning and breaking down kind of the vmworld ecosystem and VMware and I like to get your thoughts on kind of the internal VMware conversation because I know and obviously the dell transaction with emc is going to be on the 7th so that's public now so but VMware it seems that David floyer said is unleashed and Michael Dell's making a commitment to VMware that's pretty sincere about being independent and partnering well I'm kind of seemed like EMC kind of had that invisible hand is invited to this David Floria said this but share some of the VMware because this is in the DNA is to be independent right you're right it is definitely in our culture and i think michael has been extremely consistent I've been with him in many meetings both public private and he is never wavered from his commitment to support VMware's independence to support our ecosystem and to really open up opportunities for us to grow at our full potential and I we are partnered with dell for a decade right this is not new to us and we have a great relationship with them regardless of this acquisition I think the opportunities and the doors are going to open even further there's a lot more we can do together but I really feel we've got a really good balance he knows that our ecosystem is the core success factor for us so ecosystem is a big big part of the success so in your definition what is the ecosystem two point oh I think the ecosystem involves a variety of things first of all there's emerging technologies their service providers their sizes there's the telcos there's ISVs there's the SAS providers there's the two-tier distribution the channel partners the people who touch the customers there's a consultants I mean I think it's just all evolving with us kind of in one big tornado you know I think it's all those things to get a lot of growth it's not a moving parts no and how about containers that so that you know a whole nother dimension right do and I was saying the container buzz was talking to Jerry Chen last night and say last year's all about containers only one session the cloud native session yesterday they did talk about it but it didn't dominate the show like it did last year the cross cloud really kinda was great and I'll see the end user computing stuff seems really compelling yeah I think things kind of ebb and flow it depends what's really new and so you know there's kind of different focuses each year I so give us the internal or our marketing philosophy now that you have stuff clicking together now with the product side you see the NSX with vsphere playing nicely it's a lot of stuff d-san is exploding the product the products are clicking absolutely oh there's a great chair that pad announced okay with it we'll do that later but how does that get marketed no product teams going to do it yes because it's interesting there's standalone products but also work well integrated yeah you know we're at this very interesting chasm and i would say we're kind of in our teenage years right now in my analogy and that when these products let's take virtual San or NSX when they're first coming out the door they need to be incubated and they need almost like startup attention and as marketers we wanted to give them that really dedicated focus but it's time for us now to grow into our 20s and what we need to do is to be more solution oriented and we need to be more industry oriented look at verticals and help our customers associate what's the impact in my world whether it's retail or its government or its healthcare so you'll see marketing at VMware shit more vertical solutions and verticals yes and by line of business kind of thing going on more mature more businesses I think it's really thing of the day our customers don't think about our line of businesses they think about what business problems are they trying to solve and they you know whatever business units we have is irrelevant to them I've taught in some of the VCS last night at that light speed party and a lot of Silicon Valley DC's were there and I said you know there's no Gartner Magic Quadrant for this horizontal solution set so you know usually have the magic quadrant you know the leadership's by categories but now you have this new kind of disruptive solution set which could be a vsphere here there and kind of stuff kind of cobble together integrated there's no magic quadrant for that so it's really hard for customers to find out the playbook right and we have to make that really simple for customers i also think that's the potential that vmware has which maybe is unique to a point product startup that they have one product we can put these things together for even more impact more value and a more seamless experience because i think that's key it's got to come together as an experience I no question Robin what are you going to take away from vmworld this year we're gonna take back to the ranch what are going to digest what are you going to share with your with your team and your colleagues that you've learned from this show you know I think we're really we're executing I think we've created a great experience I think we've attracted the right kinds of attendees you know this is just the first of many because we roll this program into barcelona in six weeks then we roll the following week all over asia i'm off to mumbai vented beijing we're just going to roll through Asia through December so the key is we're onto this right the content is right the cross cloud architecture is really resonating the cloud foundation it makes sense workspace one we just got to stay the course help make this stuff really simple and clear for our customers and partners that's great stuff it does make a lot of sense in and it's got clarity and you can see the 20 mile stare the straight and narrow and congratulations on a great vmworld John thank you so much appreciate it Robin Matlock CMO here inside the cube live at the Hang space the mandalay bay convention for vmworld 2016 you watching the cube

live from Las Vegas it's the cute cuddly emc world 2016 brought to you by emc now here are your hosts John furrier and Dave vellante okay welcome back everyone we are here live at emc world 2016 SiliconANGLE media's the cube it's our flagship program we go out to the events and extract the signal from the noise i'm john for it my coast gave a lot there next is Robin Matlock was the CMO of VMware here on the cube cube alumni great to see you Robin thanks for joining us thanks happy to be here as always say no we just thought the jeremy bird news now the seam of gel technologies which he was illuminating the challenges of his branding challenge it's gonna be interesting to watch that happen but as a CMO you got to be plugged into all the themes so when i get your to get your thoughts on the show here and then you got the big show come up with vmworld what's your take on this because looking at the landscape there's a lot of change it's a challenge for marketers to try to make that message relevant what your thoughts of this show certainly the looming acquisition what's your thoughts on the show and how they're doing and and yeah so I think you have two big things there what's my thoughts on this show I think they've done a fabulous job Jeremy you know I go way back with Jeremy he's a fabulous market here one of the best in the industry and I mean this place is alive you know I think he has done some amazing creative things on stage on of you saw the keynote today I thought the James Bond thing was exceptional very entertaining keeps people engaged you know but also delivering really interesting content so I thought today's focus on cloud native was particularly interesting so I think he's doing a really good job of focusing on what people need to run their businesses today but also giving a nod out to the future and where the industry is going and the other thing that big discussion here I want to get your thoughts on this and is the first time pad Dell singers not here at emc world certainly a lot of hallway conversations it even surprised Joe Tucci who was Dave asked in the analyst session you know where's Pat guess was even on the cube every time so we had we miss you do not if you're watching this why isn't he here and just clear the air on the speculation of why he's not here there's a conspiracy theories are everywhere just let's clear the air on that first of all you guys crack me up if we run things the same every year you get bored you start coming up with all kinds of theories and rationale as to what's going on behind the scenes let me just put these rumors to rest Pascal singer is is fired up and excited about vmware and our future and the role we play in the dell technologies family as he ever has been when you do these events you think first and foremost what are the big messages or stories that i need to tell the marketplace it's no different than at vmworld then the second thing is who's the most appropriate person to come and tell these stories well the bottom line is the daily MC merger is probably one of the biggest most important messages that had to get covered here at emc world who's better to tell that story than Michael Dell and Joe Tucci right then there was a whole lot of great product information lots of new products being announced the best people to tell that are your CTOs your technical people we brought that you know some of the top talent from VMware ray o'farrell a longtime veteran of VMware was on stage yesterday talking about V realized in the control plane for a multi cloud world today KITT Kolbert you know one of the favorite VMware CTOs talking about cloud native so look there's nothing more to it than that Pat's alive and well trust me he's very engaged joe said that to the analyst he said look basically we only give Michael some time and we have all this product stuff to Paley's and that's a huge I mean they have a slew of announcements so it really took to summarize this is time slot issues they have been limited time on stage I mean Chad had to Russia's demo at the end so that seems to be the issue Michael needed to be out there up front obviously I don't even see it as an issue to be honest john i don't think it's an issue i think it's an opportunity at the end of the day what were the right things to cover what were the right speakers to cover those and you know I'm the one that called a shot for Pat I didn't think it was the right place i think really a rail farrell and kick Kolbert work yeah option kit was on the queue yesterday I'm all saurian given some great great commentary as well okay great so get that out of the way it's one of the clearly as a pat is our number one guest on the cube you know I don't you do that well there's number one Michael Dell I think it's given him a run for his money he's trying we're trying to see you at vmworld the corners let's talk about what's coming up because i see that pat will be on stage at vmworld so so he is going to have to put that together last year he delivered a really epic King no I thought it was very well done really talk about the future of the industry and vmware's role in it what's changed since then for you guys what can you share with us without you know tipping tipping the hand on the show theme because now we're gonna we were some almost there for vmworld last year to this year what's going on what's what's happening yeah I think there's gonna be a personal it'll be a lot of exciting things at vmworld and you have to be there delivered experience it firsthand we've laid out a vision for the industry and a lot of what we're doing is delivering on that vision I think there's things rapidly changing in our world that we know that for example cloud is changing every year there's kind of a new dimension to what's happening and how people are using clouds we think there's tremendous opportunities as we think about multiple clouds on how our customers are thinking about their workloads in a multi cloud world so I think you'll find a lot of interesting things we're doing in that front the whole roll of business mobility continues to evolve and change how does that relate to how I'm running my business on-premise or in the cloud I think you'll find a lot of neat things in that area and then this big wave of modern applications at the end of the day we're running our business on these big mission critical applications but the rapid iterative development process is really fundamentally changing the kind of value we can deliver back to the business and what we need to support that and do that as IT organizations to our line of business to people like me yeah CMOS who consume applications like nobody else in the business they don't excuse me you'll find a lot of focus on those areas well VMware has become such a strategic part of customers you know roadmaps and it's not just VMware it's the entire ecosystem that's what makes vmworld the best show this is the best enterprise show because everybody's there it's usually in San Francisco hey yeah is an awesome place to be I've got some additions on that we're in Vegas this year we I love it in our home turf in San Francisco we do to bottom line is mosconi's going through a lot of construction right now is there don't maybe the experience if you know is right for our great it's still the best under pressure because it is such a community and so you've got it you know you've got to keep elevating that right so you got the core technical content have some fun we saw some fun you know today so can you tell us kind of you know generally what we can expect this year yeah well first of all I think the audiences are evolving and you know our core traditional VI admin you know your virtual infrastructure admin of course that is the essence of the participation at vmworld but trust me new audience types are joining and coming to this event the networking side of the house you're seeing a lot more engagement participation their storage frankly there's overlap people come here they also go to vmworld your DevOps community is starting to find great value in a program like a vm world um some business executives but I'd say it is foundation it's a technical conference and it's the architects the CTOs and the class he updated the digital transformation I know that the air wash purchase was one that was a really good deal Sanjay poonen lead senior leader over there that the company has been doing very very well I've been seeing some updates on that what's going on with that cuz that's gonna bring in a whole nother IOT / application global peace any updates there from digital transformation conversations because at the end of the day as a CMO I feel like I'm at the tip of the spear of digital transformation you know I'm pushing the envelope about how we look at analytics and business intelligence and how we change the experience with our engagement with customers and partners how do I serve content more dynamically more relevant based on digital profiles that people who come and engage with us so i love this conversation and you know i think at the heart of all that we're doing is to accelerate digital transformation and make sure that I t plays the right critical role in that because the end of the day line of business has options and they are driving sometimes around IT but this is a really fantastic went for IT to be the experts in software software agility and really building apps for the business that are more relevant and you know really helpful and that I think is what VMware can really accelerate you mentioned the analytics I have a question for you around can you or how can you operationalize those analytics so you know traditionally the analytics have been insights for a few you gotta line up bill the cube takes forever how are you able to or are you able to operationalize those endings put those tool those tools in the hands of the people that can actually affect digital engagement in the front lines I think there's two dimensions to that I mean first of all you have to build your analytics environment on top of an agile infrastructure because at the end of the day the foundation has to be agile enough to serve a variety of different requirements changing requirements so you know obviously we have a big play on infrastructure infrastructure as a service and the foundations of that and the kind of root challenges their networking big bottleneck right so i might have this great infrastructure to compute on demand but I can't get my networking put you know protocols in place security risk things like that but then on the other hand you have to be able to consume these applications analytics is just one of many how do we ensure that i can get that out to my user community in the device form factor that they choose all controlled and governed effectively by me as an IT i think that really plays to both ends of the vmware strategy what we're doing in business mobility to allow you to transform experiences in engagement with customers and partners and employees but that also what we're doing kind of at the foundational level to ensure that the foundation can support these high demand applications that are distributed that micro services are a very different architecture from you know yesterday's are you doing that with your your team I mean you're gonna dogfooding that capability I don't know yeah vmware is one of the largest you know we are one of the biggest customers were the first customer for our technologies if i had my phone with you i could show you workspace one how i have access to my apps one button one push all completely under governance and control that's really the future of vmware it's the really the new form of user consumption of technology you guys are trying to make it easy your stand-up apps like workspaces and what not workspace one is breakthrough it's really break through and it you're right we're usually not engaging at the consumer level of enterprise right we're usually the back office were in that data center we're kind of in the bowels of IT but workspace one puts us forefront we're on the device now the user knows who vmware is now they're engaging with our applications and think it's really streamlined their experience to give them access to any app with one thumb print yeah and you know religious thing you've always been an enabling technology for innovation now it's moving up the stack so it's very interest to see that progress final question is that on that front I get that that's great news on the ecosystem what's change with the ecosystem because you know as you said vm was a very technical community yeah very engaging you don't have you have your shin you haven't they don't have your share fair of people who like to raise their hand and telling what do you think so a great active community so what are they saying what's the feedback from the community what are people raising their hands and and and saying and to you guys and and what's the conversation like right now I mean first of all um feedback from our ecosystem is fabulous i mean vmworld is really great case that he go look at the solutions exchange at vmworld it's just buzzing i can tell you we've pretty much are almost not quite but almost sold out of all the real estate that we have to offer in Vegas when we come here in late August I think that you could system that was changing evolving but you have really great evidence of new things happening I mean look at the X rail that got announced here between VMware and EMC look at the new pivotal cloud foundry photon platform bundle that we just announced last week you know so some real solutions orientation coming together in these partnerships and of course the broad ecosystem relative to cloud I think sis and SOS are getting very engaged with VMware in new ways we have a rich channel program I definitely think cloud providers service providers that's a kind of evolving and definitely growing part of our ecosystem and then I think even some of the traditional partners that we've had in the past you're seeing more solution oriented focus from those types of partnership Robin thanks so much for taking the time out of your busy schedule to come share your insights on the cube anytime great Robin Matlock the CMO of VMware here sharing her thoughts about the industry in the show and also the upcoming vmworld 2016 which will be in Mandalay Bay this year not San Francisco because Moscone is going to be half under construction so got to do a little you know interim step here should be a great show it'll be our seventh VMware world this year like EMC we all started there so I want to thank you for all the support and appreciate enabling us to be successful thank you so much always a pleasure Robin Matlock on the cube I'm John Faraday volante you're watching the cube looking back at the history of Dell

now here's your host Jeff brick by Jeff Rick here with the cube we are on the ground at the vm women at vmworld what he calls his conference a side panel the discussions a side program side panel awesome joined by Robin Matlock the CM who just let a great panel discussion we had Laura McKenzie on she great a great keynote to beginning so first off terrific event thanks for having us we're happy to be here and thank you for coming I appreciate you covering this absolutely so talk about you know why are you doing this why is this important to the VMware you know women in tech is just such an important topic and really diversity in in all businesses and we find that here at the conference you'll find the ratio of women to men is really kind of small and this is a great opportunity to get women together talk about some of the issues not just women actually you want to correct that women and men together talk about some of the issues that are both opportunities and challenges for getting one more involved in tech we do you think it's an important topic we want women to feel inclusive being here at vmworld yeah and as Paul mentioned up on the panel you know the studies clearly show that when you have a diversity of opinions around innovation you're trying to solve a problem chances are you might find a better way to to skin that cat so clearly is a business benefit as well as a social benefit it's so true you know I think that for innovation one of the really things that can stop it is just 1-track thinking right and diversity helps bring different ideas different perspectives different ways of looking at things and so yeah we're a big believer that if we're more inclusive if we have more diversity we're going to drive more innovation and then drive the business which is what it's all about so you made some interesting comments on the panel that want to follow up on one was that you know you just did your thing you worked hard you believed in in the magic hand and here you are a successful businesswoman theam of a terrific company of probably the biggest tech event going on that you run terrific need and then suddenly kind of woke up or sounds like it were made aware what was kind of at it that process was like not everybody is fortunate to me to kind of just work and do my thing and reap the benefits yeah I what I acknowledged to the panel was that you know women in business wasn't really my torch it hasn't been my cause and it's only been as I've matured in my career that I've recognized that at the end of the day even though my career has been a great run I've had a tremendous you know I feel very blessed very grateful for the great success I've had but I recognize that I have a responsibility to women and when you really look at the data the numbers don't lie and the reality is we don't yet have equality and so as a senior executive woman I feel a real sense of accountability and responsibility to get more involved and get engaged and to help my women colleagues so talk about it because now you're doing some fun stuff you said you're working with girls who code and some other organizations how has that been you know it's been a fun experience of lightning what are some of the surprises that you found along the way yeah well recently I I met with a group girls who code and I have to say I was blown away these young women were sharp articulate technical creative daring bold and I was actually really inspired and I think the key is how do we just foster that and not let that die because they certainly have it right now at the age of 16 17 18 and I think the key is to make sure they have it at 37 38 and 40 and I think Renee zog made an interesting point we just had her on talking I was telling about the lorries little exercise where we were supposed to write down good things about yourself accomplishments assassin known at my table could do it in the whole two minutes so you know it's like think about somebody else compliment somebody else and she said she really realized that in complimenting herself it's really about helping other women helping the cause helping other people see that this can be a successful leader so you know you really need to kind of taught your own horn not necessarily for yourself but really did for other other executives I think this notion is sponsoring others and really making sure that you are enabling other people to be successful men and women but I think women it's a maybe something to really focus on and how are you introducing them into the workforce or how are you introducing them into their colleagues and setting them up for success is really important I think the other important thing we learned today was this factor that your horn for women sometimes can make you not come across as likable and that's a factor we also have to deal with in this balance of positioning ourselves effectively but also not losing those likeable points or managing that yeah it's interesting that that's still that still is pervasive it's crazy so last question first day of work for a bunch of new hires down at the campus of Palo Alto a bunch of women in the crowd diverse crowd what do you tell them welcome to the vmware well first of all we invest in all of our new talent one thing is about how to help them be successful at this great company we try to ground them all and what is our purpose we talk a lot about our epic values its core I think if you talk to any 19,000 VMware employees they could recite for you what are our epic values and we live by that and certainly diversity is a big part of our culture so we route them in that and then we also create a lot of mentoring opportunities and sponsorship opportunities so that those new hires they have someone that they can go do they have a buddy we really believe in that giving them a chance to you know get to know themselves the organization how to be successful at the company awesome well Robin thanks again for great event here and obviously a fantastic vmworld 2015 but 23,000 people and they stream by the cube every day on the way to quino's I love it all right here we go day 3 here we go come all right Jeff Rick here on the ground at the vm women at VMware 2015 you're watching the cube thanks for watching

