>>The Cube presents Ignite 22, brought to you by Palo Alto Networks. >>Welcome back to Vegas, guys and girls, it's great to have you with us. The Cube Live. Si finishing our second day of coverage of Palo Alto Ignite. 22 from MGM Grand in Las Vegas. Lisa Martin here with Dave Valante. Dave Cybersecurity is one of my favorite topics to talk about because it is so interesting. It is so dynamic. My other favorite thing is to hear the voice of our vendors' customers. And we could to >>Do that. I always love to have the customer on you get you get right to the heart of the matter. Yeah. Really understand. You know, what I like to do is sort of when I listen to the keynotes, try to see how well it aligns with what the customers are actually doing. Yeah. So let's >>Do it. We're gonna unpack that now. Michael Fagan joins us, the Chief Transformation Officer at Village Roadshow. Welcome Michael. It's great to have you >>And thank you. It's a pleasure to be here. >>So this is a really interesting entertainment company. I find the name interesting, but talk to us a little bit about Village Roadshow so the audience gets an understanding of all of the things that you guys do cuz theme parks is part of >>This. Yeah, so Village Road show's Australia's largest cinema exhibitor in conjunction with our partners at event. We also own and operate Australia's largest theme parks. We have Warner Brothers movie World, wet and Wild. SeaWorld Top Golf in Australia is, is operated by us plus more. We also do studio, we also own movie studios, so Aquaman, parts of the Caribbean. We're, we're filming our movie studios Elvis last year. And we also distribute and produce movies and TV shows. Quite diverse group. >>Yeah, you guys have won a lot of awards. I mean, I don't know, academy Awards, golden Globe, all that stuff, you know, and so it's good. Congratulations. Yeah. >>Thank you. >>Cool stuff. I wanna also, before we dig into the use case here, talk to us about the role of a chief transformation officer. How long have you been in that role? What does it encompass and what do you get to drive from a transformation perspective? Yeah, >>So the, the, the nature and pace of disruption is accelerating and on, on one side. And then on the other side, the running business as usual is becoming increasingly complex and, and more difficult to do. So running both simultaneously and at pace can put organizations at risk, both financially and and other ways. So in my role as Chief Transformation officer, I support the rest of the executive team by giving them additional capacity and also bring capability to the team that wasn't there before. So I do a lot of strategic and thought leadership. There's some executive coaching in there, a lot of financial modeling and analysis. And I believe that when a transformation role in particularly a chief transformation role is done correctly, it's a very hands-on role. So there's certain things where I, I dive right down and I'm actually hands in, hands-on leading teams or leading pieces of work. So I might be leading particular projects. I tried to drive profit revenue and profitability across the divisions and does any multi or cross-divisional opportunities or initiative, then I will, I will lead those. >>The transformation, you know, a while ago was cloud, right? Okay, hey, cloud and transformation officers, whether or not they had that title, we'll tell you, look, you gotta change the operating model. You can't just, you know, lift and shift in the cloud. That's, you know, that's pennies. We want, you know, big bucks. That's the operating. Now it's, I'm my question is, is did the pandemic just accelerate your transformation or, or was it, you know, deeper than that? >>Yeah, so what in my role have both digital and business transformation, some of it has been organizational. I think the pandemic has had a, a significant and long lasting effect on society, not just on, on business. So I think if you think about how work work used to be a, a place you went to and how it was done beforehand, before the, before COVID versus now where, you know, previously, you know, within the enterprise you had all of the users, you had all of the applications, you had all of the data, you had all of the people. And then since March, 2020, just overnight, that kind of inverted and, you know, you had people working from home and a person working from home as a branch office of one. So, so we ended up with another thousand branches literally overnight. A lot of the applications that we use are now SASS or cloud-based, whether that's timekeeping with Kronos or communica employee communication or work Jam. So they're not sitting within our data center, they're not sitting within, within our enterprise. It's all external. >>So from a security perspective, you obviously had to respond to that and we heard a lot about endpoint and cloud security and refactoring the network and identity. These guys aren't really an identity. They partner for that, but still a lot of change in focus that the CISO had to deal with. How, how did you guys respond to that? And, and you had a rush to do it. Yeah. And so as you sit back now, where do you go from here? >>Well we had, we had two major triggers for our, our network and security transformation. The first being COVID itself, and then the second beam, we had a, a major MPLS telco renewal that came up. So that gave you an opportunity to look at what we were doing and essentially our network was designed for a near, that no longer exists for when, for when p like I said, when people, when people were from home, all the applications were inside. So, and we had aging infrastructure, our firewalls were end of life. So initially we started off with an SD WAN at the SD WAN layer and an SD WAN implementation. But when we investigated and saw the security capabilities that are available now, we that to a full sassy WAN implementation. >>Why Palo Alto Networks? Because you, you had, you said you had an aging infrastructure designed for an era that doesn't exist anymore, but you also had a number of tools. We've been talking about a consolidation a lot the last couple days. Yeah. How did, what did you consolidate and why with Palo Alto? >>So we had a great partner in Australia, incidentally also called Cube. Cube Networks. Yeah. That we worked with great >>Names. Yeah, right. >>So we, so we, we worked for Cube. We ran a, a form of tender process. And Palo Alto with, you know, Prisma access and Global Global Protect was the only, the only solution that gave us everything that we needed in terms of network modernization, the agility that we required. So for example, in our theme part, we want to send out a hotdog cart or an ice cream cart, and that becomes, all of a sudden you got a new branch that I want to spin up this branch in 10 minutes and then I wanna spin it back down again. So from agility perspective, from a flexibility perspective, the security that, that we wanted, you know, from a zero trust perspective, and they were the only, certainly from a zero trust perspective, they're probably the only vendor that, that exists that, that actually provided the, the, all those capabilities. >>And did you consolidate tools or you were in the process of consolidating tools now? >>Yeah, so we actually, we actually consolidated down to, to, to a, to a single vendor. And in my previous role I had, I had implemented SD WAN before and you know, interoperability is a, is a major issue in the IT industry. I think there's, it's probably the only industry in the, the only industry I can think of certainly that where we, we ship products that aren't ready. They're not of all the features, they, they don't have all the features that they should have. They're their plans. They were releasing patches, releasing additional features every, every couple of months. So, you know, if you, if if Ford sold the card, I said, Hey, you're gonna give you backseats in a couple of months, they'd be uproar. But, but we do that all the time in, in it. So I had, when I previously implemented an Sdwan transformation, I had products from two tier one vendors that just didn't talk to one another. And so when I went and spoke to those vendors, they just went, well, it's not me. It's clearly, clearly those guys. So, so there's a lot to be said for having a, you know, a champion team rather than a team of champions. And Palo Alto have got that full stack fully integrated that was, you know, exactly meant what we were looking for. >>They've been talking a lot the last couple days about integration and it, and I've talked with some of their executives and some analysts as well, including Dave about that seems to be a differentiator for them because they really focus on that. Their m and a strategy is very, it seems to be very clear and there's purpose on that backend integration instead of leaving it to the customer, like Village Road show to do it. They also talked a lot about the consolidation. I'm just curious, Michael, in terms of like what you've heard at the show in the last couple of days. >>Yeah, I mean I've been hearing to same mess, but actually we've, we've lived in a >>You're living it. That's what I wanted to >>Know. So, so, you know, we had a choice of, you know, do you try and purchase so-called best of breed products and then put a lot of effort into integrating them and trying to get them to work, which is not really what we want to spend time doing. I don't, I don't wanna be famous for, you know, integration and, you know, great infrastructure. I want to be, I want Village to be famous for delivering great experiences to our customers. Memories that last a lifetime. And you know, when kids grow up in Australia, they, everybody remembers going to the theme parks. That's what, that's what I want our team to be doing and to be delivering those great experiences, not to be trying to plug together bits of software and it may or may not work and have vendors pointing at one another and then we are left carrying the cannon and holding the >>Baby. So what was the before and after, can you give us a sense as to how life changed, you know, pre that consolidation versus post? >>Yeah, so our, our, our infrastructure, say our infrastructure was designed for, you know, the, you know, old ways of working where we had you knowm routers that were, you know, not designed for cloud, for modern traffic, including cloud Destin traffic, an old MPLS network. We used to back haul all the traffic from, from our branches back to central location run where we've got, you know, firewall walls, we've got a dmz, we could run advanced inspection services on that. So if you had a branch that wanted to access a website that was housed next door, even if it was across the country, then it would, we would pull that all the way back to Melbourne. We would apply advanced inspection services to it, send it up to the cloud out back across the country. Traffic would come back, come down to us, back out to our branch. >>So you talk about crossing the country four times, even at the website is, is situated next door now with, with our sasi sdwan transformation just pops out to the cloud now straight away. And the, the difference in performance for our, for our team and for our customers, it, it's phenomenal. So you'll talk about saving minutes, you know, on a log on and, and seconds then and on, on an average transaction and second zone sound like a lot. But when you, it's every click up, they're saving a second and add up. You're talking about thousands of man hours every month that we've saved. >>If near Zuke were sitting right here and said, what could we do better? You know, what do you need from us that we're not delivering today that you want to, you want us to deliver that would change your life. Yeah, >>There's two things. One, one of which I think they're all, they're already doing, but I actually haven't experienced myself. It's around the autonomous digital experience management. So I've now got a thousand users who are sitting at home and they've got, when they've got a problem, I don't know, is it, is it my problem or is it their problem? So I know that p were working on a, an A solution that digital experience solution, which can actually tell, well actually know you're sitting in your kitchen and your routes in your front room, maybe you should move closer to the route. So there, there they, that's one thing. And the second thing is using AI to tell me things that I wouldn't be able to figure out with a human training. A lot of time sifting through data. So things like where I've potentially overcompensated and, you know, overdelivered on the network and security side or of potentially underdelivered on a security side. So having AI to, you know, assess all of those millions and probably billions of, you know, transactions and packets that are moving around our network and say, Hey, you could optimize it more if you, if you dial this down or dial this up. >>So you said earlier we, this industry has a habit of shipping products before, you know they're ready. So based on your experience, seems like, first of all, it sounds like you got a at least decent technical background as well. When do you expect to have that capability? Realistically? When can we expect that as an industry? >>I think I, I think, like I said, the the rate and nature of change is, is, I think it's accelerating. The halflife of degree is short. I think when I left university, what I, what I learned in first year was, was obsolete within five years, I'd say now it's probably obsolete of you. What'd you learn in first year? It's probably obsolete by the time you finish your degree. >>Six months. Yeah, >>It's true. So I think the, the, the rate of change and the, the partnership that I see Palo building with the likes of AWS and Google and that and how they're coming together to, to solve, to jointly solve these problems is I think we will see this within 12 months. >>Who, who are your clouds? You got multiple clouds >>Or We got multiple clouds. Mostly aws, but there are certain things that we run that run in run in Azure as well. We, we don't really have much in GCP or, or, or some of the other >>Azure for collaboration and teams, stuff like that. >>Ah, we, we run, we run SAP that's we hosted in, in Azure and our cinema ticketing system is, is was run in Azure. It's, it was only available in, in in Azure the time we're mo we are mostly an AWS >>Shop. And what do you do with aws? I mean, pretty much everything else is >>Much every, everything else, anything that's customer facing our websites, they give us great stability. Great, great availability, great performance, you know, we've had and, and, and, and a very variable as well. So, we'll, you know, our, our pattern of selling movie tickets is typically, you know, fairly flat except when, you know, there's a launch of a, of a new movie. So all of a sudden we might say you might sell, you know, at 9:00 AM when, you know, spider-Man went on sale last year, I think we sold 100 times the amount of tickets in the forest, 10 minutes. So our website didn't just scale look beautifully, just took in all of that extra traffic scale up. We're at only any intervention and then scale back down >>Taylor Swift needs that she does need that. So yeah. And so is your vision to have Palo Alto networks security infrastructure have be a common sort of layer across those clouds and maybe even some on-prem? Is it, are you, are you working toward that? Yeah, >>We, yeah, we, yeah, we, we'd love to have, you know, our end, our end customers don't really care about the infrastructure that we run. They won't be >>Able to unless it breaks. >>Unless it breaks. Yeah. They wanna be able to go to see a movie. Do you wanna be able to get on a rollercoaster? They wanna be able to go, you know, play around around a top golf. So having that convergence and that seamless integration of working across cloud network security now for most of our team, they, they don't know and they don't need to know. In fact, I, I frankly don't want them to know and be, be thinking about networks and clouds. I kind of want them thinking about how do we sell more cinema tickets? How do we give a great experience to our guests? How do we give long lasting lifetime memories to, to the people who come visit our parks? >>That's what they want. They want that experience. Right. I'd love to get your final thoughts on, we, we had you give a great overview of the ch the role that you play as Chief transformation officer. You own digital transformation, you want business transformation. What advice would you give to either other treat chief transformation officers, CISOs, CSOs, CEOs about partnering, what's the right partner to really improve your security posture? >>I think there's, there's two things. One is if you haven't looked at this in the last two years and made some changes, you're outta date. Yeah. Because the world has changed. We've seen, I mean, I've heard somebody say it was two decades worth of, I actually think it's probably five 50 years worth of change in, in Australia in terms of working habits. So one, you need to do something. Yeah. Need to, you need to have a look at this. The second thing I think is to try and partner with someone that has similar values to your organization. So Village is a, it's a wonderful, innovative company. Very agile. So the, like the, the concept of gold class cinema, so, you know, big proceeds, recliners, waiter service, elevated foods concept that, that was invented by village in 1997. Thank you. And we had thanks finally came to the states so decade later, I mean we would've had the CEO of every major cinema chain in the world come to come to Melbourne and have a look at what Village is doing and go, yeah, we're gonna export that back around around the world. It's probably one of, one of Australia's unknown exports. Yeah. So it's, yeah, so, so partnering. So we've got a great innovation history and we'd like to think of ourselves as pretty agile. So working with partners who are, have a similar thought process and, and managed to an outcome and not to a contract Yeah. Is, is important for us. >>It's all about outcomes. And you've had some great outcomes, Michael, thank you for joining us on the program, walking us through Village Roadshow, the challenges that you had, how you tackled them, and, and next time I think I'm in a movie theater and I'm in reclining chair, I'm gonna think about you and village. So thank you. We appreciate your insights, your time. Thank you. Thanks Michael. For Michael Fagan and Dave Valante. I'm Lisa Martin. You've been watching The Cube. Our live coverage of Palo Alto Networks. Ignite comes to an end. We thank you so much for watching. We appreciate you. You're watching the Cube, the leader in live enterprise and emerging emerging tech coverage next year. >>Yeah.

>>Hello everyone, and welcome back to the Cube's Live coverage of Cuban here in Motor City, Michigan. My name is Savannah Peterson and I'm delighted to be joined for this segment by my co-host Lisa Martin. Lisa, how you doing? Good. >>We are, we've had such great energy for three days, especially on a Friday. Yeah, that's challenging to do for a tech conference. Go all week, push through the end of day Friday. But we're here, We're excited. We have a great conversation coming up. Absolutely. A little of our alumni is back with us. Love it. We have a great conversation about learning. >>There's been a lot of learning this week, and I cannot wait to hear what these folks have to say. Please welcome Tom and Victoria from Cast by Beam. You guys are swag up very well. You've got the Fanny pack. You've got the vest. You even were nice enough to give me a Carhartt Beanie. Carhartt being a Michigan company, we've had so much love for Detroit and, and locally sourced swag here. I've never seen that before. How has the week been for you? >>The week has been amazing, as you can say by my voice probably. >>So the mic helps. Don't worry. You're good. >>Yeah, so, So we've been talking to tons and tons of people, obviously some vendors, partners of ours. That was great seeing all those people face to face again, because in the past years we haven't really been able to meet up with those people. But then of course, also a lot of end users and most importantly, we've met a lot of people that wanted to learn Kubernetes, that came here to learn Kubernetes, and we've been able to help them. So feel very satisfied about that. >>When we were at VMware explorer, Tom, you were on the program with us, just, I guess that was a couple of months ago. I'm listening track. So many events are coming up. >>Time is a loop. It's >>Okay. It really is. You, you teased some new things coming from a learning perspective. What is going on there? >>All right. So I'm happy that you link back to VMware explorer there because Yeah, I was so excited to talk about it, but I couldn't, and it was frustrating. I knew it was coming up. That was was gonna be awesome. So just before Cuban, we launched Cube Campus, which is the rebrand of learning dot cast io. And Victoria is the great mind behind all of this, but what the gist of it, and then I'll let Victoria talk a little bit. The gist of Cube Campus is this all started as a small webpage in our own domain to bring some hands on lab online and let people use them. But we saw so many people who were interested in those labs that we thought, okay, we have to make this its own community, and this should not be a branded community or a company branded community. >>This needs to be its own thing because people, they like to be in just a community environment without the brand from the company being there. So we made it completely independent. It's a Cube campus, it's still a hundred percent free and it's still the That's right. Only platform where you actually learn Kubernetes with hands on labs. We have 14 labs today. We've been creating one per month and we have a lot of people on there. The most exciting part this week is that we had our first learning day, but before we go there, I suggest we let Victoria talk a little bit about that user experience of Cube Campus. >>Oh, absolutely. So Cube Campus is, and Tom mentioned it's a one year old platform, and we rebranded it specifically to welcome more and, you know, embrace this Kubernetes space total as one year anniversary. We have over 11,000 students and they've been taking labs Wow. Over 7,000. Yes. Labs taken. And per each user, if you actually count approximation, it's over three labs, three point 29. And I believe we're growing as per user if you look at the numbers. So it's a huge success and it's very easy to use overall. If you look at this, it's a number one free Kubernetes learning platform. So for you user journey for your Kubernetes journey, if you start from scratch, don't be afraid. That's we, we got, we got it all. We got you back. >>It's so important and, and I'm sure most of our audience knows this, but the, the number one challenge according to Gartner, according to everyone with Kubernetes, is the complexity. Especially when you're getting harder. I think it's incredibly awesome that you've decided to do this. 11,000 students. I just wanna settle on that. I mean, in your first year is really impressive. How did this become, and I'm sure this was a conversation you two probably had. How did this become a priority for CAST and by Beam? >>I have to go back for that. To the last virtual only Cuban where we were lucky enough to have set up a campaign. It was actually, we had an artist that was doing caricatures in a Zoom room, and it gave us an opportunity to actually talk to people because the challenge back in the days was that everything virtual, it's very hard to talk to people. Every single conversation we had with people asking them, Why are you at cu com virtual was to learn Kubernetes every single conversation. Yeah. And so that was, that is one data point. The other data point is we had one lab to, to use our software, and that was extremely popular. So as a team, we decided we should make more labs and not just about our product, but also about Kubernetes. So that initial page that I talked about that we built, we had three labs at launch. >>One was to learn install Kubernetes. One was to build a first application on Kubernetes, and then a third one was to learn how to back up and restore your application. So there was still a little bit of promoting our technology in there, but pretty soon we decided, okay, this has to become even more. So we added storage, we added security and, and a lot more labs. So today, 14 labs, and we're still adding one every month. The next step for the labs is going to be to involve other partners and have them bring their technologies in the lab. So that's our user base can actually learn more about Kubernetes related technologies and then hopefully with links to open source tools or free software tools. And it's, it's gonna continue to be a, a learning experience for Kubernetes. I >>Love how this seems to be, have been born out of the pandemic in terms of the inability to, to connect with customers, end users, to really understand what their challenges are, how do we help you best? But you saw the demand organically and built this, and then in, in the first year, not only 11,000 as Victoria mentioned, 11,000 users, but you've almost quadrupled the number of labs that you have on the platform in such a short time period. But you did hands on lab here, which I know was a major success. Talk to us about that and what, what surprised you about Yeah, the appetite to learn that's >>Here. Yeah. So actually I'm glad that you relay this back to the pandemic because yes, it was all online because it was still the, the tail end of the pandemic, but then for this event we're like, okay, it's time to do this in person. This is the next step, right? So we organized our first learning day as a co-located event. We were hoping to get 60 people together in a room. We did two labs, a rookie and a pro. So we said two times 30 people. That's our goal because it's really, it's competitive here with the collocated events. It's difficult >>Bringing people lots going on. >>And why don't I, why don't I let Victoria talk about the success of that learning day, because it was big part also her help for that. >>You know, our main goal is to meet expectations and actually see the challenges of our end user. So we actually, it also goes back to what we started doing research. We saw the pain points and yes, it's absolutely reflecting, reflecting on how we deal with this and what we see. And people very appreciative and they love platform because it's not only prerequisites, but also hands on lab practice. So, and it's free again, it's applied, which is great. Yes. So we thought about the user experience, user flow, also based, you know, the product when it's successful and you see the result. And that's where we, can you say the numbers? So our expectation was 60 >>People. You're kinda, you I feel like a suspense is starting killing. How many people came? >>We had over 350 people in our room. Whoa. >>Wow. Wow. >>And small disclaimer, we had a little bit of a technical issue in the beginning because of the success. There was a wireless problem in the hotel amongst others. Oh geez. So we were getting a little bit nervous because we were delayed 20 minutes. Nobody left that, that's, I was standing at the door while people were solving the issues and I was like, Okay, now people are gonna walk out. Right. Nobody left. Kind >>Of gives me >>Ose bump wearing that. We had a little reception afterwards and I talked to people, sorry about the, the disruption that we had under like, no, we, we are so happy that you're doing this. This was such a great experience. Castin also threw party later this week at the party. We had people come up to us like, I was at your learning day and this was so good. Thank you so much for doing this. I'm gonna take the rest of the classes online now. They love it. Really? >>Yeah. We had our instructors leading the program as well, so if they had any questions, it was also address immediately. So it was a, it was amazing event actually. I'm really grateful for people to come actually unappreciated. >>But now your boss knows how you can blow out metrics though. >>Yeah, yeah, yeah, yeah. Gonna >>Raise Victoria. >>Very good point. It's a very >>Good point. I can >>Tell. It's, it's actually, it's very tough to, for me personally, to analyze where the success came from. Because first of all, the team did an amazing job at setting the whole thing up. There was food and drinks for everybody, and it was really a very nice location in a hotel nearby. We made it a colocated event and we saw a lot of people register through the Cuban registration website. But we've done colocated events before and you typically see a very high no-show rate. And this was not the case right now. The a lot of, I mean the, the no-show was actually very low. Obviously we did our own campaign to our own database. Right. But it's hard to say like, we have a lot of people all over the world and how many people are actually gonna be in Detroit. Yeah. One element that also helped, I'm actually very proud of that, One of the people on our team, Thomas Keenan, he reached out to the local universities. Yes. And he invited students to come to learning day as well. I don't think it was very full with students. It was a good chunk of them. So there was a lot of people from here, but it was a good mix. And that way, I mean, we're giving back a little bit to the universities versus students. >>Absolutely. Much. >>I need to, >>There's a lot of love for Detroit this week. I'm all about it. >>It's amazing. But, but from a STEM perspective, that's huge. We're reaching down into that community and really giving them the opportunity to >>Learn. Well, and what a gateway for Castin. I mean, I can easily say, I mean, you are the number, we haven't really talked about casting at all, but before we do, what are those pins in front of you? >>So this is a physical pain. These are physical pins that we gave away for different programs. So people who took labs, for example, rookie level, they would get this p it's a rookie. >>Yes. I'm gonna hold this up just so they can do a little close shot on if you want. Yeah. >>And this is PR for, it's a, it's a next level program. So we have a program actually for IS to beginners inter intermediate and then pro. So three, three different levels. And this one is for Helman. It's actually from previous. >>No, Helmsman is someone who has taken the first three labs, right? >>Yes, it is. But we actually had it already before. So this one is, yeah, this one is, So we built two new labs for this event and it was very, very great, you know, to, to have a ready absolutely new before this event. So we launched the whole website, the whole platform with new labs, additional labs, and >>Before an event, honestly. Yeah. >>Yeah. We also had such >>Your expression just said it all. Exactly. >>You're a vacation and your future. I >>Hope so. >>We've had a couple of rough freaks. Yeah. This is part of it. Yeah. So, but about those labs. So in the classroom we had two, right? We had the, the, the rookie and the pro. And like I said, we wanted an audience for both. Most people stayed for both. And there were people at the venue one hour before we started because they did not want to miss it. Right. And what that chose to me is that even though Cuban has been around for a long time, and people have been coming back to this, there is a huge audience that considers themselves still very early on in their Kubernetes journey and wants to take and, and is not too proud to go to a rookie class for Kubernetes. So for us, that was like, okay, we're doing the right thing because yeah, with the website as well, more rookie users will keep, keep coming. And the big goal for us is just to accelerate their Kubernetes journey. Right. There's a lot of platforms out there. One platform I like as well is called the tech world with nana, she has a lot of instructional for >>You. Oh, she's a wonderful YouTuber. >>She, she's, yeah, her following is amazing. But what we add to this is the hands on part. Right? And, and there's a lot of auto resources as well where you have like papers and books and everything. We try to add those as well, but we feel that you can only learn it by doing it. And that is what we offer. >>Absolutely. Totally. Something like >>Kubernetes, and it sounds like you're demystifying it. You talked about one of the biggest things that everyone talks about with respect to Kubernetes adoption and some of the barriers is the complexity. But it sounds to me like at the, we talked about the demand being there for the hands on labs, the the cube campus.io, but also the fact that people were waiting an hour early, they're recognizing it's okay to raise, go. I don't really understand this. Yeah. In fact, another thing that I heard speaking of, of the rookies is that about 60% of the attendees at this year's cube con are Yeah, we heard that >>Out new. >>Yeah. So maybe that's smell a lot of those rookies showed up saying, >>Well, so even >>These guys are gonna help us really demystify and start learning this at a pace that works for me as an individual. >>There's some crazy macro data to support this. Just to echo this. So 85% of enterprise companies are about to start making this transition in leveraging Kubernetes. That means there's only 15% of a very healthy, substantial market that has adopted the technology at scale. You are teaching that group of people. Let's talk about casting a little bit. Number one, Kubernetes backup, 900% growth recently. How, how are we managing that? What's next for you, you guys? >>Yeah, so growth last year was amazing. Yeah. This year we're seeing very good numbers as well. I think part of the explanation is because people are going into production, you cannot sell back up to a company that is not in production with their right. With their applications. Right? So what we are starting to see is people are finally going into production with their Kubernetes applications and are realizing we have to back this up. The other trend that we're seeing is, I think still in LA last year we were having a lot of stateless first estate full conversations. Remember containers were created for stateless applications. That's no longer the case. Absolutely. But now the acceptance is there. We're not having those. Oh. But we're stateless conversations because everybody runs at least a database with some user data or application data, whatever. So all Kubernetes applications need to be backed up. Absolutely. And we're the number one product for that. >>And you guys just had recently had a new release. Yes. Talk to us a little bit about that before we wrap. It's new in the platform and, and also what gives you, what gives cast. And by being that competitive advantage in this new release, >>The competitive advantage is really simple. Our solution was built for Kubernetes. With Kubernetes. There are other products. >>Talk about dog fooding. Yeah. Yeah. >>That's great. Exactly. Yeah. And you know what, one of our successes at the show is also because we're using Kubernetes to build our application. People love to come to our booth to talk to our engineers, who we always bring to the show because they, they have so much experience to share. That also helps us with ems, by the way, to, to, to build those labs, Right? You need to have the, the experience. So the big competitive advantage is really that we're Kubernetes native. And then to talk about 5.5, I was going like, what was the other part of the question? So yeah, we had 5.5 launched also during the show. So it was really a busy week. The big focus for five five was simplicity. To make it even easier to use our product. We really want people to, to find it easy. We, we were using, we were using new helm charts and, and, and things like that. The second part of the launch was to do even more partner integrations. Because if you look at the space, this cloud native space, it's, you can also attest to that with, with Cube campus, when you build an application, you need so many different tools, right? And we are trying to integrate with all of those tools in the most easy and most efficient way so that it becomes easy for our customers to use our technology in their Kubernetes stack. >>I love it. Tom Victoria, one final question for you before we wrap up. You mentioned that you have a fantastic team. I can tell just from the energy you two have. That's probably the truth. You also mentioned that you bring the party everywhere you go. Where are we all going after this? Where's the party tonight? Yeah. >>Well, let's first go to a ballgame tonight. >>The party's on the court. I love it. Go Pistons. >>And, and then we'll end up somewhere downtown in a, in a good club, I guess. >>Yeah. Yeah. Well, we'll see how the show down with the hawks goes. I hope you guys make it to the game. Tom Victoria, thank you so much for being here. We're excited about what you're doing. Lisa, always a joy sharing the stage with you. My love. And to all of you who are watching, thank you so much for tuning into the cube. We are wrapping up here with one segment left in Detroit, Michigan. My name's Savannah Peterson. Thanks for being here.