it's the cube covering vmworld 2015 brought to you by VMware and its ecosystem sponsors now your hosts John furrier and Dave vellante okay welcome back everyone we are live in San Francisco moscone north lobby here for vmworld 2015 this is silicon angles the Q this is our flagship program we go out to the events and extract the Sigma noise i'm john frieda found us look at a humdrum echoes dave vellante co-founder Wikibon calm research our next guest is Robin Matlock the CMO of VMware we are in the cubes set and the two sets here this year we have the director set new innovation here at vmworld again setting the stage the leadership of VMware and the person behind all this is Robin Matlock CMO thanks so much first of all for letting us come and do your lobby here it's been great so far it's one say thank you you guys you know we love having you you're a big part of this program for us six years now we've been watching the transformation it's been interesting this year has been fun to watch because of all the outside noise and certainly the products are doing great at Gelson's keynote this morning was really a home run he really knocked it out of the park so the messaging is tight this year really good it's looking forward it's got a longer perspective it's not a short-term driven messaging it is that by design i mean this is kind of showing the future yeah absolutely we really tried to change things up this year and you know that's important is that we have to reinvent we have to make ourselves relevant and part of it is taking something like the program at vmworld and making sure that every year it delivers fresh new a different perspective for these attendees so we changed things we started with Karl talking about one cloud any application any device very much frame the conversation for V emerald in the keynotes but also more of a 12 18 24 month kind of view and today we closed with Pat Gelsinger on the stage and you're right that was all about forward-looking what lies in the next to 35 years and what is our point of view on it and I agree with you I think that really did an amazing job this morning the ecosystems changing we've been monitoring the ecosystem on our crowd chat platform some great conversations with the thought leaders it's changing the demographics seem to be changing you own IP they got great market share and traditional IT that's being where's legacy wheelhouse so the Ops guys are all here but sad event the DevOps focus is really scratching the services at a whole new developer community do you guys were you guys aware of that is that kind of like the big AHA this year was it is that a big part of the ecosystem can you share some color and how this dev ops team is now resonating through the ecosystem sure and without a doubt it i wouldn't call it an aha i think it's a very strategic intentional move frankly the reality is the world is changing and it's impacting IT you know as part of the core of that transformation so I T needs to change to be relevant for business and DevOps is a part of that how are we going to build applications in this cloud native world how are we going to do it faster more agile and serve our businesses quicker well DevOps plays a key role there and what we can do is help IT serve at development community I mean obviously we had a lot of big announcements that are coming out this week and we wanted to make sure we had a way to deliver that content to this new audience so the ecosystem is evolving and it needs to because part of it is how we all transform so I'm glad you're noticing some of those changes are very strategic I mean the other thing about vmworld that that is been since day one is the core of the practitioner you know community and the peers and people are excited to be here they look forward to it they come early to hang out with their friends but a lot of parties but the content is very much around the customer and so you've been able to preserve that but at the same time you know provide an interesting layer of you know senior management perspectives high level customers when you talk about that chair at the core we really do see vmworld as a technical conference that would be the one thing that's anchored in the ground now as the people that need to engage with technology and as technology itself shifts and changes and VMware's offerings shift and change the ecosystem we have to be able to address a broader set of different types of audience so the practitioners are core but now you get the DevOps audience you get mobility professionals you get networking opps people you get you know storage folks so although the content will always stay very educational and technical in nature i do think we've done a really good job starting to broaden to appeal to these different audience types and so that's the other piece that i wanted to address is i think you know the roles are shifting with in IT and sometimes to me what this conference does it allows people who want a different career path to find one here they don't have to go to 10 different conferences and that's unique I think in the industry there was a wonderful tweet you'll have to pull it up for your audience and I'm sorry I can't reference the gentleman that did it but it it was at the end of yesterday while KITT kolbert and Rio Pharaoh were presenting we ran over a little bit so some people were moving on to their sessions and he tweeted that those that are leaving the hall right now I predict they may not have jobs five years from now because of the shifts and changes and how relevant it is to be in this cloud native world well I think if you know initially the the knee-jerk reaction to that change is somewhat negative and disconcerting but I think when people come to this event and they get back on the plane they start thinking about the opportunities they see this affords a lot of different avenues and it's really grown tremendously over the years i think vmware is doing a lot to help people bridge the two worlds and that's a big part of our philosophy it's a big part of how we're helping customers kind of get from point A to point B and helping the practitioners leverage the skills they've built over the last decade and really apply those to what's going to be required of them on the next decade I'm glad you mentioned that was a big theme of Pat's talk you know the bridge and you hear a lot of talk from the analyst community you know Gartner particular talks about bimodal IT my friends at IDC talk about the third platform but the problem i've always had with that is it's more silos like you know you don't want to be part of the old and i want to be part of it both what you guys are saying your messaging is we're going to bring the existing that asset base that you have along we recognize you want to go from point A to point B without just ripping everything out and so that's fundamental to the strategy and that's coming through in the messaging that's great to hear that is funny Massimino Ray fairing is the guy who said the cube we just pulled it up on our real-time analytics system but he said I feel those leaving you know during kit cobra session may be without a job in five years fact hashtag fact but that is a vibe of the show what are some of the stats on the number share some of the inside the numbers attendees sessions what can you share yes I mean I'm really proud of the stats actually so we exceeded our goal we have 23 5 23 thousand and five hundred plus attendees and they're still coming in the door as you can see out at the registration desk so biggest vmworld ever really solid growth and the demographics is shifting we're starting to see more of these new audience types so really excited about that we have over 400 breakout sessions very well subscribed the demand for the breakouts is quite incredible we have almost 300 289 or so exhibitors and the solutions exchange there is simply no more floor space if I could add another building I'd be able to scale out and get another hundred in the door but I'm just simply have a finite resource of space and we're chatting over Howard feet let's go there so I got it I got to ask about that there's never anyone it's always hard to please everybody at these events and you always feel oh nothing new at vmworld they have people coming oh sorry so fresh and relevant so you have you have a lot of people from the old guard and the new guard kind of coming together as Pat said cowboys and farmers kind of working together it's just quote on the q what is that vibe right now how would you describe that because you thought people scratching their heads and saying what's new this year femur I'm not seeing anything new so for the record sheriff Oakes what's new this year absolutely the new stuff yeah I think there's a lot of new stuff but we are getting into a more iterative development world where you know we're doing kind of lots of little or releases instead of you know five years ago where you just you held out for two years and then it was just one huge release you've got the evo SDDC that was new right and within that STD evo SDC manager brand new quickest way to really implement and get to a software-defined data center a tightly integrated software stack with new management capabilities to under you know manage the underlying hardware in infrastructure you have the whole photon platform right which kit Kolbert and rail Pharaoh launched so the photon platform which is largely open sourced with the exception of the very small in a just enough virtual machine all brand new photon OS photon controller the photon machine part of the photon platform then today we talked about business mobility so you have the workspace sweet Sanjay talked about that what we're doing with air watch we also then of course rolled out security and NSX 6.2 we have all kinds of new cloud services that came out vCloud air the disaster recovery on demand some new sequel database as a service technology so they're really I can just focus on stage Tigers are shaking it up here guys so I got to ask you so as a CMO your job is to kind of watched the trends walk to fashion if you will in the industry and you know the trend oh it says don't fight fashion you got to be fashionable and be relevant I get that but it's a hard thing to market vmware is its unique company you have a core a lot of things going on around the company I'll see the Federation EMC conversations you have customers that are changing hat laid out essentially a whole new future vision what's going to happen to VMware it basically devices world global global company how do you market that and how do you what's your approach and and what's your philosophy how do you how do you do that I think one of the most important things and I hope you got this from the keynotes this week is we are unifying behind a common narrative that is really relevant to our business and the value we deliver to our customers and everything we do somehow connects to that storyline and that's really this concept of one cloud any application any device and ago by one cloud I mean really the simplicity of managing something as one but it's really about a multiple cloud unified hybrid cloud strategy all delivering any application on any device I think the other common theme that we anchored around is what is our relevance to applications because at the end of the day that's what the business cares about so we've worked really hard to make sure that our customers understand how is it what we're doing is enabling them to deliver modern and traditional applications to their business really in any way they want to comply observation there Robin is when so that's great to have the high level messaging but when you test beneath Italy we ask pat ok so how do you live in that heterogeneous world and he basically explained ok took each of the levels of the stacks that is what we're doing there we can't do it at the you know this level we are will do it at this level with a very precise answer as to how that strategy turns along to reality so that to me is the ultimate test not just marketing a little marketing tagline and the reason why that's so important is because that when you test it with the customers and they're actually gonna be doing it you know down the road can't B's give a tie back and that's yeah thank you i would agree customers it has to be has to be relevant to customers I the end of the day they need trust in the vendor ok that I ask a question that everyone wants to know what's the party the big party everyone I mean VMware always has parties as so many parties going on did the event I mean I think there's like 10 different parties happening tonight now if we can't go to all of them but we'll try our best the big party at 18 c 4 share the big party yes it is always one of the highlights of the week i must say for all this technology it boils down to how great is a party well I have good news the San Francisco Giants cooperated and they went ahead and left town for a Wednesday night so we're able to get the park which is fabulous love being at the park so we're back at the park we're featuring two great bands and we very intentionally picked bands that are the up-and-comers you know not the kind of tried and true rock and roll we're going for someone sees every year all the different question the envelope John so you better get comfortable and come out and hang out with us Neon Trees opens up the act and then we're closing with Alabama Shakes and the rumor on the street is if you want to go to a good concert you go see Alabama Shakes perform so come join us it's going to be our walk we'll do our best to sneak into the VIP booth like they did her imagine dragons I hope to see you there okay thanks so much for coming on the guy know you're super busy thanks for sharing the insights and time and update almost love what you guys are doing it's a great audience love to have you thank you it would be back more live at San Francisco moscone north the Emerald 2015 things are shaking up up and coming new things a lot of stuff happening we'll be back after this short break

it's the kue here is your host John furrier hi I'm John furrier with the cube we are on the ground in san francisco for vmware's big launch in February this is the one cloud any application any device in San Francisco all the influences the whole press course here in the enterprise we had Quintin Hardy on stage i'm here with Robyn Matlock who's the CMO of VMware great to see you hi John free to be here pat pat gelsinger quentin hardy from the year x jeffrey more crossing the chasm awesome years all the influence all the press was here tell us about the event well this is all about really coming together and take a moment to sit back and see all of the great products and technologies that we're bringing to market so we launched one cloud any application any device and essentially this is a discussing a whole framework or architecture of how we're delivering and harnessing the power of all of your cloud and computing environments into one common architecture for one cloud how that supports both traditional apps modern apps and is delivered on any device for your consumers will be doing a bunch of crowd chest throughout the month and you guys have a lot of activities planned but this is really the kickoff you had a sales meeting last week get a partner exchange going on burnings were good business is good but there's a lot of competition right now so I want you to comment on the big announcement because Pat Gelsinger said this is the biggest vsphere launch in the history but it's not just vSphere it's a whole platform I'm it's complicated where you put it all together for the crowd out there you know it's a very dynamic marketplace right now and businesses are changing and transforming every industry we know is undergoing really significant transformations we think there's no better time to be in the industry we feel extremely well-positioned we have laid out a foundation for the data center of the future it's based on the software to find architecture we have tremendous opportunity now to help our customers harness all of their cloud silos into one cloud we think really we've got a great offering and it's just a great time to launch so you got VMware come I'm sure you got some point vmworld coming up what's the planning like he gives a little cheesy iran what's happening tomorrow this year John I'm just trying to get through partner exchange right now starting tomorrow so we've been really debris our day 7 of 10 days of intense launch and events and activities with our shareholders with our sales force with our partners so we're really going to think of it right now when I live for the moment we have a great offering some of the biggest news to come out of the company in a long time and so it's really I'm sure it's on your plate but it's around the coma talk about the partners change is one of things that's really important in ecosystem VMware's ecosystem is really really impressive but it's changing its growing you guys are growing what's new give us the update on the ecosystem you bet I mean our philosophy first of all is that we can't do this alone that we have to team and partner wisely and we are surrounded by the richest ecosystem in the industry bar none now I do believe that it is transforming as consumption models are changing as technologies are changing as cloud is stepping in it does require new types of services and new types of partners so we're talking more service providers more ISVs more sass providers but all of us coming together as one large ecosystem and ensuring that our customers have a unified experience what are you seeing the trends for them for the for the partners is it more channel more software more of ours what's the mix recent service providers that's new is that yeah I mean we've been in all of these various partner you know types for a long time I do think though that the mobile cloud era is putting you know more emphasis on services on cloud services on consulting services helping companies transform their operations that requires process transformation people transformation so I do think system integrators ISPs there's there's definitely new partner types I think are getting a day in the Sun so I gotta ask you I'm really impressed with the VMware culture you know that a big fan of VMware living in Palo Alto being a local local boy but in a fanny pack el Senor you've done an amazing job you're an amazing campus what's the culture like now at vm you guys are at the heart of Silicon Valley you know there's a lot of things going on in Silicon Valley right now that's really great and some things they're not going so great what's going on with VMware what's going on with your culture can you give us an update on what's you know I've been there almost six years and I think the VMware culture is stronger than it's ever been our culture is anchored around our values and its really clear their epic execution passion integrity customers and community and you will talk to any VMware employee and they feel that in their heart that's what we are first and foremost it's more about how we do what we do technology is great but if you know the day it's all about our values and it kind of shows when your campus is just so beautiful I mean just shows it okay so the next question final question is how do you market this complex complexity to customers obviously it's changing for you guys product wives heard the whole announcements change for your customers well how do you stay on top of the marketing and what is your strategy to market to the customers because you have now more stakeholders but used to have the IT guys out there so I would define data center what's new and what's some of the marketing opportunities you have well it's a great question at the end of the day our customers want business outcomes they want real value that solves critical business problems and I think although our portfolio is really is complex and diversifying what we ultimately deliver for our customers is getting quite simple we help them deliver one cloud for any application on any device we help them solve their business mobility problems we have a new term liquid-liquid cloud liquidity with whether that come from the pats no no no you're are you we're all behind that liquid is really just describing the context of the environment we're in that's the world around us business you know rigid structures of the past are giving away too much more fluid dynamic business models it's a liquid world it's real time and I think that speaks to it an average your storage a lot of announcement so summarized final question what's the bottom line for this event what's the main takeaway the main takeaway is that vmware is continue to innovate i mean we are really fearless innovators and we are delivering tremendous innovation that is helping deliver a brave new model of IT that is instant fluid and secure brave new world we are here on the ground robin Matlock CMO at vmware this is on the ground i'm john forever the cube thanks for watching you