>>The cube is back at Vemo 2022. I was happy to be live. Dave ante, Dave Nicholson and Dave Russell three Daves. Dave is the vice president of enterprise strategy at Veeam. Great to see you again, my friend. Thanks for coming >>On. Uh, it's always a pleasure. And Dave, I can remember your name. I can't remember >>Your name as well. <laugh> so wow. How many years has it been now? I mean, add on COVID is four years now. >>Yeah, well, three, three solid three. Yeah, Fallon blue. Uh, last year, Miami little secret. We're gonna go there again next year. >>Okay, so you joined Veeam >>Three. Oh, me four. Yeah, >>Yeah, yeah. Four is four, right? Okay. Wow. >>Um, time flies, man. >>Interesting. What your background, former analyst analyze your time at Veeam and the market and the changes in the customer base. What, what have you seen? What are the big takeaways? Learnings? >>Yeah. You know, what's amazing to me is we've done a lot more research now, ourselves, right? So things that we intuitively thought, things that we experienced by talking to customers, and of course our partners, we can now actually prove. So what I love is that we take the exact same product and we go down market up market. We go across geographies, we go different verticals and we can sell that same exact product to all constituencies because the differences between them are not that great. If it was the three Dave company or the 3m company, what you're looking for is reliable recovery, ease of use those things just transcend. And I think there used to be a time when we thought enterprise means something very different than mid-market than does SMB. And certainly your go to market plans are that way, but not the product plans. >>So the ransomware study, we had Jay buff on earlier, we were talking about it and we just barely scratched the surface. But how were you able to get people to converse with you in such detail? Was it, are you using phone surveys? Are you, are, are you doing web surveys? Are you doing a combination? Deep >>Dives? Yeah. So it was web based and it was anonymous on both ends, meaning no one knew VE was asking the questions. And also we made the promise that none of your data is ever gonna get out, not even to say a large petroleum company, right. Everything is completely anonymized. And we were able to screen people out very effectively, a lot of screener questions to make sure we're dealing with the right person. And then we do some data integrity checking on the back end. But it's amazing if you give people an opportunity, they're actually very willing to tell you about their experience as long as there's no sort of ramification about putting the company or themselves at risk. >>So when I was at IDC, we did a lot of surveys, tons of surveys. I'm sure you did a lot of surveys at Gartner. And we would look at vendor surveys like, eh, well, this kind of the questions are rigged or it's really self-serving. I don't sense that in your surveys, you you've, you've always, you've still got that independent analyst gene. Is that, I mean, it's gotta be, is it by design? Is it just happen that ransomware is a topic that just sort of lends itself to that. Maybe you could talk about your philosophy there. >>Yeah. Well, two part answer really, because it's definitely by design. We, we really want the information. I mean, we're using this to fuel or inform our understanding of the market, what we should build next, what we should message next. So we really want the right data. So we gotta ask the right questions. So Jason, our colleague, Julie, myself, we work really hard on trying to make sure we're not leading the witness down a certain path. We're not trying to prove our own thesis. We're trying to understand what the market really is thinking. And when it comes to ransomware, we wanna know what we don't know, meaning we found a few surprises along the way. A lot of it was confirmational, but that's okay too. As long as you can back that up, cuz then it's not just Avenger's opinion. Of course, a vendor that says that they can help you do something has data that says, they think you uni have a problem with this, but now we can actually point to it and have a more interesting kind of partnership conversation about if you are like 1000 other enterprises globally, this may be what you're seeing. >>And there are no wrong answers there. Meaning even if they say that is absolutely not what we're seeing. Great. Let's have that conversation that's specific to you. But if you're not sure where to start, we've got a whole pool of data to help guide that conversation. >>Yeah. Shout out to Julie Webb does a great job. She's a real pro and yes. And, and really makes sure that, like you say, you want the real, real answers. So what were some of the things that you were excited about or to learn about? Um, in the survey again, we, we touched just barely touched on it in 15 minutes with Jason, but what, what's your take? Well, >>Two that I'd love to point out. I mean, unfortunately Jason probably mentioned this one, you know, only 19% answered when we said, did you pay the ransom? And only 19% said, no, I didn't pay the ransom. And I was a hundred percent successful in my recovery. You know, we're in Vegas, one out of five odds. That's not good. Right? That's a go out of business spot. That's not the kind of 80 20 you want to hear. That's not exactly exactly. Now more concerning to me is 5% said no ransom was asked for. And you know, my phrase on that is that's, that's an arson event. It's not an extortion event. Right. I just came to do harm. That's really troubling. Now there's a huge percentage there that said we paid the ransom about 24% said we paid the ransom and we still couldn't restore the data. So if you add up that 24 in that five, that 29%, that was really scary to me. >>Yeah. So you had the 19%. Okay. That's scary enough. But then you had the wrecking ball, right? Ah, we're just gonna, it's like the mayhem commercial. Yes. Yeah. See ya. Right. Okay. So <laugh>, that's, that's wild. So we've heard a lot about, um, ransomware. The thing that interests me is, and we've had a big dose of ransomware as analysts in these last, you know, 12, 18 months and more. But, but, but it's really escalated. Yeah. Seems like, and by the way, you're sharing this data, which is amazing. Right. So I actually want to dig in and steal some of the, the data. I think that's cool. Right? Definitely. You gave us a URL this morning. Um, so, but you, your philosophy is to share the data. So everybody sees it, your customers, your prospects, your competitors, but your philosophy is to why, why are you sharing that data? Why don't you just keep it to yourself and do it quietly with customers? >>Yeah. You know, I think this is such a significant event. No one vendor's gonna solve it all. Realistically, we may be tied for number one in market share statistically speaking, but we have 12.5%. Right. So we're not gonna be able to do greater good if we're keeping that to ourselves. And it's really a notion of this awareness level, just having the conversation and having that more open, even if it's not us, I think is gonna be beneficial. It speaks to the value of backup and why backup is still relevant this day and age. >>I dunno if you're comfortable answering this, but I'll ask anyway, when you were a Gartner analyst, did you get asked about ransomware a lot? >>No. >>Very rarely or never. >>Almost never. Yeah. And that was four years ago. Literally. Like it >>Was a thing back then, right? I mean it wasn't of course prominent, but it was, it was, I guess it wasn't that >>20 16, 20 17, you know, it's, it's interesting because at a couple of levels you have the, um, the willingness of participants to share their stories, which is a classic example of people coming together to fight a common fo. Yeah, yeah. Right. In the best of times, that's what happens. And now you're sharing that information out. One of the reasons why some would argue we've gotten to this place is because day zero exploits have been stockpiled and they haven't been shared. So you go to, you know, you go, you go through the lineage that gets you to not pet cat as an example. Yes. And where did it come from? Hey, it was something that we knew about. Uh, but we didn't share it. Right. We waited until it happened because maybe we thought we could use it in, in some way. It's, it's an, it's an interesting philosophical question. I, I don't know. I don't know. I don't know where, if that's, uh, the third, it's the one, the third rail you don't want to touch, but basically we're, we are, I guess we're just left to sort through whatever, whatever we have to sort through in that regard. But it is interesting left to industry's own devices. It's sharing an openness. >>Yeah. You know, it's, I almost think it's like open source code. Right? I mean, the promise there is together, we can all do something better. And I think that's true with this ransomware research and the rest of the research we do too. We we've freely put it out there. I mean, you can download the link, no problem. Right. And go see the report. We're fine with that. You know, we think it actually is very beneficial. I remember a long time ago, it was actually Sam Adams that said, uh, you know, Hey, there's a lot of craft brewers out there now, you know, is, are you as a craft brewery now? Successful? Are you worried about that? No. We want every craft brewery to be successful because it creates a better awareness. Well, an availability market, it's still Boston reference. >>What did another Boston reference? Yes. Thank you, >>Boston. And what <laugh>. >>Yeah. So, you know, I, I, I feel like we've seen these milestone, you know, watershed events in, in security. I mean, stucks net sort of yeah. Informed us what's possible with nation states, even though it's highly likely that us and Israel were, were behind that, uh, the, the solar winds hack people are still worried about. Yes. Okay. What's next. Even, even something now. And so everybody's now on high alert even, I don't know how close you guys followed it, but the, the, uh, the Okta, uh, uh, breach, which was a fairly benign incident. And technically it was, was very, very limited and very narrow in scope. But CISOs that I talked to were like, we are really paranoid that there's another shoe to drop. What do we do? So the, the awareness is way, way off the charts. It begs the question. What's next. Can you, can you envision, can you stay ahead? It's so hard to stay ahead of the bad guys, but, but how are you thinking about that? What this isn't the end of it from your standpoint? >>No, it's not. And unfortunately it's because there's money to be made, right? And the barrier to entry is relatively low. It's like hiring a Hitman. You know, you don't actually have to even carry out the bad act yourself and get your own hands dirty. And so it's not gonna end, but it it's really security is everyone's responsibility. Veeam is not really a full time security company, but we play a role in that whole ecosystem. And even if you're not in the data center as an employee of a company, you have a role to play in security. You know, don't click that link, lock the door behind you, that type of thing. So how do you stay ahead of it? I think you just continually keep putting a focus on it. It's like performance. You're never gonna be done. There's always something to tune and to work on, but that can be overwhelming. So the positive I try to tell someone is to your point, Dave, look, a lot of these vulnerabilities were known for quite some time. If you were just current on your patch levels, this could have been prevented, right? You could have closed that window. So the thing that I often say is if you can't do everything and probably none of us can do something and then repeat, do it again, try to get a little bit better every period of time. Whether that's every day, every quarter, what case may be, do what you can. >>Yeah. So ransomware obviously very lucrative. So your job is to increase the denominator. So the ROI is lower, right? And that's a, that's a constant game, right? >>Absolutely. It is a crime of opportunity. It's indiscriminate. And oftentimes non-targeted now there are state sponsored events to your point, but largely it's like the fishermen casting the net out into the ocean. No idea with certainty, what's gonna come back. So I'm just gonna keep trying and trying and trying our goal is to basically you wanna be the house on the neighborhood that looks the least inviting. >>We've talked about this. I mean, any, anyone can be a, a, a ransomware as to go in the dark web, ransomware's a service. Oh, I gotta, I can put a stick into a server and a way I go and I get some Bitcoin right. For it. So, so that's, so, so organizations really have to take this seriously. I think they are. Um, well you tell me, I mean, in your discussions with, with, with customers, >>It's changed. Yeah. You know, I would say 18 months ago, there was a subset of customers out there saying vendors, crying Wolf, you know, you're trying to scare us into making a purchase decision or move off of something that we're working with. Now. I think that's almost inverted. Now what we see is people are saying, look, my boss or my boss's boss's boss, and the security team are knocking on my door asking, what are we gonna do? What's our response? You know, how prepared are we? What kind of things do we have in place? What does our backup practice do to support ransomware? The good news though, going back to the awareness side is I feel like we're evangelizing this a little less as an industry. Meaning the security team is well aware of the role that proper backup and availability can play. That was not true. A handful of years ago. >>Well, that's the other thing too, is that your study showed the closer the practitioner was to the problem. Yes. The more problems there were, that's an awareness thing. Yes. That's not a, that's not, oh, just those guys had visibility. I wanna ask you cuz you've You understand from an application view, right. There's only so much Veeam can do. Um, and then the customer has to have processes in place that go beyond just the, the backup and recovery technology. So, so from an application perspective, what are you advising customers where you leave off and they really have to take over this notion of shared responsibility is really extending beyond cloud security. >>Yeah. Uh, the model that I like is interestingly enough, what we see with Caston in the Kubernetes space. Mm-hmm <affirmative> is there, we're selling into two different constituencies, potentially. It's the infrastructure team that they're worried about disaster recovery. They're worried about backup, but it's the app dev DevOps team. Hey, we're worried about creating the application. So we're spending a lot of focus with the casting group to say, great, go after that shift, left crowd, talk to them about a data availability, disaster recovery, by the way you get data movement or migration for free with that. So migration, maybe what you're first interested in on day one. But by doing that, by having this kind of capability, you're actually protecting yourself from day two issues as well. >>Yeah. So Let's see. Um, what haven't we hit on in this study? There was so much data in there. Uh, is that URL, is that some, a private thing that you guys shared >>Or is it no. Absolutely. >>Can, can you share the >>URL? Yeah, absolutely. It's V E E so V two E period am so V with the period between the E and the a forward slash RW 22. So ransomware 22 is the research project. >>So go there, you download the zip file, you get all the graphics. Um, I I'm gonna dig into it, uh, maybe as early as this, this Friday or this weekend, like to sort of expose that, uh it's you guys obviously want this, I think you're right. It's it's it's awareness needs to go up to solve this problem. You know, I don't know if it's ever solvable, but the only approach is to collaborate. Right. So I, I dunno if you're gonna collaborate with your head-to-head competitors, but you're certainly happy to share the data I've seen Dave, some competitors have pivoted from data protection or even data management to security. Yes. I see. I wonder if I could run a premise by, I see that as an adjacency to your business, but not sort of throwing you into the security bucket. What are your thoughts on that? >>Yeah. You know, certainly respect everything other competitors are doing, you know, and some are getting very, you know, making some good noise and getting picked up on that. However, we're unapologetically a backup company. Mm-hmm, <affirmative>, we're a backup company. First. We're worried about security. We're worried about, you know, data reuse and supporting shift, left types of things, but we're not gonna apologize for being in the backup availability business, not, not at all. However, there's a role that we can play. Having said that that we're a role. We're a component. If you're in the secondary storage market, like backup or archiving. And you're trying to imply that you're going to help prevent or even head off issues on the primary storage side. That might be a little bit of a stretch. Now, hopefully that can happen that we can go get better as an industry on that. >>But fundamentally we're about ensuring that you're recoverable with reliability and speed when you need it. Whether we're no matter what the issue is, because we like to say ransomware is a disaster. Unfortunately there's other kind of disasters that happen as well. Power failures still happen. Natural issues still occur, et cetera. So all these things have to be accounted for. You know, one of our survey, um, data points basically said all the things that take down a server that you didn't plan on. It's basically humans at the top human error, someone accidentally deleted something and then malicious humans, someone actually came after you, but there's a dozen other things that happened too. So you've gotta prepare for all of that. So I guess what I would end up with saying is you remember back in the centralized data centers, especially the mainframe days, people would say, we're worried about the smoking hole or the smoking crater event. Yeah. Yeah. The probability of a plane crashing into your data bunker was relatively low. That was when it got all the discussion though, what was happening every single day is somebody accidentally deleted a file. And so you need to account on both ends of the spectrum. So we don't wanna over rotate. And we also, we don't want to signal to 450,000 beam customers around the world that we're abandoning you that were not about backup. That's still our core >>Effort. No, it's pretty straightforward. You're just telling people to back up in a way that gives them a certain amount of mitigation yes. Or protection in the event that something happens. And no, I don't remember anything about mainframe. He does though though, much older than me >>EF SMS. So I even know what it stands for. Count key data don't even get me started. So, and, and it wasn't thank you for that answer. I didn't mean to sort of a set up question, but it was more of a strategy question and I wish wish I could put on your analyst hat because I, I feel, I'll just say it. I feel as though it's a move to try to get a tailwind. Maybe it's a valuation play. I don't know. But I, I, it resonated with me three years ago when everybody was talking data management and nobody knew what that meant. Data management. I'm like Oracle. >>Right. >>And now it's starting to become a little bit more clear. Um, but Danny Allen stuff and said, it's all about the backup. I think that was one of his keynote messages. So that really resonated with me cuz he said, yeah, it starts with backup and recovery. And that's what, what matters most to these customers. So really was a strategy question. Now maybe it does have valuation impact. Maybe there's a big market there that can be consolidated. You know, uh, we, this morning in the analyst session, we heard about your new CEO's objectives of, you know, grabbing more market share. So, and that's, that's an adjacency. So it's gonna be interesting to see how that plays out far too many security vendors. As, as we know, the backup and recovery space is getting more crowded and that is maybe causing people to sort of shift. I don't know, whatever right. Or left, I guess, shift. Right. I'm not sure, but um, it's gonna be really interesting to watch because this has now become a really hot space after, you know, it's been some really interesting momentum in certain pockets, but now it's everywhere it's coming ubiquitous. So I'll give you the last word Dave on, uh, day one, VEON 20, 22. >>Yeah. Well boy, so many things I could say to kind of land the plane on, but we're just glad to be back in person. It's been three years since we've had a live event in those three years, we've gone from 300,000 customers to 450,000 customers. The release cadence, even in the pandemic has been the greatest in the company's history in 2020, 2021, there's only about three dozen software only companies that have hit a billion dollars and we're one of them. And that, you know, that mission is why hasn't changed and that's why we wanna stay consistent. One of the things Danny always likes to say is, you know, we keep telling the same story because we're not wanting to deviate off of that story and there's more work to be done. And to honors point, you know, Hey, if you have ambitious goals, you're gonna have to look at spreading your wings out a little bit wider, but we're never gonna abandon being a backup. Well, >>It's, it's clear to me, Dave on was not brought in to keep you steady at a billion. I think he's got a site set on five and then who knows what's next? Dave Russell, thanks so much for coming back in the cube. Great to >>See always a pleasure. Thank you. >>All right. That's a wrap for Dave one. Dave ante and Dave Nicholson will be backed tomorrow with a full day of coverage. Check out Silicon angle.com for all the news, uh, youtube.com/silicon angle. You can get these videos. They're all, you know, flying up Wiki bond.com for some of the research in this space. We'll see you tomorrow.

>> From theCUBE Studios in Palo Alto and Boston, bringing you data driven insights from theCUBE in ETR, this is Breaking Analysis with Dave Vellante. >> The introduction in socialization of data mesh has caused practitioners, business technology executives, and technologists to pause, and ask some probing questions about the organization of their data teams, their data strategies, future investments, and their current architectural approaches. Some in the technology community have embraced the concept, others have twisted the definition, while still others remain oblivious to the momentum building around data mesh. Here we are in the early days of data mesh adoption. Organizations that have taken the plunge will tell you that aligning stakeholders is a non-trivial effort, but necessary to break through the limitations that monolithic data architectures and highly specialized teams have imposed over frustrated business and domain leaders. However, practical data mesh examples often lie in the eyes of the implementer, and may not strictly adhere to the principles of data mesh. Now, part of the problem is lack of open technologies and standards that can accelerate adoption and reduce friction, and that's what we're going to talk about today. Some of the key technology and architecture questions around data mesh. Hello, and welcome to this week's Wikibon CUBE Insights powered by ETR, and in this Breaking Analysis, we welcome back the founder of data mesh and director of Emerging Technologies at Thoughtworks, Zhamak Dehghani. Hello, Zhamak. Thanks for being here today. >> Hi Dave, thank you for having me back. It's always a delight to connect and have a conversation. Thank you. >> Great, looking forward to it. Okay, so before we get into it in the technology details, I just want to quickly share some data from our friends at ETR. You know, despite the importance of data initiative since the pandemic, CIOs and IT organizations have had to juggle of course, a few other priorities, this is why in the survey data, cyber and cloud computing are rated as two most important priorities. Analytics and machine learning, and AI, which are kind of data topics, still make the top of the list, well ahead of many other categories. And look, a sound data architecture and strategy is fundamental to digital transformations, and much of the past two years, as we've often said, has been like a forced march into digital. So while organizations are moving forward, they really have to think hard about the data architecture decisions that they make, because it's going to impact them, Zhamak, for years to come, isn't it? >> Yes, absolutely. I mean, we are moving really from, slowly moving from reason based logical algorithmic to model based computation and decision making, where we exploit the patterns and signals within the data. So data becomes a very important ingredient, of not only decision making, and analytics and discovering trends, but also the features and applications that we build for the future. So we can't really ignore it, and as we see, some of the existing challenges around getting value from data is not necessarily that no longer is access to computation, is actually access to trustworthy, reliable data at scale. >> Yeah, and you see these domains coming together with the cloud and obviously it has to be secure and trusted, and that's why we're here today talking about data mesh. So let's get into it. Zhamak, first, your new book is out, 'Data Mesh: Delivering Data-Driven Value at Scale' just recently published, so congratulations on getting that done, awesome. Now in a recent presentation, you pulled excerpts from the book and we're going to talk through some of the technology and architectural considerations. Just quickly for the audience, four principles of data mesh. Domain driven ownership, data as product, self-served data platform and federated computational governance. So I want to start with self-serve platform and some of the data that you shared recently. You say that, "Data mesh serves autonomous domain oriented teams versus existing platforms, which serve a centralized team." Can you elaborate? >> Sure. I mean the role of the platform is to lower the cognitive load for domain teams, for people who are focusing on the business outcomes, the technologies that are building the applications, to really lower the cognitive load for them, to be able to work with data. Whether they are building analytics, automated decision making, intelligent modeling. They need to be able to get access to data and use it. So the role of the platform, I guess, just stepping back for a moment is to empower and enable these teams. Data mesh by definition is a scale out model. It's a decentralized model that wants to give autonomy to cross-functional teams. So it is core requires a set of tools that work really well in that decentralized model. When we look at the existing platforms, they try to achieve this similar outcome, right? Lower the cognitive load, give the tools to data practitioners, to manage data at scale because today centralized teams, really their job, the centralized data teams, their job isn't really directly aligned with a one or two or different, you know, business units and business outcomes in terms of getting value from data. Their job is manage the data and make the data available for then those cross-functional teams or business units to use the data. So the platforms they've been given are really centralized around or tuned to work with this structure as a team, structure of centralized team. Although on the surface, it seems that why not? Why can't I use my, you know, cloud storage or computation or data warehouse in a decentralized way? You should be able to, but some changes need to happen to those online platforms. As an example, some cloud providers simply have hard limits on the number of like account storage, storage accounts that you can have. Because they never envisaged you have hundreds of lakes. They envisage one or two, maybe 10 lakes, right. They envisage really centralizing data, not decentralizing data. So I think we see a shift in thinking about enabling autonomous independent teams versus a centralized team. >> So just a follow up if I may, we could be here for a while. But so this assumes that you've sorted out the organizational considerations? That you've defined all the, what a data product is and a sub product. And people will say, of course we use the term monolithic as a pejorative, let's face it. But the data warehouse crowd will say, "Well, that's what data march did. So we got that covered." But Europe... The primest of data mesh, if I understand it is whether it's a data march or a data mart or a data warehouse, or a data lake or whatever, a snowflake warehouse, it's a node on the mesh. Okay. So don't build your organization around the technology, let the technology serve the organization is that-- >> That's a perfect way of putting it, exactly. I mean, for a very long time, when we look at decomposition of complexity, we've looked at decomposition of complexity around technology, right? So we have technology and that's maybe a good segue to actually the next item on that list that we looked at. Oh, I need to decompose based on whether I want to have access to raw data and put it on the lake. Whether I want to have access to model data and put it on the warehouse. You know I need to have a team in the middle to move the data around. And then try to figure organization into that model. So data mesh really inverses that, and as you said, is look at the organizational structure first. Then scale boundaries around which your organization and operation can scale. And then the second layer look at the technology and how you decompose it. >> Okay. So let's go to that next point and talk about how you serve and manage autonomous interoperable data products. Where code, data policy you say is treated as one unit. Whereas your contention is existing platforms of course have independent management and dashboards for catalogs or storage, et cetera. Maybe we double click on that a bit. >> Yeah. So if you think about that functional, or technical decomposition, right? Of concerns, that's one way, that's a very valid way of decomposing, complexity and concerns. And then build solutions, independent solutions to address them. That's what we see in the technology landscape today. We will see technologies that are taking care of your management of data, bring your data under some sort of a control and modeling. You'll see technology that moves that data around, will perform various transformations and computations on it. And then you see technology that tries to overlay some level of meaning. Metadata, understandability, discovery was the end policy, right? So that's where your data processing kind of pipeline technologies versus data warehouse, storage, lake technologies, and then the governance come to play. And over time, we decomposed and we compose, right? Deconstruct and reconstruct back this together. But, right now that's where we stand. I think for data mesh really to become a reality, as in independent sources of data and teams can responsibly share data in a way that can be understood right then and there can impose policies, right then when the data gets accessed in that source and in a resilient manner, like in a way that data changes structure of the data or changes to the scheme of the data, doesn't have those downstream down times. We've got to think about this new nucleus or new units of data sharing. And we need to really bring back transformation and governing data and the data itself together around these decentralized nodes on the mesh. So that's another, I guess, deconstruction and reconstruction that needs to happen around the technology to formulate ourselves around the domains. And again the data and the logic of the data itself, the meaning of the data itself. >> Great. Got it. And we're going to talk more about the importance of data sharing and the implications. But the third point deals with how operational, analytical technologies are constructed. You've got an app DevStack, you've got a data stack. You've made the point many times actually that we've contextualized our operational systems, but not our data systems, they remain separate. Maybe you could elaborate on this point. >> Yes. I think this is, again, has a historical background and beginning. For a really long time, applications have dealt with features and the logic of running the business and encapsulating the data and the state that they need to run that feature or run that business function. And then we had for anything analytical driven, which required access data across these applications and across the longer dimension of time around different subjects within the organization. This analytical data, we had made a decision that, "Okay, let's leave those applications aside. Let's leave those databases aside. We'll extract the data out and we'll load it, or we'll transform it and put it under the analytical kind of a data stack and then downstream from it, we will have analytical data users, the data analysts, the data sciences and the, you know, the portfolio of users that are growing use that data stack. And that led to this really separation of dual stack with point to point integration. So applications went down the path of transactional databases or urban document store, but using APIs for communicating and then we've gone to, you know, lake storage or data warehouse on the other side. If we are moving and that again, enforces the silo of data versus app, right? So if we are moving to the world that our missions that are ambitions around making applications, more intelligent. Making them data driven. These two worlds need to come closer. As in ML Analytics gets embedded into those app applications themselves. And the data sharing, as a very essential ingredient of that, gets embedded and gets closer, becomes closer to those applications. So, if you are looking at this now cross-functional, app data, based team, right? Business team, then the technology stacks can't be so segregated, right? There has to be a continuum of experience from app delivery, to sharing of the data, to using that data, to embed models back into those applications. And that continuum of experience requires well integrated technologies. I'll give you an example, which actually in some sense, we are somewhat moving to that direction. But if we are talking about data sharing or data modeling and applications use one set of APIs, you know, HTTP compliant, GraQL or RAC APIs. And on the other hand, you have proprietary SQL, like connect to my database and run SQL. Like those are very two different models of representing and accessing data. So we kind of have to harmonize or integrate those two worlds a bit more closely to achieve that domain oriented cross-functional teams. >> Yeah. We are going to talk about some of the gaps later and actually you look at them as opportunities, more than barriers. But they are barriers, but they're opportunities for more innovation. Let's go on to the fourth one. The next point, it deals with the roles that the platform serves. Data mesh proposes that domain experts own the data and take responsibility for it end to end and are served by the technology. Kind of, we referenced that before. Whereas your contention is that today, data systems are really designed for specialists. I think you use the term hyper specialists a lot. I love that term. And the generalist are kind of passive bystanders waiting in line for the technical teams to serve them. >> Yes. I mean, if you think about the, again, the intention behind data mesh was creating a responsible data sharing model that scales out. And I challenge any organization that has a scaled ambitions around data or usage of data that relies on small pockets of very expensive specialists resources, right? So we have no choice, but upscaling cross-scaling. The majority population of our technologists, we often call them generalists, right? That's a short hand for people that can really move from one technology to another technology. Sometimes we call them pandric people sometimes we call them T-shaped people. But regardless, like we need to have ability to really mobilize our generalists. And we had to do that at Thoughtworks. We serve a lot of our clients and like many other organizations, we are also challenged with hiring specialists. So we have tested the model of having a few specialists, really conveying and translating the knowledge to generalists and bring them forward. And of course, platform is a big enabler of that. Like what is the language of using the technology? What are the APIs that delight that generalist experience? This doesn't mean no code, low code. We have to throw away in to good engineering practices. And I think good software engineering practices remain to exist. Of course, they get adopted to the world of data to build resilient you know, sustainable solutions, but specialty, especially around kind of proprietary technology is going to be a hard one to scale. >> Okay. I'm definitely going to come back and pick your brain on that one. And, you know, your point about scale out in the examples, the practical examples of companies that have implemented data mesh that I've talked to. I think in all cases, you know, there's only a handful that I've really gone deep with, but it was their hadoop instances, their clusters wouldn't scale, they couldn't scale the business and around it. So that's really a key point of a common pattern that we've seen now. I think in all cases, they went to like the data lake model and AWS. And so that maybe has some violation of the principles, but we'll come back to that. But so let me go on to the next one. Of course, data mesh leans heavily, toward this concept of decentralization, to support domain ownership over the centralized approaches. And we certainly see this, the public cloud players, database companies as key actors here with very large install bases, pushing a centralized approach. So I guess my question is, how realistic is this next point where you have decentralized technologies ruling the roost? >> I think if you look at the history of places, in our industry where decentralization has succeeded, they heavily relied on standardization of connectivity with, you know, across different components of technology. And I think right now you are right. The way we get value from data relies on collection. At the end of the day, collection of data. Whether you have a deep learning machinery model that you're training, or you have, you know, reports to generate. Regardless, the model is bring your data to a place that you can collect it, so that we can use it. And that leads to a naturally set of technologies that try to operate as a full stack integrated proprietary with no intention of, you know, opening, data for sharing. Now, conversely, if you think about internet itself, web itself, microservices, even at the enterprise level, not at the planetary level, they succeeded as decentralized technologies to a large degree because of their emphasis on open net and openness and sharing, right. API sharing. We don't talk about, in the API worlds, like we don't say, you know, "I will build a platform to manage your logical applications." Maybe to a degree but we actually moved away from that. We say, "I'll build a platform that opens around applications to manage your APIs, manage your interfaces." Right? Give you access to API. So I think the shift needs to... That definition of decentralized there means really composable, open pieces of the technology that can play nicely with each other, rather than a full stack, all have control of your data yet being somewhat decentralized within the boundary of my platform. That's just simply not going to scale if data needs to come from different platforms, different locations, different geographical locations, it needs to rethink. >> Okay, thank you. And then the final point is, is data mesh favors technologies that are domain agnostic versus those that are domain aware. And I wonder if you could help me square the circle cause it's nuanced and I'm kind of a 100 level student of your work. But you have said for example, that the data teams lack context of the domain and so help us understand what you mean here in this case. >> Sure. Absolutely. So as you said, we want to take... Data mesh tries to give autonomy and decision making power and responsibility to people that have the context of those domains, right? The people that are really familiar with different business domains and naturally the data that that domain needs, or that naturally the data that domains shares. So if the intention of the platform is really to give the power to people with most relevant and timely context, the platform itself naturally becomes as a shared component, becomes domain agnostic to a large degree. Of course those domains can still... The platform is a (chuckles) fairly overloaded world. As in, if you think about it as a set of technology that abstracts complexity and allows building the next level solutions on top, those domains may have their own set of platforms that are very much doing agnostic. But as a generalized shareable set of technologies or tools that allows us share data. So that piece of technology needs to relinquish the knowledge of the context to the domain teams and actually becomes domain agnostic. >> Got it. Okay. Makes sense. All right. Let's shift gears here. Talk about some of the gaps and some of the standards that are needed. You and I have talked about this a little bit before, but this digs deeper. What types of standards are needed? Maybe you could walk us through this graphic, please. >> Sure. So what I'm trying to depict here is that if we imagine a world that data can be shared from many different locations, for a variety of analytical use cases, naturally the boundary of what we call a node on the mesh will encapsulates internally a fair few pieces. It's not just the boundary of that, not on the mesh, is the data itself that it's controlling and updating and maintaining. It's of course a computation and the code that's responsible for that data. And then the policies that continue to govern that data as long as that data exists. So if that's the boundary, then if we shift that focus from implementation details, that we can leave that for later, what becomes really important is the scene or the APIs and interfaces that this node exposes. And I think that's where the work that needs to be done and the standards that are missing. And we want the scene and those interfaces be open because that allows, you know, different organizations with different boundaries of trust to share data. Not only to share data to kind of move that data to yes, another location, to share the data in a way that distributed workloads, distributed analytics, distributed machine learning model can happen on the data where it is. So if you follow that line of thinking around the centralization and connection of data versus collection of data, I think the very, very important piece of it that needs really deep thinking, and I don't claim that I have done that, is how do we share data responsibly and sustainably, right? That is not brittle. If you think about it today, the ways we share data, one of the very common ways is around, I'll give you a JDC endpoint, or I give you an endpoint to your, you know, database of choice. And now as technology, whereas a user actually, you can now have access to the schema of the underlying data and then run various queries or SQL queries on it. That's very simple and easy to get started with. That's why SQL is an evergreen, you know, standard or semi standard, pseudo standard that we all use. But it's also very brittle, because we are dependent on a underlying schema and formatting of the data that's been designed to tell the computer how to store and manage the data. So I think that the data sharing APIs of the future really need to think about removing this brittle dependencies, think about sharing, not only the data, but what we call metadata, I suppose. Additional set of characteristics that is always shared along with data to make the data usage, I suppose ethical and also friendly for the users and also, I think we have to... That data sharing API, the other element of it, is to allow kind of computation to run where the data exists. So if you think about SQL again, as a simple primitive example of computation, when we select and when we filter and when we join, the computation is happening on that data. So maybe there is a next level of articulating, distributed computational data that simply trains models, right? Your language primitives change in a way to allow sophisticated analytical workloads run on the data more responsibly with policies and access control and force. So I think that output port that I mentioned simply is about next generation data sharing, responsible data sharing APIs. Suitable for decentralized analytical workloads. >> So I'm not trying to bait you here, but I have a follow up as well. So you schema, for all its good creates constraints. No schema on right, that didn't work, cause it was just a free for all and it created the data swamps. But now you have technology companies trying to solve that problem. Take Snowflake for example, you know, enabling, data sharing. But it is within its proprietary environment. Certainly Databricks doing something, you know, trying to come at it from its angle, bringing some of the best to data warehouse, with the data science. Is your contention that those remain sort of proprietary and defacto standards? And then what we need is more open standards? Maybe you could comment. >> Sure. I think the two points one is, as you mentioned. Open standards that allow... Actually make the underlying platform invisible. I mean my litmus test for a technology provider to say, "I'm a data mesh," (laughs) kind of compliant is, "Is your platform invisible?" As in, can I replace it with another and yet get the similar data sharing experience that I need? So part of it is that. Part of it is open standards, they're not really proprietary. The other angle for kind of sharing data across different platforms so that you know, we don't get stuck with one technology or another is around APIs. It is around code that is protecting that internal schema. So where we are on the curve of evolution of technology, right now we are exposing the internal structure of the data. That is designed to optimize certain modes of access. We're exposing that to the end client and application APIs, right? So the APIs that use the data today are very much aware that this database was optimized for machine learning workloads. Hence you will deal with a columnar storage of the file versus this other API is optimized for a very different, report type access, relational access and is optimized around roles. I think that should become irrelevant in the API sharing of the future. Because as a user, I shouldn't care how this data is internally optimized, right? The language primitive that I'm using should be really agnostic to the machine optimization underneath that. And if we did that, perhaps this war between warehouse or lake or the other will become actually irrelevant. So we're optimizing for that human best human experience, as opposed to the best machine experience. We still have to do that but we have to make that invisible. Make that an implementation concern. So that's another angle of what should... If we daydream together, the best experience and resilient experience in terms of data usage than these APIs with diagnostics to the internal storage structure. >> Great, thank you for that. We've wrapped our ankles now on the controversy, so we might as well wade all the way in, I can't let you go without addressing some of this. Which you've catalyzed, which I, by the way, I see as a sign of progress. So this gentleman, Paul Andrew is an architect and he gave a presentation I think last night. And he teased it as quote, "The theory from Zhamak Dehghani versus the practical experience of a technical architect, AKA me," meaning him. And Zhamak, you were quick to shoot back that data mesh is not theory, it's based on practice. And some practices are experimental. Some are more baked and data mesh really avoids by design, the specificity of vendor or technology. Perhaps you intend to frame your post as a technology or vendor specific, specific implementation. So touche, that was excellent. (Zhamak laughs) Now you don't need me to defend you, but I will anyway. You spent 14 plus years as a software engineer and the better part of a decade consulting with some of the most technically advanced companies in the world. But I'm going to push you a little bit here and say, some of this tension is of your own making because you purposefully don't talk about technologies and vendors. Sometimes doing so it's instructive for us neophytes. So, why don't you ever like use specific examples of technology for frames of reference? >> Yes. My role is pushes to the next level. So, you know everybody picks their fights, pick their battles. My role in this battle is to push us to think beyond what's available today. Of course, that's my public persona. On a day to day basis, actually I work with clients and existing technology and I think at Thoughtworks we have given the talk we gave a case study talk with a colleague of mine and I intentionally got him to talk about (indistinct) I want to talk about the technology that we use to implement data mesh. And the reason I haven't really embraced, in my conversations, the specific technology. One is, I feel the technology solutions we're using today are still not ready for the vision. I mean, we have to be in this transitional step, no matter what we have to be pragmatic, of course, and practical, I suppose. And use the existing vendors that exist and I wholeheartedly embrace that, but that's just not my role, to show that. I've gone through this transformation once before in my life. When microservices happened, we were building microservices like architectures with technology that wasn't ready for it. Big application, web application servers that were designed to run these giant monolithic applications. And now we're trying to run little microservices onto them. And the tail was riding the dock, the environmental complexity of running these services was consuming so much of our effort that we couldn't really pay attention to that business logic, the business value. And that's where we are today. The complexity of integrating existing technologies is really overwhelmingly, capturing a lot of our attention and cost and effort, money and effort as opposed to really focusing on the data product themselves. So it's just that's the role I have, but it doesn't mean that, you know, we have to rebuild the world. We've got to do with what we have in this transitional phase until the new generation, I guess, technologies come around and reshape our landscape of tools. >> Well, impressive public discipline. Your point about microservice is interesting because a lot of those early microservices, weren't so micro and for the naysayers look past this, not prologue, but Thoughtworks was really early on in the whole concept of microservices. So be very excited to see how this plays out. But now there was some other good comments. There was one from a gentleman who said the most interesting aspects of data mesh are organizational. And that's how my colleague Sanji Mohan frames data mesh versus data fabric. You know, I'm not sure, I think we've sort of scratched the surface today that data today, data mesh is more. And I still think data fabric is what NetApp defined as software defined storage infrastructure that can serve on-prem and public cloud workloads back whatever, 2016. But the point you make in the thread that we're showing you here is that you're warning, and you referenced this earlier, that the segregating different modes of access will lead to fragmentation. And we don't want to repeat the mistakes of the past. >> Yes, there are comments around. Again going back to that original conversation that we have got this at a macro level. We've got this tendency to decompose complexity based on technical solutions. And, you know, the conversation could be, "Oh, I do batch or you do a stream and we are different."' They create these bifurcations in our decisions based on the technology where I do events and you do tables, right? So that sort of segregation of modes of access causes accidental complexity that we keep dealing with. Because every time in this tree, you create a new branch, you create new kind of new set of tools and then somehow need to be point to point integrated. You create new specialization around that. So the least number of branches that we have, and think about really about the continuum of experiences that we need to create and technologies that simplify, that continuum experience. So one of the things, for example, give you a past experience. I was really excited around the papers and the work that came around on Apache Beam, and generally flow based programming and stream processing. Because basically they were saying whether you are doing batch or whether you're doing streaming, it's all one stream. And sometimes the window of time, narrows and sometimes the window of time over which you're computing, widens and at the end of today, is you are just getting... Doing the stream processing. So it is those sort of notions that simplify and create continuum of experience. I think resonate with me personally, more than creating these tribal fights of this type versus that mode of access. So that's why data mesh naturally selects kind of this multimodal access to support end users, right? The persona of end users. >> Okay. So the last topic I want to hit, this whole discussion, the topic of data mesh it's highly nuanced, it's new, and people are going to shoehorn data mesh into their respective views of the world. And we talked about lake houses and there's three buckets. And of course, the gentleman from LinkedIn with Azure, Microsoft has a data mesh community. See you're going to have to enlist some serious army of enforcers to adjudicate. And I wrote some of the stuff down. I mean, it's interesting. Monte Carlo has a data mesh calculator. Starburst is leaning in, chaos. Search sees themselves as an enabler. Oracle and Snowflake both use the term data mesh. And then of course you've got big practitioners J-P-M-C, we've talked to Intuit, Orlando, HelloFresh has been on, Netflix has this event based sort of streaming implementation. So my question is, how realistic is it that the clarity of your vision can be implemented and not polluted by really rich technology companies and others? (Zhamak laughs) >> Is it even possible, right? Is it even possible? That's a yes. That's why I practice then. This is why I should practice things. Cause I think, it's going to be hard. What I'm hopeful, is that the socio-technical, Leveling Data mentioned that this is a socio-technical concern or solution, not just a technology solution. Hopefully always brings us back to, you know, the reality that vendors try to sell you safe oil that solves all of your problems. (chuckles) All of your data mesh problems. It's just going to cause more problem down the track. So we'll see, time will tell Dave and I count on you as one of those members of, (laughs) you know, folks that will continue to share their platform. To go back to the roots, as why in the first place? I mean, I dedicated a whole part of the book to 'Why?' Because we get, as you said, we get carried away with vendors and technology solution try to ride a wave. And in that story, we forget the reason for which we even making this change and we are going to spend all of this resources. So hopefully we can always come back to that. >> Yeah. And I think we can. I think you have really given this some deep thought and as we pointed out, this was based on practical knowledge and experience. And look, we've been trying to solve this data problem for a long, long time. You've not only articulated it well, but you've come up with solutions. So Zhamak, thank you so much. We're going to leave it there and I'd love to have you back. >> Thank you for the conversation. I really enjoyed it. And thank you for sharing your platform to talk about data mesh. >> Yeah, you bet. All right. And I want to thank my colleague, Stephanie Chan, who helps research topics for us. Alex Myerson is on production and Kristen Martin, Cheryl Knight and Rob Hoff on editorial. Remember all these episodes are available as podcasts, wherever you listen. And all you got to do is search Breaking Analysis Podcast. Check out ETR's website at etr.ai for all the data. And we publish a full report every week on wikibon.com, siliconangle.com. You can reach me by email david.vellante@siliconangle.com or DM me @dvellante. Hit us up on our LinkedIn post. This is Dave Vellante for theCUBE Insights powered by ETR. Have a great week, stay safe, be well. And we'll see you next time. (bright music)

>>Hello, everyone. Welcome to the cubes presentation of the AWS partner showcase. This is season one, episode two. I'm your host, John furry with the cube. I'm joined by two cube alumni as Andy Langston, SVP and GM at Veem and Sabina Joseph, the general manager of technology partners at AWS. We're here talking about speeding the innovation with AWS. Welcome to the show. >>Ready to meet you >>And good to see you, Andy again. >>Great to have you guys back on. I hope you guys are doing well. Great to see both of you Veem. Obviously we've been covering you guys for a long time. You got your VIMANA event coming up in person, which is great. Congrats on the continued success of the company and the product you guys have always been all in on AWS. We've been covering for many, many years. Andy, what's the innovation going on now at Veem? Lots of lots happening, lots going on. What's the new innovation. >>Well, I think, you know, clearly people are in, you know, when we talk to people they're interested in, in ransomware, so ransomware protection, we they're interested in a hybrid cloud hybrid. Um, you know, AWS in particular, we get a lot of interest there. Um, clearly modern data protection, uh, what we're doing in office 365, people are looking at all those things >>And what's the, the platform, uh, approach that you guys have with AWS. You guys have a broad range. It's not just the classic. I call it the green classic solution. That's also a good product. What's some of the new platform advantages you guys got going on with the cloud native with AWS. >>Well, you know, look we are, our strategy is to protect as many AWS services as possible, you know, and, and, you know, from the ECE to EBS, S3, RDS, uh, VMC, and many of the services that they're coming out with. And in many times they come to us and say, Hey, you know, these are important to us. We'd like you to, to support these. So clearly we're, um, we're focused on those, uh, Kubernetes workloads is, is a newer set of workloads on AWS. That we're a very interested, we made an acquisition and have a product called, uh, Kasten that we've been investing in and working with AWS with their, uh, uh, EKS anywhere. So very excited. >>Great. So being on the partnership, you guys, it's growing a lot's going on. Can you tell us more about how Veeam and abs AWS are jointly helping customers? >>Yeah. As, um, as both of, you know, right. Data is exploding. And, uh, that means, you know, we have to keep backing up this data and finding new ways to back up this data because people are stepping away from the traditional backup methods, tape libraries, secondary storage sites and things like that. And they're backing up data into the cloud. And we AWS offers a number of different storage services, data transfer methods and networking solutions, which provide unmatched your ability, reliability, security. And of course, uh, AWS and Veem have been partnering together enough for quite a number of years and the cost effective. And so you mentioned that Veem has on AWS really enables customers to have offsite storage solutions, providing that physical separation between their on premises, primary data, and also utilizing the pay as you go cloud economics. So we have a great collaboration and, you know, beam has a great solution on AWS and they're constantly innovating and providing capabilities for our customers. Just like Andy said, providing as many capabilities for our services to back up, >>Andy, the volume of data I'll say is always the story. Every year, the volume is tsunami of data. It's getting worse it's every day. Um, and as you got more cloud scale, you guys have been doing a lot integration. You guys always have, you have demanding customers, you have a lot of customers actually. So as you leverage Amazon for data protection, the security conversation is front and center these days. Can you give us an update on how you guys are doing, uh, the data protection security in the cloud with AWS? That's, that's, um, that's hot with your customers, >>You know, it's a great, it's a great comment. You know, you've talked about a lot of customers. Veem has over 400,000 customers now it's, it's truly extraordinary when you think about the size and scope and scale. And if you think, uh, my belief is a majority, almost all of them will tear up two and move their data up into the cloud at some point in our, in the next few years. And so we've just, I think we've described the surface and we're moving hack, you know, hundreds of petabytes or more per year up to the cloud at the same time when I make customer executive calls. It's kind of interesting. A lot of times you think they're going to want to talk about backup and disaster recovery. They want to talk about security. And when this first started happening, I thought, Hey, why don't you talk to your security vendor now? >>And what I realized was that data protection is front and center because of the, we just, we just published a study where a number jumped out at me, 71% of the thousands of people that responded said that they had already been a victim of, or had had a ransomware attack. It's a staggering number. And, um, so, you know, when we look at our relationship with Amazon and we look at the integration we've done around what we call cloud during that's moving, are moving data up to object storage. AWS has a capability called immutable data sets. And so that allows you affords you some great protection against ransomware as an example. And that's one of the areas that we're investing in very heavily. And by the way, our mutual customers are backing up and restoring with Veem and we're doing it on AWS and, and, uh, the data volumes are exploding, I think, because of that. Yeah. >>You know, it's interesting. And you made me have a throwback for, you know, 10 years ago, we used to talk about backup and recovery. And you know, the big thing back then was, was the conversation was don't think of backup as a, as a last minute thing, think of it at the front end, it was always kind of an afterthought and a, of the it decision makers. And you mentioned that security comment about call your security vendor. It's almost the scripts has flipped backup and recovery is the security solution. And so it's not, it's not an afterthought. This is 10 years ago. It was the primary message. It's the primary thought. So when you talk about automated tiering, that's kind of a networking thing. It's like, policy-based hearing. I mean, I mean, if you go back 10 years and we're talking, policy-based hearing, you were like, what? So this is a really different dynamic. And I want you guys to comment because this is the, this is the market right now. This is with the flip, the script has flipped. >>Yeah. Sabina. What do you, what, what do you from y'all's perspective kind of in, in your technology, partnerships, storage vendors, Veem security, what, what do you w what do you see? >>Well, I think that there is an interplay here because I think customers are looking at various ways, right? When I look at those five cybersecurity framework, right? First is identifying what you need to protect, protecting it. And then that's a very important step of, out of those five steps is recovery, right? How do you get your business back to normal? But you cannot do that if you are not protecting and backing up your data. And that's where our partnership comes in. Right? So I believe that all of those five stages in the NIST cybersecurity framework kind of go together and be in place nicely into the very critical phase of recovery. Would you agree, Andy? >>I would. You know, and, and I look at, um, you know, when you're doing a recovery and your gut, your secure backups and AWS, it's, it's like your last line of defense, you know, beam and AWS deliver a mutable backups and has three tiers through S3 object lock integration. And I think that's, that's pretty much, you know, even if a ransomware attack is successful, we can, we can ensure that the backup data hadn't been changed and encrypted or deleted. And, uh, that's pretty exciting, you know, for customers and prospects, they're really worried about this. And I think the teamwork and the, the, the partnership between the two companies to build a solution like this is pretty awesome. >>Yeah. Let me, let me just double, double click on that for a second. You mentioned it got a lot of customers. Ransomware does not discriminate with the size of the company. It could be, it could be a hospital school. It could be a big company. Ransomware is bad, and we see that, and it's a great conversation. And how do you take that solution out to the customers? You got hundreds of thousands of customers. So Sabine, I guess the question is, how is this 80 of us in Veem work together? There's this channel first concept you guys are talking about, tell us about how you guys work together, because there's millions of customers who want this, and you guys actually have hundreds of thousands of customers that Veem, how do you get the customers to leverage that, the relationship and what can you bring to them? >>Yeah, I'll give you like four numbers, right? So AWS has millions of customers and we have, um, hundred thousand partners across 150 countries. Now Veem has, as Andy mentioned, right, has over 400,000 customers and 35,000 partners worldwide. So somewhere in these four numbers, we all intersect both of us intersect both on those customers and also on those partners. And one of the initiatives that my team is heavily focused on is triangulating between the partners that Veeam has. We have, and also our technology partnership. And how can we provide value to our customers by bringing together these partners together with AWS Veeam and Veeam is a V it's a hundred percent channel driven business, and they know how to do this. That is why we are heavily partnered with them to see what we can do for our customers through our mutual partner. >>And he wants you to weigh in here, you know, the channel business, it's gotta be easy, it's got to add value. And I got to wrap services around it. That's what partners love. Well, how does this work? How does that work? >>Well, I, I think to extend beyond what, what did take, what Sabina had said is, you know, we have kind of been subsetted. Our partners are the ones that, that do business with AWS and, and which is a exploding number of partners. And so they have a relationship database. We have a relationship at S and we have this solution set that have, are of interest to our customers through these partners. And AWS has customers through these partners. And so a lot of times we'll share, um, information and customers, uh, information on, around, um, how we can kind of go to these customers who are both AWS customers and Veem customers and market, this joint solution protect them from ransomware. >>And how's it been going so far? What's your, what's your assessment? >>It's been fantastic. I think the, I think one of the, the, the real proof points is that we've moved, uh, over a half a petabyte of data, you know, uh, recently up into their cloud. And, uh, you know, that says that people not only are using the solution, but they're, uh, they're actually delivering on it. >>Well, why got you here, Andy, I want to ask you for the, all the people watching the customers, what's the biggest change that's happening in this market right now. Again, I love this shift that we're seeing backup and recovery. Isn't a point solution anymore. It's the solution it's baked in, and everyone's talking about this, it's integrated in, it's not, it's, it's totally front and center. What's the big change that customers should be thinking about now as they move forward. And, uh, obviously ransomware is still front and center. That's not going away anytime soon. What's the big thing to focus on for customers? >>Well, I think, you know, I always say, you know, listen to the customer and focus on what their specific needs are, right? You can assume, obviously in the business war and everybody, everybody has a backup solution. And, uh, so you're not trying to create a market there, but like I said, you know, people are very focused on security. They're focused on cost, they're focus on skillset or lack of skill sets, right? I mean, we have a shortage of skills in the industry. So we try to make our products easy to use. We try to work with our partners, putting AWS to deliver the best solution we can for our customers. And, uh, you know, I think we have the broadest invest, you know, ransomware protection, uh, and recovery in the storage space. And so we're very focused on that, leveraging all of our technologies across the platforms, physical, virtual Kubernetes, uh, type environments. >>And you have this and you get the beam on event coming up and that's going to be good in person. Right. That's a confirmed, >>It's a, it's a, it's a hybrid yet. In-person and virtual. >>Awesome. Great to see you guys in person. So being a, for the folks, watching the Amazon partnerships, as you guys scale up these, these partnerships and take it the next level, what's your, what's your closing comment. Yes. >>Yeah. I also want to say, write something that I should mention, right. We miss also invested in AWS marketplace. So it's not just the direct consulting partners and the partners that I mentioned, the a hundred thousand and 35,000, right. They, customers can also purchase beam on AWS marketplace through consulting partner, private offers. And that's why Viva's embraced many of these aspects to try to help our customers and continue to grow that 400,000 customer base, which is a pretty phenomenal number. >>Yeah. I've always been impressed with beam's customer base and they've got a very loyal base as well. I point that out and give props to the VM team. Andy closing comments for you, the V natives relationship, how would you summarize that? >>I'd say it's fantastic. You know, years ago it started as just a normal technology partnership. You know, now we're an advanced technology partner with storage competency, numerous programs like APN, uh, customer engagement. We're a marketplace seller. And I would say that it's not only that, but, but customers can take advantages of their, um, EDP with AWS to purchase on the marketplace and get credits against that. And our partners can as well. That's a, that's a very important thing because we're seeing more and more interest in that today. Uh, we're a public sector partner with them. We're an ISV accelerate SAS revenue recognition program. We're, we're, uh, I think we're checking a lot of boxes, but really taking advantage of it. The last thing I would say is, uh, I've known Sabina for quite a few years now. And I think it's the people relationships in the two companies that make this work. >>We have a lot of people, a lot smarter than me on the, on the speeds and feeds here. But at the end of the day, um, Sabina has a team of people that work with us on a, on a, almost a daily basis to solve customer problems. Right. We get people calling in all the time. How do I make Veem work on AWS? How do I get AWS solutions to work with theme? And our job is to make it as easy as possible because we both believe, uh, that customers, they say customer first. I always say, customer always are always right, but, but, but, but you know, at the end of the day, that's what makes this >>Yeah. Customer is always right. Customer obsession, working backwards from the customer fucking customer first Sabina. This is really interesting. This is a good point. I just come quick, go back to you real quick. This integration of relationships and also cloud technology integration is a big theme this year, post re-invent. Your thoughts >>Absolutely means, um, uh, to be candid. Uh, one of the goals that me and my team take is how do we bring technology partners together to add more value to our customers in end to end solutions, along with technology partners and consulting partners. So that is a huge focus for us because we need to do that in order to scale, not just for each other, but also for our customers and bring that, bring together meaningful, comprehensive end to end solutions. >>That's awesome. Andy, great to see you. We'll see at Veem on as well, coming up for the Veem show and your conference. You've been conference hybrid conference in person and virtual and digital to be in a great to see you again. Thanks for sharing all the great updates. And this is the season two. It's all about the data and the innovations with AWS. I'm John for your host of the cube season one episode, two of the AWS partner showcase. Thanks for watching.

>> From around the globe it's theCUBE with coverage of the GLOBAL.NEXT DIGITAL EXPERIENCE brought to you by Nutanix. >> Hi and welcome back, we're wrapping up our coverage of the Nutanix .Next Global Digital Experience, I'm Stu Miniman and I'm happy to welcome to the program, help us as I said wrap things up. We're going to be talking about running better, running faster and running anywhere. A theme that we've heard in the keynotes and throughout the two day event of the show. We have three VPs to help go through all the pieces coming up on the screen with first of all we have Greg Smith who's the vice president of product technical marketing right next to him is Madhukar Kumar, who is the vice president of product and solutions marketing and on the far end, the senior vice president Thomas Cornely, he is the senior vice president, as I said for product portfolio management. Gentlemen, thank you so much for joining us. >> Good to be here Stu. >> Alright, so done next to show we really enjoy, of course this the global event so not just the US and the European and Asia but what really gets to see across the globe and a lot going on. I've had the pleasure of watching Nutanix since the early days, been to most of the events and the portfolio is quite a bit bigger than just the original HCI solution. Thomas since you've got to portfolio management is under your purview, before we get into summarizing all of the new pieces and the expansion of the cloud and software and everything just give us if you could that overview of the portfolio as it's coming into the show. >> Yeah absolutely Stu. I mean as you said we've been doing this now for 10 plus years and we've grown the portfolio we developed products over the years and so what we rolled out at this conference is a new way and to talk about what we do at Nutanix and what we deliver in terms of set of offerings and we talk about the 4 D's. We start with our digital hyper converged infrastructure cartridges, dual core HCI stack that you can run on any server and that stack these two boards are data center services which combines our storage solutions, our business computing and data recovery solution and security solutions on DevOps services, which is our database automation services, our application delivery automation services and now our new common and that's one of the service offerings and then our desktop services catridges which is our core VDI offering and offering our discipline and service offerings. So put all these together this is what we talk about in the 4 D's, which is on Nutanix cloud platform that you can run on premises and now on any job. >> Well thank you Thomas for laying the ground work for us, Greg we're going to come to you first that run better theme as Thomas said and as we know HCI is at the core a lot of discussions this year of course, the ripple effect of the global pandemic has more people working remotely that's been a tailwind for many of the core offerings, but help us understand, how's that building out some of the new things that we should look at in the HCI. >> Yeah ,thanks too for Nutanix and our customers a lot of it begins with HCI, right. And what we've seen in the past year is really aggressive adoption for HCI, particularly in core data center and private cloud operations and customers are moving to HCI in our not only for greater simplicity, but to get faster provisioning and scaling. And I think from a workload perspective, we see two things, that ACI is being called upon to deliver even more demanding apps those with a really very low latency such as large scale database deployments. And we also see that HCI is expected to improve the economics of IT and the data center and specifically by increasing workload density. So we have a long history, a storied history of continually improving HCI performance. In fact every significant software release we've optimized the core data path and we've done it again. We've done it again with our latest HCI software release that we announced just this week as our next. The first enhancement we made was in 518, was to reduce the CPU overhead and latency for accessing storage devices such as SSD and NBME and we've done this by managing storage space on physical devices in the HCI software. So rather than rely on slower internal file systems and this new technology is called block store and our customers can take advantage of block store simply by upgrading to the new software released and we're seeing immediate performance gains of 20 to 25% for IOPS and latency. And then we built on top of that, we've added software support for Intel Optane by leveraging user space library, specifically SPDK or storage performance development kit. And SPDK allows Nutanix to access devices from user space and avoid expensive interrupts and systems calls. So with this support along with block store we're seeing application performance gains about this 56% or more. So we're just building our own a legacy of pushing performance and software and that's the real benefit of moving to HCI. >> And just to add to that too when it comes to run better I think one of the things that we think of running better is automation and operation then when it comes to automation and operation there are a couple of ways I would say significant announcements that we also did to. One is around Comm as a service. Comm is one of those products that our customers absolutely love and now with Comm as a service you have a SaaS plane, so you can just without installing anything or configuring anything you could just take advantage of that. And the other thing we also announced is something called Nutanix central and Nutanix central gives you the way to manage all your applications on Nutanix across all of your different clusters and infrastructure from a single place as well. So two big parts of a run better as well. >> Well, that's great and I've really, is that foundational layer, Madhukar if we talk about expanding out, running faster the other piece we've talked about for a few years is step one is you modernize the platform and then step two is really you have to modernize your application. So maybe help us understand that changing workload cloud native is that discussion that we've been having a few years now, what are you hearing from your customers and what new pieces do you have to expand and enable that piece of the overall stack? >> Yeah, so I think what you mentioned which is around cloud data the big piece over there is around Cybernetics's and they already had a carbon, so with carbon a lot of the things of complexities around managing cybernetics is all taken care of, but there are higher level aspects on it like you have to have observability, you have to have log, you have to have managed the ingress ,outgress which has a lot of complexity involved with, so if you're really just looking for building of applications what we found is that a lot of our customers are looking for a way to be able to manage that on their own. So what we announced which is carbon platform service enables you to do exactly that. So if you're really concerned about creating cloud native applications without really worrying too much about how do I configure the cybernetics clusters? How do I manage Histio? How do I manage all of that carbon platform service that actually encapsulates all of that to a sass plate So you can go in and create your cloud native application as quickly and as fast as possible, but just in a typical Nutanix style we wanted to give that freedom of choice to our customers as well. So if you do end up utilizing this what you can also choose is the end point where you want these application to run and you could choose any of the public clouds or the hyper scaler or you could use a Nutanix or an IOT as an endpoint as well. So that was one of the big announcements we've made. >> Great, Greg and Madhukar before we go on, it's one of the things that I think is a thread throughout but maybe doesn't get highlighted as much but security of course is been front and center for a while, but here in 2020 is even more emphasized things like ransomware, of course even more so today than it has been for a couple of years. So maybe could it just address where we are with security and any new pieces along there that we should understand? >> Yeah, I can start with that if I could. So we've long had security in our platform specifically micro-segmentation, fire walling individual workloads to provide least privilege access and what we've announced this week at .Next is we've extended that capability, specifically we've leveraged some of the capabilities in Xi beam and this is our SAS based service to really build a single dashboard for security operators. So with security central, again a cloud based SAS app, Nutanix customers can get a single pane from which they can monitor the entire security posture of their infrastructure and applications, it gives you asset reporting, asset inventory reporting, you can get automated compliance checks or HIPAA or PCI and others. So we've made security really easy in keeping with the Nutanix theme and it's a security central is a great tool for that security operations team so it's a big step for Nutanix and security. >> Yeah. >> To actually add on this one, one bit piece of security central is to make it easier, right. To see your various network bills and leverage the flow micro segmentation services and configure them on your different virtual machines, right? So it's really a key enabler here to kind of get a sense of what's going on in your environment and best configure and best protect and secure infrastructure. >> Thomas is exactly right. In fact, one of the things I wanted to chime into and maybe Greg you could speak a little bit more about it. One of my favorite announcements that we heard or at least I heard was the virtualized networking and coming from a cloud native world, I think that's a big deal. The ability to go create your virtual private cloud or VPCs and subnets and then be able to do it across multiple clouds. That's, something I think has been long time coming, so I was personally very, very pleased to hear that as well. Greg, do you want to add a little bit more? >> Yeah, that's a good point I'm glad you brought that up, when we talk about micro-segmentation that's one form of isolation, but what we've announced is virtual networking. So we really adopted some cloud principles, specifically virtual private clouds constructs that we can now bring into private cloud data centers. So this gives our customers the ability to define and deploy virtual networks or overlays this sort of sit on top of broadcast domains and VLANs and it provides isolation for different environments. So a number of great use cases, we see HCI specifically being relied upon for fast provisioning in a new environment. But today the network has always been sort of an impediment to that we're sort of stuck with physical network plants, switches and routers. So what virtual networking allows us to do is through APIs, is to create an isolated network a virtual private cloud on a self service basis. This is great for organizations that increasing operating as service providers and they need that tenant level segmentation. It's also good for developers who need isolated workspace and they want to spin it up quickly. So we see a lot of great use cases for virtual networks and it just sort of adds to our full stack so we've software defined compute, we've software defined storage, now we're completing that with software defining networking. >> And if I have it right in my notes the virtual networking that's in preview today correct? >> Yes, we announce it this week and we are announcing upcoming availability, so we have number of customers who are already working with us to help define it and ready to put it into their environments. The virtual private network is upcoming from Nutanix. >> Yeah, so I absolutely I've got, Mudhakar, I've got a special place in my heart for the networking piece that's where a lot of my background is, but there was a different announcement that got a little bit more of my attention and Thomas we're going to turn to you to talk a little bit more about clusters. I got to speak with Monica and Tarkin, ahead of the conference when you had the announcement with AWS, for releasing Nutanix clusters and this is something we've been watching for a bit, when you talk about the multicloud messaging and how you're taking the Nutanix software and extending it even further that run anywhere that you have talk about in the conference. So Thomas if you could just walk us through the announcements as I said something we've been excited, I've been watching this closely for the last couple of years with Nutanix and great to see some of the pieces really starting to accelerate. >> Well absolutely and as you said this is something that's been core to the strategy in terms of getting and enabling customers to go and do more with hybrid cloud and public cloud and if you go back a few weeks when we announced clusters on AWS this was a few weeks back now, we talked of HCI is a prerequisite to getting the most of your hybrid cloud infrastructure, which is the new HCI in our mind and what we covered at .Next was this great announcement with Microsoft Azure, right, and just leveraging their technologies bringing some of their control plan onto our cloud platform but also now adding clusters on Azure and announcing that we'll be doing this in a few months. Enabling the customers to go and take the same internet cloud platform the same consistent set of operations and technology services from data center services, DevOps services and desktop services and deploying those anywhere on premises, on AWS or on Microsoft Azure and again for us cloud is not a destination. This is not a now we just accomplished something. This is a new way of operating, right? And so it's touching, giving customers options in terms of where they want to go to count so we keep on adding new counts as we go but also it's a new form of consuming infrastructure, right? From an economist perspective you probably know, you don't extend it you're pressing into the moving to is fiction based offering on all of our solutions and our entire portfolio and as we go and enable these clusters offering, we're not making consumptions more granular to non customers do not consume our software on an hourly basis or a monthly basis. So again this is kind of that next step of cloud is not just technology, it's not a destination it's a new way of operating and consuming technology. >> Why think about the flexibility that this brings to existing new techs customers it gives them enormous choices in terms of new infrastructure and whether they set up new clusters. So think about in text a customer today. They may have data centers throughout the US or in Europe and in Asia Pacific, but now they have a choice rather than employ their Nutanix environment, in an existing data center or Colo, they can put it into AWS and they can manage it exactly the same. So it just provides near infinite choice for our customers of how they deploy HCI and our full software stack. In addition to the consumption that Thomas talked about, consumption choices. >> Yeah, just to add to that again I should have said this is also one of my favorite announcements as well, yesterday. We Greg, myself, Thomas, we were talking to some industry analysts and they were talking about, Hey, you know how there is a need for pods where you have compute, you have network and you have storage altogether, and now people want to run it across multiple different destination but they have to have the freedom of choice. Today using one different kind of hardware tomorrow you want to use something else. They should be portability for that, so with clusters, I think what we have been able to do is to take that concept and apply it across public cloud. So the same whether you want to call it a pod or whatever but compute, storage, networking. Now you have the freedom of choice of choosing a public cloud as an end point where you want to run it. So absolutely one of those I would say game-changing announcements that we have made more recently. >> Yeah-- >> To close that loop actually and talk about portability as enabling quality of occupations. But also one thing that's really unique in terms of how we're delivering this to customers is probability of licenses. The fact that you have a subscription term license for on premises you can very easily now repay the license if you decide to move a workload and move a cluster from one premises to your count of choice, that distance is also affordable. But so again, full flexibility for these customers, freedom of choice from a technology perspective but also a business perspective. >> Well, one of the things I think that really brings home how real this solution is, it's not just about location, Thomas as you said, it's not about a destination, but it's about what you can do with those workloads. So one of the use cases I saw during the conference was talking about a very long partner of a Nutanix Citrix and how that plays out in this clusters type of environment so maybe if you could just illustrate that as one of those proof points is how customers can leverage the variety of choice. >> Yeah, we're very excited about this one, right? Because given what we're currently going through as a humanity right now, across the world with COVID situation, and the fact that we all have now to start looking at working from home, enabling scaling of existing infrastructure and doing it without having to go and rethink your design enabling this clusters in our Citrix solution is just paramount. Because what it will ask you to do is if you say you started and you had an existing VDI solution on premises using Citrix, extending that now and you putting new capacity in every location where you can go and spin this up in any AWS region or Azure region, no one has to go and the same images, the same processes, the same operations of your original desktop infrastructure would apply regardless of where you're moving now your workforce to work remotely. And this is again it's about making this very easy and keeping that consistency operations, from managing the desktops to managing that core infrastructure that is now enabled by using different clusters on Azure or AWS. >> Well, Thomas back in a previous answer, I thought you were teeing something up when you said we will be entering a new era. So when you talk about workloads that are going to the cloud, you talk about modernization probably the hottest area that we have conversations with practitioners on is what's happening in the database world. Of course, there's migrations, there's lots of new databases on there, and Nutanix era is helping in that piece. So maybe if we could as kind of a final workload talk about how that's expanding and what updates you have for the database. >> Absolutely and so I mean Eras is one of our key offerings when it comes to a database automation and really enabling teams to start delivering database as a service to their own and users. We just announced Era 2.0 which is now taking Era to a whole other level, allowing you to go and manage your devices on cross clusters. And this is very topical in this current use case, because we're talking of now I can use era to go in as your database that might be running on premises for production and using Era to spin up clones for test drive for any team anywhere potentially in cloud then using clusters on the all kind of environments. So those use cases of being which more leverage the power of the core is same structure of Nutanix for storage management for efficiency but also performance and scaling doing that on premises and in unique cloud region that you may want to leverage, using Era for all the automation and ensuring that you keep on with your best practices in terms of deploying and hacking your databases is really critical. So Era 2.0 great use cases here to go and just streamline how you onboard databases on top of HCI whether you're doing HCI on premises or HCI in public town, and getting automation of those operations at any scale. >> Yeah, hey Tom has mentioned a performance and Era has been a great extension to the portfolio sitting on top of our HCI. As you know Stu database has long been a popular workload to run it all HCI, particularly Nutanix and it extends from scalability performance. A lot of I talked about earlier in terms of providing that really low latency to support the I-Ops, to support the transactions per second, that are needed these very demanding databases. Our customers have had great success running SAP, HANA, Oracle SQL server. So I think it's a combination of Era and what we're doing as Thomas described as well as just getting a rock solid foundational HCI platform to run it on and so that's what we're very excited about to go forward in the database world. >> Wonderful, well look, we covered a lot of ground here. I know we probably didn't hit everything there but it's been amazing to watch Nutanix really going from simplicity at its core and software driving it to now that really spiders out and touches a lot of pieces. So I'll give you each just kind of final word as you having conversations with your customers, how do they think of Nutanix today and expect that we have a little bit of diversity and the answers but it's one of those questions I think the last couple of years you've asked when people register for .Next. So it's, I'm curious to hear what you think on that. Maybe Greg if we start with you and kind of go down the line. >> Yeah, for me what sums it up is Nutanix makes IT simple, It makes IT invisible and it allows professionals to move away from the care and feeding structure and really spend more time with the applications and services that power their business. >> And I agree with Greg I think the two things that always come up, one is the freedom of choice, the ability for our customers to be able to do so many different things, have so many more choices and we continue to do that every time we add something new or we announce something new and then just to add onto what Greg said is to try and make the complexities invisible, so if there are multiple layers, abstract them out so that our customers are really focused on doing things that really matter versus trying to manage all the other underlying layers, which adds more complexity. >> Yeah You could just kind of send me to it up right. In the end, internet is becoming much more than HCI, as hyper converged infrastructure this is not taking it to another level with the hybrid cloud infrastructure and when you look at what's been built over the last few years from the portfolio points that we now have, I think it was just growing recognition that internet actually delivers this cloud platform that you can all average to go and get to a consistency of services, operations and business operations in any location, on premises through our network constant providers through our Nutanix cloud offerings and hyper scaler with Nutanix clusters. So I think things are really changing, the company is getting to a whole other level and I couldn't be more excited about what's coming out now the next few years as we keep on building and scaling our cloud platform. >> And I'll just add my perspective as a long time watcher of Nutanix. For so long IT was the organization where you typically got an answer of no, or they were very slow to be able to react on it. It was actually a quote from Alan Cohen at the first .Next down in Miami he said, "we take need to take those nos "and those slows and get them to say go." So the ultimate, what we need is of course reacting to the business, taking those people, eliminating some of the things that were burdensome or took up too much time and you're freeing them up to be able to really create value for the business. Want to thank Greg, Madhukar, Thomas, thank you so much for helping us wrap up, theCUBE is always thrilled to be able to participate in .Next great community customers really engaged and great to talk with all three of you. >> Thank you. >> Alright so that's a rack for theCUBES coverage of the Nutanix Global.Next digital experience. Go to thecube.com. thecube.net is the website where you can go see all of the previous interviews we've done with the executives, the partners, the customers. I'm Stu Miniman and as always thank you for watching theCUBE.