live from San Francisco California it's the queue at vmworld 2014 brought to you by vmware cisco EMC HP and nutanix now here are your hosts John furrier and Stu minimum okay welcome back around here live in San Francisco for VMware 2014 this is our fifth year with the cube extracting the city from the noise at vmworld always a pleasure and we have the chief marketing officer Robin Matlock here inside the queue of my Coast stupid minute for this segment Robin welcome back to the cube thank you great keynote this morning you opened it up in front of a packed house for Pat Gelsinger and delivered an amazing keynote before we get some icky knows what some of the stats with the show here obviously vmworld it just keeps getting bigger and bigger and bigger every year well you know it's amazing the energy is fantastic here this year we're going strong we have well over twenty two thousand attendees the solutions exchange is packed there's about 250 companies that are they're exhibiting we have all kinds of breakout sessions and content I mean if you just walk around here the energy is just really thrive and the theme is no limit so I got to get some a back story on the theme I'll see no limits breaking through this is the transformation market the sign is just break it was a quick taste of wow how this all came together yeah what's the meaning behind the pictures are they're all on the hall you know it's really fun the themes that every year actually put just tremendous effort into them they can really be stressful but at the end when you land or right when it feels so good this whole notion of concrete you know in breaking through and that there's something on the other side that is truly infinite for us that just really spoke to our business it spoke to what our customers are going through and it truly spoke to the potential of this incredible you know this incredible industry you know i was when i think of the No Limits I think about the space jump the Red Bull I think about some of the things with it within the cloud that developers are doing you know Pat mentioned uber they have no asses of mass evaluation of hurts and to cumbies combined this is the kind of dream that entrepreneurs think about is like this is this inflection point stuff right so is that was that some of the vibe you guys were thinking absolutely and I think when we look at where we are in our journey relative to cloud relative to a software-defined world we're really passionate that you know the customers and the attendees of this conference are very well positioned to truly break through some of the silos that have been holding us back for a long time and we are at Crossroads um you know we believe vehemently that the data center is destined to be software-defined and that many of these attendees are well positioned to take us on that journey so I got to ask you because I see you're involved in the brain trust and all the formulation of the strategy the company and out of how to communicate it's always a challenge when it's like a moving train of innovation but you have some new things going on this year first of all nothing new on strategy it's the same marching orders with with Pats cadence hybrid cloud you know March to that cadence ops ii server defined data center but now AirWatch comes on over the top how did that affect things for you or did it it's just more of more the same so actually they bring in there some of that security and the apps piece of the business did that change some of the thinking and all I know it's an interesting question but I think at the end of the day the three strategic priorities for VMware have been very consistent now for multiple years you know largely under Pat's leadership it's about a software-defined world that's the software-defined data center it's about extending that to the hybrid cloud and it's always been about end-user computing I think the air watch acquisition just took it up a couple notches really the world of mobility we're big advocates and believers that the mobile workforce is exploding but there's a really strong connective value between what's happening at the infrastructure layer and what we can do to enable that mobile workforce so I think it was very consistent with the strategy but I do think the air guac acquisition is changing the game it's certainly producing Pat was giving us a little taste on the cube talk about the steams of the show today we had Pat had bill father's Carl up sure do a little Q&A a little little cube action almost on stage with Bill and what's what's tomorrow did you guys bring it up by thieves share with the folks out here Shey lay the land here what's the what's the contracts for tomorrow so today what we try to do is really telex the expanse of entire story what's going on holistically and you know the Karl part of it was a lot about getting our customers to really talk about what's working for them I think that's really important because we laid out a vision for VMware um you know a couple years ago and it's important to make that tangible and real and I hope the customers were able to bring that to life for people tomorrow is all about the technical under the hood let's get you know inside and really understand how the technologies are delivering against that vision and we're going to go through the whole thing it's going to cover the infrastructure it's going to talk about the hybrid cloud and we're going to talk a lot about mobility well the geeks want under the hood I mean it gets a gig show the end of the day it's very content rich at vmworld as we know it super busy a lot of parties going off as Deb going on certainly the business transactions are happening but it's still a geek show you guys have preserved that here right you know if we ask ourselves every year you know how how and should or shouldn't we evolve vmworld and i tell you we're really resolved at the end of the day this is largely a practitioner show they come for technological information education certifications and we have no desire to take a square pose and put in a round hole I mean it works so well for this audience let's just give this crowd what they need and I want to do more of it year after year yeah and we can always tell how good the conferences are in terms of content based upon how much Twitter activity there is in terms of like if people are just talking a lot on Twitter and not say anything that means it's kind of a boring show when there's not a lot of Twitter activity mostly it's text sessions people have too busy running around between between the events I mean are you guys seeing the sessions packet but we haven't had a chance to go out there what's happening yeah well to be really honest I haven't at a moment to scan too much but from what I'm hearing they are overflowing and frankly they were booked you know even before we showed up today because we do give people the schedule builder and a chance to book their sessions so I know that they are all full we're doing repeats we're trying to get you know more breakouts so people can deal with Wednesday and Thursday as things settle down but all the reports I'm getting so far is that we are pretty much over sold and oversubscribed yeah so buds do you Robin I was just gonna say you know is my fifth year now coming to vmworld it's all we impressive just the passion of the people in the virtualization community it's such a good community everybody gives back I really like what you guys did with the charity event that's going I mean what's a destination give by 25,000 with 250 oh not twenty five thousand two hundred and hundred and fifty thousand dollars that that's fantastic you know I got to talk to the hands-on lab guys today and things were running so smooth and so many people do it because as John said the geeks really love to geek out here I noticed it looked like on the badge it had you know the show spread out beyond just the north south and the West you brought the analysts kind of off to off to a hotel because they don't need to be in the center of all the geeks and everything the show floor is cranking as usual so you know it sounds like you still have the core and just pieces add on to it yeah i mean the core of the program if you were to look at breakout sessions keynotes labs that's going to stay right here in moscone but the reality is we're bursting out of the scenes and we love San Francisco we loved the venue but we have to take advantage of all the hotel space around so we got things at the w we got things at the westin we got things at the marriott we got things at the Intercontinental I mean we're or everywhere frankly but you're right we are having to kind of spread out a little bit so I got to ask you about the 10-year anniversary because that was a pretty epic event and you mentioned you made a comment on stage where'd that world go and i love the Golden Gate Bridge metaphor you put together what's changed for you over the past year it seems to be like it seems like seven years ago internet years it seems like a decade ago almost from last year yeah a lots changed and you share your perspective yeah I think a lot has changed I think on though um to be almost all for the good in my view I think you know VMware had built such a business on kind of one core platform which was compute virtualization and over the last several years we've really broadened our wings right and we are now dealing with networking and storage and security and automation and cloud and mobility and I think the diversity that that brings um from a customer perspective from an ecosystem perspective from our routes to market perspective I mean certainly it is definitely a charge because there's just so much tremendous diversity it also means we got a lot of things to cover so you know I think with that comes a responsibility to make sure our customers can understand all these different diverse you know offerings what's your objective for the show what's your preferred outcomes you can look back and just fast forward to thursday evening friday morning you know you're in a hot tub relaxing maybe it's saturday or monday morning what do you want to have happen what's your ideal outcome for vmworld beyond the fact that i like my feet attached to my body because right now i'm afraid they might fall off but let's say personal attributes aside you know i really hope that these attendees you know 22,000 plus people get on those airplanes fly home and feel like they had one of the most invigorating educational inspirational experiences professionally that they're going to have all year I hope that they got to the content that was relevant for them that they were able to navigate and you know really spend time in the areas of focus for them and I hope that people met dozens and dozens of new people that will only help them broaden their career so I have this little prop I brought because I was attended the VIP event you guys had an amazing event mark injuries since the NBC was broadcasting there Joe Tucci was there and then you know opening up your new facility which could have been around for a while so we've got some new new areas got these hot pens there so I'm going to ask you about the culture and the brand future brand for vmware I mean it's an amazing campus eco-friendly beautiful design high quality is this the brand of VMware that you seeing vision for me and you what's your vision for the brand I mean it's evolving in in real time for the company it is evolving but at the same time I think our brand and what we stand for as a company is also very stable it's great that you came to that event and saw the final unveiling of the last building as we finished it up and certainly it's a beautiful campus and it's green you know it's very you know natural woods and doing all kinds of things to protect the environment I think at the core of VMware there's you know five key values and those values are sustaining the test of time you know it's about innovation it's about community it's about people it's about integrity and it's about our customers and I think really no matter what products and services and solutions we wrap around our company I think we still stand for the same core values and I hope that never changes so I got to ask you out the community I think it's one of those things and you know something to pat about how doctor is implemented community aspect of the open source of their product and made them success you guys have had great community over the years really part of the backbone of vmware versus other companies some don't even have a heartbeat to a community you guys have a great thriving ecosystem how do you maintain that as we get more connected with the crowdsourcing with the Twitter expansion and all the people talking and it's not just forums anymore it's and more it's it's it's a virtual event every day it's like vmworld every day out there how do you handle that what's your vision and how you going to get your arms around that going forward well it's yeah I think it's really critical first of all just like anything whether you're talking about technologies you're talking about engaging with customers you have to evolve you can't use the same techniques that you use last year really to propel you next year so I think it's all about making sure you understand how our customers choosing to engage and then embrace that for us our social channels are really important our communities are really important and we're all about enabling facilitation and engagement and I think we're really that's kind of philosophically how we go about our whole social strategy it's all about enablement so that's a personal question for you to you always loved your eye for you know detail remember the first VMware we did you had pointed out the vmware stickers which ended up being perfect camera location ibly I like her I like this Robin woman she's awesome but what are you excited about now I mean what are you personally motivated upon right now what gets you really excited about the tech industry about what you what you're involved in what's the what's the one thing that get you so excited you know frankly I'm extremely proud to be the CMO of VMware I think there was a great company and I think we're part of something truly meaningful I think there was a time when maybe we weren't going to be as relevant we and by we I don't mean to see him or I mean this this whole thing that maybe we weren't going to be as relevant in the next decade but we collectively as a mystery are making bold moves we're doubling down on software we're pushing the boundaries of the data center we're getting out beyond compute we're going to storage or going to networking we're looking at security we're layering in automation and I think we are really securing our future as an industry that we are relevant and we need a seat at the table a strategic seat at the table and I'm thrilled to be a part and you certainly the global footprint the virtualization has been a great part of enabling that that mindset great to have you on the cube any other tidbits about the show you'd like to share the folks you know I think the main thing is just get involved and try some things that are different push your own personal boundaries explore there's so much content there's so many networking opportunities there's breakouts and I think definitely sampling a little bit of everything and making sure that you go home exhausted and then I'll be happy but certainly is exhausting show but Pat brought up the whole brave concept that's really about bold moves writing that's about that's kind of the whole theme here right yeah I think you know the notion of bravery is in the sense that given that things are changing so rapidly and the world is so dynamic and fluid as a business climate it's going to take some calculated risk you're going to have to really decide where are you partnering where are you betting what kind of steps are you going to take and I think action is key and the one thing it probably isn't going to work is status quo Robin Matlock the chief marketing officer for VMware keynote speech this morning set the table for Pat Gelsinger great jobs at the big picture laid out everything out the holistic vision of VMware continues to thrive thanks for coming down the cube always great to have you it's the Cubist retin from the noise we'll be right back with our next guest after the short break great thanks John you

>> Narrator: From around the globe, it's The Cube, with digital coverage of VMworld 2020, brought to you by VMware and its ecosystem partners. >> Okay, welcome back everyone to The Cube's coverage of VMworld 2020 virtual. I'm John Furrier with Dave Vellante, and Stu Miniman, who's covering VMworld virtually from our Cube virtual studios, where we've been doing The Cube coverage for the past six months virtually. Guys, let's wrap up VMworld virtual this year, different, not in person, still packed with content. Again, they tried to replicate and they did a good job of bringing that site together. They didn't overdrive the platform. They have content, but still a big gap in not having it in person. A lot of action on Twitter. Certainly, we've been commenting on cube.net site, and getting all these videos out. But guys, let's wrap up VMworld this year. Great show. Again, content's virtual. So a lot of asynchronous content. The cloud city, lot of solution demos of obviously, Cube commentary on our side. But Dave, what's your reaction to the past few days? >> Well I thought, you know, as always, VMware has some highlight folks show up to their keynotes. John Donahoe, who knows a little bit about the enterprise 'cause he did a couple of years stinted service now, then he jumped to back to his consumer roots, went to Nike. Interestingly, the service now, the company left is, they're approaching $100 billion evaluation now. They're zoning in on Nike. Of course, and then, you had the Nvidia CEO. Everybody does business with Nvidia. And so, that's kind of a check box, but they actually get the CEO to come to your event. I think it's a big deal. So as always, people want to do business with VMware 'cause they got half a million customers, and I thought that was a pretty impressive gets. >> And the CEO from Nvidia, Jensen Huang. I mean, you couldn't ask for a timely guest because of the news with them buying Arm. >> Huge. >> Nvidia just is a key player in the chip game right now. >> Yeah, and I think too, you know, some of the announcements VMware made around Edge and even Telco, Nvidia is going to be huge there in Arm. You know, we think that that is going to be a really new and interesting AI inferencing at the edge. There were some AI announcements, so very strategic. Again, you know, VMware does a great job of identifying those waves and driving engineering to drive customer value. >> Stu, I want to get your take on the announcements, and Dave, you can chime in too 'cause as we saw the Snowflake IPO, to me, this is, this basically rings the bell for the worldwide global computer industry around cloud native. This, to me, puts the full stake in the ground, cloud native. VMware made some bets, Stu. We go back and look at Gelsinger's moves, and Sanjay's move, and the team's moves. Your thoughts on the announcement there, networking, a lot of multicloud, but it's all about operational cloud native, your thoughts. >> Yeah, well John, cloud's so important, you know? Let me make an analogy here. We all talked about, if this pandemic had happened, enter 15 years ago and we were stuck at home without our Netflix, without our Zoom, without our connectivity, where would we be? John, when we started coming to the VMworld show in 2010, it was a huge amount of gear sitting in Moscone and the amount of trucks that needed to deliver all of that. Of course today, it's all built in the cloud, doing those labs are so much easier, and learning and enabling these technologies can be done so much easier. So I think that that really puts a highlight on where we are with the technology and you know, that was one of the key things that we saw in that announcement. So we're VM, we're fit with the big HyperCloud players, how they're hoping to extend, what they have in a hybrid environment from a management standpoint, starting to push out to Edge Solutions, VMware has strong strength with service providers. So there's a lot of things there to dig into, and that we wouldn't have had if we were talking about this five years ago. >> I just love the glam of the Nvidia 'cause the AI angle there is super important, but I'm, you know, I love the Project Monterey, Stu because it kind of digs out VMware trying to set the agenda on Architecture. This is the end-to-end, you know, whether it's the edge of the network from a work perspective person. Even in space, a purpose-built devices at the edge still need to be updated by software. This is a huge architectural shift. Do you think VMware's got the right moves here? >> Well John, VMware's got some great strength in the service provider environment, and of course, you know, great strength in data center. They've been growing their cloud capabilities. So Edge is still a little bit of a jump ball, as we'd like to say. Absolutely like some of the things that they're doing, strong partnerships. We talked about Nvidia, absolutely one of the companies you want to be closely working to to be successful at the edge. So I like what I'm seeing, but as with anything with VMware, until they have thousands of customer doing it, it's still a little bit early for me to have any final say. >> Stu, 30 seconds left. >> Yeah- >> Tanzu portfolio and partnerships. >> Yeah, so the critique I'd have, John, is VMware have been trying for years to go deeper with developers and they've made some progress, but they haven't done enough. They have moved doing more with open source, they've made a number of acquisitions in the space, but it's all about developers, it's about building those apps. If you talk about a hybrid message, you know, Microsoft, nothing about bit but building new apps. VMware is starting to get there, but they still have work to do. >> Guys, great job, 2020 is in the books. The Cube is via virtually. And again, 10 years ago, John Troyer, Eric Nielsen, Robin Matlock was our partners. Now, we're going with the next generation with VMware the next 10 years. Unpredictable, we'll see how it goes. Thanks for joining us today, appreciate it. Okay, thanks everyone for watching. Cube coverage of VMworld 2020. I'm John Furrier, with Stu Miniman, and Dave Vellante. Thanks for watching.

(instrumental music) >> Hi everybody, this is Dave Velante. Welcome to the special wikibon community event. VMware, VMworld 2018, strong momentum but still choppy waters. How can you say that Dave? How can you say strong momentum but still choppy waters? The data center is on fire. We just came back from VMworld 2018, the eco system is exploding, revenues are up, profits are up, all looks good. Well we agree in general, but theCUBE was there. We had two sets. We interviewed over 100 guests. 75 segments on theCUBE and right now what we want to do in this special community event is share with you our community and hear from you what you thought of the event, what we thought of the event and let's collaborate and come up with some conclusions. So, what were the key points made on theCUBE by Michael Dell, Pat Kellsinger, Ray Ofarell, Andy Bechtelshtein and number of other folks, customers, practitioners, technologists and eco system partners on theCUBE? What did they say and what does it mean for users? AWS and VMware, a big theme on theCUBE last week was is the AWS VMware partnership a one way trip to the Hotel Cloudifornia or is it a boon for the data center? What about AWS with RDS, the data base, on prim, what does that mean? How effective will that be? What does it say about AWS's strategy and what does it mean for VMware and the eco system? What's VMware's play at the edge? What about containers? Containers are supposedly going to kill VMware or hurt VMware's momentum. What does the community think about that? And what about Dell's new capital structure? Dell is going public again. It's taking an 11 billion dollar dividend out of VMware's 13 billion dollars of cash. Is that the best use of VMware's cash? And is VMware constrained in terms of it's RND going forward? We're going to address these and other items with the following format. We're going to show you now highlights from VMworld 2018 from theCUBE and then we're going to come back in the crowd chat and discuss. So thanks for watching everybody. Take a look at these video clips and these statements from senior leaders and then we'll go into the crowd chat. >> Welcome back to theCUBE, I'm Lisa Martin with Dave Velante, John Furrier, Stu Miniman at the end of day two of our continuing coverage guys of VMworld 2018, huge event. 25,000 plus people here. 100,000 plus expected to be engaging with the on demand, the live experiences, our biggest show, right. 