>> Male's Voice: From around the globe, its theCUBE. With digital coverage of a special announcement, brought to you by Nutanix. (soft music) >> Hi, I'm Stu Miniman. And welcome to this special announcement for Nutanix, about some new product releases in the public cloud. To help us kick this off for the Asia Pacific and Japan region. Happy to welcome to the program Jordan Reizes, who's the vice president of marketing, for APJ and Nutanix. Jordan, help us introduce it. Thanks Stu. So today we're really pleased to announce Nutanix Clusters, availability in Asia Pacific and Japan, at the same time as the rest of the world. And we think this technology is really important to our geographically dispersed customers, all across the region, in terms of helping them, On-Ramp to the cloud. So, we're really excited about this launch today. And Stu, I can't wait to see the rest of the program. And make sure you stay tuned at the end, for our interview with our CTO, Justin Hurst. Who's going to be answering a bunch of questions that are really specific to the APJ region. >> All right, thank you so much Jordan, for helping us kick this off. We're now going to cut over to my interview with Monica and Tarkan, with the news. >> Hi, I'm Stu Miniman. And I want to welcome you to this special event that we are doing with Nutanix. Of course, in 2020 many things have changed. And that has changed some of the priorities, for many companies out there. Acceleration of cloud adoption, absolutely have been there. I've talked to many companies that were dipping their toe, or thinking about, where they were going to cloud. And of course it's rapidly moved to accelerate to be able to leverage work from home, remote contact centers, and the like. So, we have to think about how we can accelerate what's happening, and make sure that our workforce, and our customers are all taken care of. So, one of the front seats of this, is of course, companies working to help modernize customers out there. And, Nutanix is part of that discussion. So, I want to welcome to join us for this special discussion of cloud and Nutanix. I have two of our CUBE alumnus. First of all, we have Monica Kumar. She's the senior vice president of product, with Nutanix. And Tarkan Maner, who's a relative newcomer. Second time on theCUBE, in his new role many time guests. Previously, Tarkan is the chief commercial officer with Nutanix. Monica and Tarkan, thank you so much for joining us. >> Thank you so much. So happy to be back on theCUBE. >> Yeah, thank you. >> All right. So, Tarkan as I was teeing up, we know that, IT staffs in general, CIO specifically, and companies overall, are under a lot of pressure in general. But in 2020, there are new pressures on them. So, why don't you explain to us, the special cloud announcement. Tell us, what's Nutanix launching, and why it's so important today. >> So, Stu first of all, thank you. And glad to be here with Monica. And basically you and I, spend some time with a few customers in the past few weeks and months. I'll tell you, the things in our industry are changing at a pace that we never seen before. Especially with this pandemic backdrop, as we're going through. And obviously, all the economic challenges that creates beyond the obviously, health challenges and across the world, all the pain it creates. But also it creates some opportunities for our customers and partners to deliver solutions to our enterprise customers, and commercial customers, and in a public sector customers, in multiple industries. From healthcare, obviously very importantly, to manufacturing, to supply chains, and to all the other industries, including financial services and public sector again. So in that context, Monica knows as well as she's our leader. You know, our strategy, we're putting lots of effort in this new multi-class strategy as a company. As you know, is too well, Nutanix wrote the book, in digital infrastructures with its own private, (mumbles) infrastructure story. Now they're taking that next level, via our data center solutions, via DevOps solutions, and end user computer solutions. Now, the multicloud fashion, working with partners like AWS. So, in this launch, we have our new, hybrid cloud infrastructure, Nutanix Clusters product now available in the AWS. We are super excited. We have more than 20 tech firms, and customers, and partners at sealable executive level support in this big launch. Timing is usually important, because of this pandemic backdrop. And the goal is obviously to help our customers save money, focus what's important for them, save money for them, and making sure they streamlined their IT operation. So it's a huge launch for us. And we're super excited about it. >> Yeah. And the one thing I would add too, what Tarkan said too is, look, we talk to a lot of customers, and obviously cloud is the constant, in terms of enabling innovation. But I think more with COVID, what's on top of mind is also how do we use cloud for innovation? But really be intelligent about cost optimization. So with this new announcement, what we are excited about is we're bringing, making really a hybrid cloud reality, across public and private cloud. But also making sure customers, get the cost efficiency they need, when they're deploying the solution. So we are super excited to bring true hybrid cloud offering with AWS to the market today. >> Well, I can tell you Nutanix cluster is absolutely one of the exciting technologies I've enjoyed, watching and getting ready for. And of course, a partnership with the largest public cloud player out there AWS, is really important. When I think about Nutanix from the earliest days, the word that we always used for the HI Space and Nutanix specifically, was simplicity. Anybody in the tech space know that, true simplicity is really hard to do. When I think about cloud, when I think about multicloud, simplicity is not the first thing that I think of. So, Tarkan has helped us connect, how is Nutanix going to extend the simplicity that it's done, for so long now in the data center, into places like AWS with this solution? >> So, Stu you're spot on. Look, Monica and I spend a lot of time with our customers. One thing about Nutanix executive team, you're very customer-driven. And I'm not just saying this to make a point. We really spent tons of time with them because our solutions are basically so critical for them to run their businesses. So, just recently I was with a senior executive, C level executive of an airline. Right before that, Monica and I spent actually with one of the largest banks in the world in France, in Paris. Right before the pandemic, we were actually traveling. Talking to, not all the CIO, the chief operating officer on one of these huge banks. And the biggest issue was, how these companies are trying to basically adjust their plans, business plans. I'm not talking about tech plans, IT plans, the business plans around this backdrop with the economic stress. And obviously, now pandemic is in a big way. One of the CIOs told me, he was an airline executive. "Look Tarkan, in the next four months, my business might be half of what it is today. And I need to do more with less, in so many different ways, while I'm cutting costs." So it's a tough time. So, in that context is to... Your actually right. Multicloud is in a difficult proposition, but it's critical, for these companies to manage their cost structures across multiple operating models. Cloud to us, is not a destination, it's a means to an ends. It is an operating model. At the end of the day, the differentiation is still the software. The unique software that we provide from digital infrastructures, to deliver, end to end discreet data center solutions, DevOps solutions for developers, as well as for end user computing individuals, to making sure to take advantage of, these VDI decibels service topic capability. So in that context, what we are providing now to this CIOs who are going through, this difficult time is, a platform, in which they can move their workloads from cloud to cloud, based on their needs, with freedom of choice. Look, one of these big banks that Monica and I visited in France, huge global bank. They have a workloads on AWS, they have workload on Azure, they have workloads on Google, workloads on (indistinct), the local XP, they have workloads in Germany. They have workloads providers in Asia, in Taiwan, and other locations. On top of that, they're also using Nutanix on-prem as well as Nutanix cloud, our own cloud services for VR. And then, this is not just in this nation. This is an operating model. So the biggest request from them is, look, can you guys make this cost effective? Can we use, all these operating models and move our data, and applications from cloud to cloud? In simple terms, can we get, some kind of a flexibility with commits as well as we pay credits they paid for so far? And, those are things we're working on. And I'm sure Monica is going to get a little bit more into detail, as we talk to this. You are super excited, to start this journey with AWS, with this launch, but you're not going to stop there. Our goal is, we just kind of discussed with Monica earlier, provide freedom of choice across multiple clouds, both on-prem and off-prem, for our customers to cut costs, and to focus on what's important for them. >> Yeah, and I would just add, to sum it up, we are really simplifying the multicloud complexity for our customers. And I can go into more detail, but that's really the gist of it. Is what Nutanix is doing with this announcement, and more coming up in the future. >> Well, Monica, when I think about customers, and how do they decide, what stays in their data center, what goes into the public cloud? It's really their application portfolio. I need to look at my workloads, I need to look at my skillset. So, when I look at the cluster solution, what are some of the key use cases? What workloads are going to be the first ones that you expect, or you're having customers use with it today? >> Sure. And as we talk to customers too, this clearly few key use cases that they've been trying to, build a hybrid strategy around. The first few ones are bursting into cloud, right? In case of, a demand of sudden demand, how do I burst and scale my, let's say a VDI environment. or database environment into the cloud? So that's clearly one that many of our customers want to be able to do simply, and without having to incur this extreme complexity of managing these environments. Number two, it's about DR, and we saw with COVID, right? Business continuity became a big deal for many organizations. They weren't prepared for it. So the ability to actually spin up your applications and data in the cloud seamlessly, in case of a disaster, that's another big use case. The third one, of which many customers talk about is, can I lift and shift my applications as is, into the cloud? Without having to rewrite a single line of code, or without having to rewrite all of it, right? That's another one. And last but not least, the one that we're also hearing a lot about is, how do I extend my current applications by using cloud native services, that's available on public cloud? So those are four, there's many more, of course. But in terms of workloads, I mentioned two examples, right? VDI, which is Virtual Desktop Infrastructure, and is a computing, and also databases. More and more of our customers, don't want to invest in again having, on-premises data center assets sitting there idly. And, wait for when the capacity surges, the demand for capacity surges, they want to be able to do that in the cloud. So I'd say those are the few use cases and workloads. One thing I want to go back to what Tarkan was talking about, really their three key reasons, why the current hybrid cloud solutions, haven't really panned out for customers. Number one, it's having a unified management environment across public and private cloud. There's a few solutions out there, but none of them have proved to be simple enough, to actually put into real execution. You know, with Nutanix, the one thing you can do is literally build a hybrid cloud within, under an hour. Under an hour, you can spin up Nutanix Clusters, which you have on-premises, the same exact cluster in Amazon, under one hour. There you go. And you have the same exact management plan, that we offer on-prem, that now can manage your AWS Nutanix Clusters. It's that easy, right? And then, you can easily move your data and applications across, if you choose to. You want to move and burst into public cloud? Do it. You want to keep some stuff on-prem? Do it. If you're going to develop in the cloud, do it. Want to keep production on-prem, do it. Single management plan, seamless mobility. And the third point is about cost. Simplicity of managing the costs, making sure you know, how you're going to incur costs. How about, if you can hibernate your AWS cluster when you're not using it? We allow the... We have the capability now in our software to do that. How about knowing, where to place which workload. Which workload goes into public cloud, which stays on-premises. We have an amazing tool called beam, that gives the customers that ability to assess, which is the right cloud for the right workload. So I can go on and on about this. You know, we've talked to so many customers, but this is in a nutshell. You know, the use cases and workloads that we are delivering to customers right out the gate. >> Well, Monica, I'd love to hear a little bit about the customers that have had early access to this. What customer stories can you share? Understand of course? You're probably going to need to anonymize. But, I'd like to understand, how they've been leveraging clusters, the value that they're getting from it. >> Absolutely. We've been working with a number of customers. And I'll give you a few examples. There's a customer in Australia, I'll start with that. And they basically run a big event that happens every five years for them. And that they have to scale something to 24 million people. Now imagine, if they have to keep capacity on site, anticipating the needs for five years in a row, well, they can't do that. And the big event is going to happen next year for them. So they are getting ready with now clusters, to really expand the VDI environments into the cloud, in a big way with AWS. So from Nutanix on-prem to AWS, and expand VDI and burst into the cloud. So that's one example. That's obviously when you have an event-driven capacity bursting into the cloud. Another customer, who is in the insurance business. For them, DR is of course very important. I mean, DR is important for every industry in every business. But for them, they realize that they need to be able to, transparently run the applications in the case of a disaster on the cloud. So they've been using non Nutanix Clusters with AWS to do that. Another customer is looking at lifting and shifting some of the database applications into, AWS with Nutanix, for example. And then we have yet another customer who's looking at retiring, their a part of the data center estate, and moving that completely to AWS, with Nutanix as a backbone, Nutanix Clusters as a backbone. I mean, and we have tons of examples of customers who during COVID, for example, were able to burst capacity, and spin up hundreds and thousands of remote employees, using clusters into AWS cloud. Using Citrix also by the way, as the desktop provider. So again, I can go on, we have tons of customers. There's obviously a big demand for the solution. Because now it's so easy to use. We have customers, really surprised going, "Wait, I now have built a whole hybrid card within an hour. And I was able to scale from, six nodes, to 60 nodes, just like that, on AWS cloud from on-prem six nodes, to 16 in AWS cloud. Our customers are really, really pleasantly surprised with the ease of use, and how quickly they can scale, using clusters in AWS. >> Yeah. Tarkan I have to imagine that, this is a real change for the conversation you have with customers. I mean, Nutanix has been partner with AWS for a number of years. I remember the first time that I saw Nutanix, at the reinvent show. But, cloud is definitely front and center, in a lot of your customer's conversations. So, with your partners, with your customers, has to be just a whole different aspect, to the conversations that you can have. >> Actually Stu, as you heard from Monica too. As I mentioned earlier, this is not just a destination for the customers, right? I know you using these buzzwords, at the end of day, there's an open end model. If it's an open end model they want to take advantage of, to cut costs and do more with less. So in that context, as you heard, even in this conversation, there is many pinpoint in this. Like again, being able to move the workloads from location to location, cost optimize those things, provide a streamlined operations. Again, as Monica suggested, making the apps, and the data relating those apps mobile, and obviously provide built-in networking capabilities. All those capabilities make it easier for them to cut costs. So we're hearing constantly, from the enterprises is small and large, private sector and public sector, nothing different. Clearly they have options. They want to have the freedom of choice. Some of these workloads are going to run on-prem, some of them off prem. And off prem is going to have, tons of different radiations. So in that context, as I mentioned earlier, we have our own cloud as well. We provide 20 plus skews to 17,000 customers around the world. It's a $2 billion software business run rate is as you know. And, a lot of those questions on-prem customers now, also coming to our own cloud services. With cloud partners, we have our own cloud services, with our own billing, payments, logistics, and service capabilities. With a credit card, you can actually, you can do DR. (mumbles) a service to Nutanix itself. But some of these customers also want to go be able to go to AWS, or Azure, or to a local service provider. Sometimes it's US companies, we think US only. But think about this, this is a global phenomenon. I have customers in India. We have customers in Australia as Monica talked about. In China, in Japan, in Germany. And some of these enterprise customers, public sector customers, they want to DR, Disaster Recovery as a service to a local service provider, within the country. Because of the new data governance, laws and security concerns, they don't want the data and us, to go outside of the boundaries of the country. In some cases, in the same continent, if you're in Switzerland, not even forget about the country, the same city. So we want to make sure, we give capabilities for customers, use the cloud as an operating model the way they want. And as part of this, just you know Stu, you're not alone in this, we can not do this alone. We have, tremendous level of partner support as you're going to see in the new announcements. From HP as one of our key partners, Lenovo, AMD, Intel, Fujitsu, Citrix for end user computing. You're partnering with Palo Alto networks for security, Azure partners, as you know we support (indistinct). We have partners like Red Hat, whose in tons of work in the Linux front. We partnered with IBM, we partner with Dell. So, the ecosystem makes it so much easier for our customers, especially with this pandemic backdrop. And I think what you're going to see from Nutanix, more partners, more customer proof points, to help the customers innovate the cut costs, in this difficult backdrop. Especially for the next 24 months, I think what you're going to see is, tremendous so to speak adoption, of this multicloud approach that you're focusing on right now. >> Yeah, and let me add, I know our partner list is long. So Tarkan also, we have the global size, of course. The WebPros, and HCL, and TCS, and Capgemini, and Zensar, you name it all. We're working with all of them to bring clusters based solutions to market. And, for the entire Nutanix stack, also partners like Equinix and Yoda. So it's a long list of partnerships. The one thing I did want to bring up Stu, which I forgot to mention earlier, and Tarkan reminded me is a superior architecture. So why is it that Nutanix can deliver this now to customers, right? I mean, our customers have been trying to build hybrid cloud for a little while now, and work across multiple clouds. And, we know it's been complex. The reason why we are able to deliver this in the way we are, is because of our architecture. The way we've architected clusters with AWS is, it's built in native network integration. And what that means is, if your customer and end user who's a practitioner, you can literally see the Nutanix VMs, in the same space as Amazon VMs. So for a customer, it's in the exact same space, it's really easy to then use other AWS services. And we bypass any, complex and latency issues with networking, because we are exactly part of AWS VPC for the customer. And also, the customers can use by the way, the Amazon credits, with the way we've architected this. And we allow for bringing your own license, by the way. That's the other true part about simplicity is, same license that our customers use on-premises today for Nutanix, can be brought exactly the same way to AWS, if they choose to. And now of course, we do also offer other licensing models that are cloud only. But I want to point out that DVIOL is something that we are very proud of. It's truly enabling, bring your own license to AWS cloud in this case. >> Well, it's interesting, Monica. Of course, one of the things everybody's watched of Nutanix over the last few years is that move, from an appliance primarily to a software model. And, as an industry as a whole, it's much more moving to the cloud model for pricing. And it sounds like, that's the primary model with some flexibility and options that you have, when you're talking about the cluster solution here, is that correct? >> Yeah, we also offer the pay as you go model of course, and cloud as popular. So, customers can decide they just want to pay for the amount they use, that's fine. Or they can bring their existing on-prem license, to AWS. Or we also have a commit model, where they commit for a certain capacity for the year, and they go with that. So we have two or three different kinds of models. Again, going with the freedom of choice for our customers. We offer them different models they can choose from. But to me, the best part is to bring your own license model. That's again, a true hybrid pricing model here. They can choose to use Nutanix where they want to. >> Yeah. Well, and Monica, I'm glad you brought up some of the architectural pieces here. 'Cause you talked about all the partners that you have out there. If I'm sitting in the partner world, I've been heard nothing over the last few years, but I've been inundated by all of the hybrid solutions. So, every public cloud provider, including AWS now, is talking about hybrid solutions. You've got virtualization players, infrastructure players, all talking out there. So, architecture you talked a bit about. Anything else, key differentiators that you want people to understand, as what sets Nutanix apart from the crowd, when it comes to hybrid cloud. >> Well, like I said, it's because of our architecture, you can build a hybrid cloud in under an hour. I mean, prove to me if you can do with other providers. And again, I don't mean that, having that ego. But really, I mean, honestly for our customers, it's all about how can we, speed up a customer's experience to cloud. So, building a cloud under an hour, being able to truly manage it with a single plan, being able to move apps and data, with one click in many cases. And last but not least, the license portability. All of that together. I think the way, (indistinct) I've talked about this as, we may not have been the first to market, but we believe they are the best to market in this space today. That's what I would say. >> Tarkan and I'd love to hear a little bit of the vision. So, with Monica kind of alluded to, anybody that kind of digs underneath the covers is, it's bare metal offerings from the cloud providers that are enabling this technology. There was a certain partnership that AWS had, that enabled this, and now you're taking advantage of it. What do you feel when you look at clusters going forward, give us a little bit what should we be looking for, when it comes to AWS and maybe even beyond. >> Thank you Stu. Actually, is spot on question. Most companies in the space, they follow these buzzwords, right? (indistinct) multicloud. And when you killed on, you and you find out, okay, you support two cloud services, and you actually own some kind of a marketplace. And you're one of the 19,000 services. We don't see this as a multicloud. Our view is, complete freedom of choice. So our vision includes a couple of our private clouds, government clouds success with our customers. We've got enterprise commercial and public sector customers. Also delivered to them choice, with Nutanix is own cloud as I mentioned earlier. With our own billing payment, we're just as capable starting with DR as a service, Disaster Recovery as a service. But take that to next level, the database as a service, with VDI based up as a service, and other services that we deliver. But on top of that also, as Monica talked about earlier, partnerships we have, with service providers, like Yoda in India, a lot going on with SoftBank in Japan, Brooklyn going on with OBH in France. And multiple countries that we are building this XSP (indistinct) telco relationships, give those international customers, choice within that own local region, in their own country, in some cases in their city, where they are, making sure the network latency is not an issue. Security, data governance, is not an issue. And obviously, third leg of this multilayer stool is, hyperscalers themselves like AWS. AWS has been a phenomenal partner, working with Doug (indistinct), Matt Garmin, the executive team under Andy Jassy and Jeff Bezos, biggest super partners. Obviously, that bare metal service capability, is huge differentiator. And with the typical AWS simplicity. And obviously, with Nutanix simplicity coming together. But given choice to our customers as we move forward obviously, our customer set a multicloud strategy. So I'm reading an amazing book called Silk Roads. It's an amazing book. I strongly suggest you all read it. It's all talking about partnerships. Throughout the history, those empires, those countries who have been successful, partnered well, connect the dots well. So that's what we're trying to learn from our own history. Connecting dots with the customers and partners as we talked about earlier. Working with companies that with Wipro. And we over deliver to the end user computer service called, best of a service door to desk. Database as a service, digital data services get that VA to other new services started in HCL and others. So all these things come together as a complete end to end strategy with our partners. So we want to make sure, as we move forward in upcoming weeks and months, you're going to see, these announcements coming up, one partner at a time. And obviously we are going to measure success, one customer at a time as we more forward with the strategy. >> All right. So Monica, you mentioned that if you were an existing Nutanix customer, you can spin up in the public cloud, in under an hour. I guess final question I have for you is, number one, if I'm not yet a Nutanix customer, is this something I could start in the public cloud. and leverage some capabilities? And, whether I'm an existing customer or a prospect, how do I get started with Nutanix Clusters? >> Absolutely. We are all about making it easy for our customers to get started. So in fact, I know seeing is believing. So if you go to nutanix.com today, you'll see we have a link there for something called a test drive. So we are giving our prospects, and customers the ability to go try this out. Either just take a tour, or even do a 30 day free trial today. So they can try it out. They can just get spun up in the cloud completely, and then connect to on-premises if they choose to. Or just, if they choose to stay in public cloud only with Nutanix, that's absolutely the customer choice. And I would say this is really, only the beginning for us as Tarkan was saying. I mean, I'm just really super excited about our future, and how we are going to enable customers, to use cloud for innovation going forward. In a really simple, manner that's cost efficient for our customers. >> All right. Well, Monica and Tarkan, thank you so much for sharing the updates. Congratulations to the team on bringing this solution out. And as you said, just the beginning. So, we look forward to, talking to you, your partners, and your customers going forward. >> Thank you so much. >> Thank you Stu. Thank you, Monica. >> Hi, and welcome back. We've just heard Nutanix's announcement about Nutanix Clusters on AWS, from Monica and Tarkan, And, to help understand some of the specific implications for the Asia Pacific and Japan region. Happy to welcome Justin Hurst, who is the CTO, for APJ with Nutanix. Justin, thanks for joining us. >> Well, thanks Stu. Thanks for having me. >> Absolutely. So, we know Justin of course, 2020, has had a lot of changes, for everyone globally. Heard some exciting news from your team. And, wondering if you can bring us inside the APJ region. And what will the impact specifically be for your customers in your region? >> Yeah, let's say, that's a great question. And, it has been a tremendously unusual year, of course, for everyone. We're all trying, to figure out how we can adapt. And how we can take this opportunity, to not only respond to the situation, but actually build our businesses in a way, that we can be more agile going forward. So, we're very excited about this announcement. And, the new capabilities it's going to bring to our customers in the region. >> Justin, one of the things we talk about is, right now, there's actually been an acceleration of how customers are looking to On-Ramp to the cloud. So when you look at the solution, what's the operational impact of Nutanix Clusters? And that acceleration to the cloud? >> Well, sure. And I think that, is really what we're trying to accomplish here, with this new technology is to take away a lot of the pain, in onboarding to the public cloud. For many customers I talk to, the cloud is aspirational at this point. They may be experimenting. They may have a few applications they've, spun up in the cloud or using a SaaS service. But really getting those core applications, into the public cloud, has been something they've struggled with. And so, by harmonizing the control plan and the data plan, between on-premises and the public cloud, we just completely remove that barrier, and allow that mobility, that's been, something people have really been looking forward to. >> All right, well, Justin, of course, the announcement being with AWS, is the global leader in public cloud. But we've seen the cluster solution, when has been discussed in earlier days, isn't necessarily only for AWS. So, what can you tell us about your customer's adoption with AWS, and maybe what we should look at down the road for clusters with other solutions? >> Yeah, for sure. Now of course, AWS is the global market leader, which is why we're so happy to have this launch event today of clusters on AWS. But with many of our customers, depending on their region, or their regulatory requirements, they may want to work as well, with other providers. And so when we built the Nutanix cluster solution, we were careful not to lock in, to any specific provider. Which gives us options going forward, to meet our customer demands, wherever they might be. >> All right. Well, when we look at cloud, of course, the implications are one of the things we need to think about. We've seen a number of hybrid solutions out there, that haven't necessarily been the most economical. So, what are the financial considerations, when we look at this solution? >> Yeah, definitely. I think when we look at using the public cloud, it's important not to bring along, the same operational mindset, as traditional on-premise infrastructure. And that's the power of the cloud, is the elasticity. And the ability to burst workloads, to grow and to shrink as needed. And so, to really help contain those costs, we've built in this amazing ability, to hibernate workloads. So that customers can run them, when they need them. Whether it's a seasonal business, whether it's something in education, where students are coming and going, for different terms. We've built this functionality, that allows you to take traditional applications that would normally run on-premises 24/7. And give them that elasticity of the public cloud, really combining the best of both worlds. And then, building tooling and automation around that. So it's not just guesswork. We can actually tell you, when to spin up a workload, or where to place a workload, to get the best financial impact. >> All right, Justin, final question for you is, this has been the works on Nutanix working on the cluster solution world for a bit now. What's exciting you, that you're going to be able to bring this to your customers? >> Yeah. There's a lot of new capabilities, that get unlocked by this new technology. I think about a customer I was talking to recently, that's expanding their business geographically. And, what they didn't want to do, was invest capital in building up a new data center, in a new region. Because here in APJ, the region is geographically vast, and connectivity can vary tremendously. And so for this company, to be able to spin up, a new data center effectively, in any AWS region around the world, really enables them to bring the data and the applications, to where they're expanding their business, without that capital outlay. And so, that's just one capability, that we're really excited about. And we think we'll have a big impact, in how people do business. And keeping those applications and data, close to where they're doing that business. >> All right. Well, Justin, thank you so much for giving us a look inside the APJ region. And congratulations to you and the team, on the Nutanix Clusters announcement. >> Thanks so much for having me Stu. >> All right. And thank you for watching I'm Stu Miniman. Thank you for watching theCUBE. (soft music)

>> From around the globe, it's theCUBE. With digital coverage of a special announcement, brought to you by Nutanix. >> Hi, I'm Stu Miniman. And I want to welcome you to this special event that we are doing with Nutanix. Of course, in 2020 many things have changed and that has changed some of the priorities for many companies out there, acceleration of cloud adoption, absolutely has been there. I've talked to many companies that were dipping their toe or thinking about where they were going to the cloud and of course it's rapidly moved to accelerate to be able to leverage work from home, remote contact centers and the like. So we have to think about how we can accelerate what's happening and make sure that our workforce and our customers are all taken care of. So at one of the front seats of this is of course companies working to help modernize customers out there and Nutanix is part of that discussion. So I want to welcome to join us for this special discussion of cloud and Nutanix, I've two of our CUBE alumnis. First of all, we have Monica Kumar, she's the Senior vice President of Product with Nutanix and Tarkan Maner, who's a relative newcomer, second time on theCUBE in his new role, many-time guest previously. Tarkan is the Chief Commercial Officer with Nutanix. Monica and Tarkan, thank you so much for joining us. >> Thank you so much. So happy to be back on theCUBE. >> Yeah, Thank you. >> All right, so Tarkan as I was teeing up, we know that IT staffs in general, CIO specifically, and companies overall, are under a lot of pressure in general, but in 2020, there are new pressures on them. So why don't you explain to us the special cloud announcement, tell us what's Nutanix's launching and why it's so important today. >> So first of all, thank you. Glad to be here with Monica. Basically, you and I spent some time with a few customers in the past few weeks and months. I'll tell you the things in our industry are changing at a pace that we've never seen before, especially with this pandemic backdrop as we're going through. And obviously all the economic challenges that creates beyond the obviously health challenges and across the globe, all the pain it creates, but also create some opportunities for our customers and partners to deliver solutions to our enterprise customers and commercial customers and public sector customers in multiple industries. From healthcare, obviously very importantly, to manufacturing, to supply chains and to all the other industries, including financial services and public sector again. So in that context and Monica knows this well as she's our leader in our strategy, we're putting lots of effort in this new multi-cloud strategy as a company. As you know Stu well, Nutanix wrote the book in digital infrastructures with its own hyperconverged infrastructure story. Now they're taking that next level via our data center solutions, via DevOps solutions and end user computer solutions now in multi-cloud fashion, working with partners like AWS. So in this launch, we have our new hybrid cloud infrastructure, Nutanix Clusters product now available on AWS. We are super excited. We have more than 20 tech firms and customers and partners at senior executive level support in this big launch. Timing is usually important because of this pandemic backdrop. And the goal is obviously to help our customers save money, focus on what's important for them, save money for them and making sure they streamline their IT operations. So it's a huge launch for us and we're super excited about it. >> Yeah, and the one thing I would add to what Tarkan said Stu is, look, we talked to a lot of customers and obviously cloud is the constant in terms of enabling innovation. But I think more with COVID, what's on top of mind is also how do we use cloud for innovation, but really be intelligent about cost optimization. So with this new announcement, what we're excited about is we're making really a hybrid cloud a reality across public and private cloud, but also making sure customers get the cost efficiency they need when they're deploying the solution. So we are super excited to bring true hybrid cloud offering with AWS to the market today. Well, I can tell you Nutanix Clusters is absolutely one of the exciting technologies I've enjoyed watching and getting ready for. And of course, a partnership with the largest public cloud player out there, AWS, is really important. When I think about Nutanix from the earliest days, the word that we always used for the HCI space in Nutanix specifically, was simplicity. Anybody in the tech space know that true simplicity is really hard to do. When I think about cloud, when I think about multi-cloud, simplicity's not the first thing that I think of. So Tarkan, help us connect, how is Nutanix going to extend the simplicity that it's done for so long now in the data center into places like AWS with this solution? >> So, Stu, you're right on, spot on. Look, Monica and I spend a lot of time with our customers. One thing about an Nutanix executive team we're very customer driven, and I'm not just saying this to make a point. We really spent tons of time with them because our solutions are basically so critical for them to run their businesses. So just recently, I was with a senior executive of an airline right before that Monica and I spent time with one of the largest banks in the world in France, in Paris, right before pandemic, we were actually traveling, talking to not only the CIO, the Chief Operating Officer on one of these huge banks, and the biggest issue was how these companies are trying to basically adjust their plans, business plans. I'm not talking about tech plans, IT plans, the business plans around this backdrop that the economic stress and obviously now pandemic is in a big way. One of the CIOs told me, it was an airline executive, "Look, Tarkan, in the next 12 months, my business might be half of what it is today. And I need to do more with less in so many different ways, while I'm cutting cost." So it's a tough time. So in that context is to, you're actually right, multi-cloud is a difficult proposition, but it's critical for these companies to manage their cost structures across multiple operating models. Cloud to us is not a destination. It's a means to an end. It is an operating model. At the end of the day, the differentiation is through the software. The unique software that we provide from digital infrastructures to deliver end to end discreet data center solutions, DevOps solutions for developers, as well as for end user computing individuals, to make you sure to take advantage of these VDI desktop-as-a-service capability. So in that context, what we're providing now, to these CIOs who are going through this difficult time is a platform in which they can move their workloads from cloud to cloud based on their needs, the freedom of choice. Look, one of these big banks that Monica and I visited in France, huge global bank, they have a workloads on AWS, they have workloads on Azure, they have workloads on Google, they have workloads on Trans Telecom, the local SP, they have workloads in Germany, they have workloads on cloud service providers in Asia, in Taiwan and other locations, On top of that, they're also using Nutanix on-prem as well as Nutanix cloud, our own cloud services for DR. And for them, this is not just a destination, this is an operating model. So the biggest request from them is, "Look, can you guys make this cost effective? Can we use all these operating models and move our data and applications from cloud to cloud?" In simple terms, can we get some flexibility with commits as well as with the credits they paid for so far? And those are the things we're working on, and I'm sure Monica is going to get a little bit more into detail as we talk though this. We're super excited to start this journey with AWS with this launch, but we're not going to stop there. Our goal is, we just discussed it with Monica earlier, provide freedom of choice across multiple clouds both on-prem and off-prem for our customers to cut costs and to focus on what's important for them. >> Yeah, and I would just add to sum it up, we are really simplifying the multi-cloud complexity for our customers. And I can go into more details but that's really the gist of it. Is what Nutanix is doing with this announcement and more coming up in the future. >> Well, Monica, when I think about customers and how do they decide what stays in their data center, what goes into the public cloud, it's really their application portfolio. I need to look at my workloads, I need to look at my skillset. So when I look at the Cluster solution, what are some of the key use cases? What workloads are going to be the first ones that you expect or you're having customers use with it today? >> Sure, and as we talk to customer too, there's clearly few key use cases that they've been trying to build a hybrid strategy around. The first few ones are bursting into cloud. In case of sudden demand, how do I burst and scale my, let's say, VDI environment or database environment into the cloud? So that's clearly one that many of our customers want to be able to do simply and without having to incur this extreme complexity of managing these environments. Number two, it's about DR. And we saw it with COVID, business continuity became a big deal for many organizations. They weren't prepared for it. So the ability to actually spin up your applications and data in the cloud seamlessly in case of a disaster, that's another big use case. The third one, which many customers talk about is can I lift and shift my applications as is into the cloud without having to rewrite a single line of code or without having to rewrite all of it? That's another one. And last but not least, the one that we're also hearing a lot about is how do I extend my current applications by using cloud native services that are available on public cloud? So those are four, there's many more, of course, but in terms of workloads, I mentioned two examples, VDI, which is virtual desktop infrastructure, end user computing and also databases. More and more of our customers don't want to invest, in again, having on premises data center assets, sitting there idly and wait for when the capacity surges, the demand for capacity surges, they want to be able to do that in the cloud. So I'd say those are the few use cases and workloads. One thing I want to go back to, what Tarkan was talking about, really there are three key reasons why the current hybrid cloud solutions haven't really panned out for customers. Number one, it's having a unified management environment across public and private cloud. There's a few solutions out there, but none of them have proved to be simple enough to actually put into real execution. With Nutanix, the one thing you can do is literally build a hybrid cloud within under an hour. Under an hour, you can spin up Nutanix Clusters which you have on premises, the same exact Cluster in Amazon. Under one hour. There you go. And you have the same exact management plane that we offer on-prem that now can manage your AWS Nutanix Clusters. It's that easy, right? And then you can easily move your data and applications across, if you choose to. You want to move and burst into cloud, public cloud? Do it. You want to keep some stuff on-prem? Do it. If you want to develop in the cloud, do it. Want to keep production on-prem, do it. Single management plane, seamless mobility. And the third point is about cost. Simplicity of managing the costs making sure you know how are you going to incur costs? How about if you can hibernate your AWS cluster when you're not using it? We have the capability now in our software to do that. How about knowing where to place, which workload, which workload goes into public node, which stays on-premises. We have an amazing tool called Beam that gives the customers that ability to assess which is the right cloud for the right workload. So I can go on and on about this, we've talked to so many customers, but this is in a nutshell, the use cases and workloads that we are delivering to customers right out the gate. >> Well, Monica, I'd love to hear a little bit about the customers that have had an early access to this. What customer stories can you share? Understand, of course, you're probably going to need to anonymize, but I'd like to understand how they've been leveraging Clusters, the value that they're getting from it. >> Absolutely. We've been working with a number of customers. And I'll give you a few examples. There's a customer in Australia. I'll start with that. And they basically run a big event that happens every five years for them. And that they have to scale something to 24 million people. Now imagine if they have to keep capacity on site, anticipating the needs for five years in a row. Well, they can't do that. And the big event is going to happen next year for them. So they're getting ready with our Clusters to really expand the VDI environments into the cloud in a big way with AWS. So from Nutanix on-prem to AWS and expand VDI and burst into the cloud. So that's one example. That's obviously when you have an event driven capacity bursting into the cloud. Another customer who is in the insurance business. For them DR Is of course very important. I mean, DR is important for every industry and every business, but for them they realize that they need to be able to transparently run their applications in the case of a disaster on the cloud. So they've been using Nutanix Clusters with AWS to do that. Another customer is looking at lifting and shifting some of their database applications into AWS with Nutanix, for example. And then we have yet another customer who's looking at retiring a part of the data center estate and moving that completely to AWS with Nutanix as a backbone, Nutanix Clusters as the backbone. I mean, and we have tons of examples of customers who during COVID, for example, were able to burst capacity and spin up remote, hundreds and thousands of remote employees using Clusters into AWS cloud, using Citrix also by the way, as the desktop provider. So again, I can go on, we have tons of customers. There's obviously a big demand for this solution because now it's so easy to use. We have customers really surprised going, "Wait, I have built a whole hybrid cloud within an hour? And I was able to scale from six nodes to 16 nodes just like that on AWS cloud from on prem six nodes to 16 and AWS cloud? Our customers are really, really pleasantly surprised with the ease of use and how quickly they can scale using Clusters in AWS. >> Yeah, Tarkan, I have to imagine that this is a real change for the conversations that you have with customers. I mean, Nutanix has been partnering with AWS for a number of years. I remember the first time that I saw Nutanix at the re:Invent show, but cloud is definitely front and center in a lot of your customer's conversations. So with your partners, with your customers, has to be just a whole different aspect to the conversations that you can have. >> Absolutely, Stu. As you heard from Monica too, as I mentioned earlier, this is not just a destination for the customers. I know you using these buzzwords, at the end of day, it's an operating model. It's an operating model they want to take advantage of to cut costs and do more with less. So in that context, as you heard even in this conversation, there isn't any pain point in this. Like, again, being able to move the workloads from location to location, cost-optimize those things, provide a streamlined operations, again, as Monica suggested, making the apps and the data related to those apps mobile, and obviously provide built-in networking capabilities, all those capabilities make it easier for them to cut costs. So what we're hearing constantly from the enterprises is, small and large, private sector and public sector, nothing different, clearly they have options, they want to have the freedom of choice, some of these workloads are going to run on-prem, some of them off-prem and off-prem is going to have tons of different variations. So in that context, as I mentioned earlier, we have our own cloud as well. We provide 20 plus SKUs to 17,000 customers around the world. There's a $2 billion software business run rate as you know and a lot of those customers, on-prem customers, now are also coming to our own cloud services with cloud partners we have our own cloud services with our own billing, payments, logistics, and service capabilities, fit a credit card, you can do DR it's actually come with this service to Nutanix itself. But some of these customers also want to be able to go to AWS or Azure or to a local service provider. Sometimes as US companies we think US only, but think about this, this is a global phenomenon. I have customers in India. We have customers in Australia as Monica talked about. In China, in Japan, in Germany. And some of these enterprise customers, public sector customers, they want a DR, Disaster Recovery as a service to a local service provider within the country. Because of the new data governance laws and security concerns, they don't want the data and apps to go outside of the boundaries of the country, in some cases in the same town. If you're in Switzerland, forget about the country, the same city. So we want to make sure we give capabilities to customers, use the cloud as an operating model the way they want. And as part of this, Stu, we're not alone on this. We can not do this alone. We have tremendous level of partner support as you're going to see the announcements from HP as one of our key partners, Lenovo, AMD, Intel, Fujitsu, Citrix for end user computing, we're partnering with Palo Alto Networks for security, a slew of partners, as you know we support VMware ESXi. We have partners like Red Hat who's done tons of work in the Linux front, we partnered with IBM, we partnered with Dell. So the ecosystem makes it so much easier for our customers, especially in this pandemic backdrop. And I think what you're going to see from Nutanix, more partners, more customer proof points to help the customers at end of the day to cut costs in this typical backdrop. Especially for the next 24 months, I think what you're going to see is tremendous, so to speak, adoption of this multi-cloud approach that we're focusing on right now. >> Yeah. And let me add, I know a partner list is long. So, Tarkan also we have the global size, of course, the Wipro and HCL and TCS and Capgemini and Zensar, you name it all. We're working with all of them to bring Clusters based solutions to market. And for the entire Nutanix stack, also partners like Equinix and Yotta. So it's a long list of partnerships. The one thing I did want to bring up Stu which I forgot to mention earlier and Tarkan reminded me, is our superior architecture. So why is it that Nutanix can deliver this now to customers? I mean, our customers have been trying to build hybrid cloud for a little while now and work across multiple clouds and we know it's been complex. The reason why we are able to deliver this in the way we are, is because of our architecture. The way we've architected Clusters with AWS it's a built-in native network integration. And what that means is if your customer and end user who's a practitioner, you can literally see the Nutanix VMs in the same space as Amazon VMs. So for a customer, it's in the exact same space, it's really easy to then use other AWS services and we bypass any complex and latency issues with networking because we're exactly part of AWS VPC for the customer. And also, the customers can use by the way, their Amazon credits with the way we've architected this. We allow for bringing your own license, by the way, that's the other true part about, simplicity is same license that our customers use on-premises today for Nutanix can be brought exactly the same way to AWS, if they choose to. And, of course, we do also offer other licensing models that are cloud only, but I want to point out that BYOL is, is something that we're very proud of. It's truly enabling bring your own license to AWS cloud in this case. >> Well, it's interesting, Monica. Of course, one of the things everybody's watched of Nutanix over the last few years is that move from an appliance primarily to a software model and as an industry as a whole, it's much more moving to the cloud model for pricing. And it sounds like that's the primary model with some flexibility and options that you have when you're talking about the Clusters solution here, is that correct? >> Yeah, we also offer the pay as you go model of course, on cloud it's popular. So customers can decide they just want to pay for the amount they use, that's fine, or they can bring their existing on-prem license to AWS, or we also have a commit model where they commit for a certain capacity for the year and they go with that. So we have two or three different kinds of models. Again, going with the freedom of choice for our customers, we offer them different models they can choose from. But to me, the best part is to bring own license model. That's again, a true hybrid pricing model here. They can choose to use Nutanix where they want to. >> Yeah, well, and, and Monica, I'm glad you brought up some of the architectural pieces here. Because you talked about all the partners that you have out there, if I'm sitting in the partner world, I've been heard nothing over the last few years, but I've been inundated by all the hybrid solutions. So every public cloud provider, including AWS now, is talking about hybrid solutions. You've got virtualization players, infrastructure players, all talking out there. So architecture, you talked a bit about, anything else, key differentiators that you want people to understand as what sets Nutanix apart from the crowd when it comes to hybrid cloud? >> Well, like I said, it's because of our architecture, you can build a hybrid cloud in under an hour. I mean, prove to me if you can do with other providers. And again, I don't mean that, having that ego, but really, honestly for our customers, it's all about how can we speed up a customer's experience to cloud. So building a cloud under an hour, being able to truly manage it with a single plane, being able to move apps and data with one click in many cases and last but not least the license portability, all of that together, I think the way, Dheeraj our CEO sums it and Tarkan have talked about this is, we may not have been the first to market, but we believe we're the best to market in this space today. That's what I would say. >> Now, Tarkan, I'd love to hear a little bit of the vision. So as Monica alluded to, anybody that digs underneath the covers it's bare metal offerings from the cloud providers that are enabling this technology. There was a certain partnership that AWS had that enabled this and now you're taking advantage of it. When you look at Clusters going forward, give us a little bit, what should we be looking for when it comes to AWS and maybe even beyond? >> Thank you, Stu, actually spot on question. Most companies in this space, they follow these buzzwords like, "Oh, multi-cloud." And when you drill-down and you find out, okay, you support two cloud services and you actually own some kind of a marketplace and you're one of the 19,000 services, you don't see this as a multi-cloud. Our view is complete freedom of choice. So our vision includes a couple of our private clouds, government cloud success with our customers, with enterprise, commercial and public sector customers also delivered to them choice with Nutanix's own cloud, as I mentioned earlier, with our own billing payment, logistics capabilities starting with DR as a service, disaster recovery as a service. But take that next level, the database as a service, VDI, desktop as a service and other services that we deliver. But on top of that, also as Monica talked about earlier, partnerships we have with service providers like Yotta in India, work going on with SoftBank in Japan, work going on with OVH in France and multiple countries that we're building this XSP service provider- customer relationships, give those international customers choice within their own local region in their own country, in some cases, even in their city where they are making sure the network latency is not an issue, security, data governance is not an issue. And obviously, third leg of this multi legged stool is hyperscalers themselves, like AWS. AWS has been a phenomenal partner working with Doug Hume, Matt Garmin, the executive team under Andy Jassy and Jeff Bezos they're just super partners, obviously that bare metal service capability is huge differentiator and typical AWS simplicity, and obviously data simplicity coming together, but giving choice to our customers has we move forward, obviously our customers have a multi-cloud strategy. So I'm reading an amazing book called "Silk Roads." It's an amazing book. I strongly suggest you all read it. It's all talking about partnerships. Throughout history, those empires, those countries who've been successful, partnered well, connect dots well. So that's what we're trying to learn from our own history, connecting the dots with the customers and partners as we talked about earlier, working with companies like Wipro and we all deliver an end user computing service called desktop-as-a-service virtual desk, database as a service, digital data services we have, few other new services started in HCL and others. So all these things come up together as a complete end to end strategy with our partners. So we want to make sure as we move forward, in upcoming weeks and months, your going to see these announcements coming up one partner at a time and obviously we're going to measure success one customer at a time as we move forward with this strategy. >> All right, so Monica, you mentioned that if you were an existing Nutanix customer, you can spin up in the public cloud in under an hour, I guess final the question I have for you is number one, if I'm not yet a Nutanix customer, is this something I could start in the public cloud and leverage some capabilities and whether I'm an existing customer or a prospect, how do I get started with Nutanix Clusters? >> Absolutely, we're all about making it easy for our customers to get started. So in fact, I know seeing is believing, so if you go to nutanix.com today, you'll see we have a link there for something called a test drive. So we are giving our prospects and customers the ability to go try this out, either just take a tour or even do a 30 day free trial today. So they can try it out, they can just get spun up in the cloud completely and then connect on premises if they choose to, or if they just sustain public cloud only with Nutanix, that's absolutely the customer choice. And I would say, this is really only the beginning for us as Tarkan saying. Our future, I mean, I'm just really super excited about our feature and how we're going to enable customers to use cloud for innovation going forward in a really simple manner that's cost efficient for our customers. >> All right. Well, Monica and Tarkan, thank you so much for sharing the updates. Congratulations to the team on bringing this solution out. And as you said, just the beginning so we look forward to talking to you, your partners and your customers going forward. >> Thank you so much. >> Thank you, Stu, thank you, Monica. >> All right, for Tarkan and Monica, I'm Stu Miniman with theCUBE. Thank you as always for watching this special Nutanix announcement. (upbeat music)

>> From around the globe, it's theCUBE. With digital coverage, have a special announcement, brought to you by Nutanix. >> Hi, I'm Stu Miniman. And I want to welcome you to this special event that we are doing with Nutanix. Of course, in 2020 many things have changed and that has changed some of the priorities for many companies out there, acceleration of cloud adoption, absolutely have been there. I've talked to many companies that were dipping their toe or thinking about where they were going to the cloud and of course it's rapidly moved to accelerate to be able to leverage work from home, remote contact centers and the like. So we have to think about how we can accelerate what's happening and make sure that our workforce and our customers are all taken care of. So at one of the front seats of this is of course companies working to help modernize customers out there and Nutanix is part of that discussion. So I want to welcome to join us for this special discussion of cloud and Nutanix, I've two of our CUBE alumnis. First of all, we have Monica Kumar, she's the Senior vice President of Product with Nutanix and Tarkan Maner, who's a relative newcomer, second time on theCUBE in his new role, many-time guest previously. Tarkan is the Chief Commercial Officer with Nutanix. Monica and Tarkan, thank you so much for joining us. >> Thank you so much. So happy to be back on theCUBE. >> Yeah, Thank you. >> All right, so Tarkan as I was teeing up, we know that IT staffs in general, CIO specifically, and companies overall, are under a lot of pressure in general, but in 2020, there are new pressures on them. So why don't you explain to us the special cloud announcement, tell us what's Nutanix's launching and why it's so important today. >> So first of all, thank you. Glad to be here with Monica. Basically, you and I spent some time with a few customers in the past few weeks and months. I'll tell you the things in our industry are changing at a pace that we've never seen before, especially with this pandemic backdrop as we're going through. And obviously all the economic challenges that creates beyond the obviously health challenges and across the globe, all the pain it creates, but also create some opportunities for our customers and partners to deliver solutions to our enterprise customers and infomercial customers and public sector customers in multiple industries. From healthcare, obviously very importantly, to manufacturing, to supply chains and to all the other industries, including financial services and public sector again. So in that context and Monica knows this well as she's our leader in our strategy, we're putting lots of effort in this new multi-cloud strategy as a company. As you know too well, Nutanix wrote the book in digital infrastructures with its own hybrid infrastructure story. Now they're taking that next level via our data center solutions, via DevOps solutions and end user computer solutions now in multi-cloud fashion, working with partners like AWS. So in this launch, we have our new multi-cloud infrastructure, clusters product now available on AWS. We are super excited. We have more than 20 tech firms and customers and partners at senior executive level support in this big launch. Timing is usually important because of this pandemic backdrop. And the goal is obviously to help our customers save money, focus on what's important for them, save money for them and making sure they streamline their IT operations. So it's a huge launch for us and we're super excited about it. >> Yeah, and the one thing I would add to what Tarkan said too is, look, we talked to a lot of customers and obviously cloud is the constant in terms of enabling innovation. But I think more with COVID, what's on top of mind is also how do we use cloud for innovation, but really be intelligent about cost optimization. So with this new announcement, what we're excited about is we're making really a hybrid cloud a reality across public and private cloud, but also making sure customers get the cost efficiency they need when they're deploying the solution. So we are super excited to bring true hybrid cloud offering with AWS to the market today. >> Well, I can tell you Nutanix cluster is absolutely one of the exciting technologies I've enjoyed watching and getting ready for. And of course, a partnership with the largest public cloud player out there, AWS, is really important. When I think about Nutanix from the earliest days, the word that we always used for the HI space in Nutanix specifically, was simplicity. Anybody in the tech space know that true simplicity is really hard to do. When I think about cloud, when I think about multi-cloud, simplicity's not the first thing that I think of. So Tarkan, help us connect, how is Nutanix going to extend the simplicity that it's done for so long now in the data center into places like AWS with this solution? >> So, Stu, you're right on, spot on. Look, Monica and I spend a lot of time with our customers. One thing about an Nutanix executive team we're very customer driven, and I'm not just saying this to make a point. We really spent tons of time with them because our solutions are basically so critical for them to run their businesses. So just recently, I was with a senior executives of an airline right before that Monica and I spent actually with one of the largest banks in the world in France, in Paris, right before pandemic, we were actually traveling, talking to not only the CIO, the Chief Operating Officer on one of these huge banks, and the biggest issue was how these companies are trying to basically adjust their plans, business plans. I'm not talking about tech plans, IT plans, the business plans around this backdrop that the economic stress and obviously now pandemic is in a big way. One of the CIOs told me, it was an airline executive, "Look, Tarkan, in the next 12 months, my business might be half of what it is today. And I need to do more with less in so many different ways, while I'm cutting cost." So it's a tough time. So in that context is to, you're actually right, multi-cloud is a difficult proposition, but it's critical for these companies to manage their cost structures across multiple operating models. Cloud to us is not a destination. It's a means to an end. It is an operating model. At the end of the day, the differentiation is to the software. The unique software that we provide from digital infrastructures to deliver end to end discreet data center solutions, DevOps solutions for developers, as well as for end user computing individuals, to make you sure to take advantage of these EDI disability service topic capability. So in that context, what we're providing now, to these CIOs who are going through this difficult time is a platform in which they can move their workloads from cloud to cloud based on their needs, the freedom of choice. Look, one of these big banks that Monica and I visited in France, huge global bank, they have a workloads on AWS, they have workloads on Azure, they have workloads on Google, they have workloads on (mumbles), the local XP, they have workloads in Germany, they have workloads on cloud service providers in Asia, in Taiwan and other locations, On top of that, they're also using Nutanix on Prem as well as Nutanix cloud, our own cloud services for BR. And for them, this is not just a destination, this is an operating model. So the biggest request from them is, "Look, can you guys make this cost effective? Can we use all these operating models and move our data and applications from cloud to cloud?" In simple terms, can we get some flexibility with commits as well as with the credits they paid for so far? And those are the things we're working on, and I'm sure Monica is going to get a little bit more into detail as we talk though this. We're super excited to start this journey with AWS with this launch, but we're not going to stop there. Our goal is, we just discussed it with Monica earlier, provide freedom of choice across multiple clouds both on Prem and off Prem for our customers to cut costs and to focus on what's important for them. >> Yeah, and I would just add to sum it up, we are really simplifying the multi-cloud complexity for our customers,. And I can go into more details but that's really the gist of it. Is what Nutanix is doing with this announcement and more coming up in the future. >> Well, Monica, when I think about customers and how do they decide what stays in their data center, what goes into the public cloud, it's really their application portfolio. I need to look at my workloads, I need to look at my skillset. So when I look at the cluster solution, what are some of the key use cases? What workloads are going to be the first ones that you expect or you're having customers use with it today? >> Sure, and as we talk to customer too, there's clearly few key use cases that they've been trying to build a hybrid strategy around. The first few ones are bursting into cloud. In case of sudden demand, how do I burst and scale my let's say a VDI environment or database environment into the cloud? So that's clearly one that many of our customers want to be able to do simply and without having to incur this extreme complexity of managing these environments. Number two, it's about DR. And we saw it with COVID, business continuity became a big deal for many organizations. They weren't prepared for it. So the ability to actually spin up your applications and data in the cloud seamlessly in case of a disaster, that's another big use case. The third one, which many customers talk about is can I lift and shift my applications as is into the cloud without having to rewrite a single line of code or without having to rewrite all of it? That's another one. And last but not least, the one that we're also hearing a lot about is how do I extend my current applications by using cloud native services that's available on public cloud? So those are four, there's many more, of course, but in terms of workloads, I mentioned two examples, VDI, which is virtual desktop infrastructure, and there's a computing and also databases. More and more of our customers don't want to invest, in again, having on premises data center assets, sitting there idlely and wait for when the capacity surges, the demand for capacity surges, they want to be able to do that in the cloud. So I'd say those are the few use cases and workloads. One thing I want to go back to, what Tarkan was talking about, really there're three key reasons why the current hybrid cloud solutions haven't really panned out for customers. Number one, it's having a unified management environment across public and private cloud. There's a few solutions out there, but none of them have proved to be simple enough to actually put into real execution. With Nutanix, the one thing you can do is literally build a hybrid cloud within under an hour. Under an hour, you can spin up new data clusters which you have on premises, the same exact cluster in Amazon. Under one hour. There you go. And you have the same exact management plan that we offer on Prem that now can manage your AWS Nutanix clusters. It's that easy, right? And then you can easily move your data and applications across, if you choose to. You want to move and burst into cloud, public cloud? Do it. You want to keep some stuff on prem? Do it. If you want to develop in the cloud, do it. Want to keep production on prem, do it. Single management plan, seamless mobility. And the third point is about cost. Simplicity of managing the costs making sure you know how are you going to incur costs? How about if you can hibernate your AWS cluster when you're not using it? We have the capability now in our software to do that. How about knowing where to place, which workload, which workload goes into public node, which stays on premises. We have an amazing tool called beam that gives the customers that ability to assess which is the right cloud for the right workload. So I can go on and on about this, we've talked to so many customers, but this is in a nutshell, the use cases and workloads that we are delivering to customers right out the gate. >> Well, Monica, I'd love to hear a little bit about the customers that have had an early access to this. What customer stories can you share? Understand, of course, you're probably going to need to anonymize, but I'd like to understand how they've been leveraging clusters, the value that they're getting from it. >> Absolutely. We've been working with a number of customers. And I'll give you a few examples. There's a customer in Australia. I'll start with that. And they basically run a big event that happens every five years for them. And that they have to scale something to 24 million people. Now imagine if they have to keep capacity on site, anticipating the needs for five years in a row. Well, they can't do that. And the big event is going to happen next year for them. So they're getting ready with our clusters to really expand the VDI environments into the cloud in a big way with AWS. So from Nutanix on prem to AWS and expand VDI and burst into the cloud. So that's one example. That's obviously when you have an event driven capacity bursting into the cloud. Another customer who is in the insurance business. For them DR Is of course very important. I mean, DR is important for every industry and every business, but for them they realize that they need to be able to transparently run their applications in the case of a disaster on the cloud. So they've been using Nutanix clusters with AWS to do that. Another customer is looking at lifting and shifting some of their database applications into AWS with Nutanix, for example. And then we have yet another customer who's looking at retiring a part of the data center estate and moving that completely to AWS with Nutanix as a backbone, Nutanix clusters as the backbone. I mean, and we have tons of examples of customers who during COVID, for example, were able to burst capacity and spin up remote, hundreds and thousands of remote employees using clusters into AWS cloud, using Citrix also by the way, as the desktop provider. So again, I can go on, we have tons of customers. There's obviously a big demand for this solution because now it's so easy to use. We have customers really surprised going, "Wait, I have built a whole hybrid cloud within an hour? And I was able to scale from six nodes to 16 nodes just like that on AWS cloud from on prem six nodes to 16 and AWS cloud? Our customers are really, really pleasantly surprised with the ease of use and how quickly they can scale using clusters in AWS. >> Yeah, Tarkan, I have to imagine that this is a real change for the conversations that you have with customers. I mean, Nutanix has been partnering with AWS for a number of years. I remember the first time that I saw Nutanics at the re:Invent show, but cloud is definitely front and center in a lot of your customer's conversations. So with your partners, with your customers, has to be just a whole different aspect to the conversations that you can have. >> Absolutely, Stu. As you heard from Monica too, as I mentioned earlier, this is not just a destination for the customers. I know you using these buzzwords, at the end of day, it's an operating model. It's an operating model they want to take advantage of to cut costs and do more with less. So in that context, as you heard even in this conversation, there's any pain point in this. Like, again, being able to move the workloads from location to location, cost-optimize those things, provide a streamlined operations, again, as Monica suggested, making the apps and the data related to those apps mobile, and obviously provide built-in networking capabilities, all those capabilities make it easier for them to cut costs. So what we're hearing constantly from the enterprises is, small and large, private sector and public sector, nothing different, clearly they have options, they want to have the freedom of choice, some of these workloads are going to run on prem, some of them off prem and off prem is going to have tons of different reactions. So in that context, as I mentioned earlier, we have our own cloud as well. We provide 20 plus skells to 17,000 customers around the world. There's a $2 billion software business run rate as you know and a lot of those customers, prem customers, now are also coming to our own cloud services with cloud partners we have our own cloud services with our own billing, payments, logistics, and service capabilities, fit a credit card, you can do DR it's actually come with this service to Nutanix itself. But some of these customers also want to go be able to go to AWS or Azure or to a local service provider. Sometimes as US companies we think US only, but think about this, this is a global phenomenon. I have customers in India. We have customers in Australia as Monica talked about. In China, in Japan, in Germany. And some of these enterprise customers, public sector customers, they want a DR, Disaster Recovery as a service to a local service provider within the country. Because of the new data governance laws and security concerns, they don't want the data and us to go outside of the boundaries of the country, in some cases in the same town. If you're in Switzerland, forget about the country, the same city. So we want to make sure we give capabilities to customers, use the cloud as an operating model the way they want. And as part of this, Stu, we're not alone on this. We can not do this alone. We have tremendous level of partner support as you're going to see the announcements from HP as one of our key partners, Lenovo, AMD, Intel, Fujitsu, Citrix for end user computing, we're partnering with Palo Alto Networks for security, a slew partners, as you know we support VMware is excited, We have partners like Red Hat who's done tons of work in the Linux front, we partnered with IBM, we partnered with Dell. So the ecosystem makes it so much easier for our customers, especially in this pandemic backdrop. And I think what you're going to see from Nutanix, more partners, more customer proof points to help the customers at of the day to cut costs in this typical backdrop. Especially for the next 24 months, I think what you're going to see is tremendous, so to speak, adoption of this multi-cloud approach that we're focusing on right now. >> Yeah. And let me add, I know a partner list is long. So Tarkan also, we have the global size, of course, the WebPros and FCL and TCS and Capgemini and Zinsser, you name it all. We're working with all of them to bring clusters based solutions to market. And for the entire Nutanix stack, also partners like Equinix and Yoda. So it's a long list of partnerships. The one thing I did want to bring up still, which I forgot to mention earlier and Tarkan reminded me, is our superior architecture. So why is it that Nutanix can deliver this now to customers? I mean, our customers have been trying to build hybrid cloud for a little while now and work across multiple clouds and we know it's been complex. The reason why we are able to deliver this in the way we are, is because of our architecture. The way we've architected clusters with AWS it's built-in native network integration. And what that means is if your customer and end user who's a practitioner, you can literally see the Nutanix VMs in the same space as Amazon VMs. So for a customer, it's in the exact same space, it's really easy to then use other AWS services and we bypass any complex and latency issues with networking because we're exactly part of AWS VPC for the customer. And also, the customers can use by the way, their Amazon credits with the way we've architected this. We allow for bringing your own license, by the way, that's the other true part about, simplicity is same license that our customers use on premises today for Nutanix can be brought exactly the same way to AWS, if they choose to. And, of course, we do also offer other licensing models that are cloud only, but I want to point out that (indistinct) is, is something that we're very proud of. It's truly enabling bring your own license to AWS cloud in this case. >> Well, it's interesting, Monica. Of course, one of the things everybody's watched of Nutanix over the last few years is that move from an appliance primarily to a software model and as an industry as a whole, it's much more moving to the cloud model for pricing. And it sounds like that's the primary model with some flexibility and options that you have when you're talking about the cluster solution here, is that correct? >> Yeah, we also offer the pay as you go model of course, on cloud it's popular. So customers can decide they just want to pay for the amount they use, that's fine, or they can bring their existing on prem license to AWS, or we also have a commit model where they commit for a certain capacity for the year and they go with that. So we have two or three different kinds of models. Again, going with the freedom of choice for our customers, we offer them different models they can choose from. But to me, the best part is to bring own license model. That's again, a true hybrid pricing model here. They can choose to use Nutanix where they want to. >> Yeah, well, and, and Monica, I'm glad you brought up some of the architectural pieces here. 