94 interviews in the next three days, two of them down. >> And evolving over the years. I mean at VMworld's core, it is a technical conference. Right, so I would say that the base of the volume of the program is still catered towards a real hands on, technical practitioner and middle management but we are seeing more business executives come. They want to know what their teams are exploring. They want to understand vision and I think VMware you know, value proposition to enterprises is growing and therefore, it's starting to be more of a business conversation. So that is a segment of the audience that is growing. >> A few questions, I think first of all the Amazon news is already on VMware on premises is earth shattering news at many levels. One, Amazon's never done it before. Two, I think people are starting to understand this downstream a little bit later. But it's going to have a significant impact on the opportunities in multi cloud. So, I think Amazon's relationship with VMware is very deep at the level of technology and stay cold is at the top of both companies. Andy Jaci and Pat Gelsinger are both in this to win it together. It's obvious and anyone who says otherwise really isn't really informed. They're deep in the technical side, they have management at the top approving this, they're going to market together in the field. There is a legit synergy and they're going to win the long game. Gelsinger's making the big bet and remember, three years ago Pat Gelsinger was the gun. What's his role going to be? People were nervous about their cloud. Look it, VMware boxed the cloud and they're kicking ass right now with cloud. So they made the right moves. They steered the ship away from the rocks, they're out in the clear sailing. Love their strategy, Keno with Gelsinger was very specifically around the generational shift around VMware and the industry. He went through the bridging and I love the cleverness of the story telling, bridging tech trends of VMware ethos. He talked about the history, servers ESX, BYOD workspace, network NSX, cloud migration, that was their kind of initial private cloud, but right now its multi cloud and profit and people doing tech for good. So I think Gelsinger's laying down the generational shift that Vmware's going for and their making the huge bet on AWS, so it makes the question. What about Asher, what about Google? Is VMware going to be a one cloud game? Are they going to bridge to other clouds? That's going to be a very interesting tell sign 'cause the relationship on stage with Andy Jaci in fact Gelsinger is pretty significant. I think it's going to be a hard thing to go in to other clouds and say, I want to dig you too. >> Last year Pat said that networking has the potential to be the next decade bigger than what virtualization was for the wave and we are seeing good movement. I think I said it on our intro this morning but when Asira was acquired, the promise that we as a networking industry felt that they could be that inter weaving kind of glue for multi cloud and it kind of got hidden for a few years while they built that intersect, they made it really enterprise ready. They did really well with adoption. But now that vision is kind of back in full and that is what VMware can ride. Not to just be virtualization. V spheres great, they'll drive that for awhile, but the networking and security pieces is why VMware has the right to sit at the table in this multi cloud discussion. Now it was funny, I interviewed Keith Townsen and he said VMware, you know, he's now a VMware employee, VMware is the best position to help customers do that transformation. I said, hey Keith, I hear ya, but Microsoft and Amazon and a whole bunch of other management people might kind of step up and say, we've got a right to be at the table too. >> Of course all the legacy guys are trying to figure out, okay, their cloud strategies. But now all the major cloud guys are betting on Prim. We saw Google next, the on Prim strategy was certainly Assure with Assure Stack. Oracle has bets in cloud and with cloud customers got bets for On Prem. Now AWS throws its Admuring. James Kobielus, you sat in the analyst sessions all day. What did you learn? What were your big take aways? What do we need to know? >> Well first of all it's clear that AWS partnership VMware's all in with them. Look at the past year since they announced the customer adoption, partner enablement. They share variety and depth of the integrations that these partners have put together including today. It's pretty serious in terms of VMware's investment in that relationship, deepening that to the point where, there are no splashy Google partnership announcements or IBM or anybody else. It's clear that they're really, they're each others hybrid cloud partner par excolons. I don't think either of them, or I don't think the VMware is going to go anywhere near as deep with the other public club providers any time soon. But really my take away today from the analysis session was that VMware is going seriously to the edge and it's really interesting, they're building an appliance to take their entire stack and bring it down to edge deployment and distribute that around and then manage that for customer on a global basis with automation, there's going to be AI and machine learning built in so that if VMware will be able as a managed service to drive the software defined data center all the way out to the edges for its clients. And they're putting themselves in a position where they could actually, that could be there next major revenue producing business. As the traditional hypervisor VMworld begins to wane in terms of putting cube and server less and so forth on an appliance. Putting that in the clients sight and managing it for them. And then white boxing it potentially to other cloud providers to provide to their customers. This could be in the future coming in the next year or two. Something that can propel VMware to the next stage where they are everybody's preferred multi cloud management, edge management partner. >> Provide a slightly different version of one of the things you said. I definitely agree. I think what VMware hopes to do, I think they're not alone is to have AWS look like an appliance to their console, to have Assure look like an appliance to their console. So through free VMware, you can get access to whatever services you need including your VMware machines your VM's inside those clouds but that increasingly their goal is to be that control point, that management point for all of these different resources that are building and it is very compelling. I think that there's one area that I still think we need more from. As analysts we always got to look through what's more required. And I hear what you say about broad dimensions but I think that the edge story still requires a fair amount of work. >> Oh yeah. >> It's a project in place, but that's going to be an increasingly important focus of how architectures get laid out, how people think about applications in the future, how design happens, how methodologies for building software works. David, what do you think? When you look out, what is more is needed for you? >> So I think there are two things that give me a small concern. The edge, that's a long term view. So they have a lot of time to get that right. But the edge view is very much an IT view top down. And they are looking to put into place everything that they think the OT people should fit in with. I think that is personally not going to be a winning strategy. You have to take it from the bottom up. The world is going to go towards devices, very rich devices and sensors, lots of software, right on that device, the inference work on those devices. And the job of IT will be to integrate those devices. It won't be those devices taking on the standards of IT. It will be IT that has to shape itself to look after all those devices there. So that's the main viewpoint I think that needs adjustment and it will come I'm sure over time. >> But as you said, there's a lot of computer science, it's going to be an enormous amount of new partnerships are going to be fabricated. >> Exactly. >> Once you make this happen... >> I want to see the road map for Kuhernettys and server less. Last year they made an announcement of a server less project, I forgot what the code name is. Didn't hear a whole lot about it this year but they're going up the app stack. They got a coop distribution. They need a developer story. I mean developers are building functional apps and so forth. And they're also containerized. They need developer story and they need a server less story and they need to bring us up to speed on where they're going in that regard, because AWS, they're predominant partner, I mean they've got LAM dysfunctions and all that stuff. That's the development platform of the present and future and I'm not hearing an intersection of that story with VMware's story yet. >> Actually before VMware's was server installation it was work station. >> Work station, that's right. >> And we were an investor of VMware and we thought that was cool. Anyway, so fast forward to 2013, we go private. 2014, Joe Tuchi and I restart the discussion that we'd had earlier back in 2009 about combining together. 2015 we announced it and we thought that if we could combine everything together, that customers would really like it. And thankfully, as we found that that's been true, it's been more true then we thought. And the innovation engines are cranking on high. 12.8 billion dollars in RND invested in the last three years. And you see here at VMworld and in Dell technologies world the strength of the road maps. And so every turn of the crank, we're just getting stronger and stronger. We never believed that everything was going to go one place or the other. It's actually great that the edge is booming. Now if you said, did you know that five or ten years ago? No, I didn't really know, but you can kind of see some things starting to happen. But look, distributed computing will be even more distributed in the future. >> For your commentary, people at the convention of wisdom on that deal was it was a one way trip to the Hotel Cloudifornia and it's become a boon for the data center. Why the misconceptions? Why are you confident that it continues to be a boon for both companies? >> Yeah, and hey we got to go prove it. At the end of the day we have to go prove it. So, but the analysts were sort of viewing hey, there's this big sucking sound in the public cloud where everything congregates. You know point one, and three years ago that was the prevailing wisdom. Right, so that was going to be the case. Now everybody, you know, and like I had the big CIO who basically said, hey I've got 200 apps. I tried to move them to the public cloud. I got two done. I can build new things there, but this moving was really hard until we had the VMC service. So this ability to move things to the cloud and from the cloud, I call the three laws. The laws of physics, the laws of economics and the laws of the land. The laws of physics, hey if need 500 millisecond round trip to the cloud and the robotic arm needs a decision in 200 milliseconds. You know physics, economics. I'm not going to send every surveillance picture of the cat to the cloud. Ban would still cost, right. And then laws of the land right, where people say, government issues, GDPR, other things. So because of that we see this hybrid world and particularly as edge and IOT becomes more prominent, we fully expect that there's going to be more of that not less and as I showed in my key note last year, this pendulum of centralization and decentralization has been swinging through the industry for 40 years and we don't see that stopping and Edge will be a force of more data and compute pushing to the edge and that's obviously part of our key note as well. >> Yeah John, you know, we sat here analyzing this VMware AWS relationship. Is this a one way move to the public cloud? Is Amazon just going to take those 500,000 VMware customers and get them all to migrate? Even in the start of Andy and Pat up on stage you know, Andy goes, the number on use case is migrating our applications to the public cloud and Pat's like, and the number two use case is you know, bursting and on demand and things like that. So it's an interesting dynamic between what we call, you know, you got the gorilla in the data center of VMware and you've got the 800 pound gorilla in the cloud. Fast as the cheetah as Dave Velante says in AWS. But RDS on premises, this is a big deal. I tell you, I'm surprised, most people here are surprised with the discussion. We were at some shows recently when they're spanning the snowball use case. Snowballs great, it's edge, it's helping to migrate things to the data center. This is an Amazon service running into VMware on premise. Didn't think that we would be seeing this from Amazon who's goal was, we thought to get 100 percent of things in the public lap. >> Decisions on cloud. Okay, Andy Jaci comes on stage. You're personally involved with Andy on the Amazon analysis which is, I think people don't know how big that's going to be. But VMware and Amazon are seriously deep in a partnership. This is a big deal. This feels like a little wind tail kind of easy synergies across the board. >> Well you know, in some ways we'll say number one in public coming together with number one in private. That's a big deal. And you know, yesterday's announcement of RDS on premise to me sort of finishes this strategic picture that we were trying to paint where it really is a hybrid world, where we're taking workloads and giving people the access to this phenomenal rapidly growing public cloud. But we're also demonstrating that we can seamlessly connect to the private cloud and now we're bringing services back from the public cloud onto the private and neuron data center. And that's so profound because now customers can say, oh, I like the RDS API. I like the RDS management model. I can put the data wherever I need it for my business purposes and that hybrid bi directional highway is something that we're uniquely building with Amazon and hey, obviously we're working with other cloud providers. But they're our preferred partner and we're pretty thrilled. >> How are customers going to deal with the multiple clouds? I mean is there an infra ability framework coming? Do you see a real disruptive technology enable that'll have that kind of impact that TCP spawn massive opportunity and wealth creation and start ups and functionality? Is there a moment coming? >> So, TCP of course was the proper layering of an interact between the physical layer, you know layer one, layer two and the routing or the internet layer was just layer three. And without that, you know, this is back to the old internal argument, we wouldn't have what we have today on the internet. That was the only rational way to build a architecture that would actually. And I'm not sure if people had a notion in 1979 when TCP was started, that it would become that big. They probably would of picked a bigger adverspace if they had known. But it was, not just a longevity but the impact it had was just phenomenal, right. Now and that applied in terms of connectivity and how many things shift to interact between point a to point b. The NSX level of network management is a little different because it's much higher level. It's really a management plan, back to the point I made earlier about management plans, that allows you to integrate a cloud on your premise with one of Amazon or IBM or the future Google and so on in a way that you can have full visibility and you see, you know exactly what's going on, all the security policies. But this has been a dream for people to deliver but it requires to actually have a reasonable amount of cold in each of these places, both on user. It's not just a protocol, it's an implementation of accountability right. And VMware is the best solution that's available and I can see for that use case which is going to be very important to a large number of enterprises, many of which will want to have a small connection between on premise and off premise and in the future, to Edge, Telcol, and other things that will run a VM environment today but that will allow them to be fully securely linked >> I think, so we are seeing lots of customer energy around what we're doing in storage. There's huge momentum behind product like Vsend and our customers are truly embracing ACI in very mainstream use cases and we've seen customer after customer have gone all in meaning they're taking ACI and made a determination to run that for all of their virtualized workload. It's a very exciting time. But what's more interesting is their expanded view on what ACI is about. You know, certainly, we started was virtualizing computer and storage together on servers. But we're seeing rapid expansion of that definition. You know, we've been believer that HCI is a software architecture. I think now there's more recognition that. And it's also going from just computer storage to the full stack of the entire software defined data center is expanding into the cloud as you see from VMCIWS. It's expanding to the edge, expanding from just traditional apps to cloud native apps. You know we've announced Beta 4, you know V send to become the storage platform for Cupernetis NEV sphere environment. So lots of exciting expansion around how customers want to see HCI and if you look at HCI, hybrid cloud, SDDC the boundary among these three is not very clear. I think they're all converging to work something that's very common. >> That's been proposed. Dell came out a while ago and sort of floated this idea of a reverse merger. Street puked all over it. And then all of a sudden they came up with this other idea of I called it the independence vig. Okay, VMware is having to pay a 11 billion dollar dividend. Nine billion of that is going to go to DVMT shareholders to clean that up. And you're going to get cash or prorata shares and the new Dell. Okay, so the question on the table is will that constrict VMware in anyway in terms of its ability to fund RND? My quick thoughts are short term no, long term, Dell has to walk a fine line between taking VMware cash, paying down it's debt and funding the future. Your thoughts. >> Yes, so here are my thoughts on this. So, I think that, first let's explain to the people what you just talked about, I'll translate. What you described is Michael Dell's going private, 60 billion dollars. That number was debt deal he did to buy Dell DMC so he has all this debt. Debt is like heroin, you get addicted to it, hard to get straight from that. So you gotta pay down the debt. He's been knockin' down the debt and big bag of money called Vmware's sitting there. As long as Vmware's thrown off cash flow that's going to be a key consideration. So, the independent vig as long as this cash flow's coming in, I think is fine. It's not going to really hurt it. But I think Dell's been brilliant in this because he's been essentially land grabbing the computer industry on the infrastructure side and he's going to make more money than ever before. He's going to pull it off and the only thing that could hurt him is either some side of force major or downturn or revenue not coming in from the sources whether either it's a public offering, acquisitions he's trying to sell off, and or VMware sputters which I don't think it will. Now with VM is on, even if they just go all in on Amazon and pull off all the other clouds, they'll still make a boat load of cash. >> I think it goes down in history as one of the greatest trades ever. I mean it's just phenomenal. >> Look, I mean Dave, we talked about when EMC bought VMware it was one of the greatest acquisitions of all time. >> 635 million. >> Right but. >> Now it's 60 billion value evaluation. >> Dell buying EMC, most people were like, I'm not sure what's going to happen but Michael will make a lot of money. VMware is doing so well that they can now fund Dell going public again based on this deal. So it's been one of those fascinating financial orchestration pieces to be out there. >> You ever feel constrained writing an 11 billion dollar dividend? Do you ever feel constrained in terms of your ability to fund the RND necessary to do some of those things? >> No. >> Rio said the same thing off camera but I ask you on camera. >> Yeah, generally I mean, am I constrained at how much RND I can do? Well hey, I've got a budget, we build a PNL, we communicate it to the street and everyday possible I'm pushing the growth of business faster so I can shove more dollars into one of two places. More dollars into RND or more dollars into sales and customer facing. Right and if Robin Matlock is here, I keep giving her the table scraps at the end of those things. But build products that are innovated, radical and break through. Sell products and support our customers using them. That's the two thing... >> And I think it's a really interesting point that after a lot of conversations with a lot of folks saying AWS is all going to go up to the cloud and wondering whether that also is a one way street for VMware customers. But now we're seeing it's much more of a bilateral relationship. >> It's moving it to the right place. And that's the second thing. The embracing of multi cloud by everybody. One cloud is not going to do everything. There's going to be fast clouds, there's going to be multiple places where people are going to put certain workloads because that's the best strategic fit for it. And the acceptance in the market place that that is where it's going to go. I think that gain is a major change. The hybrid cloud and multi cloud environments. And then the third thing is I think the richness of the eco system is amazing. The going on the floor and the number of people that have come to talk to us with new ideas really fascinating ideas is something I haven't seen at all for the last three, four years. >> Alright, we've heard from some of our guests on theCUBE and you've heard our teams initial analysis of the news from VMworld. Now we want to hear from you. Please hop into the crowd chat below, give us your feedback, want a community discussion and let's hear about what everybody thinks about VMware and VMworld 2018. Once again, thanks so much for joining us and look forward to the conversation.

(upbeat techno music) >> Live from Las Vegas, it's theCUBE covering VMworld2018 brought to by VMware and it's ecosystem partners. >> Welcome back to theCUBE, I am Lisa Martin with Dave Vellante, John Furrier, Stu Miniman at the end of day two of our continuing coverage, guys, of VMworld 2018, huge event, 25+ thousand people here, 100,000+ expected to be engaging with the on demand and the live experiences. Our biggest show, right? 94 interviews over the next three days, two of them down. Let's go, John, to you, some of the takeaways from today from the guests we've had on both sets, what are some of the things that stick out in your mind? Really interesting? >> Well we had Michael Dell on so that's always a great interview, he comes on every year and he's very candid and this year he added a little bit more color commentary. That was great, it was one of my highlights. I thought the keynote that Sanjay Poonen did, he had an amazing guest, Nobel Peace Prize winner, the youngest ever and her story was so inspirational and I think that sets a tone for VMware putting a cultural stake in the ground around tech for good. We've done a lot of AI for good with Intel and there's always been these initiatives but I think there's now a cultural validation that people generally want to work for and buy from companies that are mission driven and mission driven is now part of it and people can be judged on that front so it's good to see VMware get some leadership there and put the stake in the ground. I thought that was the big news today, at least from my standpoint. The rest were like point product announcements. Sanjay Poonen went into great detail on that. Pat Gelsinger also came on, another great highlight and again we didn't have a lot of time, he was running a bit late, he had a tight schedule but it shows how smart he is, he's really super technical and he actually understands at a root level what's going on so he's actually a great CEO right now, the financial performance is there and he's also very technical, and I think it encapsulates all of it that Dell Technologies, under Michael Dell, he's making so much more money, he's going to be richer and richer. (laughing) He took an entrepreneurial bet, it wasn't hurting at the time but Dell was kind of boring, Dave. I wouldn't call it like an innovative company at the time when they were public using the 90 day shot clock. They had some things going on but they were a hardware company, a supplier to IT footprints-- >> Whoa, whoa, they were 60 billion dollars in revenue and a 20 billion dollar market gap, so something was broken. >> Well I mean it was working numbers wise but he seemed-- >> No that's opposite, a 20 billion dollar value on a 60 billion of revenue, is you're sort of a failure, so anyway, at the time. >> Market conditions aside, right, at the time, he seemed like he wanted to do something entrepreneurial and the takeaway from my interview with him, our interview with him, was he took an entrepreneurial bet put his own cash on the table and it's paying off, that horse is coming in. He's going to make more money on this transaction and takes EMC out of the game, folds it into the operations, it really is going to be, I think, a financial success story if market conditions continue to be the way they are. Michael Dell will go down as a great financial maneuver and he'll be in the top epsilon of deals. >> The story people might forget is that Carl Icahn tried to take the company away from him. Michael Dell beat the great Carl Icahn, which doesn't happen often. Why did Carl Icahn want to take Dell private? Because he knew he could make a boatload of money off of it and Michael Dell said, "No way you're taking my company. "I'm going to do my thing and change the industry." >> He's going to have 90% voting control with Silver Lake Partners when the deal is all said and done and taking a company private and the executing the financial engineering plus execution is really hard to do, look at Elon Musk in the news today. He's trying to take Tesla private, he got his butt handed to him. Now he's saying, "No, we're going to stay public." (laughing) >> Wait, guys, are you saying Michael, after he gets all this money from VMware that it will help them go public, he's not going to sell off VMware or get rid of that, right? >> Well that's a joke that he would sell VMware, I mean-- >> Unless the cash is going to be good? >> No, he won't do it. >> I don't think it'll happen. I mean, maybe some day he sells some of the portion of it but you're not going to give up control of it, why would he? It's throwing off so much cash. He's got Silver Lake as a private equity company, they understand this inside and out. I mean this transaction goes down in history as one of the greatest trades ever. >> Yeah. >> Let me ask you guys a question, because I think is one we brought up in the interview because at that time, the pundits, we were actually right on this deal. We were very bullish on it, and we actually analyzed it. You guys did a good job at Wikibon and we on theCUBE pretty much laid out what happened. He executed it, we put the risks out there, but at the time people were saying, "This is a bad deal, EMC." The current state of IT at that time looked like it was dismal but the market forces that changed were cloud, and so what were those sideways impact points that no one understood, that really helped him lift this up? What's your thoughts, Dave, on that? >> First of all the desktop business did way better than anybody thought it would, which is amazing and actually EMC did pretty poorly for a while and so that was kind of a head fake. And then as we knew, VMware crushed it and crushed it even more than anybody expected so that threw off so much cash they were able to deliver, they did Pivotal, they did a Pivotal IPO, sold some software assets. I mean basically Michael Dell and his team did everything they said they said they were going to do and it's worked out, as he said today, even better than they possibly thought. >> Well and the commentary I'd give here is when the acquisition of EMC by Dell happened, the big turn we had is the impact of cloud and we said, "Well, okay they've got VMware over there "and they've got Pivotal but Dell's "just going to be a boring infrastructure company "with server, network and storage." The message that we heard at Dell World and maturing even more here is that this portfolio of families. Yes, VMware's a big piece of it, NSX and the networking, but Pivotal with PKS, all of those tie in to what's Dell's selling. Every time they're selling VxRail, you know that has a big VMware piece. They do the networking piece that extends across multi clouds, so Dell has a much better multi cloud story than I expected them to have when they bought EMC. >> But now, VMware hides a lot of warts. >> Yeah. >> Right? >> Absolutely. >> Let's be honest about that. >> What are they? >> Okay. I still think the client business is exposed. I mean as great as it is, you got to gain share in that business if you want