'Cause you talked about all the partners that you have out there, if I'm sitting in the partner world, I've been heard nothing over the last few years, but I've been inundated by all the hybrid solutions. So every public cloud provider, including AWS now, is talking about hybrid solutions. You've got virtualization players, infrastructure players, all talking out there. So architecture, you talked a bit about, anything else, key differentiators that you want people to understand as what sets Nutanix apart from the crowd when it comes to hybrid cloud? >> Well, like I said, it's because of our architecture, you can build a hybrid cloud in under an hour. I mean, prove to me if you can do with other providers. And again, I don't mean that, having that ego, but really, honestly for our customers, it's all about how can we speed up a customer's experience to cloud. So building a cloud under an hour, being able to truly manage it with a single plane, being able to move apps and data with one click in many cases and last but not least the license portability, all of that together, I think the way, Durage RCO sums it and Tarkan have talked about this is, we may not have been the first to market, but we believe we're the best to market in this space today. That's what I would say. >> Now, Tarkan, I'd love to hear a little bit of the vision. So as Monica alluded to, anybody that digs underneath the covers it's bare metal offerings from the cloud providers that are enabling this technology. There was a certain partnership that AWS had that enabled this and now you're taking advantage of it. When you look at clusters going forward, give us a little bit, what should we be looking for when it comes to AWS and maybe even beyond? >> Thank you, Tsu, actually is spot on question. Most companies in this space, they follow these buzzwords like, "Oh, multi-cloud." And when you (indistinct) down and you find out, Okay, you support two cloud services and you actually own some kind of a marketplace and you're one of the 19,000 services, you don't see this as a multi-cloud. Our view is complete freedom of choice. So our vision includes a couple of our private clouds, government cloud success with our customers, with enterprise, commercial and public sector customers also delivered to them choice with Nutanix's own cloud, as I mentioned earlier, with our own billing payment, we'll just escapable these started with DR as a service, disaster recovery as a service. But take that next level, the database as a service, VDI, desktop as a service and other services that we deliver. But on top of that, also as Monica talked about earlier, partnerships we have with service providers like Yoda in India, work going on with SoftBank in Japan, work going on with OVH in France and multiple countries that we're building this XSP service provider- customer relationships, give those international customers choice within their own local region in their own country, in some cases, even in their city where they are making sure the network latency is not an issue, security, data governance is not an issue. And obviously, third leg of this multi legged stool is hyperscalers themselves, like AWS. AWS has been a phenomenal partner working with Hume, Matt Garmin, the executive team under Andy Jassy and Jeff Bezos they're just super partners, obviously that bare metal service capability is huge differentiator and typical AWS simplicity, and obviously data simplicity coming together, but giving choice to our customers has we move forward, obviously our customers have a multi-cloud strategy. So I'm reading an amazing book called "Silk Roads." It's an amazing book. I strongly suggest you all read it. It's all talking about partnerships. Throughout history, those empires, those countries who've been successful, partnered well, connect dots well. So that's what we're trying to learn from our own history, connecting the dots with the customers and partners as we talked about earlier, working with companies like WebPro and we all deliver an end user company service called database service go to desk, database as a service, digital data services with MBA, few other new services started in HCL and others. So all these things come up together as a complete end to end strategy with our partners. So we want to make sure as we move forward, in upcoming weeks and months, your going to see these announcements coming up one partner at a time and obviously we're going to measure success one customer at a time as we move forward with this strategy. >> All right, so Monica, you mentioned that if you were an existing Nutanix customer, you can spin up in the public cloud in under an hour, I guess final the question I have for you is number one, if I'm not yet a Nutanix customer, is this something I could start in the public cloud and leverage some capabilities and whether I'm an existing customer or a prospect, how do I get started with Nutanix clusters? >> Absolutely, we're all about making it easy for our customers to get started. So in fact, I know seeing is believing, so if you go to nutanix.com today, you'll see we have a link there for something called a test drive. So we are giving our prospects and customers the ability to go try this out, either just take a tour or even do a 30 day free trial today. So they can try it out, they can just get spun up in the cloud completely and then connect on premises if they choose to, or if they just sustain public cloud only with Nutanix, that's absolutely the customer choice. And I would say, this is really only the beginning for us as Tarkan saying. Our future, I mean, I'm just really super excited about our feature and how we're going to enable customers to use cloud for innovation going forward in a really simple manner that's cost efficient for our customers. >> All right. Well, Monica and Tarkan, thank you so much for sharing the updates. Congratulations to the team on bringing this solution out. And as you said, just the beginning so we look forward to talking to you, your partners and your customers going forward. >> Thank you so much. >> Thank you, Stu, thank you, Monica. >> All right, for Tarkan and Monica, I'm Stu Miniman with theCUBE. Thank you as always for watching this special Nutanix announcement. (upbeat music)

>>From around the globe. It's the cube with digital coverage of Veem on 2020 brought to you by beam. >>Hi buddy. Welcome back to Veem on 2020. My name is Dave Vellante and you're watching the cubes coverage of EMR. This is the first time we've done it. Virtual VIMANA. We've got the, the Veem power panel, bill large and CEO, Jim Kruger, the CMO, Danny Allen. Who's the CTO and senior vice president product strategy. All I have been on earlier guys. Great to see you. Thanks for coming back. digging out of the power panel. Appreciate it. Good. Thank you. Okay. I want to start off a bill. you're going to get a business update, you know we've so I talk a lot about COVID. We can go back to that, but you guys, Mmm. You know, as a private company, you divulge more information. Yeah. Then most private companies. And we appreciate that as an independent guys, if you would bring up that, that one slide, you know, you shared this publicly well earlier. >>I mean, you guys are in a, okay. Billion in revenue now, 21% annual recurring revenue growth. We're going to 75,000 customers, 97% year on year increase in your universal, uh, license bookings. Mmm. Everything seems to be happening. Bill. What, uh, what can you tell us? Well, we had eight. Yeah. We had a great first quarter also that we kicked off where we had, or a transaction with, um, insight venture partners, which, and written the middle of a right in the middle of that quarter. At the end of it, we had that activity that went on, I think would have disrupted, did the business. It didn't land for Q1, really excited about that. We announced our growth, so that here recently, uh, pumped into our row pumped into our second quarter. We, we managed to transition everybody out of offices. We probably add seven per cent of our work for 75% of our work course. >>It needs to move. Yeah, they did that. We had a fantastic April. We're having a very good may. So it's just a great start, uh, with a great customer base. So I'm really excited about it. Okay. You mentioned insight. We obviously covered that. Mmm. Boarded on that. Okay. Insight. They like growth, you know, not like the old school, private equity, you know, suck money out. They want growth options down the road, personality. Maybe it's a rule of 40 rule, you know, the type of company. So that's gotta be exciting, uh, for you guys and your employees. Yeah. I think it's pretty exciting. We've been around a few of us. Who've been around the insight team since 2002. So, uh, a very well known a group of individuals to us. Yeah. Uh, they are focused in the software space and know the infrastructure space really well. >>Uh, my triple that hour, um, our lead on the insight team and his, um, his staff is that's move into, as we move into it, stepping up and moving into our Andrew very revenue focus versus part of a total contract. Bye. Nice. A nice resource to have for things that we might want to do in the future related acquisitions. So we're really excited about it. I mean, if I'm in VC right now, I'm looking at SAS, I'm looking and the software I'm looking for companies that have a, uh, an annual recurring revenue model I'm looking for adoption then. Okay. Okay. And those kinds of cases. Yeah. Do you guys fit that bill? Yeah. There may be a larger size and obviously the early stage startup, but that's kind of the profile of the the company that you want to invest in, in the 2020s, isn't it? >>Absolutely. And I'd also say it's the kind of company we want to invest in, in the future as we go forward to bring in new technologies and expand markets, addressable market, uh, back to comments, we had discussions owner, what's it look like in 2030? And it's like, yeah. Places we're heading. Yeah. Okay. So Danny, Pat Gelsinger is famous on the cube for saying that, look, if you don't ride the waves, can it be yup. Driftwood. So what are the mega trends that you guys are riding, uh, today and that you're seeing in the future? Good. We'll keep you ahead of the pack. Well, we clearly talk a lot about cloud data management. So act two for us is not just moving from perpetual licensing to subscription and evolving with American at a business level. It's also at a technical level. And so we invested heavily, as you know, we demoed earlier today, Veeam backup for office three six, five version. >>Hi, an important point act two for us is not just product. There's also product delivery. That's version, hi of a relief of a product to chemo three years ago. So the backup profits, three 65, we showed you Veem backup for AWS. And you saw from Anton as well, uh, supporting Google cloud storage and supporting all of the major, um, providers. So for us to not just ride the wave, but actually be ahead of everyone else it's to embrace cloud data management and give the customers what they really need. Well, I think you guys are in a unique position too. I mean, you know, if you're, if you, you guys obviously sell on prem, but if you're, there are not prem infrastructure, the company that really living on box margins, um, you know, you can talk the cloud talk, but it's not necessarily a tailwind. Where are you guys? >>So Danny, how is cloud, wait, how cloud is it tailwind of, you know, versus some of the other legacy players? Well, Veem has always been, we always highlight simple, flexible, reliable, but one of the, the parts of flexible of course, is being software defined. And we've been software defined from the very beginning. And if you're in a world where you have to go take a box, plug it into the data center and rack and stack it and do hi, okay. Be there physically. You're not going to survive in this type of environment. So being software defined help desk, not only when the data center, but to help our customers as they go through that evolution. Okay. On prem too, maybe just storing backups in the cloud to actually running their workloads in the cloud. >>Well, so Jim, I want to, I want to turn it to you sort of, I'm thinking about the Veeam brand. Uh, I, we talked earlier about how you guys have always punched above your weight, famous parties and sofa, but now billion dollars now entering a new era. Oh, wait. Yeah. It's ironic that we're now doing virtual events. Okay. No big giant party this year, but I feel like, I mean, you guys are what 14 year old company now. Okay. Kind of growing up your three and your colleagues are bringing, you know, lots of adult supervision. How should we think about, okay. Okay. The or V brand going forward. Yeah, no, I think the, the beam brand is critically important because, uh, there's just a, such a strong affinity and connection with customers. And I think one of the challenges as you get larger and go from 1 billion to 2 billion, a lot of companies miss the beat relative to staying connected to their customers. >>And that's something that we're putting a tremendous amount of focused on that first slide that you see, you flashed up no 91% customer satisfaction, the 75 net promoter score, which is three and a half times industry average. I think our key to success is, is not only bringing great products, the market, but looking at the holistic picture relative to supporting customers and customer satisfaction, which is a key driver of the company. Uh, well, it will help us to continue to build on the brands and, and have, you know, the, the best brand in the market. Well, I w I want to come back to, is the good, the marketing was in the, the panel. I mean, you think about digital. We feel like the war is going to be one in digital in the next a decade. I take the, you pick the GNC example and you think about just even the term, like customer relationship management, you know, we all use CRM systems. >>Yeah. I'm not sure I want to a relationship. Okay. GNC, but I do know this, I want a good deal. Right. If they're going to make me an offer, I'm going to, I'm going to look at that. And, Oh, these other brands, uh, that's digital that is having infrastructure and data, that's obviously protected to be able to offer that at the right time. Awesome. Versus if they can take advantage of it and have the candles. I wonder if you could talk about it, what you see as a, a marketing pro just in terms of digital and, and that customer intimacy. Yeah. Yeah. So, so I think it it's a multifaceted, I think one of the key things that, that, again, Veeam does, that's different than other, uh, companies is that we, we have a direct connection with our customers. So yeah, in our head of product management sends out an update every Sunday, and it goes into quite a bit of detail around sort of how to deploy this, how to deploy that. >>Oh, really? Yeah. Creating a digital journey for the customer from a marketing perspective, because yeah. Like within any situation, no, you, you don't want to talk to a salesperson right off the bat because you know, they're going to try to sell you. Uh, so you want to do something investigation, you need the, the contents and information to help you move along that journey until you get to the point where, okay, now it's time, I've kind of narrowed it down and I need to talk to someone to give me some more information. So I look at, you know, one of the key differentiators of Veem is, is that digital promise, uh, which I think from the founding of the company that rattler put into place, uh, here it is as forward. And when we continue to put a lot of focus on that digital experience, which I think gives us definitely a leg up on the competition. >>So bill, you got to place bets as the CEO. I'm interested in where you're placing bets. I mean, you've yeah. Okay. Some pretty substantial investments in the, your partner, a network. Oh, you've got some big names partners that are okay, you're moving a lot of products, you know, through those guys, obviously your heritage as a company is, is okay. Technical development. Uh, you, you are very successful sales organization, but where are you placing your chips on the table these days? And maybe especially in the context of, of this pandemic, if anything changed in your thinking. Yeah. Well, the vets will always be placed on the product side of it. Yeah. That's a, that's a big products. You go partners and you go our employees and those are the big bets that will make, what are we doing on the partner side work, continuing yeah. Pretty aggressive activity and making sure these partners have a simpler place as I've discussed. >>Yeah. Before to do business with them. It's more challenging the larger unit. Yeah. Yeah. But yeah, we'll keep that focus on it. The product offering has been, again, always go back to any of our taglines. It just works, but it's in the lab, we're going to win. We're going to win that technical decision a process. And then we're putting it up pretty big bets on our employee base. We're all over the world. 4,300. Yeah. The, uh, I think the decisions we have, like a lot of companies have moving forward are going to be, where are you going to work from? You're going to work from that home office. Are you're going to combine it back into the office or are you going to not, you're just going to do, you know, you're going to go back the way things are. I don't think that's going to happen at all. >>So, so best will always be on bringing good product to market technical decisions. So let's, let's talk to Andy about the product. Um, I mean, you've, by saying you've grown up, you've gone from yeah. Relatively narrow yup. Portfolio to now expanding a lot of different use cases, many, many, you know, several different clouds on prem hybrid. Yeah. Et cetera. Mmm. How do you ensure it, Danny, from, uh, from, uh, product stamp, right. That you don't just get a, a collection of point product that you actually have yep. Platform that even, you know, for instance, your licensing model very easily bored. Yeah. That notion, um, how, how do you ensure that you're more of a platform if you will, than just that a bunch of selection of product, the answer to that would be focused maniacal focus. So it's interesting that you brought up licensing. So one of the things that we're very focused on is making that licensing can move across all these different types of infrastructure. >>So no, the universal license allows you to do that. You can move a workload from physical to virtual, to cloud, to back, um, the application services call with, uh, with his hang the license. But we also do that product level too. One of the interesting things that we've been focused on is it's something internally, we call it the Veeam integration platform that enables you to have a central common control playing across the entire organization. But yet you can deploy in the need of environments that make the most sense. So if you think about what we showed you earlier today with beam backup rate Ws, you're running on a, an interface that you deploy out of the AWS marketplace, but that product actually integrate back into Veem availability suite. So that's true of being backup for AWS, Roger being backup from Nutanix. Every time we, we add a new one capability platform, whether it's fast or virtual or wow, we make sure that it's still cause that central connection to the main control plane. >>And that's why we call this five data management, because it gives you that data management cross all of these different infrastructures. Okay. It's clearly not easy to do, but the focus that we have put on this result, then our customers, the class. Okay. Ultimately, so I want to ask you guys about culture, Jim, a start with you. I mean, a lot of people obviously, sorry, averted or asking, I'm still going to have parties. Uh, you got your two founders and sort of, you know, set good, you know, rat mirror would always be right there in the mix lap. Last one to leave, uh, you know, very hard charging and that's kind of steep. the Veem culture, but I'm interested in, and if, if there's been any sort of discernible change, as you get bigger and bigger, how you're able to maintain that culture, you know, w what are some of the things that you want to, I want to keep, and maybe some of the things that you want to evolve. >>Yeah, no great question. And I think culture is, um, I'm a big believer. Yeah. That culture can really differentiate a company in the marketplace. And I think themes culture, uh, in the past has really done that effectively. And I think that's, you know, it shows in the success of the company. So I definitely see it as, you know, as my job, along with the rest of the executive team continued to, to carry that torch forward. Uh, one of the things that I learned coming to beam was, was really winning the hearts and minds of, of the, the, you know, the customers that you're serving. And so that, that can be anything from a party, uh, being totally open to your customers, listening to your customers. I've given them different channels to give you a feedback and just being a company that's easy to do business with. I think it's critically important. And those are some of the key things from a cultural perspective. Uh, that's how we want to carry forward. You mentioned car charging, absolutely being, being aggressive in the marketplace, uh, but bringing solutions to market that really hit the sweet spot. Oh. Relative to customer need, I think is again, one of the, the cultural pieces and that maniacal focus on customer satisfaction, which is absolutely key. >>So, uh, well, I, I wonder bill, if you could comment, maybe in this context, you know, part of your job of course, is Tam expansion traditionally been a, a European based company moving. So the U S I'm curious as to what effect that will have both culturally, you know, and on Tam as well. You're extremely successful, uh, in, in overseas. Oh, of course. So there's maybe even more penetration within the U S and obviously, you know, throughout the call, we've certainly talked a lot about cloud, but maybe your thoughts on it. Okay. Yeah, no, thanks very much. Hopefully you see no impact on culture, in the sense of our move from a European headquarters to a U S headquarters. We definitely felt it important to bring it and U S headquarters in place. We now have moved all us shareholders. Uh, so it's really our culture, but built on yeah. >>Core values back in 2012, that really the everything else branches off of innovate and iterate it's about everybody sells. We clearly add that yeah. A goal for everyone in the company and yeah. And the fact that we also want to win. So we'll fight hard to win bringing it to the U S okay. A lot of our competitors are based in the U S we think we can put up, uh, even though we've got great numbers against all our competitors, we'll even bring the fight much harder. Now that we're in the United States as a headquarter place, change nothing else internationally, globally. So Danny, every I'll five or seven years or so, you know, Gartner or IDC or whomever, but the service is that we just did a survey. Yeah. X percent of the customers are going to rethink their backup. That is in the next 24 months. >>You see that literally every half a decade. Um, so w w what's what's the driving that now, I mean, certainly cloud is a, is it which factor? Sure. Edge. We're going to be talking about the edge for the next many, many years. And then, and it's really going to start to drive revenue at some point kind of like the cloud was 10 years ago. Uh, but so talk about how you guys sort of stay relevant in that conversation and what customers should be about in terms of those transitions. Well, you know, every customer says I'm going to reevaluate my backup solution five or seven years, but the reality is what's happened. Yeah. Industry itself goes through transition. So we go from physical to virtual and as they go to virtual, for example, they say, Hey, I can't use my legacy providers. So I'm going to choose a new one. >>They choose Veeam. And then of course, we go to cloud and we're going to go to containers and we're going to go to edge. And every time he goes through those iterations, there is an opportunity four, the next generation of wow. Form, uh, to emerge. And so beam's focus here is to make sure that we're ahead of those trends to make sure we're thinking ahead of our customers. So right now, for example, you know, I, I spent an hour in order to, in the amount of time thinking about cloud and containers so that when the customer gets there, when they get the edge, when they get through all of these things, but they have a data management platform that protects them. And step one is always going to be the same. I always say the step one for, for every iteration of infrastructure is just ingest the data because you need to protect it. >>It's only after you protected and begin to manage it, be integrated into the business. Can you be into unleashed, but we go through this cycle over and over again. And ultimately it's the, it's the, the vendor, it's the partner that is most trusted, that wins as Jim alluded to our NPS scores for themselves, our customer base. Great, sorry, uh, self our, our intimacy with the customers. Great. Awesome. So, yeah, as long as we keep that close connection, then we think we're well positioned to the lead as we go through the next iteration of infrastructure. Okay. Let's talk about the competition, Danny. Let's stay with you. Okay. Okay. You've got some, well-funded not even startups anymore. Know the companies that are kind of going after the base. You've got a huge install base okay. Of legacy companies. I mean, I think it's easier for, for some of those guys to attack, you know, sort of a box space, the solution, you guys are more software, but I'm sort of interested in, in your take Danny on the shiny new toys and that have obviously have momentum in the marketplace. >>Yeah. You know, the, the shiny new toys, they come out with a solution that is very packaged up and black box. You can't actually, uh, customize it very much for the user need. And that's, we don't believe that that's going to work in the longterm. And the reason I say that, okay, the pandemic we're in, if you can't go into the data center to rack and stack a box, if you can't actually working with the infrastructure that's already in place, then you're not positioned to work well in the longterm. And, and so we have this unfair advantage we've been around for over a decade. We integrate with over 45 different it's storage vendors. That's not including the wild vendors, you know, all of our partners. And so we do have an unfair advantage with a history of all of these integrations, but, but that flexibility is really what our customers need. >>They don't want to be law into the data center. They don't know two, three years from now, their strategy might change. They might say, take the workload, moving to the cloud. And so if your whole focus is on selling your customers, something that I used them to their data center, that in itself is a challenge. And being software defined we're, we're well positioned to make future for any evolutions that happen in the market. Okay. So we're in a good place. I'm, you know, well, knock on wood, but I think we're going to keep going. Yeah. That's an interesting answer. Not one that I expected. Okay. Got it. Makes sense. In the context. Good QA we had with Andy Jassy a while ago. Yeah. Kind of pushing them on, you know, the zillion API APIs. And he basically had a similar answer. Obviously cloud services is different, but essentially saying, we don't know where the market's going. >>So we want to have very granular roll. Yeah. You're kind of a primitive level, uh, so that we have that flexibility and maybe there's trade off, you know, sometimes just in terms of what you called out of the box, but it's a very handy Jessie like answer, it sort of strikes me. Hm. Well, it's certainly true that the, you know, customers don't know a year from now, uh, they've been using that hardware, but a year from now two years from now, we run into another market impediment. They might want that money back. They might want, you might want flexibility to expand into it, different geography or take advantage of it, the advantage of the elasticity of the cloud and buying a piece of hardware. Just the very fact that you buy hardware that essentially ties you into that hardware, at least three years, probably being software defined. >>You can continue to reuse and leverage all the assets that you've already had committing to a lock-in okay. Period of time. So, so from a, from a marketing standpoint, Jim strategy, brand customer intimacy, what sure you're ready. Well, Dan, you already talked a little bit about it in terms of, uh, you know, kind of the, the three cornerstones of, of, of how we think our simplicity, flexibility and reliability. And, you know, as bill talked about, you know, when, when we get into now into a customer, and if they're testing us out trial in us out nine times out of 10, we're going to win, uh, because they see, they see those three key things and those three key things, uh, we hear on a daily basis from our customers and how important that is. So we continue to build out on each of those, uh, the challenges, keeping it simple. >>And that's an area that we have to continue to focus on. Uh, but I think those are the key differentiators for us going forward. I think the flexibility piece as the integration with all the storage, our ecosystem of partners, well, we have, I think, close to 40 partners that are sponsoring, uh, the on here. Uh, so that's a, that that's a key differentiator because we, we work with basically everybody we're agnostic, uh, and again, just easy to do business with an, a true partner. Okay. I got it. I got one more question for Danny and then I want to, I want to ask, well, it was, but okay. Guys, feel free to chime in on this one as well. But some of the things we haven't talked about, well, Danny, uh, containers protecting containers, uh, the edge, you know, these are all sort of emerging opportunities. >>I know you've got some, yes. You know, on the container side, the edge is early days. There's, you know, whole new models of, you know, potentially a lot of data going to be, we created unclear how much it's going to have to be persisted, but certainly would that much data, you know, the IDC forecasts, a lot of it's going to have to be. So your thoughts on some of those other emerging trends that we haven't talked. Okay. Well, the key to this segment of America are our partners. Trust us. We're thinking about this ahead of when they will actually need it. And you're right. I think we're early days in containers. I think we're early days in edge. We don't know, you know, we have a partner ducks unlimited where they're storing data for 60 years, use it from IOT sensors and they keep it for 60 years because they don't know in the future, if that data is going to be relevant. >>And so our focus is to make sure that we're ahead of our customer base in terms of thinking of it. And then yeah, making sure that our platform supports what they need as they need it. You want to be careful about going too far in advance sometimes in the industry to hear about, you know, people who are talking about magic 60 Dustin's solving, okay. Crazy problems that our customers don't actually have. We're very pragmatic. We want to make sure that problems that we're addressing that are platform fundamentally addresses where they are today. And then also be in those discussions with them about where they're going to be tomorrow. Well, maybe some of that magic pixie dust go, go into the COVID vaccine. That would be good. >>They'll bring us home. So, you know, the virtual forklifts are breaking down, came on 2220. What are the big takeaways from Europe? Your first Vivaan as CEO, we've been to many, um, you know, I know, but w what are the big takeaways as the, as the virtual trucks are pulling away? Yeah. Thanks very much for asking that question. We, uh, you know, we did do our first VM on, in 2014, and I can still remember when rat came, I mean said, let's, let's do this. And it's like, Oh, you've got it. Excuse me. This is going to cost a fortune. Why would we ever end? And then he's obviously right. It continues to be right. So, Hey, the story about Veem is gross. And when you're growing, you got funds available. People interested you to innovate. You mentioned containers. Danny did also at Kubernetes and, you know, we've got our forensic cast and that are here with us. >>And yeah, those are all important relationships and will continue to develop relationships. Yes. Cool., uh, we've supported, we've got great customers. we have a gross engine. We're going to continue that we don't plan on being comfortable with where we are. We'll continue to enter it in, go after it. Mmm. Additional Tam, but we'll also take care of that core base we came from. So I'm really excited about yeah. And a lot of great breakout sessions. Uh, I keep, um, right. Yeah. Coobernetti's was on, there was a lot of great ones. I did like the one though. And it was like, fall in love with tape all over again. So when I first saw that they brought it, I went running from my age, correct dates and my John Fogarty NCCR, I found one. Uh, so, uh, had to get readjusted to not. So in any event, I do think we like to have a lot of fun. >>You'll see that we get back. Yeah. Yeah. See where we go. As far as the virtual versus it, an onsite. Yeah. A in the future, we landing on site when, and if so, you'll and you're there. You'll cool. We'll be at the party. Yeah, indeed. And I, but I do think there's going to be some learnings that we carry forward and, you know, I think for awhile and maybe even perfect quite a long time, there'll be some kind of hybrid going on with the same deliver, delivering a hybrid world. Guys. Thanks so much for coming to the cube, making this a successful power panel. It was really a pleasure having you. Great. Thanks for having me. Thanks. Thank you for watching everybody. This is Dave Volante for the cube. Keep it right. There are tenuous coverage, the mom, 2024, right back.

>> Narrator: From around the globe, it's theCUBE. With digital coverage of VeeamON 2020. Brought to you by Veeam. >> Hi everybody, welcome back to VeeamON 2020. My name is Dave Vellante, and you're watching theCUBE's coverage of VeeamON. This is the first time we've done Virtual VeeamON. We've got the Veeam power panel, Bill Largent, CEO, Jim Krueger, the CMOs, Danny Allen who's the CTO and Senior Vice President Product Strategy. All have been on earlier, guys great to see you. Thanks for coming back and digging out of the power panel. Appreciate it. >> Good. >> Thank you Dave. >> I'm glad to be here. >> Thank you Okay, I want to start off, Bill, get a business update. We've so I talk a lot about COVID. We can go back to that, but you guys, as a private company, you divulge more information, than most private companies. And we appreciate that as an independent but guys, if you would bring up that one slide. You shared this publicly a little earlier. I mean, you guys are a billion in revenue now, 21% annual recurring revenue growth, 375,000 customers, 97% year on year increase in your universal license bookings. Everything seems to be happening, Bill. What what can you tell us? >> Well we had a great first quarter also that we kicked off where we had our transaction with insight venture partners, which right in the middle of that quarter, at the end of it, we had that activity that went on, that one might think would have disrupted the business, it didn't, we had our plan for Q1, really excited about that. We announced our growth saw that here recently. We're really pumped into our second quarter. We managed to transition everybody out of offices. We probably had 75% of our workforce move. Yeah, they did that. We had a fantastic April. We're having a very good May. So it's just a great start with a great customer base. So I'm really excited about it. >> Yeah, you mentioned insight. We obviously covered that and reported on that. Insight, they like growth, not like the old school private equity, suck money out. They want growth, they want options down the road (mumbles) Maybe it's a rule of 40 rule, the type of company. So that's got to be exciting for you guys and your employees. >> Yeah, I think it's pretty exciting. Few of us have been around the insight team since 2002. So a very well known group of individuals to us. They are focused in the software space and know the infrastructure space really well. My triple that hour our lead on the insight team and his his staff is that's a move into, as we move into it, stepping up and moving into our very revenue focus versus part of a total contract. But nice resource to have for things that we might want to do in the future related acquisitions. So we're really excited about it. >> I mean, if I'm in VC right now, I'm looking at SaaS, I'm looking and it's software, I'm looking for companies that have an annual recurring revenue model I'm looking for adopting of products and those kinds of of KPI's and you guys fit that bill Maybe a larger size and obviously in the early stage startup but that's kind of the profile of the the company that you want to invest in 2020s, isn't it? >> Absolutely, and I'd also say it's the kind of company we want to invest in, in the future as we go forward to bring in new technologies and expand markets. Addressable market back to comments, we had discussions on, what's it look like in 2030? And it's like, okay, those are we're heading. >> So Danny, Pat Gelsinger is famous on theCUBE for saying that, look, if you don't ride the waves, can it become driftwood. So what are the mega trends that you guys are riding today and that you're seeing in the future? We'll keep you ahead of the pack. >> Well, we clearly talk a lot about cloud data management. So act two for us is not just moving from perpetual licensing to subscription and evolving with American at a business level. It's also at a technical level. And so we invested heavily, as we demoed earlier today, Veeam backup for Office 365 version 5. An important point act two for us is not just product. There's also product delivery. That's version 5 of a release of a product to that came out three years ago. So the backup for office 365, we showed you Veeam backup for AWS. And you saw from Anton as well supporting Google cloud storage and supporting all of the major cloud providers. So for us to not just ride the wave, but actually be ahead of everyone else it's to embrace cloud data management and give the customers what they really need. >> Well, I think you guys are in a unique position too. I mean, if you guys obviously sell on-prem, but if you're they're an on-prem infrastructure company, really living on box margins you can talk the cloud talk, but it's not necessarily a tailwind for you guys? So Danny, how is cloud, right how cloud is it tailwind for Veeam versus some of the other legacy players, >> Well, Veeam has always been, we always highlight simple, flexible, reliable, but one of the, the parts of flexible of course, is where it's being software defined. And we've been software defined from the very beginning. And if you're in a world where you have to go take a box, plug it into the data center and rack and stack it and be there physically. You're not going to survive in this type of environment. So being software defined help us, not only when the data center, but to help our customers as they go through that evolution. On-prem too, maybe just storing backups in the cloud, actually running the workloads in the cloud and protecting there. >> Well, so Jim I want to turn it to you sort of thinking about the Veeam brand. we talked earlier about how you guys have always punched above your weight, famous parties and so forth, but now billion dollars now entering a new era. It's ironic that we're now doing virtual events. So no big giant party this year, but I feel like, I mean, you guys are what, 14-year old company now, and kind of grown up you three and your colleagues are bringing you lots of adult supervision. How should we think about the VeeamON or Veeam brand going forward? >> Yeah, no, I think the Veeam brand is critically important because there's just such a strong affinity and connection with customers. And I think one of the challenges as you get larger and go from 1 billion to 2 billion, a lot of companies miss the beat relative to staying connected to their customers. And that's something that we're putting a tremendous amount of focus on that first slide that you flashed up no 91% customer satisfaction, a 75 net promoter score, which is three and a half times industry average. I think our key to success is not only bringing great products, the market, but looking at the holistic picture relative to supporting customers and customer satisfaction, which is a key driver of the company. well, it will help us to continue to build on the brands and have the best brand in the market. >> Well, what I want to come back to is the marketing whiz in the panel. I mean, you think about digital. We feel like the world is going to be one in digital in the next a decade. I take the pick the GNC example. And you think about just even a term like customer relationship management, we all use CRM systems. I'm not sure I want a relationship GNC, but I do know this, I want a good deal, right. If they're going to make me an offer, I'm going to look at that and these other brands, that's digital that is having infrastructure and data That's obviously protected to be able to offer that at the right time, for the right customer, so that they can take advantage of it and have the right candles. I wonder if you could talk about what you see as a marketing pro just in terms of digital and that customer intimacy. >> Yeah so I think it it's a multifaceted, I think one of the key things that again Veeam does that's different than other companies is that we, we have a direct connection with our customers. So in our head of product management sends out an update every Sunday, and it goes into quite a bit of detail around sort of how to deploy this, how to deploy that. And really creating a digital journey for the customer from a marketing perspective, because yeah, like within any situation, you don't want to talk to a salesperson right off the back because you know, they're going to try to sell you. So you want to do something investigation, you need the contents and information to help you move along that journey until you get to the point where, okay, now it's time, I've kind of narrowed it down and I need to talk to someone to give me some more information. So I look at one of the key differentiators of Veeam is that digital experience which I think from the founding of the company that Rattler put into place has carried us forward. And when we continue to put a lot of focus on that digital experience, which I think gives us definitely a leg up on the competition. >> So bill, you got to place bets as the CEO. I'm interested in where you're placing bets. I mean, you've made some pretty substantial investments in your partner network. You've got some big names partners that are okay, you're moving a lot of products through those guys, obviously your heritage as a company is steep. And technical development you are very successful sales organization, but sir, where are you placing your chips on the table these days? And maybe especially in the context of this pandemic, if anything changed in your thinking. >> Yeah, well the bets will always be placed on the product side of it. That's a big, so your products. You go partners and you go our employees and those are the big bets that will make, what are we doing on the partner side we're continuing pretty aggressive activity and making sure these partners have a simpler place as I've discussed before to do business with them. It's more challenging the larger we get. But yeah, we'll keep that focus on. The product offering has been a again, always go back to any of our taglines. It just works, put us in the lab, we're going to win. We're going to win that technical decision a process. And then we're putting it up pretty big bets on our employee base, we're all over the world 4,300. The I think the decisions we have, like a lot of companies have moving forward are going to be, where are you going to work from? You're going to work from that home office. So you're going to combine it back into the office or are you going to not, you're just going to yeah. Do you're going to go back the way things are. I don't think that's going to happen at all. So take bets will always be on bringing good product to market like technical decisions. >> So let's, let's talk to Andy about the product. I mean, you've I saying you've grown up, you've gone from yeah relatively narrow portfolio to now expanding a lot of different use cases, many several different clouds on-prem hybrid, et cetera. How do you ensure it, Danny, from product standpoint That you don't just get a, a collection of point product, but you actually have a platform that even, for instance, your licensing model very easily. support that notion, how do you ensure that more of a platform, if you will, then just the, a bunch of selection of product, >> The answer to that would be focused maniacal focus. So it's interesting that you brought up licensing. So one of the things that we're very focused on is making that licensing can move across all these different types of infrastructure. So the universal license allows you to do that. You can move a workload from physical to virtual, to cloud, to back the application services call with a single license. But we also do that product level too. One of the interesting things that we've been focused on is it's something internally, we call it the Veeam integration platform that enables you to have a central common control playing across the entire organization. But yet you can deploy in the need of environments that make the most sense. So if you think about what we showed you earlier today with beam backup rate AWS, you're running on an interface that you deploy out of the AWS marketplace, but that product actually integrate back into Veeam availability suite. So that's true of being backup for AWS, Roger being backup from Nutanix. Every time we add a new one capability platform, whether it's fast or virtual or cloud, we make sure that it's still cause that central connection to the main control plane. And that's why we call this five data management, because it gives you that data management cross all of these different infrastructures. It's clearly not easy to do, but the focus that we have good on this result, then our customers, ultimately, >> So I want to ask you guys about culture, Jim, I start with you, I mean, a lot of people, obviously story averted, or asking this theme, still going to have parties you got your two founders and sort of set good. Ratt would always be right there in the mix lap. Last one to leave very hard charging and that's kind of steep in the Veeam culture, but I'm interested in, and if there's been any sort of discernible change, as you get bigger and bigger, how you were able to maintain that culture, what are some of the things that you want to keep, and maybe some of the things that you want to evolve. >> Yeah, no great question. And I think culture is I'm a big believer. Yeah. That culture can really differentiate a company in the marketplace and I think themes culture in the past has really done that effectively. And I think that's it shows in the success of the company. So I definitely see it as as my job, along with the rest of the executive team to continue to, to carry that torch forward. one of the things that I learned coming to Veeam was, was really winning the hearts and minds of the customers that you're serving. And so that can be anything from a party being totally open to your customers, listening to your customers, I've given them different channels to give you a feedback and just being a company that's easy to do business with. I think it's critically important. And those are some of the key things from a cultural perspective that's how we want to carry forward. You mentioned car charging, absolutely being aggressive in the marketplace. but bringing solutions to market really hit the sweet spot Relative to customer need, I think is again, one of the cultural pieces and that maniacal focus on customer satisfaction, which is absolutely key. >> So well, I wonder Bill, if you could comment, maybe in this context part of your job of course, is an expansion traditionally been a European based company moving So the US I'm curious as to what effect that will have both culturally and on Tam as well. You're extremely successful in, in overseas. Oh, of course, so there's maybe even more penetration within the US and obviously throughout the call, we've certainly talked a lot about cloud, but maybe your thoughts on it. >> Okay, Well, thanks very much. Hopefully you see no impact on culture, in the sense of our move from a European headquarters to a US headquarters. We definitely felt it important to bring it a us headquarters in place. We now have moved all us shareholders. our culture is really the built on core values that we develop back in 2012, that really the everything else branches off of innovate and iterate it's about everybody sells. We clearly add that yeah. A goal for everyone in the company and the fact that we also want to win. So we'll fight hard to win bringing it to the US okay. A lot of our competitors are based in the US we think we can even though we've got great numbers against all our competitors, we'll even bring the fight much harder. Now that we're in the United States as a headquarter place, change nothing else internationally, globally. >> So Danny, every I'll five or seven years or so Gartner or IDC or whomever without a service is that we just did a survey that yeah. X percent of the customers are going to rethink their backup strategies in the next 24 months. You see that literally every half a decade. so, well what's, what's the driving that now. I mean, certainly cloud is it which factor edge we're going to be talking about the edge for the how many years, and then, and it's really going to start to drive revenue at some point kind of like the cloud was 10 years ago. but so talk about how you guys sort of, are they relevant conversation and what customers should be thinking about in terms of those transitions? >> Well every customer says I'm going to reevaluate my backup solution every five or seven years, but the reality is what's happened. Yeah. Industry itself goes through transition. So we go from physical to virtual and as they go to virtual, for example, they say, Hey, I can't use my legacy providers. So I'm going to choose a new one. They choose Veeam. And then of course, we go to cloud and we're going to go to containers and we're going to go to edge. And every time he goes through those iterations, there is an opportunity for the next generation of platform to emerge. And so beam's focus here is to make sure that we're ahead of those trends to make sure we're thinking ahead of our customers. So right now, for example I spent an in order to in amount of time thinking about cloud and containers so that when the customer gets there, when they get the edge, when they get do all of these things, but they have a data management platform that protects them. And step one is always going to be the same. I always say the step one for every iteration of infrastructure is just ingest the data because you need to protect it. It's only after you protected and begin to manage it, be integrated into the business. Can you be into unleashed, but we go through this cycle over and over again. And ultimately it's the, the vendor, it's the partner that is most trusted, that wins as, as Jim alluded to our NPS scores for themselves, our customer base, right, sorry self our intimacy with the customers. Great. Awesome. So as long as we keep that close connection, then we think we're well positioned to the lead as we go through the next iteration of infrastructure. Okay. Let's talk about the competition, Danny. >> Let's stay with you. Okay. You've got some, well-funded not even startups anymore. Okay. Companies that are kind of going after the base, you've got a huge install base okay Of legacy companies. I mean, I think it's easier for, for some of those guys to attack sort of a box space, the solution, you guys are more software, but I'm sort of interested in take Danny on why the shiny new toys and that have obviously have momentum in the marketplace. >> Yeah, the shiny new toys, they come out with a solution that is very packaged up and black box. You can't actually customize it very much for the user need. And that's, we don't believe that that's going to work in the longterm. And the reason I say that, okay, the pandemic we're in, if you can't go into the data center to rack and stack a box, if you can't actually working with the infrastructure that's already in place, then you're not positioned to work well in the longterm. And, and so we have this unfair advantage we've been around for over a decade. We integrate with over 45 different storage vendors. That's not including the wild vendors all of our partners. And so we do have an unfair advantage with a history of all of these integrations, but that flexibility is really what our customers need. They don't want to be law into the data center. They don't know two, three years from now, their strategy might change. They might say, take the workload, moving to the cloud. And so if your whole focus is on selling your customers , something that I used them to their data center, that in itself is a challenge. And being software defined we're well positioned to make future for any evolutions that happened in America. Okay. So we're in a good place. I'm well, knock on wood, but I think we're going to keep going. >> Yeah. That's an interesting answer. Not one that I expected, but it's to make sense in the context with a QA we had with Andy Jassy a while ago. I was Kind of pushing them on the zillion APIs. And he basically had a similar answer. Obviously cloud services is different, but essentially saying, we don't know where the market's going. So we want to have very granular role at You're kind of a primitive level so that we have that flexibility and maybe there's a trade off sometimes just in terms of what you called out of the box, but it's a very handy Jessie like answer, it sort of strikes me. >> Well, it's certainly true that the customers don't know a year from now they've been using that hardware, but a year from now two years from now, we run into another market impediment. They might want that money back. They might want, you might want flexibility to expand into it, different geography or take advantage of the elasticity of the cloud and buying a piece of hardware. Just the very fact that you buy hardware that essentially ties you into that hardware, at least three years, probably being software defined, you can continue to reuse and leverage all the assets that you've already had committing to a lock-in period of time. >> So from a, from a marketing standpoint, Jim strategy, brand customer intimacy, what you're in. >> Well, Dan, you already talked a little bit about it in terms of kind of the, the three cornerstones, of how we think our simplicity, flexibility, and reliability. And as bill talked about when we get into now into a customer, and if they're testing us out trial and us out nine times out of 10, we're going to win because they see those three key things and those three key things we hear on a daily basis from our customers and how important that is. So we continue to build out on each of those the challenges, keeping it simple. And that's an area that we have to continue to focus on. but I think those are the key differentiators for us going forward. I think the flexibility piece is the integration with all the storage, our ecosystem of partners. Well, we have I think close to 40 partners that are sponsoring the Amman here. so that's a, that's a key differentiator because we work with basically everybody we're agnostic. and again, just easy to do business with an, a true partner. >> I got it. I got one more question for Danny, and then I want to ask bill to close, but okay. Guys, feel free to chime in on this one as well. But some of the things we haven't talked about about money , Danny containers, protecting containers the edge these are all sort of emerging opportunities. I know you've got some, yes, on the container side, the edge is early days. There's whole new models of computing potentially a lot of data going to be, we created, okay. Unclear how much is going to have to be persistent, but certainly would that much data the IDC forecasts, a lot of it's going to have to be. So your thoughts on some of those other emerging trends that we haven't talked. >> Well, the key to this segment of America are our partners Trust us. We're thinking about this ahead of when they will actually need it. And you're right. I think we're early days in containers. I think we're early days in edge. We don't know we have a partner ducks unlimited where they're storing data for 60 years. Use it from IOT sensors, keep it for 60 years because they don't know in the future, if that data is going to be relevant. And so our focus is to make sure that we're ahead of our customer base in terms of thinking of it, and then making sure that our platform supports what they need as they need it. You want to be careful about going too far in advance. Sometimes in the industry you hear about people who are talking about magic 60, Dustin's solving Crazy problems that our customers don't actually have. We're very pragmatic. We want to make sure that problems that we're addressing that are platform fundamentally addresses where they are today. And then also be in those discussions with them about where they're going to be tomorrow. >> Well, maybe some of that magic pixie dust go into the COVID vaccine. That would be good. They'll bring us home. So the virtual forklifts are breaking down, came 20, 20. What are the big takeaways from Europe? Your first VeeamON as CEO, but what are the big takeaways as the virtual trucks are pulling away? >> Yeah. Thanks very much for asking that question. We you know, we did do our first VM on, in 2014, and I can still remember when Ratner came to, I mean, let's do this. And it's like, Oh, you've got it. Excuse me. This is going to cost a fortune. So why would we ever end? And then he's obviously a right. It continues to be right. So I hate the story about Veeam is gross. And when you're growing, you got funds available. People interested you to innovate. You mentioned containers. Danny did also at Kubernetes and we've got our forensic cast and that are here with us. And yeah, those are all important relationships and will continue to develop relationships and . But why Veeam we've supported, we've got great customers for it. We have a gross engine, we're going to continue that we don't plan on being comfortable with where we are. We'll continue to enter in, go after it. Additional Tam, but we'll also take care of that core base we came from. So I'm really excited about, we had a lot of yep. A lot of great breakout sessions. I keep right. Okay. K was on, there was a lot of great ones. I did like the one though. And it was like, fall in love with tape all over again. So when I first saw that they brought it, I went running from my age, correct tapes and my John Fogarty NCCR I've found one. so had to get readjusted to not. So in any event, I do think, Nope. We like to have a lot of fun. You'll see that we get back See where we go as far as the virtual versus an onsite in the future, we landing on site when, and if so, you'll, and you're there you'll, you will be at the party. >> Yeah, indeed. And I, but I do think there's going to be some learnings that we carry forward and I think for awhile and maybe even perfect quite a long time, there'll be some kind of hybrid going on with the seem to live in a hybrid world. Guys thanks so much for coming to theCUBE and making this a successful power panel. It was really a pleasure having you. >> Great. >> Thanks for having me. >> Thanks. >> Thank you for watching everybody. This is Dave Vellante for theCUBE. Keep it right here. There are tenuous coverage, the VeeamON 2020, right back. (slow instrumental music)

>>from around the globe. It's the Cube with digital coverage of VM on 2020. Brought to you by IBM >>already. This is Dave Volante. We're here with a preview of VM on 2020. Danny Allen, CTO of Eve dinner, which we're face to face, man. But great to see you online. >>Great senior as well. This is the next best thing, right? >>It is. I mean, you know, VM on has been a great conference for the last several years. We've attended with you, but let's let's get into it. You know, Kobe, 19 obviously shifts tow virtual, but there's a lot of things going on. I'm sure in your business >>a >>lot of talk about business resiliency. How has the pandemic could have affected theme and how you're managing the business? >>Well, it's certainly impacted the entire industry. And actually, one of the interesting things that has happened, of course, is that used to get on an airplane in flight of the customer, shake their hand and close a deal that obviously isn't happening. Um, that's the external side of the internal side of it is you know, everyone went into an office. We have a culture especially in inside sales and support of people going dollar citizen. Obviously, we had to close them. The downside is we loose some of that model that we had in the past, But the upside the bright side of this is we've been doing fantastic impact. The numbers that we have achieved are the same as if Kobe 19 hydrant it. No, I attribute that to a few different things. One is that, >>you >>know, we have a broad spectrum of customers 375,000 across all segments across all industries. And while it's still early in the year, who knows what's going to happen? What I can say is that my business results standpoint. It's been good from a product strategy standpoint, which is where I said, Of course it's It's actually been better than good because we actually have the opportunity to focus a little bit more perhaps, than we have in the past, too. Speaking to customers and delivering on things that are harder to do when you're on airplanes all the time. >>Well, I mean, we've been reporting on the Cube. That is really a story of the haves and have nots. I mean, my take away there is he had it not been for over 19 maybe maybe the numbers would even be higher. But at the same time, though, the whole like I said, business resiliency work from home people really thinking about data protection has really come to the fore. So some of the other trends, obviously their tail winds, cloud data the whole notion of multi cloud. I'm sure we're going to hear a lot about this at VM on virtual. >>Yeah, so as you know, our objective is to be the most trusted provider of backup solutions that deliver Cloud data management. And so there's a big focus on cloud. Where we certainly think of Cloud, of course, is the Big Three hyper scaler is of AWS, Azure and Google, and you're going to hear announcements, but all three of those and products that continue to enhance our capabilities there. But it's also our partners we have in our in our virtual solutions lab. We actually have 30 partners there, but we have a huge stable, if you will, our partner ecosystem of VM Cloud service providers and we're excited that they're going to be there as well and we're highlighting some of their innovations. >>Yeah. I mean, we're dropping a breaking analysis this week on Cloud all three of those cloud suppliers. As you mentioned, >>we >>have a lot of momentum behind, you know, their businesses. Right now it's the cloud. Is that pandemics? Pandemics. But downturns have always been good to cloud. And I think this is no no change. So give us a little glimpse as to what we're going to hear from a product standpoint. That theme on 20 >>20 Well, a few different, exciting things in the past is, you know, we launched being back up for ah aws. That was our first cloud native solution. We just recently launched Beam Backup or Microsoft Azure, and you're going to see iterations on those products. Demoed live on stage by the legendary Anton Cost Dev and always a fan favorite, Rick Vanover. So you're going to see demos of those. You're also going to see the first foray into partnerships with Google as well Google Cloud Platform. You combine all those hyper scaler is right now. They did Ah, I think a little over 67 billion last year in 2019 and obviously the compound annual growth rate is projected to go to 375 billion. So we're gonna highlight some of the capabilities that we've introduced in the last few months and over the rest of 2020 with them. >>Well, and you're right. I mean, we just reported we just saw in the first quarter earnings reports you got AWS has a $38 billion business growing in the mid thirties. You got azure and >>Google growing >>faster from from a smaller base, but still enormous, many, many billions. You also have the hands on labs. It's this two days, June 17th of June 18th. So check it out. Go sign up. But you've got a hands on labs that you're bringing to the virtual experience. >>Yes. So we're doing 20 breakout sessions, 10 life fashions, and that's exciting. But actually, for the first time, it was based on demand. We're doing what we call a v Mathon, and that's going to bring 20 to 30 live sessions where actually users can come and collaborate live with the experts. And one of the things about a virtual event, of course, is that this opens it up globally for people to come and register for free, but they can actually interact on an ongoing basis over those two days with the experts from being so well, some people are disappointed that we can't be their face to face. We're still going to have the legendary party. But we're also doing some of these V marathons and live interactions, which is a new opportunity for us. I think it's exciting. >>Well, you better make sure you have your auto scaling on any FCS. Some of these virtual conferences get so many people. We just saw one on Twitter with s so much demand, it went down. I'm sure you guys got your infrastructure together, so bring us home. You know, why should I attend Beam on 2020? >>Well, everyone knows VM for its high energy. It's exciting conferences, lots of announcements. We have partners there with us on stage. This is taking it to the next level. We're taking that same conference. That is exciting. Lots of energy. We're doing it online, which brings it to a global market. And we're not decreasing the energy. In fact, we're still having that legendary already. We're still doing all those massive announcements So this just is a is a next generation. I would argue of where the industry is going. We're excited to be there with our partners. >>So very exciting. Time for being blockbuster acquisition in January. Congratulations, Danny to you. And very excited for VM on. Check it out June 17th and 18th. A great thing. Typical wien, right? It just works. You go there. It's not like a huge example. This is a few things. You got an email and a couple of the things Boom registrations. Simple. Danny, thanks so much for helping us with this preview. Really appreciate it. >>Thanks very much, Dave. Always a pleasure and happy to speak with you. >>Alright, Stay safe. Everybody, This is Dave Volante for the Cube. We'll see you next time. >>Yeah, yeah, yeah, yeah.

>>Live from Copenhagen, Denmark. It's the covering Nutanix dot. Next 2019 you by Nutanix. Hello everybody and welcome back to the cubes live coverage of Nutanix dot. Next here in Copenhagen, Denmark. I'm your host, Rebecca Knight, co-hosting alongside Stu Miniman. We're joined by Ken ring doll. He is the vice president global Alliance architecture at V. thank you so much for coming on the cube. It is your sixth time on the cube. So you are an illustrious I know. And then a ring and then a ring for is 10. We've got some sticks. Yeah, here you go. So you're here to talk about the partnership with Nutanix and, and uh, and, and mine. So why don't you tell us a little bit about this partnership and the mine ecosystem and, and how would what you see for the future? >>Yeah, absolutely. So a, you know, Nutanix is a really strategic partner for us. Uh, you know, I'd say we've been partners for quite awhile, probably five, six years. But I would say the, the real sort of tipping point for our partnership was when we committed to go integrate with HV. You know, we had supported vSphere from the beginning. That's, that's what VM was founded on. That's where the foundation of our success, we went and did hyper V and 2011 and we didn't do another hypervisor. We still haven't even done KVM yet, but we saw the value in the Nutanix partnership and we committed to doing HV and delivered that, you know, middle of last year. And we've seen, you know, good pickup on that. But that was really the tipping point when we sort of came in and sort of wrapped our arms around the Nutanix ecosystem. And really, you know, if you want to embrace Nutanix, you're in praise HV cause that's the core, right? That's, that's where they're going. That's their differentiation. Um, and so that was, that was sort of the tipping point. And of course, you know, we can certainly get into mine and everything else we're doing. >>That was, well Ken, first of all, it definitely was, you know, very much noticed in the industry. Uh, you know, Veeam, I remember back when hyper V support was announced and kind of a ripple went through the virtualization, uh, industry on that and Veem stepping forward and supporting HV was a, a real, uh, you know, speaking to not only the partnership but to the maturity of where Nutanix sits out there. Um, we know that the data protection space is quite hot and a question people have had from day one was, well, we'll Nutanix address that directly themselves. Uh, they had Veem rubrics here, you know, other partners are here. So it's how they are addressing that space and mine, uh, that, that is pretty interesting in different from, uh, you know, much of what we see out there. So, uh, bring us inside mine and you know, uh, Nutanix, it wants optionality to be there. So Veem is one of the partners, but also the, you know, uh, likely the most important first one. Uh, there. >>Yeah. So you know, this, there's a lot of similarities between Nutanix and Veem, especially when it comes to the general approach to partners. You know, where we're a software defined, uh, data protection platform. Nutanix, you're right hat an option, Hey, maybe we go build this ourself or we acquire and try to get that revenue, maybe the data protection revenue. And they've decided to partner just like we've decided to partner, you know, for secondary storage and everything else. And that, that really does lead us to mind because you know, a lot of our competitors do ship their software on white box hardware. Uh, some of the emerging startups are doing that and even some of the legacy players are all, you know, whether it's a Supermicro box and Intel box, we've taken a different approach and said, Hey look, you know, we, we, we know what we're good at and we know we want customer choice. >>And even, you know, Dheeraj and others at the keynote today talked about no vendor lock in. We're where we are. We have very similar approaches. And so, you know, we got together over a year ago, year and a half ago and said, Hey, look, you know, as Veem in a, we, we see some customers that are now asking for their data protection. You know, VM was founded on being simple and easy and there's even ways to take that to another level like mine, which is, Hey look, we want to now even simplify the day zero one the zero experience that even into the day one day two ops in terms of an integrated UI and other ways to to bring, you know, the infrastructure together with your data protection. And so it made perfect sense. We got together and it was like boom, a light bulb went off. We got on a whiteboard and we're like, yeah, we can do this. >>Like, you know, it's going to require joint development. And we've sort of made those commitments on both sides and it's been well received now. It's not in the market yet. It will be soon. Um, but the customer feedback has been incredible. We've done this very successful beta, we've got lots and lots of pent up customer demand. So it's like the sales teams are now saying, Hey, when can we, have you been talking about it for a while? When can we have this? Because we have customers ready to buy. So where we're there now that we're ready to bring this to market and excited about the opportunity together. >>So talk a little bit about the, the ins of that partnership. And you were just describing your ethos, which is making everything simple and easy, which is what we're hearing a lot here today. A. Dot. Next. So does that just mean that you attract the same kinds of employees, so then therefore they work well together in the sandbox? I mean, how would you describe the, the cultures coming together in this joint development process? >>Yeah, I think we're, we're similar companies, right? We're a similar size. We're a similar age. We're similar, you know, just, just all around, you know, our, our culture of innovation. So, you know, when we got together it was, it was pretty simple. Now, now doing development as two companies together is always hard. It's never easy. It's even hard to do it when it's one company on your own, right. And get a, get a product to market. Um, so I'd be lying if I said that weren't bumps along the way. There always are. Uh, but you know, we've, we've, we've worked through and we've, you know, we're, we're now, like I said at that point, and I think our, our, just our similarities and our cultures and really we have alignment at the executive level. And that's important, right. To, to get things done because, you know, well, well, you know, all of us that are sort of working on this thing, maybe a level or two, but when executive leadership is aligned, that's when things get done. And we have that between Nutanix and beam. >>Yeah. And Ken did the messaging that I'm hearing from Nutanix now reminds me of what I was hearing a couple of years ago from Veem specifically when you talk to cloud, uh, so a couple of years ago very much, I saw Microsoft up on stage, you know, living with AWS. What are you hearing from your customers and you know, do you see those parallel journeys or will the AHV integration mean that as Nutanix goes along that journey that Newtanics offerings will be able to live in these multiple cloud environments sometime too? >>Yeah. So I think a little bit of both, right? I think, I think the definitely be able to live out there. I mean, you know, you see VM-ware now wrapping their arms around all the hyperscale public cloud vendors. I mean, we heard about XY clusters and that was announced in Anaheim and we saw a demo of it today. And, and, and, you know, our goal is to support those workloads wherever they are. You know, we've, as I said before, we, we sorta made, made our hay and we were founded on attaching the vSphere then hyper V than HV and now AWS and Azure and all these other environments. And really, you know, the roots of it, we, we follow our customers along their journey, right? So, you know, this customers today that, that, you know, maybe smaller, newer companies that go straight to AWS, straight to Azure, they're born in the cloud and they're cloud only. >>You know, they may not be the best fit for Vien maybe a couple of years from now. Uh, they, they may just buy point solutions for the customers, the larger customers that have hybrid environments. That's what we're looking to attack. And you know, whether that's with Nutanix and VMware and those workloads that go, we, we want to make sure we attach here and give our customers the best experience and the ability to burst to the cloud and move around and workload portability, you know, we built features into the product. We've changed our, revolutionized our licensing to make that easier. So, so that's what we're after is is those hybrid customers solving those problems and those challenges they haven't building on our strength, which starts on prem but has moved into the cloud and, and, and spread quite a bit. Yeah. >>What do you see as some of the trends on the horizon? I mean, as you said, you just described your dream customer, which there, there's, there's a few of them out there so you'll be okay. So talk about some of the, the problems that you, that are keeping them up at night and how your solution solves them. >>You know, when it comes to data protection it, you know, everyone can say, Hey, my backups, they were 100% successful. It comes down to restore and reliability. And security, right? And we, you know, we've, we've built a lot into our product to give customers the peace of mind that, Hey, you know, when that call comes at at 11 o'clock at night and I need to recover assistant cause it's down, you know, we need to have hundred percent confidence that that will be there. And oftentimes when, you know, when we're converting customers over from maybe a competitor's product, that's what we hear the most is, is Hey, you know, it's the reliability and the confidence in the infrastructure and that's what we focus on most. And so, you know, we hear that a lot from customers and, and that's really where our focus is. We've got feet, as I said, features built into the product. >>You know, that, that that goes straight after that can, we've watched Newtanics really increased the breadth of what they're offering through through their software. Uh, they've been talking a lot. Files is one of the, you know, strong growth areas. There. Objects is another one that I, I expect would have some interaction with your environment. What are you hearing from customers? Where is Veeam moving with the HP support for some of these other solutions that Nutanix has? Yeah, so, so we've got a very big release coming, you know, in the next call it few months, quarter or so. Um, that is called V 10. You know, and if you guys read Vema on a couple of years ago, we've talked about V 10 and that was a number of features in there. NAS is a big one for us. Um, and it's one that that is probably the most asked for feature that we currently don't have. >>And so having support for files and we've already tested with the beta, you know, we know when we come out with that in a GA form that we're going to be successful with, with files. Uh, object storage is another one that was also part of the V tenet umbrella when we announced it, you know, while ago. Um, and it's been hugely successful for us. It's revolutionized, kind of the way that our customers look at longterm storage is, is, Hey, I can, I can move that to AWSs three or Azure blob or, you know, cloudy in or Swift stack or something else on pram or Nutanix objects. Um, you know, because again, customer choice, but, but we've, you know, we've embraced that because that's where customers are going. She asks, you know, what a customer that, that's, that's where, that's where they're going. They, they, they say, Hey, I want, you know, a lot of them want to get rid of tape, you know, and, and what's the best way to get in this is features of tape in object storage, right? There's object lock and ways to do, you know, uh, write once, read, read many times. So we're, you know, we look at object storage a little bit as, as the next generation of tape. Now it's, you know, it's not exactly that. There's lots of different use cases, but, but for us and for our customers, they're looking, they're looking to, to do the next generation data center. And that includes having object storage is a longterm tier. Uh, you know, for cost reasons, for manageability reasons, you know, of the light. >>Can you talk a little bit about the partner ecosystem and the evolution of it and particularly because the technology industry is, is changing so fast and you, you, you started this conversation by talking about how much your culture is aligned with Nutanix culture. How do you see, with, with these fast changing companies, fast changing technologies, how do you see five, 10 years from now, what will the technology landscape look like? >>Yeah, certainly. I mean obviously the, the push to cloud, that's big, right? Where we're making a lot of, a lot of changes on our site, where, where we're bringing out new products or bringing out new features that specifically take you to cloud. Um, you know, we, we were on with you guys at, at world and, and you know, there was, you know, project Tansu and all this other stuff about Cuba and it was, it was, that was the Coobernetti's conference. Right. And, and, uh, you know, I said earlier, you know, we want to move along at the pace that our customers want to go. So, you know, those, those sort of born in the cloud companies are going straight to Kubernetes, but we're moving along with our customers when it comes to Kubernetes and containers. So, so yeah, we're, we're paying attention to it. Do we have a product that can support every bit of, you know, Kubernetes and containers yet? >>No, but, but we're, you know, there's these things that we're working on and you know, in, in the way that Veem usually develops software, we're not usually first, but we usually come out with something that is rock solid, ready to go, customer ready. We have 355,000 customers we can't afford to and, and, and we're the stewards of their data. Uh, so when we come out with something yet, we may take slightly longer to do it, but you can be sure that it's rock solid, stable, robust, and that's, you know, that's our general approach. And so when you ask, you know, where our customers going, you know, they're definitely going to the cloud, they're going to Kubernetes, they're, you know, all these, all these new technologies, and, and, and, and we sort of like step back and we ask our customers, Hey, are you doing this? You know, what's your plan for this? Is it two years? Is it one year? Is it five years? Um, and we adjust accordingly. >>Yeah. Uh, can anything particular for your European customers that, that, that you can share? >>Yeah, I think, you know, when you think European customers and uniqueness from the rest of the world, I mean, you start with GDPR, right? That that was, you know, a huge thing that went into effect a year ago. Um, and we've, you know, we've, we've done things there, but they're, they're, they're very sensitive to, you know, that and, and being able to, you know, provide that capability for their customers. So, so I'd, I'd put that at the top of the list. I mean, cloud is a big one. You know, I think as we look at the hyperscalers in particular, AWS and Azure, you know, the U S is a big country. You don't need a lot of data centers to cover the country. But now you look at GDPR and some things need to stay in the, in the envelope of a, of a country. And Hey, this, you know, lots of countries in Europe and, and, and so more and more data centers. So the support of those public cloud vendors and the, the sprawl of, of the date and the sprawl of the data centers is, is really important. So having that coverage and being able to provide customer choice is incredibly important to European customers. >>Well, Ken, thank you so much for coming back on the cube. We always have a fun time talking to you. Right. Thank you. Next time I'll be here. Seventh, I'm Rebecca night for Stu Miniman. Stay tuned for more of the cubes live coverage of Nutanix. Dot. Next.