to keep winning, number one. Number two is, the big question I have is can the core of Dell EMC continue to innovate or will it just make incremental improvements, have to do acquisitions to do innovation, inorganic acquisitions, and end up with more stovepipes? That's always been, Stu used to work there, that was always EMC's biggest challenge. Jeff Clark came in and said, "Okay, we're going to rationalize the portfolio." That has backlash as customer's say, "Well wait a minute, does that mean "you're not going to support my products?" No, no, we're going to support your products. So they've got to continue to innovate. As I say, VMware, because of how much cash it throws off, it's 50% of the company's profits, hides a lot of those exposures. >> And if VMware takes a turn, if market conditions change, the debt looming is exposed so again, the game's not over for Dell. He can see the finish line, but. (laughing) >> Buy low, sell high, guess who's selling right now? >> So a lot of financial impact, continued innovation but at the end of the day, guys, this is all about impacting customer's businesses. Not just from we've got to enable them to be successful in this multi cloud era, that's the norm today. They need to facilitate successful digital transformations, business outcomes, but they also have VMware, Dell EMC, Dell Technologies, great power to help customer's transform their cultures. I'd love to get perspective from you guys because I love the voice to the customer, what are some of your favorite Dell EMC, VMware, partner, customer stories that you've heard the last couple days that really articulate the value of this financial successful company that they're achieving? >> Well the first thing I'll say before we get to the customer stories is on your point about what VMware's doing, is they're a technology, Robin Matlock, the CMO was on theCUBE talking about they're a technology company, they have the hands on labs, they're a very geeky audience, which we love. But they have to get leadership on the product side, they got to maintain the R and D, they got to have best in class technical products that actually are relevant. You look at companies like Tintri that went bankrupt, great technology, cul-de-sac market. There's no market there, the world's going cloud. So to me VMware has to start pumping out really strong products and technologies that the customer's are going to buy, right? (laughing) >> In conjunction with the customer to help co-develop what the customer's need. >> So I was talking to a customer and he said, "Look, I'm 10 years behind where the cloud guys are "with Amazon so all I want is VMware "to make my life easier, continue to cut my costs. "I like the way I'm operating, "I just get constant pressure to cut cost, "so if they keep doing that, I'm going to stay with them "for a long, long time." Pete Townsend said it best, companies like VMware, Dell EMC, they move at the speed of the CIO and as long as they can move at the speed of the CIO, I've said this a million times, the rich get richer and it's why competent management that led by founders like Larry Ellison, like Michael Dell, continue to do well in this industry. >> And Andy Jassy technically, I would say, a found of AWS because he started it. >> Absolutely. >> A key, the other thing I would also say from a customer, we hear a lot of customer, I won't name names because a lot of our data's in hallway conversations and at night when we go out and get the real stories. On theCUBE it's mostly, oh we've been very successful at VM, we use virtualization, blah, blah, blah and it's an IT story, but the customers in the hallways that are off the record are saying essentially this, I'm paraphrasing, look it, we have an operation to run. I love this cloud stuff and I'd love to just blink my fingers and be in the cloud and just get rid of all this and operate at a level of cloud native, I just can't. I can't get there. They see Amazon's relationship with VMware as a bridge to the future and takes away a lot of cognitive dissonance around the feelings around VMware's lack of cloud, if you will. In this case, now that's satisfied with the AWS deal and they're focused on operations on premises and how to get their app more closed, like modernize so a lot of the blocking and tackling of the customer is I got virtualization and that's great but I don't want to miss out on the next lever of innovation. Okay, I'm looking at it going slow but no one's instantly migrating to the cloud. >> No way, no way. >> They're either born in the cloud or you're on migration schedules now, really evaluating the financial impact, economic impact, headcount impact of cloud. That's the reality of the cloud. >> You got to throw a flag on some of that messaging of how easy it is to migrate. I mean it's just not that easy. I've talked to customers that said, "Well we started it and we just kind of gave up. "There was no point in it. "The new stuff we're going to do in the cloud, "but we're not going to migrate all of our apps to the cloud, "it just makes no sense, there's no business case for it." >> This is where NSX and containers and Kubernetes bet is big, I think, I think if NSX can connect the clouds with some sort of interoperable layer for whatever workloads are going to move on either Amazon or the clouds, that's good. If they want to get the developers off virtualization, into a new drug, if you will, it's going to be services, micro services, Kubernetes because you can throw containers around those old workloads, modernize with the new stuff without killing the old and Stu and I heard this clear at the CNCF and the Lennox Foundation, that this has changed the mindset because you don't have to kill the old to bring in the new. You can bring in the new, containerize the old and manage on your speed of the CIO. >> And that's Amazon's bet isn't it? I mean, look, even Sanjay even said, if you go back five, six years, the original reinvent that was sweep the floor, bring it all into the cloud? I think that's in Amazon's DNA. I mean ultimately that's their vision. That's what they want to have happen and the way they get there is how you just described it, John. >> That's where this partnership between Amazon and VMware is so important because, right, Amazon has a lot of the developers but needs to be able to get deeper into the enterprise and VMware, starting to make some progress with the developers, they've got a code initiative, they've got all of these cool projects that they announced with everything from server less and Kubernetes and many others, Edge going to be a key use case there but you know, VMware is not, this is not the developer show. Most of the conversations that I had with customers, we're talking IT things, I mean customers doing some cool things but it's about simplifying in my environment, it's about helping operations. Most of the conversations are not about this cool new micro services building these things out. >> Cisco really is the only legacy, traditional enterprise company that's crushing developers. You give IBM some chops, too, but I wouldn't say they're crushing it. We saw that at Cisco Live, Cisco is doing a phenomenal job with developers. >> Well the thing about the cloud, one thing I've been pointing out, observation that I have is if you look at the future of the cloud and you can look for metaphors and/or real examples, I think Amazon Web Services, obviously we know them well but Google Cloud to me is a picture of the future. Not in the sense of what they have for the customer's today it's the way they've run their business from day one. They have developers and they have SREs, Site Reliability Engineers. This VMworld community is going down two paths. Developers are going to be rapidly iterating on real apps and operators who are going to be running systems. That's network storage, all integrated. That's like an SRE at Google. Google's running massive scale and they perfected it, hence Kubernetes, hence some of the tools coming in to services like Istio and things that we're seeing in the Lennox Foundation. To me that's the future model, it's an operator and set of developers. Whoever can make that easy, completely seamless, is the winner of it all. >> And the linchpin, a linchpin, maybe not the linchpin, but a linchpin is still the database, right? We've seen that with Oracle. Why is Amazon going so hard after the database? I mean it's blatantly obvious what their strategy is. >> Database is the hill that everyone is trying to take down. Capture the hill, you get the high ground with the database. >> Come on Dave, when you used to do the financial models of how much money is spent by the enterprise, that database was a big chunk. We've seen the erosion of lots of licensing out there. When I talked to Microsoft, they're like, pushing a lot of open source, they're going to cloud. Microsoft licensing isn't as much. VMware licensing is something that customers would like to shrink over time but database is even bigger. >> It's a strategic fulcrum, obviously Oracle has it. Microsoft clearly has it with Sequel Server. IBM, a big part of IBM's success to this day, is DB2 running on mainframe. (laughing) So Amazon wants a piece of that action, they understand to be a major player in this business you have to have database infrastructure. >> I mean costs are going down, it's going to come down to economics. End of the day the operating models as I said, some things about DB2 on mainframe, the bottom line's going to come down to when the cost numbers to run at the value and cost expense involved in running the tech that's going to be the ultimate way that things are either going to be cleared out or replaced or expanded so the bottom line is it's going to be a cost equation at that level and then the upside's going to be revenue. >> And just a great thing for VMware, since they don't own the application, when they do things like RDS in their environment they are freeing up dollars that customers are then going to be more likely to want to spend with VMware. >> Great point. I want to make real quick, three things we've been watching this week. Is the Amazon VMware deal a one way trip to the cloud? I think it's clear not in the near term, anyway. And the second is what about the edge? The edge to me is all about data, it's like the wild, wild west. It's very unclear that there's a winner there but there's a new type of cloud emerging. And three is the Dell structure. We asked Pat, we asked VMware Ray O'Farrell, we asked Michael, if that 11 billion dollar special dividend was going to impact VMware's ability to fund it's future? Consistent answer there, no. You know, we'll see, we'll see. >> I mean what are they going to say? Yeah, that really limits my ability to buy companies, on theCUBE? No, that's the messaging so of course, 11 billion dollars gone means they can't do MNA with the cash, that means, yeah it's going to be R and D, what does that mean? Investment, so I think the answer is yes it does limit them a little bit. >> Has to. >> It's cash going out the door. >> But VMware just spent, it is rumored, around 500 million dollars for CloudHealth Technologies, Dave, Boston based company, with about 200 people You know, hey, have a billion-- >> They're going to put back a dividend anyway and do stock buybacks but I'm not sure 11 out of the 13 billion is what they would choose to do that for, so going forward, we'll see how it all plays out, obviously. I think, Floyer wrote about this, more has to go toward VMware, less toward-- >> I think it's the other way around. >> Well I think it's really good that we have one more day tomorrow. >> I think it's a one way trip to the cloud in a lot of instances, I think a lot of VMware customers are going to go off virtualization, not hypervisor and end up being in the cloud most of the business. It's going to be interesting, I think the size of customers that Amazon has now, versus VMware is what? Does VMware have more customers than Amazon right now? >> It's pretty close, right? VMware's 500,000? >> 500,000 for VMware. >> And Amazon's-- >> Over a million. >> Are they over a million, really? >> Yeah. >> A lot of smaller customers, but still. >> Yeah. >> Customer's a customer. >> But VMware might have bigger customers, see that's-- >> No question the ASP is higher, but-- >> It's not conflict, I'm just thinking like cloud is natural, right? Why wouldn't you want to use the cloud, right? I mean. >> So guys-- >> So the debate continues. >> Exactly. Good news is we have more time tomorrow to talk more about all this innovation as well as see more real world examples of how VMware is going to be enabling tech for good. Guys, thanks so much for your commentary and letting me be a part of the wrap. >> Thank you. >> Thanks, Lisa. >> Looking forward to day three tomorrow. For Dave, Stu and John, I'm Lisa Martin. You've been watching our coverage of day two VMworld 2018. We look forward to you joining us tomorrow, for day three. (upbeat techno music)

>> Live from Las Vegas, it's theCUBE! Covering VMworld 2018, brought to you by VMware and its ecosystem partners. >> Hello everyone, welcome back, this is theCUBE's live coverage here at VMworld 2018 in Las Vegas, I'm John Furrier, your host, with Dave Vellante my co-host, our next guest, CUBE alumni, special guest, Pat Gelsinger, CEO of VMWare, always comes on every year to share, and talk about the keynote, talk about the news, all the great stuff. VMWare, great, per it's financial performance, great product portfolio, great R&D, pumping on all cylinders, congratulations, welcome to theCUBE, great to see you. >> Thank you. Always great to see you guys, thanks John, thanks Dave, y'know. >> Y'know, it's fun, this is our ninth year doing VMWorld, you've been as the president of EMC and six years ago CEO of VMWare. We've been there, we've been following your journey. >> Hey, y'know, we've been on this path together, so it's been good. >> And, y'know, we've talked candidly around what was going on with Cloud at the time, your vision, getting sorted in. You made some real quick, decisive, decisions on Cloud, okay, Andy Jassy comes on stage, you're personally involved with Andy on the Amazon announcement, which is, I think people don't know how big that's going to be. But VMware and Amazon are seriously deep in a partnership. >> Yeah, absolutely. >> This is a big deal, this feels like a little wind-tell kind of easy, synergies across the board. (Pat laughs) >> Well, you know, in some ways, we'll say number one in public coming together with number one in private, that's a big deal. Yesterday's announcement of RDS on premise to me, sort of finishes the strategic picture that we were trying to paint, where it really is a hybrid world. Where we're taking workloads, and giving people the access to this phenomenal, rapidly-growing public Cloud, but we're also demonstrating that we can seamlessly connect it to the private Cloud and now we're bringing services back from the public Cloud onto the private and your own data centers. And that is so profound because now customers can say, Oh I like the RDS API's, I like the RDS management model. I can now put the data wherever I need it for my business purposes. That hybrid, bi-directional highway is something we're uniquely building with Amazon. And, hey, we're obviously working with other Cloud providers, but they are our preferred partner and we're pretty thrilled. >> Now we'll be talking about last year and what entailing that was. The clarity that allowed customers now to say, okay now I get the Cloud strategy, 'cause it wasn't clear before and boom, double down. >> Yeah, it's just been absolutely great. Customers get it now, and obviously seeing Andy here again this year, you've got a number of customers sort of dipping their toes in the water, you know. Now it's sort of like, okay, I'm ready to go. When we laid the one and a half year road map of availability zones, everybody sort of looking at that. I had a couple of customers saying, hey, you know I would really like that in Q1 rather than Q2. It sort of like okay, let's just sign the deal, we'll figure it out. >> Gov Cloud, we saw that in June. >> Yeah, in the public sector. >> Talk about Andy, because we got to know Andy over the years as well. A great executive, both you guys are great leaders of your team, both great managers. You're kind of both no-nonsense kind of executives, you get stuff done. If this block is in the way, you kind of remove them, you do the right thing. Andy's committed, he's committed to this, you're committed, this in for the, you're in it to win it, that kind of loyalty plus he's also customer-driven, heavily Amazon. You guys are, too, this deal is not just Amazon trying to do hybrid, it's customers. Can you share some inside baseball around the kind of customer demand around Cloud on premise with VM, with specifically Amazon website. This is new for Amazon, they've never done this. >> Yeah. >> They've never done this kind of of deal. >> It really is unique in that way, and because it was unique we went into it kind of trepidously, How's this going to work?" We committed ourselves, we do quarterly business reviews with Andy and I. You know, hey a lot of little action items, they get finished the week before the Andy-Pat meeting. (laughs) >> You know, there we are, every quarter, coming together and really building the teamwork down the teams, right, as well, down the organizations into the field, and just finding all sorts of you know. We're super excited about the RDS announcement, but hey, we have a pipeline of projects behind that. >> We're reporting that customers want this. >> Oh, Absolutely. >> This is a customer, not a kind of like you guys want to take over the Cloud, this is a customer-driven thing. >> Absolutely, Amazon don't do anything, I mean nothing, unless they believe there is meaningful customer demand. They are extraordinarily customer-focused in that respect, you know I think there's something we can all learn from their myopic focus on that aspect. They're engaging with customers, building things that customers like and the response obviously from the RDS announcement was really quite overwhelming. >> So, we've been asking people all week, and I'll ask for your commentary. The conventional wisdom on that deal is it was a one-way trip to the Hotel Cloud-ifornia and it's become boon for the data center. Why the misconceptions, why are you confident that it continues to be a boon for both companies? >> Yeah, hey, and we got to go prove it. At the end of the day, we have to go prove it. The analysts were sort of viewing it, there's this big sucking sound in the public Cloud where everything congregates. Point one, and three years ago, that was the prevailing wisdom, right, that that was going to be the case. Now, everybody, like I had the big CIO who basically said, hey, I've got 200 apps, I tried to move them to the public Cloud, I got two done. I can build new things there, but this moving was really hard until we had the VMC service. So this ability to move things to the Cloud and from the Cloud, I call it the three laws. The laws of physics, the laws of economics, and the laws of the land. The laws of physics, hey if I need 500 millisecond round-trip through the Cloud and the robotic arm needs a decision in 200 milliseconds, eh, you know, physics. Economics, I'm not going send every surveillance picture of the cat to the Cloud, bandwidth still costs, right? Then laws of the land, right, where people say, governance issues, GDPR, other things. Because of that, we see this hybrid world, in particularly as Edge and IOT becomes more prominent we fully expect that there's going to be more of that, not less. As I showed in my keynote last year, this pendulum of centralization and decentralization has been swinging through the industry for 40 years. And we don't see that stopping and Edge will be a force of more data, and computers pushing to the Edge, and that's obviously part of our keynote, as well. >> I wanted to get in a comment about how you talk about bridging technology gaps, or >> Yeah. >> Or segments with that VMware. Before I want to just point out that you're wearing a VMware tattoo for the folks who can see it. Pat is making all his employees have a VMware tattoo. (laughs) Yeah we got a tattoo machine, yeah, we're in Vegas, so. >> Ought to order some more CUBE stickers. What happens in Vegas stays on your arm, remember that. (laughing) You ought to keep the tattoos up, it's funny and clever. Let's get back to the keynote. You said a couple things I want to get your reaction to. One, the bridging of technology successfully has been a transformational gift that VMWare has had with good technologists and good engineers. So I want you to talk about that. Also, you had a quote around the old adage of the network is the computer, that's old, the new adage is the application is a network, I think is what you said. >> Precisely. >> Tell about this bridging and why that quote, that was a really good quote, I want to expand on that. >> Clearly, we think about the history of VMware and it started with this idea of HP, Dell, IBM, etcetera and all of a sudden it became VMWare with different hardware underneath it. We bridged across those hardware islands. Those hardware islands, when they started, weren't bad. Extraordinary innovation but all of sudden customers want to start using them together and VMware bridged that gap. We talked about the device guy, and BYOD, and the iPhone showing up and all of a sudden IT wasn't ready to manage it, but customers wanted it. So we see Windows devices, Macs, and IOS, and Google, and Chromes and so on. How do you bridge it, VMware is doing that. We saw many of the networks, boy, you know what my protocols are about. Okay, Again, we're bridging across that, and that's clearly where NSX is uniquely playing. So this idea of bridging across these elements, right, is deep in our heritage. Right, we do it in an ecosystem-friendly hardware independent now, Cloud-independent way, right. Where we're now saying in the Cloud health acquisition, we're going to bridge across these worlds and make them easier for our customers to consume them, wherever they may be. These are powerful innovations, capabilities that are emerging, but customers say, oh you know, where is that workload running? Increasingly, in the future, I'm going to say, Oh VMware is running it for me, and not actually say, oh where did you run that VMWare? Because we are going to meet their policies, we're going to meet their business needs. >> And that bridges what, the Cloud? The current bridge is what, the Cloud, or ? >> Oh yeah, absolutely. Right, but the Cloud will now be my private data centers as well as different public resources. I think one of the next big challenges that we'll have to lean into more aggressively is the data challenge. Hmmm, where's my data? In a Cloud world, in a SaaS world, I want to be able to use my data for different purposes, I don't want to necessarily locked in a particular SaaS application when I built up an S3 bucket. Maybe I want to run some of my private analytics on that. Oh, the laws changed and I now need to bring that back on premise, and you know... >> Is it going to cost anything? Yeah, and you know, bridging across those worlds. It's both an application statement, a networking statement, and a data center. >> So application is a network? >> Yes. >> I think if it were a network, not the network. >> Yes. >> What do you mean by that? >> I gave you an example, a heads-up display in a construction hat, as you're wearing a hard hat. This AR-VR application running in my display for my hardhat and I'm a factory worker now, right, I'm getting cool new x-ray vision into the machine of what's going on. I'm able to look through walls at what's going on. Wow, that's pretty cool, and I'm getting real-time safety information of what's going... oh, that's incredible. Now think about the application behind that. I'm accessing 30 year old building plan databases, I'm accessing systems of record, system designs that are coming from my equipment suppliers and cool new container-ized AR-VR applications. That's my application, when I think about it in that environment. And what a complex network of different services, legacy applications, modern, new, microservice, >> Data sources, those kind of things. >> All of those things are brought together into my application, and in that sense, the application is a network of these different services, data sources, et cetera. We believe in that, bridging across silos isn't important, its essential to do that because, as you say, security models across that. When that application isn't performing like I expect it to, how do I go, even debug it? Because now, a flag went off, saying the hardhat AR application is not performing well and I have upsets. You know, manufacturing people on the floor not being able to get real-time data: I got to go debug that. You know, what's not working right? It's this network that needs to be able to be analyzed, any metrics across all of those. I need security models, you know, the ability to essentially load-balance across a complex network of services. That's the world we're headed to and we think we have some pretty good opportunities to help customers get there. >> So, Pat, explain how technically does the platform of VMWare change and evolve to meet those needs? Is it sort of embracing those new services or is it rewriting at the core, can you explain that? >> Yeah, it's some of both, I'll give two examples of that: one is that we're embracing the Kubernetes layer. Right? That's what you heard us say. I'm going to make Kubernetes a new dial-tone for the VMWare layer. I didn't create Kubernetes, it's part of open-source community, but I tell you what, we are going to help evolve it, standardize it, make it part of that infrastructure. So that Kubernetes dial-tone, right, (laughs) Hopefully, everybody is old enough to understand what that means, right? You know, boom, it is always there and we're going to make sure it's always there. So I'll say in some cases we're embracing new industry innovations and that one happens to be CNCF, the Cloud  Native Computing Foundation in that community, so we're participating, we're contributing. In other cases, we got to go rewrite things. You know, NXS, the current version of NXS was primarily bound to V-sphere and customers have increasingly said, oh I need to make NXS much bigger then we ever conceived for the first NXS, and I need it to work on all these other environments, including non-V sphere. So that's why we did what we called NXS-T, which is a fundamental re-architecture of NXS. There's probably three or four lines of code that we re-used, but that's about it. (laughing) I mean it is a major architectural redo because now we're saying I need to scale this, essentially, across the planet. I need it to work in VMWare and non-VMWare environments. I need it to be native in multiple public Clouds and I need to stretch it into the container level. That was a big re-architecture project that we undertook. In some cases it will be both, and like in Cloud health, it will be things inorganically go acquire and then figure out how to meld them into the infrastructure that we build and offer. >> So, do you, as the CEO and a technologist, you have a very interesting organizational ownership, governing structure. Do you ever feel constrained writing an 11 billion dollar dividend, do you ever feel constrained in terms of your ability to fund the R&D necessary to do some of those things? >> No. >> Grayson said the same thing off camera, I'm asking you on-camera. >> Generally, no. Am I constrained in how much R&D I can do? Well, hey, I've got a budget, we build a P&L, we communicate it to the street and every day possible, I'm pushing to grow the business faster so I can shove more dollars into one of two places. More dollars into R&D or more dollars into sales and customer facing. If Robin Matlock is here, I keep giving her the table scraps at the end of those things. Build products that are innovative, radical, and break through. Sell products and support our customers using them. That's the two things we're ... >> That's the golden rule. >> And, by the way, you made some M&A, you've got Cloud health, which is a good thing. That was a vertical focus in health care. >> Yeah, and not just healthcare. Cloud Health is a multi-Cloud management platform. They've built their initial focus primarily in cost management of multiple Clouds, but, you know, we're going to build that platform out for every aspect of compliance management, performance management, et cetera. >> Multi-Cloud play, Boston-based. >> So, final question for you: as you look at NXS, it's becoming kind of that feels like a TCPIP moment. Okay, we thought you Andy gotcha to sign a baptism. He was very complimentary of NXS. I asked him what TCPIP did to connecting, inter-networking, creating, and boom, the OSA model stopped at TCPNIP, that created a lot of opportunities and, welp, that's where we are today. Is there a disruptive enable as powerful as TCPIP that you see coming, and is that an NXS mindset? What's your vision on this, because this is what the Cloud needed, it needs interoperability, it needs to go to a level to create goodness in the ecosystem, wealth creation for entrepreneurs. This is the new era, where is that disruptive enabler? >> Well, a couple of comments, and one is: if Andy says it, it's right. (laughs) >> Yeah. >> Yeah, you remember, this is the one Rembrandt of systems design for the last 30 years. Andy is that profound in his contributions to the industry. In terms of technical leadership, visionary leadership, he's very high on my list of seminal figures of Silicone Valley. At the systems level, it's just hard to get better than Andy, so you know, he honored you by coming on theCUBE. He honored us by being here at VMworld. >> He is complimentary of NXS in his position in the marketplace as a leader, he's very candid about that. >> Now with NXS we really are, I think, in this moment where you're saying okay, the old model of networking simply doesn't work. It must all be done from a software level. This isn't just like putting a few APIs on top of my hardware and saying it's now software-based, it is conceiving a globally-distributed control plane that allows you to essentially span multiple Clouds, multiple data centers, multiple services anywhere on the planet, totally consumable for services that run on top of it, transforming every aspect of a layer four through seven service, low balancing, fire wall it, all of those, routing, all of those need to be reconceived in a totally distributive fashion and underneath saying, we support a very, very broad range of different hardware. The hardware can never constrain what you do at that SDN ladder, and that's the core of our virtual Cloud network strategy. Obviously, Velocloud, hot product. ST WAN, branch transformation, pushing that edge of the network out in a fully Cloud-based way, very excited about that capability. >> We know you're probably under a lot of time pressures so we're going to let you go. Five seconds, summarize VMWorld 2018, what's this about, what's the vibe here in five seconds, go. >> Five seconds? >> Or 15, 20, 30, whatever you need, go. (laughs) Alright, take 10. >> It is, the seminal moment where the industry is seeing the value of the multi-Cloud era. Right, and now we're giving them the tools to embrace it. >> And two leaders have, on stage, Andy Jassy C of A WS, Pat Gelsinger, CEO of VMWare, are talking about multi-Cloud validation from customers and strong technology teams in business. Congratulations on your success, okay. >> Thank you. (laughing) >> Pat Gelsinger, we pay you for theCUBE sticker, we get royalties on that. Thank you so much, Pat Gelsinger inside theCUBE, CEO of VM here, breaking it down, great vibe here, VMworld 2018. Stay tuned after this short break, I'm John Furrier with Dave Vellante we'll be right back. (techno music)

Okay, this presentation includes forward looking statements that are subject to risks and uncertainties. Actual results may differ materially as a result of various risk factors including those described in the 10 k's 10 q's and eight ks. Vm ware files with the SEC, ladies and gentlemen, Sunjay Buddha for the jazz mafia from Oakland, California. Good to be with you. Welcome to late night with Jimmy Fallon. I'm an early early morning with Sanjay Poonen and two are set. It's the first time we're doing a live band and jazz and blues is my favorite. You know, I prefer a career in music, playing with Eric Clapton and that abandoned software, but you know, life as a different way. I'll things. I'm delighted to have you all here. Wasn't yesterday's keynote. Just awesome. Off the charts. I mean pat and Ray, you just guys, I thought it was the best ever keynote and I'm not kissing up to the two of you. If you know pat, you can't kiss up to them because if you do, you'll get an action item list at 4:30 in the morning that sten long and you'll be having nails for breakfast with him but bad it was delightful and I was so inspired by your tattoo that I decided to Kinda fell asleep in batter ass tattoo parlor and I thought one wasn't enough so I was gonna one up with. I love Vm ware. Twenty years. Can you see that? What do you guys think? But thank you all of you for being here. It's a delight to have you folks at our conference. Twenty 5,000 of you here, 100,000 watching. Thank you to all of the vm ware employees who helped put this together. Robin Matlock, Linda, Brit, Clara. Can I have you guys stand up and just acknowledge those of you who are involved? Thank you for being involved. Linda. These ladies worked so hard to make this a great show. Everybody on their teams. It's the life to have you all here. I know that we're gonna have a fantastic time. The title of my talk is pioneers of the possible and we're going to go through over the course of the next 90 minutes or so, a conversation with customers, give you a little bit of perspective of why some of these folks are pioneers and then we're going to talk about somebody who's been a pioneer in the world but thought to start off with a story. I love stories and I was born in a family with four boys and my parents I grew up in India were immensely creative and naming that for boys. The eldest was named Sanjay. That's me. The next was named Santosh Sunday, so if you can get the drift here, it's s a n, s a n s a n and the final one. My parents got even more creative and colon suneel sun, so you could imagine my mother going south or Sunday do. I meant Sanjay you and it was always that confusion and then I come to the United States as an immigrant at age 18 and people see my name and most Americans hadn't seen many Sundays before, so they call me Sanjay. I mean, of course it of sounds like v San, so sanjay, so for all of your V, San Lovers. Then I come to California for years later work at apple and my Latino friends see my name and it sorta sounds like San Jose, so I get called sand. Hey, okay. Then I meet some Norwegian friends later on in my life, nordics. The J is a y, so I get called San Year. Your my Italian friend calls me son Joe. So the point of the matter is, whatever you call me, I respond, but there's certain things that are core to my DNA. Those that people know me know that whatever you call me, there's something that's core to me. Maybe I like music more than software. Maybe I want my tombstone to not be with. I was smart or stupid that I had a big heart. It's the same with vm ware. When you think about the engines that fuel us, you can call us the VM company. The virtualization company. Server virtualization. We seek to be now called the digital foundation company. Sometimes our competitors are not so kind to us. They call us the other things. That's okay. There's something that's core to this company that really, really stands out. They're sort of the engines that fuel vm ware, so like a plane with two engines, innovation and customer obsession. Innovation is what allows the engine to go faster, farther and constantly look at ways in which you can actually make the better and better customer obsession allows you to do it in concert with customers and my message to all of you here is that we want to both of those together with you. Imagine if 500,000 customers could see the benefit of vsphere San Nsx all above cloud foundation being your products. We've been very fortunate and blessed to innovate in everything starting with Sova virtualization, starting with software defined storage in 2009. We were a little later to kind of really on the hyperconverged infrastructure, but the first things that we innovate in storage, we're way back in 2009 when we acquired nicer and began the early works in software defined networking in 2012 when we put together desktop virtualization, mobile and identity the first time to form the digital workspace and as you heard in the last few days, the vision of a multi cloud or hybrid cloud in a virtual cloud networking. This is an amazing vision couple that innovation with an obsession and customer obsession and an NPS. Every engineer and sales rep and everybody in between is compensated on NPS. If something is not going well, you can send me an email. I know you can send pat an email. You can send the good emails to me and the bad emails to Scott Dot Beto said Bmr.com. No, I'm kidding. We want all of you to feel like you're plugged into us and we're very fortunate. This is your vote on nps. We've been very blessed to have the highest nps and that is our focus, but innovation done with customers. I shared this chart last year and it's sort of our sesame street simple chart. I tell our sales rep, this is probably the one shot that gets used the most by our sales organization. If you can't describe our story in one shot, you have 100 powerpoints, you probably have no power and very The fact of the matter is that the data center is sort of like a human body. little point. You've got your heart that's Compute, you've got the storage, maybe your lungs, you've got the nervous system that's networking and you've got the brains of management and what we're trying to do is help you make that journey to the cloud. That's the bottom part of the story. We call it the cloud foundation, the top part, and it's all serving apps. The top part of that story is the digital workspace, so very simply put that that's the desktop, moving edge and mobile. The digital workspace meets the cloud foundation. The combination is a digital foundation Where does, and we've begun this revolution with a company. That's what we end. focus on impact, not just make an impression making an impact, and there's three c's that all of us collectively have had an impact on cost very clearly. I'm going to walk you through some of that complexity and carbon and the carbon data was just fascinating to see some of that yesterday, uh, from Pat, these fierce guarded off this revolution when we started this off 20 years ago. These were stories I just picked up some of the period people would send us electricity bills of what it looked like before and after vsphere with a dramatic reduction in cost, uh, off the tune of 80 plus percent people would show us 10, sometimes 20 times a value creation from server consolidation ratios. I think of the story goes right. Intel initially sort of fought vm ware. I didn't want to have it happen. Dell was one of the first investors. Pat Michael, do I have that story? Right? Good. It's always a job fulfilling through agree with my boss and my chairman as opposed to disagree with them. Um, so that's how it got started. And true with over the, this has been an incredible story. This is kind of the revenue that you've helped us with over the 20 years of existence. Last year was about a billion but I pulled up one of the Roi Charts that somebody wrote in 2006. collectively over a year, $50 million, It might've been my esteemed colleague, Greg rug around that showed that every dollar spent on vm ware resulted in nine to $26 worth of economic value. This was in 2006. So I just said, let's say it's about 10 x of economic value, um, to you. And I think over the years it may have been bigger, but let's say conservative. It's then that $50 million has resulted in half a trillion worth of value to you if you were willing to be more generous and 20. It's 1 trillion worth of value over the that was the heart. years. Our second core product, This is one of my favorite products. How can you not like a product that has part of your name and it. We sent incredible. But the Roi here is incredible too. It's mostly coming from cap ex and op ex reduction, but mostly cap x. initially there was a little bit of tension between us and the hardware storage players. Now I think every hardware storage layer begins their presentation on hyperconverged infrastructure as the pathway to the private cloud. Dramatic reduction. We would like this 15,000 customers have we send. We want every one of the 500,000 customers. If you're going to invest in a private cloud to begin your journey with, with a a hyperconverged infrastructure v sound and sometimes we don't always get this right. This store products actually sort of the story of the of the movie seabiscuit where we sort of came from behind and vm ware sometimes does well. We've come from behind and now we're number one in this category. Incredible Roi. NSX, little not so obvious because there's a fair amount spent on hardware and the trucks would. It looks like this mostly, and this is on the lefthand side, a opex mostly driven by a little bit of server virtualization and a network driven architecture. What we're doing is not coming here saying you need to rip out your existing hardware, whether it's Cisco, juniper, Arista, you get more value out of that or more value potentially out of your Palo Alto or load balancing capabilities, but what we're saying is you can extend the life, optimize your underlay and invest more in your overlay and we're going to start doing more and software all the way from the l for the elephant seven stack firewalling application controllers and make that in networking stack, application aware, and we can dramatically help you reduce that. At the core of that is an investment hyperconverged infrastructure. We find often investments like v San could trigger the investments. In nsx we have roi tools that will help you make that even more dramatic, so once you've got compute storage and networking, you put it together. Then with a lot of other components, we're just getting started in this journey with Nsx, one of our top priorities, but you put that now with the brain. Okay, you got the heart, the lungs, the nervous system, and the brain where you do three a's, sort of like those three c's. You've got automation, you've got analytics and monitoring and of course the part that you saw yesterday, ai and all of the incredible capabilities that you have here. When you put that now in a place where you've got the full SDDC stack, you have a variety of deployment options. Number one is deploying it. A traditional hardware driven type of on premise environment. Okay, and here's the cost we we we accumulate over 2,500 pms. All you could deploy this in a private cloud with a software defined data center with the components I've talked about and the additional cost also for cloud bursting Dr because you're usually investing that sometimes your own data centers or you have the choice of now building an redoing some of those apps for public cloud this, but in many cases you're going to have to add on a cost for migration and refactoring those apps. So it is technically a little more expensive when you factor in that cost on any of the hyperscalers. We think the most economically attractive is this hybrid cloud option, like Vm ware cloud and where you have, for example, all of that Dr Capabilities built into it so that in essence folks is the core of that story. And what I've tried to show you over the last few minutes is the economic value can be extremely compelling. We think at least 10 to 20 x in terms of how we can generate value with them. So rather than me speak more than words, I'd like to welcome my first panel. Please join me in welcoming on stage. Are Our guests from brinks from sky and from National Commercial Bank of Jamaica. Gentlemen, join me on stage. Well, gentlemen, we've got a Indian American. We've got a kiwi who now lives in the UK and we've got a Jamaican. Maybe we should talk about cricket, which by the way is a very exciting sport. It lasts only five days, but nonetheless, I want to start with you Rohan. You, um, brings is an incredible story. Everyone knows the armored trucks and security. Have you driven in one of those? Have a great story and the stock price has doubled. You're a cio that brings business and it together. Maybe we can start there. How have you effectively being able to do that in bridging business and it. Thank you Sanjay. So let me start by describing who is the business, right? Who is brinks? Brinks is the number one secure logistics and cash management services company in the world. Our job is to protect our customers, most precious assets, their cash, precious metals, diamonds, jewelry, commodities and so on. You've seen our trucks in your neighborhoods, in your cities, even in countries across the world, right? But the world is going digital and so we have to ratchet up our use of digital technologies and tools in order to continue to serve our customers in a digital world. So we're building a digital network that extends all the way out to the edges and our edges. Our branches are our messengers and their handheld devices, our trucks and even our computer control safes that we place on our customer's premises all the way back to our monitoring centers are processing centers in our data centers so that we can receive events that are taking place in that cash ecosystem around our customers and react and be proactive in our service of them and at the heart of this digital business transformation is the vm ware product suite. We have been able to use the products to successfully architect of hybrid cloud data center in North America. Awesome. I'd like to get to your next, but before I do that, you made a tremendous sacrifice to be here because you just had a two month old baby. How is your sleep getting there? I've been there with twins and we have a nice little gift for you for you here. Why don't you open it and show everybody some side that something. I think your two month old will like once you get to the bottom of all that day. I've. I'm sure something's in there. Oh Geez. That's the better one. Open it up. There's a Vm, wear a little outfit for your two month. Alright guys, this is great. Thank you all. We appreciate your being here and making the sacrifice in the midst of that. But I was amazed listening to you. I mean, we think of Jamaica, it's a vacation spot. It's also an incredible place with athletes and Usain bolt, but when you, the not just the biggest bank in Jamaica, but also one of the innovators and picking areas like containers and so on. How did you build an innovation culture in the bank? Well, I think, uh, to what rughead said the world is going to dissolve and NCB. We have an aspiration to become the Caribbean's first digital bank. And what that meant for us is two things. One is to reinvent or core business processes and to, to ensure that our customers, when they interact with the bank across all channels have a, what we call the Amazon experience and to drive that, what we actually had to do was to work in two moons. Uh, the first movement we call mode one is And no two, which is stunning up a whole set of to keep the lights on, keep the bank running. agile labs to ensure that we could innovate and transform and grow our business. And the heart of that was on the [inaudible] platform. So pks rocks. You guys should try it. We're going to talk about. I'm sure that won't be the last hear from chatting, but uh, that's great. Hey, now I'd like to get a little deeper into the product with all of you folks and just understand how you've engineered that, that transformation. Maybe in sort of the order we covered in my earlier comments in speech. Rohan, you basically began the journey with the private cloud optimization going with, of course vsphere v San and the VX rail environment to optimize your private cloud. And then of course we'll get to the public cloud later. But how did that work out for you and why did you pick v San and how's it gone? So Sunday we started down this journey, the fourth quarter of 2016. And if you remember back then the BMC product was not yet a product, but we still had the vision even back then of bridging from a private data center into a public cloud. So we started with v San because it helped us tackle an important component of our data center stack. Right. And we could get on a common platform, common set of processes and tools so that when we were ready for the full stack, vmc would be there and it was, and then we could extend past that. So. Awesome. And, and I say Dave with a name like Dave Matthews, you must have like all these musicians, like think you're the real date, my out back. What's your favorite Dave Matthew's song or it has to be crashed into me. Right. Good choice rash. But we'll get to music another time. What? NSX was obviously a big transformational capability, February when everyone knows what sky and media and wireless and all of that stuff. Networking is at the core of what you do. Why did you pick Nsx and what have you been able to achieve with it? So I mean, um, yeah, I mean there's, like I say, sky's yeah, maybe your organization. It's incredibly fast moving industry. It's very innovative. We've got a really clever people in, in, in, in house and we need to make sure our product guys and our developers can move at pace and yeah, we've got some great. We've got really good quality metric guys. They're great guys. But the problem is that traditional networking is just fundamentally slow is there's, there's not much you can do about it, you know, and you know to these agile teams here to punch a ticket, get a file, James. Yeah. That's just not reality. We're able to turn that round so that the, the, the devops ops and developers, they can just use terraform and do everything. Yeah, it's, yeah, we rigs for days to seconds and that's in the Aes to seconds with an agile software driven approach and giving them much longer because it would have been hardware driven. Absolutely. And giving the tool set to the do within boundaries. You have scenes with boundaries, developers so they can basically just do, they can do it all themselves. So you empower the developers in a very, very important way. Within a second you had, did you use our insight tools too on top of that? So yes, we're considered slightly different use case. I mean, we're, yeah, we're in the year. You've got general data protection regulations come through and that's, that's, that's a big deal. And uh, and the reality is from what an organization's compliance isn't getting right? So what we've done been able to