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Welcome to Austin, Texas. This is the Cube. Live at the fourth annual pure accelerate. I'm Lisa Martin with David, Dante, Dave or in Texas, >> Texas again. >> Austin, Texas. Very interesting venue for this fourth annual hear stories. >> A lot of construction, >> music, a >> lot of music. >> So we just came from the keynote and news announcements, customers on stage. But the first thing to point out is, this is here is about to celebrate their 10th anniversary. Charlie Giancarlo, CEO and chairman who's coming on the program with us, and just a few minutes talking about what they have innovated and delivered these 10 X improvements and 10 years kind of this overnight success in 10 years and what's coming? What was with the things that really stuck out at you, Nicky Note. >> Well, first of all, ironically, this is the 10th year of the Cube, not our 10th anniversary, but it's the 10th year of doing the Cube. And so our fourth year, I think it's pure accelerate about what 3000 people here, >> you know, the keynotes >> pure was laying out what their vision is of the modern data experience and that I felt like the keynotes least there were sort of, ah, speed date of what's coming. There was a couple of major announcements that we'll talk about, >> Uh, but >> they really are trying to differentiate as the modern storage company turn a deep position. The competition, as the old guard is to use this term that Andy Jassy uses pure, didn't use that term. But they really talked about it's time to go Modern. And so they were an overnight success. It took him 10 years, was one of the comments that was on stage. So I think this is worth pointing out. A couple of things. I mean, let me lay out. Sort of my thoughts on Pure is a company. They were the only storage company Ah, in the past. Let's call a decade to reach what I'll call escape velocity. They achieved a billion dollars a couple years ago. They're doing their due about a billion and 1/2 on a trailing 12 month basis. They'll do 1.7 billion this year and evaluations about 4.5 billion. So they got a a three ex valuation in that fluctuates. That's pretty good for a storage company. Billy on Lee major storage company. That's really growing rapidly. They got 28% growth. I did a breaking analysis on Lincoln, and I'll just share with you some of the numbers. Dallas flat at 0%. So Del is actually gaining share with no growth has got a scary NetApp minus 16% in the quarter H P E minus 3% IBM minus 21%. And so it is pure A 28%. So they're really crushing it in terms of growth. They've also got a 69% gross gross margin, even if it's in its heyday. E emcees gross margins weren't that high, you know. They were in the sort of mid sixties, and so, and they've also got a good balance sheet. About a billion dollars in cash A little. A little more than that, they got some debt. They're shifting their model to a deferred revenue model. Now the only thing is, you know they're growing much, much faster than the competition. But they're throwing off a lot less cash because they're much smaller. Just as an example, they probably throw off 5 to 6% of their revenues in cash. Netapp probably throws about 23% of its revenues, often catch the big Delta there, so the point is long winded. But but pure storage is in growth mode. And until the market rewards more consistent with a cash flow, they're gonna, I think, stay in huge growth mode. >> There was a great analysis. Dave and I saw an analysis that you did with some spends data, just a couple of your reverence. A little bit of that. There's there seems to be a tailwind behind here you mention the 28% wrote that they announced in Q two, and some of the things that also they talked about were there. Adding about in Q two of F Y 2020 about seven net new customers every business day, adding about 450 new customers just in that quarter. Like you said, 3000 folks expected here today. The momentum is behind them, but they're also a company of firsts. You talked about this a number of times. The first, with all flashed the first with envy me on the back and a couple of additional firsts announced today. Talk about the as a service model and how that youth, in your opinion, you think might continue that trajectory that they're on. >> Yes, so basically pure laid out today, said that vast majority are Pouliot Portfolio is gonna be available as a service. That's the cloud consumption mall is important because pure has about $600 million in deferred revenue, largely coming from their evergreen service. But there they are, slowly shifting their model to a subscription model. It's gonna be very interesting to see how that plays out. Um, we've seen a number of companies do a tableau in Adobe kind of pulled the band Aid off and did it Splunk has taken years to do. It will be interesting to see how how pure goes. For that. I'll >> bring it >> back to the cloud up yours largely an on Prem storage company. That's where most of the revenues come from. But we heard the gentleman from Amazon today. I think it was E ethan whiner, not Ethan, anyway, Mr Whiner, he said. That gardener did A survey last year showed 88% of customers said they have a cloud for a strategy, but 86% of those customers continue to spend on prim. So here you have the cloud. Amazon gorilla wants everybody to go to the cloud pure would much rather they make much more money on Prem? But they realize customers air pulling them in. So they have to move to that as a service model. One of the interesting things that pure is done, which, you know, that's not really a first. But it certainly is for the large storage companies they've announced. Ah, block storage on AWS. So basically what they're doing is they're taking the pure experience. It all looks like pure software, and they're front ending cheap s3 storage from Amazon with E. C. To compute instances, and they've architected using Amazon service. Is this basically a block storage array in the cloud so Amazon gets paid, pure, gets paid? It's a little bit of a premium, but you get higher availability. You get great right performance and you get the pure cloud experience pretty interesting strategy, >> and they're talking about it really as this. This positioning it rather as a bridge, a bridge to hybrid cloud. This numbers that the Amazon gentlemen, share that you mentioned Gardner were really interesting both sides recognizing there's a forcing function there and that forcing function is the customers from the enterprise to the small business who need to have data available immediately wherever it is people to extract this insights from it quickly so that those companies, whether it's a capital one or a Delta Airlines or a smaller organization, can act on it quickly to Dr Competitive Advantage. Same kind of challenge that your storage has. But really that forcing function of the customer, clearly bringing the giant AWS together with yet another story >> so pure as they say reached escape velocity. They and Nutanix were the only on a new entrance that reached a billion dollars Nutanix. I really don't consider a storage company. They're kind of hyper converged. And the way they did that as they drove a truck through E emcees install base with flash. So they were the first within all flash array. Maybe maybe they weren't the first, but they were the first to really drive it. They hired a bunch of DMC sales reps. They knew where all the skeletons were buried and they really took out a lot of old Symmetric Se's and Claire eons and V. Max is and all the old sort of GMC install base, and that helped them catapult their way there 1st 10 years. Now they got to do that again. They got to get to get They're on their way to two billion. But how did they get to five billion? Um, and and so the way they do that is they have to expand their tam. I mean, we'll talk to Charlie Jean Carlo about this. My feeling is a big job of the CEO is to expand the Tamil. How do they do that? They go after new workloads like a i. They go for cloud. They go from multi cloud. These are all very large markets in which they don't participate. Data protection. They'll partner with Lex, Kohi City and Rubric and Beam to to have data protection software running on their flash. A raise with very, very fast restores. That's something that's taking off. It's gonna be really interested in seeing as they say, they've got this subscription model that's coming in. They've got all this deferred revenue that in a way, it's going to slow him down a little bit just from an accounting standpoint, cause when you recognize deferred revenue, you recognize that, you know over 12 months over 36 months, so that's a little bit of a transition. The other thing that pure is facing in a tactical basis is Nande pricing. It's like this countervailing effects nan pricing is coming down, which means lower prices, lower costs but also lower revenue. But at the same time, it becomes more competitive with spinning disk. This is something else. We'll talk to Charlie Jean. Cholera right about it opens up new markets. So this tam expansion is critical for pure in terms of driving this modern data experience into these new workloads and fighting the competition, the competition is not sitting still. All those companies that I mentioned the H P ease, the the Delhi emcees, et cetera, are basically taking a page out of your swords narrative, talking about the cloud experience, talking about, you know, flexible pricing models, building cloud products on prime and hybrid cloud and multi cloud. So it's hard sometimes for customers to squint through that. And really, no, I guess the bottom line, the last thing I'll say is pure. Doesn't have as many feet on the street is these other guys. So it's gotta leverage the channel increasingly, and that's how it gets beyond two billion on its way to five billion. >> And that was one of the factors that they attributed the second quarter. 28% year on year growth is to not just innovation, but also to the channel. So they've done a good job of really pivoting. There's large enterprise deals to be covered, direct and then bringing in the channel for those smaller mid size business customers. Adding a lot of momentum in cute to you mentioned the nan pricing that in some of the political climate with the start of China, most of their businesses in the Americas so they're not facing as many of those challenges. So they did lower guidance for the rest of it is >> the second time they've >> lowered 20. However, they kind of attributed that thio the nan supply oversupply and they say happy Matt to flatten out quickly, say they're >> not worried about the macro. I mean, look, if if the economy is good and is booming and people are spending money on cap ex. That's good for even a high growth company. They're basically positioning to the street that if if the economy does turn down and there's a softness at the macro, they'll actually gain share more rapidly. Which, by the way, is probably true. But look at the rising tide lifts all boats. Nobody wants to see Ah recession. Having said that, well, it's interesting. When you saw Pure Lower, its guidance stock took a hit, and then net app, I'd be him. All these other company you have to see a deli emcee they announced in the market said, Wow, pure must be doing really well compared to these other guys. So it's come back in a big way. My opinion pure is going to in the e. T. Our data shows this from a spending intentions Pure is going to continue to gain share at a much, much more rapid pace of the other. The other guys, from a product standpoint, delicacies consolidating its product portfolio, trying to lower its cost. H. P E is really focused on limbo. IBM needs a mainframe product cycle to get back going, Ned APS facing its challenges and its kind of tweaking its go to market model. So all these other companies air dealing with sort of some structural changes. Where is pure is like put the put the foot on the gas and accelerate no pun intended. And so I think they're gonna continue to gain share for quite quite a number of quarters. >> I want to talk about sustainability before we break. And one of the things that Charlie talked about on his keynote is in terms of the modern data experience, he said. It was three things. It was simple, seamless and sustainable, an inch sustainable. You really started talking about the evergreen model that they launched a while ago that seems to be really sticky with organizations. He also talked about sustainability is a lot of other organization I need to adjust in terms of, you know, waste and carbon emissions and things like that. But I'm just curious, since Pierre is much smaller than the competitors that you mentioned and a lot more focus, obviously all in on flash. Where does the evergreen model, in your opinion, give them that tail winter? That advantage? >> Well, the Evergreen model was first of all brilliant marketing strategy and a business strategy Because if you think about the traditional storage vendors, they make so much money on maintenance, they would never have done this unless pure force them to do it. Because they're making so much cash on the maintenance. You know, it's it's you. You put the storage array in and we're just gonna charge you maintenance. And if you're not on the maintenance contract, sorry. You don't get all the software upgrades, everything else. So it's just this, you know, this lock in strategy, which is work brilliantly for two decades pure, comes along and says, Hey, where? Software driven. We're gonna allow you to get all the modern software. As long as you're got a subscription with us, we'll swap out your controller for free. You know, the competitors hate that. There's all kinds of nuances and stuff, but it worked, and customers love it. And so it's very strong, and it's a fundamental as they said, they got $600 million in deferred revenue, largely from that evergreen model. So they, you know, Charlie mentioned first for non disruptive upgrades. First for cloud management, first for a I ops first for always on que Os first with always on encryption, and if they're really the first, we're probably the first big company. They got a lot of attention there. Last thing, it's it's a four big announcements today. There's a I ready infrastructure, airy. They're doing some stuff they were first to announce with video. You know, a year or so ago, they got cloud offerings. Ah, block storage for AWS. And they've got clout Snap for Azure, which is actually pretty hot. It's backup on Azure, and they got product extensions. They got cheaper flash with a flash or a C for capacity. And then they have extended their all flashy raise their flash played etcetera with storage class, memory and and storage memory. And in this, this as a service model. Those are really the four big announcements that were gonna dig into all this week. >> We are, and we're gonna be talking with This is a great event. Two days. The cube is going to be here. We have seven pure customers to talk to you that I think kind of a record, at least in my cube experience of the last >> AWS always puts a lot of customers up too. You know. All >> right, well, there's no better validation than the success of a brand, whether we're talking about Evergreen or their first or the reaction of the market to bringing flash down to satya prices. So excited to dig into customer stories with you, Dave. Course we'll talk to some partners who got c'mon slung Cisco somebody else and probably forgetting. And, of course, some of the pure, exactly gonna be exciting two days with you and looking for two days >> looking forward to at least a great >> all right stick around. Dave and I will be right back with our first guest, Charlie Giancarlo, chairman and CEO of Pier Storage. Stick around, come back Mawston in just a minute.

(funky music) >> Announcer: From our studios in the heart of Silicon Valley, Palo Alto, California, this is a CUBE Conversation. >> Everyone, welcome to this special CUBE Conversation here in Palo Alto, California with CUBE Studios. I'm John Furrier, your host of this CUBE Conversation with Dheeraj Pandey, CEO of Nutanix. CUBE alumni, very special part of our community. Great to see you again, thanks for coming in. We're previewing your big show coming up, Nutanix NEXT in Europe. Thanks for joining me. >> It's an honor. >> It's always great to get you. I saw your interview on Bloomberg with Emily Chang. Kind of short interview, but still, you're putting the message out there. You've been talking software. We covered your show here in North America. Clearly moving to the subscription model, and I want to get into that conversation. I think there's some notable things to talk about now that we're in this cloud 2.0 era, as we're calling it, kind of a goof on web 2.0. But cloud 2.0 is a whole shift happening, and you've been on it for a while. But you got the event coming up in Europe, Nutanix NEXT. What's the focus? Give a quick plug for that event. Let's talk about that. >> Yeah, in fact, the reiteration of the message is a key part of any of our user conferences. We have 14,000 customers around the world now, across 150 countries. We've done almost more than $5 billion worth of just software business in the last six, seven years of selling. It's a billion six run rate. There's a lot going on in the business, but we need to take a step back and in our user conference talk about the vision. So what's the vision of Nutanix? And the best part is that it hasn't changed. It's basically one of those timeless things that hopefully will withstand the test of time in the future as well. Make computing invisible anywhere. People scratch their heads. What does computing mean? What does invisible mean? What does anywhere mean? And that's where we'll actually go to these user conferences, talk about what is computing for us. Is it just infrastructure? Is it infrastructure and platform? Now that we're getting into desktop delivery, is it also about business users and applications? The same thing about invisible, what's invisible? For us, it's always been a special word. It's a very esoteric word. If you think about the B2B world, it doesn't talk about the word invisible a lot. But for us it's a very profound word. It's about autonomous software. It's about continuous, virtues of continuous delivery, continuous consumption, continuous mobility. That's how you make things invisible. And subscription is a big part of that continuous delivery message and continuous consumption message. >> So the event is October 9th, around the first week of October. You got some time there, but getting geared up for that. I wanted to ask you what you've learned from the North America conference and going into the European conference. It's ultimately the same message, same vision, with a tweak, you got some time under your belt since then. The subscription model business, which you were talking in your Bloomberg interview, is in play. It is not a new thing. It's been in operation for a while. Could you talk about that specifically? Because I think most people would say, hey, hardware to software, hard to do. Software subscription, hard to maintain and grow. Where are you on that transition? Explain and clarify your mix of business, hardware, software. Where are you in the progress of that transformation? >> Well, you know, I have been a big student of history, and I can't think of a company that's gone from hardware to software and software subscription in such a short span. Actually, I don't know of any company. If you know of one, please let me know. But why? The why of subscription is to be frictionless. Hybrid is impossible without having the same kind of consumption model, both on-prem and off-prem. And if we didn't go through that, we would be hypocritical as a company to talk about cloud and hybrid itself. The next 10 years for this company is about hybrid, and doing it as if private and public are one in the same is basically the essence of Nutanix's architecture. >> Well, I can think of some hardware-software dynamics that, again, might not match your criteria, but some might say Apple. Is it a software or hardware company? Hardware drives the ecosystem, they commoditize it. Peloton bicycle is a bike, but it's mainly a software business and in-person business. So there's different models. Oracle has hardware, they have software. It doesn't always relate to the enterprise. What's the argument to say, hey, why don't you just create your own box and kick ass with that box, or is it just different dynamics? What's that? >> Well, there's a tension in the system. People want to buy experiences as opposed to buying things. They don't want to integrate things, like, oh, I need to actually now get a hardware vendor to behave as a software vendor when it comes to support issues and such. And at the same time, you want to be flexible and portable. How do you really work with the customer with their relationships that they have with their hardware vendors? So the word anywhere in our vision is exactly that. It's like, okay, we can work on multiple servers, multiple hypervisors, and multiple clouds. At the end of the day, the customer experience is king. And that's one thing that the last 10 years has taught us, John, if anything, is don't sell things to people. You know, Kubernetes is a thing. Cloud is a thing. Can you really go sell experiences? The biggest lesson in the last year for us has been integrate better. Not just with partners, but also within your own products. And now if you can do that well, customers will buy from you. >> I think you just kind of clarified where I was thinking out loud, because if you think about Apple, the hardware is part of the experience. So they have to have it. >> Mm-hmm. >> You don't have to have the hardware to create those experiences. Is that right? >> Absolutely, which is why it's now 2% of our business, and yet we are saying that we take the burden of responsibility of supporting it, integrating with it. One of the biggest issues with cloud is operations. What is operations? It's day two patching. How do you do day two patching? Intel is coming up with microcode upgrades every quarter now because of security reasons. If we are not doing an awesome job of one-click upgrade of firmware and microcode and BIOS, we don't belong in the hybrid cloud world. I think that's the level of mundaneness that we've gotten to with our software that makes us such a high NPS company with our customers. >> I want to just drill in on the notion of a thing versus experience. You mentioned Kubernetes is a thing. I would say Hadoop was a thing. But Hadoop was a great example. It was hard to do. Kubernetes, jury's still out. People love them. Kubernetes, we'll see how that goes. If it can be abstracted away, it's not a thing anymore. We'll see. But Hadoop was a great example. Unbelievable technology direction, big data, all the goodness of object storage and unstructured data. We knew that. Just hard to work with. Setting up clusters, managing clusters. And it ended up being the death of the sector, in my opinion. What is an experience? Define what does that mean. Is it frictionless only? Is there a trust equation? Just unpack your vision on what that means. A thing, which could be a box with software on it, and experience, which is something different. >> Yeah, I mean, now you start to unpeel the word experience. It's really about being frictionless, trusted, and invisible. If you can really do these things well, around the word, define frictionless. Well, it has to be consumer-grade. It has to be web scalable, 'cause customers are looking for the Amazon architecture inside, and aren't just going and renting it from Amazon, but also saying, can I get the same experience inside? So you've got to make it web scale. You've got to make it consumer-grade. Because our operators and users, talk about Hadoop, I mean, they struggled with the experience of Hadoop itself because it was a thing, it was a technology, as opposed to being something that was consumer-grade itself. And then finally, security. Trust is very important. We must secure always on resilient. The word resilience is very important. In fact, that's one of the things we'll actually talk about at our conference, is resilience. What does it mean, not just for Nutanix stock, to be where it is today from where it was six months ago. And that's what I'm most proud of, is you go through these transitions, you actually talk about resilience of software, resilience of systems, resilience of customer support, and resilience of companies. >> So you mentioned hybrid cloud. We were talking before we came on camera about hybrid cloud. But software's a two-way relationship. Talk about what you mean by that, and then I want to ask you a follow-up question of where hardware may or may be an opportunity or a problem in that construct. >> Yeah, I mean, look, in the world of hybrid, what's really important is delivering an experience that's really without silos. Ideally, on-prem infrastructure is an availability zone. How do you make it look like an availability zone that can stand up shoulder-to-shoulder with a public cloud availability zone? That's where you sell an experience. That's how you talk about a management plane where you can actually have a single pane of glass that really delivers a cloud experience both ways. >> You're kind of a contrarian. I always love interviewing you because you seem to be on the next wave before any realizes it. Right now everyone's trying to go on-premise and you're moving from on-premise to the cloud. Not you guys moving, but your whole vision is. You've been there, done that on premises. Now you've got to be where the customers are, which is where they need to be, which is the cloud. I heard you say that. It's interesting, you're going the other way, right? >> Mm-hmm. But you could look at the infrastructure and say, hey, there's a lot of hardware inside these clouds that have a lot of hardware-specific features like hardware assist that software or network latency might not be able to deliver. Is that a missed opportunity for you guys, or does your software leverage these trends? And even on premises, there's hardware offload-like features coming. How do you reconcile that? Because I would just argue inside of the company, say, hey, Dheeraj, let's not go all in on software. We can maximize this new technology, this thing, for our software. How do you-- >> Look, I think if you look at our features, like security, the way we use TPM, which is a piece of assist that you get from Intel's motherboards for doing key encryption management. What does it mean to really do encryption at scale using Intel's vectored instructions? How do you do RDMA? How do you look at InfiniBand? How do you look at Optane drives? We've been really good at that lowest level, but making sure that it's actually selling a solution that can then go drive SAP HANA and Oracle databases and GPU for graphics and desktops. So as a company, we don't talk about those things because they are the how of the business. You don't talk about the how. You'd rather talk about the why and the what, actually. >> So from a business strategy standpoint, I just want to get this clear because there's downfalls for getting into the hardware business. You know them. Inventory, all these hardware cycles are moving fast. You mentioned Intel shipping microcode for security reasons. So you're basically saying you'd rather optimize for decoupling hardware from the software and ride the innovation of the hardware guys, like Nvidia and Intel and others. >> Absolutely, and do it faster than anybody else, but more integrated than anybody else. You know, all together now is kind of our message for .NEXT. How do you bring it all together? Because the world is struggling with things, and that's the opportunity for Nutanix. >> Well, I would say making compute invisible is a great tagline. I would add storage and networking to that too. >> Yeah, computing, by the way. >> Computing. >> I said computing. >> Okay, computing. >> 'Cause computing is compute storage networking. Computing is infrastructure, platform, and apps. It's a very clever word, and it's a very profound word as well. >> Well, let's just throw Kubernetes in there too and move up the stack, because ultimately, we're writing a lot of stories on covering this editorially, is that the world's flipped upside down. It used to be the infrastructure. We're calling this cloud 2.0, like I said earlier. The world used to be the infrastructure enabled what the apps could do, and they were limited to the resources they had. Now the apps are in charge. They're dictating terms below the software line, if you want to call it the app line. So the apps are in charge now. Whoever can serve up the best infrastructure capability, which changes the entire computing industry because now the suppliers who can deliver that elastic or flexible capacity or resource, wins. >> Absolutely. >> And that's ultimately a complete shift. >> You know, I tell people, John, about the strategy of Nutanix because we have some apps now. Frame is an app for us. Beam is an app. Calm is an app. These are apps, they're drawn on the platform, which is the core platform of Nutanix, the core hyper-convergence innovation that we did. If you go back to the '90s, who was to say that Windows really fueled Office or Office fueled Windows? They had to work in conjunction, because without one, there would be no, the other, actually. So without Office there would be no Windows. Without Windows there would be no Office. How platforms and apps work with each other synergistically is at the core of delivering that experience. >> I want to add just you're a student of history. As an entrepreneur, you've been there through the many waves and you also invest a lot, and I want to ask you this question. It used to be that platforms was the holy grail. You'd go to a VC and say, hey, I'm building a platform. Big time investment. An entrepreneur will come back: I got a tool. You're a feature. You're a feature, not a platform. Platforms was the elite engineering position to come in to look for the big money. How would you define platforms now? Because with cloud, if apps are in charge, and there's potential features that are coming around the corner that no one's yet invented, what is this platform 2.0 world look like if you were coming out of grad school or you were a young engineer or a young entrepreneur? How do you think about that right now? >> Well, the biggest thing is around extensibility and openness. You know, we were talking about openness before, but the idea of APIs, where API is the new graphically why, because the developer is the builder. And how do you really go sell to them and still deliver a great experience? And not just from the point of view of, well, I've given you the best APIs, but the best SDKs. What does it mean to give them a development kit that gets them up and running in no time? And maybe even a graphical Kickstarter. We're working with our partners a lot, where it's not just about delivering APIs or raw APIs because they're not as consumable, but to deliver SDKs and to deliver graphical structural kits to them so that they can be up and running, building applications in two months rather than two years. I think that's at the core of what our platform is. >> And data and having an operating system thinking seems to be another common pattern. Understand the subsystems of data. Running and assembling things together. >> I think what is Nutanix, I mean, if people ask me what is Nutanix, I start with data. Data is the core of the company. We've done data for virtualization. We're now doing data for applications with Nutanix Files. We have object store data. We are doing Era, which is database as a service. Without data, we'd be dead as a company. That's how important it is. Now, how do you meld that with design and delivery is basically where the three Ds come together: data-- >> I wrote a blog post. Dave Vellante always laughs when I bring this up because he always references it too. In 2007 I said, data is the new development kit. 'Cause back then, development kits existed. SDKs, software development kits. MSDN was Microsoft's thing. You remember those glory days, Dheeraj, I know. But the thesis was, if data does actually come in, it's actually an input into the software. This is what I think you guys are doing that is clever that's not well understood, is data is an input, like a software library almost. A module, but it's dynamic and it's always changing. And writing software for that is a nouveau kind of thing. This is new. >> Yeah, I know, and delivered to the developer, because right now data and hardware data is sitting in silos which are mainframe-like systems. How do you deliver it where they can spin it up on their own? Making sure that we democratize data is the biggest challenge in most companies. >> We're in a new era, I think you just pointed that out, and we talk about it at CUBE all the time. We don't really talk about up-front. It used to be UI was the thing, user interface, ease of use. I think now the new table stake feature in all companies is if you can't show value instantly in any solution that has a thing or things in it, then it's pretty much not going to happen. I mean, this is the new expectation that becomes the experience for-- >> Yeah, I mean, millennials are the new developers, and they need to actually see instant gratification, many of these-- >> Well, cost too. I don't want to spend a million dollars to find out it didn't work. I want to maybe spend something variable. >> And look, agility, the cliched word, and I don't want to talk about agility per se, but at the end of the day it's all about, can we provide that experience where you don't have to really learn something over 18 months and provide it in the next three hours. >> Great conversation here with Dheeraj Pandey, CEO of Nutanix, about his vision. I always loved your software vision. You guys have smart engineers there. Let's talk about your company. I think a lot of people at your conference and your community and others want to know, is how you're doing and how the company's doing. Because I think you guys are in the midst of a major transition we talked about earlier, hardware to software, software to subscription, recurring revenue. I mean, it's pretty much a disruptive enabler for you guys at one level as an opportunity. It's changing how you do accounting. It's having product management. Your customers are going to consume it differently. It's been a big challenge. And stock's taken a little bit of a hit, but you're kind of playing the long game. Talk about the growth strategy as you guys go forward. This has been a struggle. There's been some personnel changes in the company. What's going on? Give us the straight scoop. >> Yeah, in fact the biggest thing is about the transformation for this coming decade. And there's fundamental things that need to change for the world of cloud. Otherwise, you're basically just talking the word rather than walking the walk itself. So this last quarter I was very pleased to announce that we finally showed the first strong point of this whole transformation. There's a really good data point coming out that the company is growing back again. We beat street estimates on pretty much every metric. Billings, revenue, gross margin. And we also guided above street estimates for billings, revenue, and gross margin, and I think that's probably one of the biggest things I'm proud of in the last six, nine months of this subscription transition. We're also telling the street about how to look at us from software and support billings point of view as opposed to looking at overall billings and revenue. If you take a step back into the company, I talk about this in our earnings call, 'til three years ago, we were a commercial company, also doing federal and some international. And the last three years we proved to ourselves and to the community that we can do enterprise, you know, high-end customers, upmarket, and also do a very good job of international. Now, the next three years is really about saying, can we do both enterprise and commercial together? All together now, which is also our, coincidentally, our .NEXT message, is the proof that we actually have to go and show that we can do federal, enterprise, and commercial to really build a very large business from it. >> Well, federal's got certification levels. We know that's different depending upon which agency you're talking to. Commercial, a little bit different ball game. SaaS becomes important, cloud becomes important. The big trend is on-premise hardware. Outposts for AWS, Azure Stack for Microsoft. How do you fit into that? Because you, again, you said you're both ways. >> Mm-hmm. >> So are you worried about that? Is that a headwind, tailwind for you? What's the impact for this now fashionable on-premises shift? Which I think is just a temporary thing as cloud continues to grow. But I still argue with Michael Dell about this. I think cloud is going to be a bigger TAM. Even though there's a huge total addressable market on enterprise, that's like saying there's a great TAM for horses and buggies when cars are coming out. It's different world between public cloud and on-premises. How does that impact Nutanix, this on-premise-- >> Well, remember I said about the word anywhere in our vision? Make computing invisible anywhere? With software you can actually reduce the tension between public and private. It's not this or that. It's this and that. Our software running on Outpost is a reality. It's not like we're saying, Outpost is one thing and Nutanix is another. And that's the value of software. It's so fungible, it's so portable, that you don't have to take sides between-- >> Are you guys at ISV inside Amazon Marketplace? >> No, but again, it's still a thing. Marketplace is still not where it should be, and it's hard to search and discover things from there. So we are saying, let's do it right. Remember, we were not the first hyper-convergence company. Right? We were probably the ninth one, like the way Google was as a search engine, actually. But we did it right, because the experience mattered. You know that search box that did everything? That's what Nutanix's overall experience is today. We will do the public cloud right with our software so that we can use the customer's credits with Amazon-- >> But you're still selling direct. And your partners. >> Well, everything is coming through partners, so at the end of the day we have to do an even better job of that, like what we're doing at HPE now. I think being able to go and find that common ground with partners is what commercial is all about. Commercial is a lot about distribution. As a company, we've done a really good job of enterprise and federal. But doing it with partners-- >> What are the biggest impact areas for your business and business model, elements with software transition that you're scaling up on the subscription side? What are the biggest areas? >> Well, one is just communication, 'cause obviously a lot is changing. At a private company, things change, nobody cares. The board just needs to know about it. But at a public company, we have investors in the public market. And many of them are in the nosebleeding section, actually, of this arena. So really, you're sitting in the arena, being the man in the arena, or the woman in the arena. How do you really take this message to the bleachers section is probably the biggest one, actually. >> Well, I think one of the things I've always speculated on, you look at the growth of, just pick some stocks that we all know. VMware, Microsoft. You look at the demarcation point where, right when the stock was low to high was the shift to cloud and software. With VMware, it was they had a failing strategy and they kill it and they do a deal with Amazon. Game has changed, now they're all in the software-defined data center. Microsoft, Satya Nadella comes in, boom, they're in cloud. Real commitment. And with Microsoft specifically, that was a real management commitment. They were committed to software. They were committed to the cloud business model, and took whatever medicine they needed to take. >> That's it. That's it, you take short-term pain for long-term gain, and look, anything that becomes large over time, to me it's all about long-term greed, and I use this word a lot. I want all our employees and our customers and our investors to really think about the word. There's greed, but it's long-term greed, and that's how most companies have become large over time. So I think for us to have done this right, to say, look, we are set for the next 10 years, was very important. >> It's interesting. Everyone wants to be like Jeff Bezos. Everyone wants to be like you guys now, because long-term greed or long-term thinking is the new fashion. It's the new standard and tack. >> Yeah, I mean, look the CEOs, the top 200 CEOs, came out and talked about, are we taking good care of main street, or are we just focused on this hamster wheel of three months reporting to Wall Street alone? And I think consensus is emerging that you got to take care of main street. You and I were talking about, that I look at investors as customers, and I look at customers as investors. Which is really kind of a contrarian way of thinking about it. >> It's interesting. We live in the world, we've seen many waves. I think the wave we're on now from an entrepreneurial and venture creation standpoint, whether you're public or private, is the long game is the new 3D chess. It's where the masters are playing their best game. You look at the results of the best companies. I just bought the book about Uber from Mike Isaac from the New York Times. Short-term thinking, win at all costs, that's not the 3D chess game that's going on with entrepreneurs these days. All the investment thesis is stay long-term. And certainly now, with this perceived bubble popping, or this downturn that may or may not happen, long-term game is more important than ever. Your thoughts on it? >> I think the word authenticity has never been more important, not just in the Valley, but around the world, actually. What you're seeing with all this Me Too movement and a lot of skeletons in the cupboard out there, I think at the end of the day, the word authentic cannot be artificially created. It has to come from within. What you talk about, Satya... I look at Shantanu Narayen, the Adobe CEO, and they're authentic CEOs. I mean, I look at Dara now, at Uber, he's talking about bringing authenticity to Uber. I think there's no shortcuts to success in this world. >> I think Adobe's a great example. What they've done has been amazing. I know you're on the board there, so congratulations. Final word, I'll let you get your plug in for the event and your customer base. Talk to your customers and investors out there that might watch this. From your state of mind, what's the state of the union for Nutanix? Speak directly to your customers and investors right now. >> Well, the tagline for .NEXT Copenhagen is all together now. We're bringing clouds together. We're bringing app infrastructure and data together. I think it's a really large opportunity for us to go sell an experience to our customers, rather than selling things. All these buzzwords that come up in technology, as a company, we've done a really good job of integrating them, and the next decade is about integrating the public cloud and the private cloud. And I look at investors and customers alike. I talk about long-term greed with them. Providing an experience to them is the core of our journey. >> Thanks for your insight, Dheeraj. This was a CUBE Conversation here in Palo Alto. I'm John Furrier, thanks for watching. (funky music)