do is any convenience isn't getting any any less, using vr and ai and Nsx, we're able to essentially micro segment off a lot of Erica our environments which have a lot, much higher compliance rate and you've got in your case, you know, plenty of stores that you're managing with visa and tens of thousands of Vms to annex. This is something at scale that both of you have been able to achieve about NSX and vsn. Pretty incredible. And what I also like with the sky story is it's very centered around Dev ops and the Dev ops use case. Okay, let's come to your Ramon. And obviously I was, when I was talking to the Coobernetti's, uh, you know, our Kubernetes Platform, team pks, and they told me one of the pioneer and customers was National Commercial Bank of Jamaica. I was like, wow, that's awesome. Let's bring you in. And when we heard your story, it's incredible. Why did you pick Coobernetti's as the container platform? You have many choices of what you could have done in terms of companies that are other choices. Why did you pick pks? So I think, well, what happened to, in our interviews cases, we first looked at pcf, which we thought was a very good platform as well. Then we looked at the integration you can get with pqrs, the security, the overland of Nsx, and it made sense for us to go in that direction because you offered 11 team or flexibility on our automation that we could drive through to drive the business. So that was the essence of the argument that we had to make. So the key part with the NSX integration and security and, and the PKS. Uh, and while we've got a few more chairs from the heckler there, I want you to know, Chad, I've got my pks socks on. That's how much I had so much fear. And if he creates too much trouble with security, we can be emotional. I'm out of the arena, you know. Anyway. Um, I wanted to put this chart up because it's very important for all of you, um, and the audience to know that vm ware is making a significant commitment to Coobernetti's. Uh, we feel that this is, as pat talked about it before, something that's going to be integrated into everything we do. It's going to become like a dial tone. Um, and this is just the first of many things you're going to see a vm or really take this now as a consistent thing. And I think we have an opportunity collectively because a lot of people think, oh, you know, containers are a threat to vm ware. We actually think it's a headwind that's going to become a tailwind for us. Just the same way public cloud has been. So thank you for being one of our pioneer and early customers. And Are you using the kubernetes platform in the context of running in a vsphere environment? Yes, we are. We're onto Venice right now. Uh, we have. Our first application will be a mobile banking APP which will be launched in September and all our agile labs are going to be on pbs moving forward medic. So it's really a good move for us. Dave, I know that you've, not yet, I mean you're looking in the context potentially about is your, one of the use cases of Nsx for you containers and how do you view Nsx in that? Absolutely. For us that was the big thing about t when it refresh rocked up is that the um, you know, not just, you know, Sda and on a, on vsphere, but sdn on openstack sdn into their container platform and we've got some early visibility of the, uh, of the career communities integration on there and yeah, it was, it was done right from the start and that's why when we talked to the pks Yeah, it's, guys again, the same sort of thing. it's, it's done right from the start. And so yeah, certainly for us, the, the NSX, everywhere as they come and control plane as a very attractive proposition. Good. Ron, I'd like to talk to you a little bit about how you viewed the public, because you mentioned when we started off this journey, we didn't have Mr. Cloud and aws, we approached to when we were very early on in that journey and you took a bet with us, but it was part of your data center reduction. You're kind of trying to almost to obliterate one data center as you went from three to one. Tell us that story and how the collaboration worked out on we amber cloud. What's the use case? So as I said, our vision was always to bridge to a So we wanted to be able to use public cloud environments to incubate new public cloud, right? applications until they stabilize to flex to the cloud. And ultimately disaster recovery in the cloud. That was the big use case for us. We ran a traditional data center environment where, you know, we run across four regions in the world. Each region had two to three data centers. One was the primary and then usually you had a disaster recovery center where you had all your data hosted, you had certain amount of compute, but it was essentially a cold center, right? It, it sat idle, you did your test once a year. That's the environment we were really looking to get out of. Once vmc was available, we were able to create the same vm ware environment that we currently have on prem in the cloud, right? The same network and security stack in both places and we were actually able to then decommission our disaster recovery data center, took it off, it's took it off and we move. We've got our, our, all of our mission critical data now in the, uh, in the, uh, aws instance using BMC. We have a small amount of compute to keep it warm, but thanks to the vm ware products, we have the ability now to ratchet that up very quickly in a Dr situation, run production in the cloud until we stabilized and then bring that workload back. Would it be fair to tell everybody here, if you are looking at a Dr or that type of bursting scenario, there's no reason to invest in a on premise private cloud. That's really a perfect use case of We, I know certainly we had breaks. this, right? Sorry. Exactly. Yeah. We will no longer have a, uh, a physical Dr a center available anywhere. So you've optimized your one data center with the private cloud stack will be in cloud foundation effectively starting off a decent and you've optimized your hybrid cloud journey, uh, with we cloud. I know we're early on in the journey with Nsx and branch, so we'll come back to that conversation may next year we discover new things about this guy I just found out last night that he grew up in the same town as me in Bangalore and went to the same school. So we will keep a diary of the schools at rival schools, but the last few years with the same school, uh, Dave, as you think about the future of where you want to this use case of network security, what are some of the things that are on your radar over the course of the next couple of months and quarters? So I think what we're really trying to do is, um, you know, computers, this is a critical thing decided technology conference, computers and networks are a bit boring, but rather we want to make them boring. We want to basically sweep them away from so that our people, our customers, our internal customers don't have to think about it were the end that we can make him, that, that compliance, that security, that whole, that whole framework around it. Um, regardless of where that work, right live as living on premise, off premise, everywhere you know. And, and even Aisha potentially out out to the edge. How big were your teams? Very quickly, as we wrap up this, how big are the teams that you have working on network is what was amazing. I talked to you was how nimble and agile you're with lean teams. How big was your team? The, the team during the, uh, the SDDC stack is six people. Six, six. Eight. Wow. There's obviously more that more. And we're working on that core data center and your boat to sleep between five and seven people. For it to brad to both for the infrastructure and containers. Yes. Rolling on your side. It's about the same. Amazing. Well, very quickly maybe 30 seconds. Where do you see the world going? Rolling. So, you know, it brings, I pay attention to two things. One is Iot and we've talked a little bit about that, but what I'm looking for there as digital signals continue to grow is injecting things like machine learning and artificial intelligence in line into that flow back so we can make more decisions closer to the source. Right. And the second thing is about cash. So even though cash volume is increasing, I mean here we are in Vegas, the number one cash city in the US. I can't ignore the digital payments and crypto currency and that relies on blockchain. So focusing on what role does blockchain play in the global world as we go forward and how can brings, continue to bring those services, blockchain and Iot. Very rare book. Well gentlemen, thank you for being with us. It's a pleasure and an honor. Ladies and gentlemen, give it up for three guests. Well, um, thank you very much. So as you saw there, it's great to be able to see and learn from some of these pioneering customers and the hopefully the lesson you took away was wherever your journey is, you could start potentially with the private cloud, embark on the journey to the public cloud and then now comes the next part which is pretty exciting, which is the journey off the desktop and removal what digital workspace. And that's the second part of this that I want to explore with a couple of customers, but before I do that, I wanted to set the context of why. What we're trying to do here also has economic value. Hopefully you saw in the first set of charts the economic value of starting with the heart, the lungs, any of that software defined data center and moving to the ultimate hybrid cloud had economic value. We feel the same thing here and it's because of fundamental shift that started off in the last seven, 10 years since iphone. The fact of the matter is when you look at your fleet of your devices across tablets, phones and laptops today is a heterogeneous world. Twenty years ago when the company started, it was probably all Microsoft devices, laptops now phones, tablets. It's a mixture and it was going to be a mixture for the rest of them. I think for the foreseeable time, with very strong, almost trillion market cap companies and in this world, our job is to ensure that heterogeneous digital workspace can be very easily managed and secured. I have a little soft corner for this business because the first three years of my five years here, I ran this business, so I know a thing about these products, but the fact of the matter is that I think the opportunity here is if you think about the 7 billion people in the world, a billion of them are working for some company or the other. The others are children or may not be employed or retired and every one of them have a phone today. Many of them phones and laptops and they're mixed and our job is to ensure that we bring simplicity to this place. You saw a little bit that cacophony yesterday and Pat's chart, and unfortunately a lot of today's world of managing and securing that disparate is a mountain of morass. Okay? No offense to any of the vendors named in there, but it shouldn't be your job to be that light piece of labor at the top of the mountain to put it all together, which costs you potentially at least $50 per user per month. We can make the significantly cheaper with a unified platform, workspace one that has all of those elements, so how have we done that? We've taken those fundamental principles at 70 percent, at least reduction of simplicity and security. A lot of the enterprise companies get security, right, but we don't get simplicity all always right. Many of the consumer companies like right? But maybe it needs some help and facebook, it's simplicity, security and we've taken both of those and said it is possible for you to actually like your user experience as opposed to having to really dread your user experience in being able to get access to applications and how we did this at vm ware, was he. We actually teamed with the Stanford Design School. We put many of our product managers through this concept of design thinking. It's a really, really useful concept. I'd encourage every one of you. I'm not making a plug for the Stanford design school at all, but some very basic principles of viability, desirability, feasibility that allow your product folks to think like a consumer, and that's the key goal in undoing that. We were able to design of these products with the type of simplicity but not compromise at all. Insecurity, tremendous opportunity ahead of us and it gives me great pleasure to bring onstage now to guests that are doing some pioneering work, one from a partner and run from a customer. Please join me in welcoming Maria par day from dxc and John Market from adobe. Thank you, Maria. Thank you Maria and John for being with us. Maria, I want to start with you. A DXC is the coming together of two companies and CSC and HP services and on the surface on the surface of it, I think it was $50,000, 100,000. If it was exact numbers, most skeptics may have said such a big acquisition is probably going to fail, but you're looking now at the end of that sort of post merger and most people would say it's been a success. What's made the dxc coming together of those two very different cultures of success? Well, first of all, you have to credit a lot of very creative people in the space. One of the two companies came together, but mostly it is our customers who are making us successful. We are choosing to take our customers the next generation digital platform. The message is resonating, the cultures have come together, the individuals have come together, the offers have come together and it's resonating in the marketplace, in the market and with our customers and with our partners. So you shouldn't have doubted it. I, I wasn't one of the skeptics, maybe others were. And my understanding is the d and the C Yes. If, and dxc is the digital and customer. if you look at the logo, it's, it's more of an infinity, so digital transformation for customers. But truthfully it's um, we wanted to have a new start to some very powerful companies in the industry and it really was a instead of CSC and HP, a new logo and a new start. And I think, you know, if this resonates very well with what I started off my keynote, which is talking about innovation and customers focused on digital and Adobe, obviously not just a household name, customers, John, many of folks who use your products, but also you folks have written the playbook on a transformation of on premise going cloud, right? A SAS products and now we've got an incredible valuations relative. How has that affected the way you think in it in terms of a cloud first type of philosophy? Uh, too much of how you implement, right? From an IT perspective, we're really focused on the employee experience. And so as we transitioned our products to the cloud, that's where we're working towards as well from an it, it's all about innovation and fostering that ability for employees to create and do some amazing products. So many of those things I talked about like design thinking, uh, right down the playbook, what adobe does every day and does it affect the way in which you build, sorry, deploy products 92. Yeah, I mean fundamentally it comes down to those basics viability and the employee experience. And we've believe that by giving employees choice, we're enabling them to do amazing work. Rhonda, Maria, you obviously you were in the process of rolling out some our technology inside dxc. So I want to focus less on the internal implementation as much as what you see from other clients I shared sort of that mountain of harassed so much different disparate tools. Is that what you hear from clients and how are you messaging to them, what you think the future of the digital workspaces. And I joined partnership. Well Sanjay, your picture was perfect because if you look at the way end user compute infrastructure had worked for years, decades in the past, exactly what we're doing with vm ware in terms of automation and driving that infrastructure to the cloud in many ways. Um, companies like yours and mine having the courage to say the old way of on prem is the way we made our license fees, the way move made our professional services in the past. And now we have to quickly take our customers to a new way of working, a fast paced digital cloud transformation. We see it in every customer that we're dealing with everyday of the week What are some of the keyboard? Every vertical. I mean we're, we're seeing a lot in the healthcare and in a variety of verticals. industry. I'm one of the compelling things that we're seeing in the marketplace right now is the next gen worker in terms of the GIG economy. I'm employees might work for one company at 10:00 in the morning and another company at We have to be able to stand those employees are 10 99 employees up very 2:00 in the afternoon. quickly, contract workers from around the world and do it securely with governance, risk and compliance quickly. Uh, and we see that driving a lot of the next generation infrastructure needs. So the users are going from a company like dxc with 160,000 employees to what we think in the future will be another 200, 300,000 of 'em, uh, partners and contract workers that we still have to treat with the same security sensitivity and governance of our w two employees. Awesome. John, you were one of the pioneer and customers that we worked with on this notion of unified endpoint management because you were sort of a similar employee base to Vm ware, 20,000 odd employees, 1000 plus a and you've got a mixture of devices in your fleet. Maybe you can give us a little bit of a sense. What percentage do you have a windows and Mac? So depending on the geography is we're approximately 50 percent windows 50 slash 50 windows and somewhat similar to how vm ware operates. What is your fleet of mobile phones look like in terms of primarily ios? We have maybe 80 slash 20 or 70 slash 20 a apple and Ios? Yes. Tablets override kinds. It's primarily ios tablets. So you probably have something in the order of, I'm guessing adding that up. Forty or 50,000 devices, some total of laptops, tablets, phones. Absolutely split 60 slash 60,000. Sixty thousand plus. Okay. And a mixture of those. So heterogeneities that gear. Um, and you had point tools for many of those in terms of managing secure in that. Why did you decide to go with workspace one to simplify that, that management security experience? Well, you nailed it. It's all about simplification and so we wanted to take our tools and provide a consistent experience from an it perspective, how we manage those endpoints, but also for our employee population for them to be able to have a consistent experience across all of their devices. In the past it was very disconnected. It was if you had an ios device, the experience might look like this if you had a window is it would look like go down about a year ago is to bring that together again, this. And so our journey that we've started to simplicity. We want to get to a place where an employee can self provision their desktop just like they do their mobile device today. And what would, what's your expectations that you go down that journey of how quickly the onboarding time should, should be for an employee? It should be within 15, 20 minutes. We need to, we need to get it very rapid. The new hire orientation process needs to really be modified. It's no longer acceptable from everything from the it side ever to just the other recruiting aspects. An employee wants to come and start immediately. They want to be productive, they want to make contributions, and so what we want to do from an it perspective is get it out of the way and enable employees to be productive as And the onboarding then could be one way you latch him on and they get workspace quickly as possible. one. Absolutely. Great. Um, let's talk a little bit as we wrap up in the next few minutes, or where do you see the world going in terms of other areas that are synergistic, that workspace one collaboration. Um, you know, what are some of the things that you hear from clients? What's the future of collaboration? We're actually looking towards a future where we're less dependent on email. So say yes to that real real time collaboration. DXC is doing a lot with skype for business, a yammer. I'll still a lot with citrix, um, our tech teams and our development teams use slack and our clients are using everything, so as an integrator to this space, we see less dependent on the asynchronous world and a lot more dependence on the synchronous world and whatever tools that you can have to create real time. Um, collaboration. Now you and I spoke a little last night talking about what does that mean to life work balance when there's always a demanding realtime collaboration, but we're seeing an uptick in that and hopefully over the next few years a slight downtick in, in emails because that is not necessarily the most direct way to communicate all the time. And, and in that process, some of that sort of legacy environment starts to get replaced with newer tools, whether it's slack or zoom or we're in a similar experience. All of the above. All of the above. Are you finding the same thing, John Environment? Yeah, we're moving away. There's, I think what you're going to see transition is email becomes more of the reporting aspect, the notification, but the day to day collaboration is me to products like slack are teams at Adobe. We're very video focused and so even though we may be a very global team around the world, we will typically communicate over some form of video, whether it be blue jeans or Jabber or Blue Jeans for your collaboration. Yeah. whatnot. We've internally, we use Webex and, and um, um, and, and zoom in and also a lot of slack and we're happy to announce, I think at the work breakouts, we'll hear about the integration of workspace one with slack. We're doing a lot with them where I want to end with a final question with you. Obviously you're very passionate about a cause that we also love and I'm passionate about and we're gonna hear more about from Malala, which is more women in technology, diversity and inclusion and you know, especially there's a step and you are obviously a role model in doing that. What would you say to some of the women here and others who might be mentors to women in technology of how they can shape that career? Um, I think probably the women here are already rocking it and doing what you need to do. So mentoring has been a huge part of my career in terms of people mentoring me and if not for the support and I'm real acceptance of the differences that I brought to the workplace. I wouldn't, I wouldn't be sitting here today. So I think I might have more advice for the men than the women in the room. You're all, you have daughters, you have sisters, you have mothers and you have women that you work every day. Um, whether you know it or not, there is an unconscious bias out there. So when you hear things from your sons or from your daughters, she's loud. She's a little odd. She's unique. How about saying how wonderful is that? Let's celebrate that and it's from the little go to the top. So that would be, that would be my advice. I fully endorse that. I fully endorse that all of us men need to hear that we have put everyone at Vm ware through unconscious bias that it's not enough. We've got to keep doing it because it's something that we've got to see. I want my daughter to be in a place where the tech world looks like society, which is not 25, 30 percent. Well no more like 50 percent. Thank you for being a role model and thank you for both of you for being here at our conference. It's my pleasure. Thank you Thank you very much. Maria. Maria and John. So you heard you heard some of that and so that remember some of these things that I shared with you. I've got a couple of shirts here with these wonderful little chart in here and I'm not gonna. Throw it to the vm ware crowd. Raise your hand if you're a customer. Okay, good. Let's see how good my arm is. There we go. There's a couple more here and hopefully this will give you a sense of what we are trying to get done in the hybrid cloud. Let's see. That goes there and make sure it doesn't hit anybody. Anybody here in the middle? Right? There we go. Boom. I got two more. Anybody here? I decided not to bring an air gun in. That one felt flat. Sorry. All. There we go. One more. Thank you. Thank you. Thank you very much, but this is what we're trying to get that diagram once again is the cloud foundation. Folks. The bottom part, done. Very simply. Okay. I'd love a world one day where the only The top part of the diagram is the digital workspace. thing you heard from Ben, where's the cloud foundation? The digital workspace makes them cloud foundation equals a digital foundation company. That's what we're trying to get done. This ties absolutely a synchronously what you heard from pat because everything starts with that. Any APP, a kind of perspective of things and then below it are these four types of clouds, the hybrid cloud, the Telco Cloud, the cloud and the public cloud, and of course on top of it is device. I hope that this not just inspired you in terms of picking up a few, the nuggets from our pioneers. The possible, but every one of the 25,000 view possible, the 100,000 of you who are watching this will take people will meet at all the vm world and before forums. the show on the road and there'll be probably 100,000 We want every one of you to be a pioneer. It is absolutely possible for that to happen because that pioneering a capability starts with every one of you. Can we give a hand once again for the five customers that were onstage with us? That's great.

>> [Announcer] From San Francisco, it's theCUBE. Covering Radio 2018, brought to you by VMware. (upbeat music) >> Hello everyone welcome back, this is theCUBE's exclusive coverage here at VMware's Radio 2018, this is their seminal, big-tent event for their top engineers, smartest people come together present their reports, their projects, and come together as a community and share great content and agenda. As Steve Herrod former CTO says, this is like a sales kickoff for engineers, it's motivated and they flex their muscles, technically, stretch their minds. I'm here with Pat Gelsinger, the CEO VMware, great to see you, welcome back to theCUBE. >> Hey thank you very much, it's fun to be here at Radio. >> So this is nerd central, this is >> Absolutely, this is like geek city baby. >> Dave and I always complement you on your business acumen obviously doing great as a CEO, the numbers, business performance, world class organization, check, best place to work, one of the best places to work for, check. But you're kind of a geek at heart, you like to get down and dirty, technical, this is your event. You gettin' down with the folks? >> Yeah it's fun, I was just at our sales, we have a top sales people, our sales club, so we did it in Abu Dhabi this year, so I was just over there a couple of week ago for that so hobnobbing with the sales guys which is super important, right? Their motivation, their creme de la creme of the year, but to me this one is better, right? Just 'cause now the tech guys comin' together 'cause most companies don't do anything like this, right? So it really is a unique piece of the VMware culture where the tech guys get together and they just geek out for a couple of days and to be awarded best of Radio, it's like, oh man you're a god inside of VMware. >> It's like the Sundance Film Festival, Cannes Film Festival, the Oscars, it's a huge accomplishment and knowing people internally. >> Yeah and some of Ray's numbers this morning as he showed in the keynote, I mean it's competitive to get your paper shown here is competitive, right? So there's a set of judges that are picking the papers that are here out of this we already have over 200 invention disclosures that have come out of just the preparation for the conference and we haven't even gotten started yet, and now the keynotes this morning and poster sessions all week long, and letting the engineers just really vibrate off of each others' ideas and challenge them and all of our PEs and fellows roaming around here they're sort of like the big guys on campus, but hey the young Turks are coming up and they're challenging them on ideas it really is a delightful few days. >> I love your perspective, I wanna get your reaction 'cause one, not only do you have a storied history working at Intel, really a great innovative founders of Silicon Valley with HPs of the world, and now you're the chief of VMware a modern era's here, you talk about this all the time publicly about the business context and at the events, but it's different Google had pioneered this notion of 20% of your time you could work on side project, more of an academic culture Google has, I mean I love that it's cool, but VMware has a unique culture and I want you to talk about that dynamic because you have to be versatile now, agile more than ever, you have to be faster time to market, and it's always been hard for companies to crack the code on knocking down the big ideas, solving the hardest problems but yet making it practical at the same time. What's your reaction to how you guys are doing it, >> what's different? Share some color. >> In some ways and I think some of the panel, we had a panel session this morning, Steve did one session, but we had of the original engineers in the company, the five of the original engineers, right were here and they were saying it was sort of like we're doing research in a business who had business objectives, right? Solving problems that had never been solved before, Sort of the VMware culture is if it's not a hard problem, it's not worth it, right? And our objective isn't to be 2x or 10% better, but to be 10x better, right? And when you're doin' those kind of things you can't always put that on a schedule, right? The problem is solved when it's solved, right? And I was just meeting with one of my teams last night and this is, well alright that looked pretty good but I don't think you've met the minimum viable product yet so let's put it in an open beta for six months before we actually call it GA 'cause I don't think you're done >> solving the hard problem yet, right? >> So you're squinting through and looking at the projects from that? >> Yeah right, is it ready? And have we really delivered something that customers can say, "Yeah here's the value proposition you promised, here's what you're delivering me, it is a quality product," right? Which is something that's deep in that history of VMware right in many cases, and I love one of the statistics this morning, they said the early core dumps of ESX, right they found that over 2/3 of them were a result of memory parody errors, not of ESX failures of any sense, so meaning that the hardware was less reliable than the software was, that's all we sort of this magic that we say, we're out to produce world class infrastructure software that's better than the hardware ever could have been and for a hardware guy that's sort >> So that was your problem, originally I think it was on your watch actually the first core dump. Throwback Thursday would they do core dumps from like 10 years ago look at a simpler core, >> look at x say "Hey look at the core dump, Hey look at cool that is." (laughing) >> If I see the Biaz prompt oh my gosh where did that come from? >> Let's get some vinyl records and look at some core dumps from 1992. >> So Pat, now this is important because I think this is a killer point, when you look at innovation VMware has to meet the challenge of being on that next wave and you've said on theCUBE many times, if you're not on that next wave you're driftwood. A lot of companies who try to do R&D end up solving hard problems to attract the top talent, but they end up getting so focused on the problem they end up in a cul-de-sac on the wrong wave, they miss the next wave. >> [Pat] Yeah. >> How do you manage that? 'Cause this is your sticking point is to make sure you don't miss the next wave, you transition properly, how do you avoid that problem of getting so focused on the intoxicating aspect of solving problem and being in a cul-de-sac no market wave missed? >> Yeah and it's hard right? In that sense and I'll say there's, we sort of look at it from three different dimensions, one is, hey you gotta keep this bubbling cauldron of ideas and that's why we're here at Radio, right? Just these people working on ideas, right? You have some really cool stuff and every once in a while you're telling the engineers, "Well that's good but you haven't solved the hardest piece of that problem yet and so on." Then you have to be able to take it from that bubbling cauldron to, I'll say, an incubation product, right? 'Cause VMware yeah we do R&D, we do core research as well, but fundamentally we've been able to create markets based on our products and really scale them, right? The embarrassing truth of any enterprise software company is for every dollar of R&D you spend, you spend two dollars of sales and marketing, so we can't under invest in those products that we've picked that now are scaling into the market, we have to put the >> dedicated sales >> [John] Get the leverage >> out of it >> The SEs et cetera, that's really frightening. When I'm done innovating a new idea maybe I've dumped 10 million or 15 million into the core idea, okay, now I got to go spend twice that amount on >> Good marketing. >> Marketing of it and boy it's expensive to bring things into the enterprise and if the product isn't robust and solid and really compelling, then it might be three or four x, so you're now rewarded with your R&D investment to go spend on sales and marketing now, so yeah we've really taken and we have a very BCG matrix kind of view of how we take products from incubation into early market success and then into scale and finally cash cow and retirement and that process is one you have to be equally disciplined about. The third piece of it is you have to be able to declare failure and for failures, it's how do you harvest technologies and learning, but be able to look at something vCloud Air and say, "Okay we weren't successful" and now go build a multi cloud, an Amazon partnership coming out of it, we have to be able to make those shifts right and be able to declare failure, be able to move our customers forward, and then move on to the next big thing >> [John] I mean the math works >> 'Cause you're not gonna get 'em all right. >> So to your point, the math works when you can abandon quickly >> [Pat] Yeah. >> That's where the winners are 'cause then you can move the probability of success somewhere else. >> Yeah and if you can't declare failure, right, and view that in the positive and proud way. One of the failures of vCloud Air became the success of our hybrid cloud service capability now, right a lot of this ability to move workloads between public clouds was a direct harvesting of our vCloud Air failure, we're able to take that technology forward and that's now one of the pillars of how we're differentiate and our Amazon service, OBH partnership, IBM, are building on those hybrid cloud capabilities. >> Pat we've been watching you that's one of the things I will say that you're really amazing at, you're good at, you're the captain, you've got your hand on the wheel, you gotta know when to say, "Hey, close that hatch, or we're going to sink," you gotta, or I'm not that there, knowing when to make the calls. So I gotta ask you, when you look at the marketplace now, you have the option to build, the option to buy, and you have to kinda also balance those three areas, you've got Ray, you've got Rajiv, and you've got the Corp Dev guys, they have to work together and sometimes, hey let's go buy that hot start up or no I have it internally, and sometimes it might be in a core competency area. Talk about as the CEO, you've got your hand on the wheel, okay, you're steering the ship, you're setting the direction, the team's workin' hard, how do you make those calls buy build, and when it's in the core area as the market's shifting, what's that look like for you? What your view as you look forward? >> Yeah there's clearly and we think about the case let's take two examples of our buy. AirWatch, hey we saw that we had nothing in mobility and if we're gonna be in end-user computing we must have mobility in the family, so we really in some degree, we didn't have a choice, we had to go buy if we're gonna be in that space and it became foundational for us in that area. You might have argued, hey we should have done that five years sooner, but we didn't, we had to make a buy decision and then we went out and shopped, literally MobileIron or AirWatch? We looked at those and bake those off until almost the last day, alright? And I went into that expecting we were gonna buy MobileIron, right? >> [John] Really? What was the tipping point? >> Right, well, I became a Silicon Valley company, I thought their technology was a little bit better, I thought the AirWatch guys were a little bit too much market and focused on winning the early market, I didn't know if the product had the quality of a VMware product, so I really was handicapping the MobileIron one and the team came out unanimously with my agreement that AirWatch was the right thing, right? In the case of Nicira, one of the other foundational acquisitions that we did, we had a lot of the distributive virtual switch technology we had already innovated, but we hadn't put a control plane, a scale control plane against and that's Nicira did, so there it was really bringing those pieces together which really has become, I'll say, a marquee aspect of our acquisition, in many cases we're in the space >> You feel good about that, how much you paid for that. >> Oh yeah, I mean at the time people said, "1.2 billion for less than 10 million of revenue, what are you guys stupid?" Now everybody says, "Wow you're brilliant." >> So they didn't look at the underlying technology. >> Absolutely >> Leverage you were getting. >> Four years of hard work, core technology, right, and boom, we're unquestionably the leader in software defined networking now as a result of making a pretty bold bet at the time. Obviously organic innovation is the best because it sort of fits in your stream, you don't have to go, you know, change gooey practices or test release practices, it's already part of you as well. But sometimes, hey, I get to look over 10 startups and pick the winner. I may not be able to fund 10 startups internally and pick the winner, but I can look out over, you pay a premium, and one of the unique things about VMware is that over the 60 or so 70 acquisitions I think we've done now, as a company we have a highly successful track record. >> Is that because of the architectural decisions? It's not just bolt on a business unit and say stand alone and produce cash you guys are thinking strategically around how it fits architecturally, is that the difference? >> I'd say it boils down to a handful of things. That's absolutely one of 'em. We're looking deep at technology, how does it fit our technology, can we bring it in? Second we look at the culture of the company, right? We've said no to some acquisitions just 'cause we've decided that culture won't fit our culture or we're not gonna be able to mold it into our culture as well. Number three, we protect this thing, we run a process by which, hey if this is the acquired company, right, and here's the CEO of this startup company, he has passion, he is the commander of his universe, and tomorrow some low-level legal person can say, "No you can't do that," right, yesterday he was enjoying (laughing). Do we protect them? Do we turn their passion and get them to believe that their passion, remember, they're, yeah they wanna be successful, but they wanna turn their passion and objective into a big industry-changing event. And is that passion better executed inside of the platform of VMware? So we protect them, that low-level legal person can't say no or that finance person, we run a special board process around 'em to protect 'em. >> You don't want people handcuffed. >> Yeah, absolutely, we want them to be unleashed, that they have more power not less after they become part of this company that the platform for their vision and passion becomes bigger as part of ours so we protect 'em like crazy in that process. >> And you do that here at Radio as well. You wanna unleash the ground swell, get the grass roots movement going, let the sparks of innovation kinda fly out there. >> Yeah and our success rate is close to 90% on acquisitions and the industry average is below 50% so I think we've really mastered organic and inorganic innovation as good as any company has in the industry. >> Yeah I will say that's the totally true. And also Vsam became a project that came out of Radio that's been highly successful. >> [Pat] Yeah totally organic in that one. >> So you guys think strategically, it's not just bolting on revenue, although that could help if you can find it, there's not much out there for you guys. (both men laughing) Let's talk about some of the hot trends here at Radio. One of the things we're seeing, obviously with tie-in of the competitive, but also the comradery, a lot of, it's interesting to see how competitive it is, but also again VMware's got a hard core engineering culture, but also a hardcore community culture that shines through, it's obvious, so props to the folks running Radio and then the process. But when you look at the trends, what's trending up is the blockchain. We talked to some of your folks there you guys are looking at this, this is really strategic aspect, you talked with Dave about it briefly at Dell Technologies World, what's your view on blockchain? Obviously, you look at infrastructure, blockchain jumps out at you, your reaction to the hype and allusions and reality of blockchain crypto currency, not so much the ICO's, I think that's just a funding dynamic, lot of project-based stuff, but really there's some infrastructuring dynamics, your thoughts on blockchain as an infrastructure enabler for future wave? >> Yeah you know a couple of comments and one is, I think blockchain as a algorithmic breakthrough is on par with public private key encryption, alright? It's just sort of opened up the world of general purpose cryptography, and I think this idea of an immutable distributive ledger, right, sort of busts apart the database and I don't have to bring things together now the databases spreads, right, across it, immutability, right, transactability, et cetera, takes a lot of the acid characteristics of core databases and now does it in the fully distributive way, very powerful and I think it's gonna change supply chains, change financial systems, it's gonna have very broad implications so overall we're in, we believe very much in the importance of that. >> Real quick, to interrupt you real quick, >> 'cause I wanna get this thought in because you brought up general purpose, one of the things we've been kind of talking off camera, most of our team members is, blockchain looks a lot like maybe processors, general purpose processors, opening up an PC revolution, in the sense of general purpose computing. Blockchain seems to have that same dynamic, potentially, not as a direct metaphor, but if you can open up a new dynamic, that could explode new business models yet to be foreseen. >> Oh yeah, yeah, yeah absolutely. If we could take the cost of transactions down by an order of magnitude, right? If you could increase the reliability of a supply chain, right? If you could right in fact guarantee the source of origin of any product against the ultimate place of consumption, these are industry-changing type of capabilities, so we do see it quite significantly that way. But then as VMware looks at it, if there's not a hard problem to solve, then we shouldn't be in this space. So our team, one of the core problems of blockchain, right >> [John] Slow. >> Is the exponential compute requirements of higher order blockchains, so our team has solved that problem we've done some algorithmic breakthroughs that we believe allow blockchain to scale, a close to linear scale as opposed to exponential scale, wow that's game-changing for, we're also solving the auditability problem, immutable, anonymous, immutable is great, but a lot of things need to audited, right? So how can you bring some of those core concepts into blockchain? So those are some of the hard problems that we're solving, sort of back to the 10x culture, solve hard problems in fundamental ways and that's what we think that we can bring to the blockchain universe. >> Well Pat, I think it's amazing that you're here at the event, I know that you love, look forward to this as well, but to have the CEO come in at the Radio event and really lead the troops by example is awesome. We've got VMworld coming up around the corner, give us some teasers, what's happening? I know you're gonna get in trouble from Robin Matlock, (Pat laughing) but come on tell us what's coming at VMworld. >> (laughes) Well you know we have, of course we have a lot of key products, updates and other things that are coming out. I hope to broaden at VMworld this year, the view of the cloud, right? And you say, "Broaden the view of the cloud, what are you talking about Pat?" Well you're gonna have to come to VMware to get the full story, but I do think that we've thought about the hybrid cloud world largely in this idea of public and private in the past, right? But we see that the vision that we're pursuing is one much larger than that where, right, it's public, private, telco, and edge, right? And the confluence of those four worlds, we believe is something that VMware is uniquely positioned to be able to bring right to the marketplace and the implications of that so, I'm quite excited as I broaden our general view >> of the cloud as we come up on VMworld. >> And one of the exciting things it's our ninth year at VMworld, we've been every year one since theCUBE's existed and thank you for your support. >> Ah that's great. >> But I gotta say, one of the things we can do is look at the tape as they say, you said in 2011 or 2012, hybrid cloud and I kind of was like, Pat come on, hybrid cloud. >> Now everybody's talking about it. >> I think that's what it is. >> Yeah. >> But 2012? How many years ago was that? >> I think 2012 I think is when we first started to use that word. >> Yeah you put the stake in the ground, >> again, you saw that as a wave and a lot's been changed and you look back since 2012 you make the right calls, you feel good about where you're at? Things you could do over? What would you do given from a progress standpoint? What's changed radically in your mind? 'Cause we're still talking about private cloud, what, I mean obviously service mesh is around the corner other cool stuff's happening. >> Yeah you know, clearly I think when we think about the STBC, hey we called it right, we're executing better than anybody else. So you can sort of say check, right? Virtual storage, check. We talk about what we've done at NuComputing, transformed their workplace, check. We're unquestionably the industry leader in that area. I think this idea of hybrid cloud it's taken us too hard, too long too hard to realize that the multicloud vision, so that's the one I'd say, okay we haven't delivered as rapidly or as effectively as we needed to, it's now really starting to materialize, but it's taken me a couple, three years longer than it should have to get there and we comment on the vCloud Air and a little bit of the miss that we had there and that delayed our schedule, also some of the Amazon aspects sent us sideways a little bit, but hey I think we're on a very good path now but then to broaden it, to what we're doing in telco, what we're doing in edge, okay this gets to be really really powerful. >> Pat, great for you success. Thanks for coming by theCUBE here at Radio 2018 this is where all the R&D, it's where the ideas are booming I'm John Furrier with Pat Gelsinger, here in San Francisco for Radio 2018, we'll be back with more coverage after this break, thanks for watching. (upbeat music)