no from the noise it's the cube covering vmworld 2015 brought to you by VMware and its ecosystem sponsors now your hosts John furrier and Dave vellante okay welcome back everyone we are live in San Francisco moscone north lobby at vmworld 2015 this is the cube silicon angles flagship program we go out to the events and extract the scene from the noise i'm john furrier the founder still gonna enjoy my coach dave vellante co-founder Wikibon calm research our next call our next guest is called shabaab the president and c-e-o chief opera offer vmware welcome back to the queue great to see you John Dave thanks for having me it's always good to spend time with you every vmworld we sit here it's great to have you but this year a little change of plans you did the opening keynote so were you nervous I mean usually it's girl singer it's the big stage and yeah you're the top note your peeps come on yeah i mean i don't i don't necessarily get that nervous anymore i mean if you don't have a little bit about it flies in your belly then you're not excited about doing it so it's more the nervousness about get going getting out there i mean when you first walk out and you see 20,000 sets of people looking at yeah you're like okay game on let's get going I'd like to set up this year like how you set the table up for Pat today's big great presentation but you laid out i'll c vm foundation you got vm women's thing going on today at four o'clock at them at the marriott you have a lot of product announcements kind of the blocking and tackling of the success so share with us some of the highlights because everyone's like who are whores the old school at what's not what nothing really new here and then the new folks to be in world like refresh wow a lot of new stuff here so yeah so i think it's a new stuff you know being a you know an old veteran here at vmware of more than 13 years i think it's just so exciting is how the company continues to you know innovate time and time again and we use vmworld as to showcase to be able to do that you know things that stand out for me right now is how you if you look back over time there's been a whole bunch of different technologies and companies that we're going to put vmware out of business and you come to vmworld and at first it starts with coneqtec then it's hyper-v then it's zen then it's kvn then it was OpenStack now it's containers and just watching vm we're how we think about the future make sure we embrace these new technologies that move the market forward is something we're quite proud of them we don't always view all of these things as big competitive threats we look at them as market extension opportunities for us and they all run on the same platform that we've brought to market for the mass many years so I you know and then we have some great events we have we have a vm women's conference we do every year at you know showing our diversity and we're really focused on that a lot internally at the company and then there's many events i just left we have a cio conference this year that's being hosted by our by our cio bass kire that's going really well with 40 different CIOs and we just you know keep thinking of different ways to be innovative at this conference time and time again not only technologically about how we engage with our people yeah I gotta say this year I that stands out for me as well and all some illustrations for me is one Pat's keynote today really thinks a long view of perspective because that's the tam is bigger it's not about short-term results and all this Elliott capital converses are on the Federation which is noise to the bigger picture which he basically just kills that conversation when out here's look at the future this yeah we're going after and then you got tactical stuff like DevOps which is kind of down in the trenches yeah so that's interesting that's so to me that's the highlight of for me this week so I got to ask you with that going on you're out leading the teams that actually talk to customers yes so how do you now take the vision that Pat laid out and you get the Federation construct how do you do in those deals how's everything working with VMware get some give us some data on what's going on with the with the sales the customers the deployments of solutions yeah so again yeah you know we did lay out a great vision at vmworld again this year and if you look at how we're addressing the market we're really now talking to multiple audiences where if you go back five years ago we talked to a single audience and as we engage with our customers we're talking to you know if you will the core VMware virtualization folks but now we're talking to networking teams we're talking to security we're talking to the line of business who is driving IT and we're also engaging as you said John with the developer community and one of the things that we've been focused on is not only going after those audiences but may making sure the core IT is become relevant to these next generation type of people that want to leverage our infrastructure and you know with our vision we now can turn over our vision to our core customers and say you now can internally market yourself as someone who's capable of running your legacy environment and looking at the future as well and I think that's really playing out here in the show this year and then the other area is just with nsx nsx and we showed the picture of a bullet train with it with you know this thing taking off and going extremely fast yesterday at the financial analyst meeting we had and i can tell you and just watching i just walked through the show floor over there and you go to the vmware booth in the one section that is jam-packed every time you go there is around nsx so John I'd say these customer engagements and conversations have expanded from pure virtualization to the cloud people to security and a lot of that as around NSX and then in one lasting dave is it's just our end user computing strategy I think at the conference last year we said what a difference a year makes an end-user computing in 2014 in 2015 I'll say it again what a difference a year makes we've come so far the acquisition of AirWatch has put us on the forefront of everything going on and both not virtualizing existing desktops but the world of mobility so our strategies coming together and i will tell you you talk to customers at the show they're seeing it real time well what a difference five years makes especially in that business if it's a win a 180 in that hole and use a computer space so you're talking about these different opportunities and it ties into the TAM expansion that you guys lay it out a couple years ago actually your strategic plan the reason i like talking yukos because you you're the executive who's most responsible for running the business i listen to the conference calls when I can or i read the transcripts and you know paddle give the high-level jonatha will give you the tax rates and then it comes out of carl won't you take that because you know that the business you're the executive who really isn't responsible for that and the big theme of these last you know several calls has been you know years now a couple years diversifying beyond the beyond the core of vSphere and you you're beginning to do that in a big way v san NSX vCloud air management so I wonder if you could talk about that Tam expansion and the business and how you feel about that in the momentum yeah I think one of the statistics we share on the hearings call every quarter is how our business has evolved over the years in the statistic we always use is what percentage of our business comes outside a stand alone if you will naked vSphere sales and now we're up over sixty percent of our business you know up from I think just three years ago or was only thirty percent of our business so we continue to evolve and make sure we're selling all these products the exciting part is we have all these solutions Dave at the same time when when you're thinking about from a go-to-market perspective we have to really figure out where to prioritize and how we enable our sales force to be capable of now catching all these great solutions and products we have to take to market so we've spent a lot of time on evolving and transforming our sales force to be capable of selling multiple solutions into the market but it goes way beyond Dave quite frankly our sales force it also goes to our channel as you know it just walked out solutions exchange over there you see you know 400 plus you know customers partners and ecosystem folks there they're all working with us and we have to make sure that they can move with us as quickly as we want to move as we bring these things to Marcus so it's um it's not easy I think we're doing quite well in the evolution of our go-to-market in how we're selling but it's something we're going to have to keep working on especially as you go into cloud and you have different licensing models whether it's a perpetual a subscription model or term model there's a whole bunch of things we have to do different and I think we're doing it well and the customers want that that choice but I'm glad you brought up that point because it's a great opportunity for you especially as your enterprise agreements come up for renewal now you can sell other services like bananas and bunches but it's complicated and and what I'm hearing from you is it's really the ecosystem power that allows you to do that yeah and and as well some hard work and training and the like yeah absolutely Dave in yo we do have you know use the enterprise license agreement as a vehicle and how we engage with our customers and as they come up for renewal the great news is we have a framework in place and now we have the opportunity as we continue to innovate bring more more are these products into the renewal and hopefully make them bigger as the years go on so Carl Pat said in this keynote sound but I picked up on referencing clouds can we all can't we all get along kind of like playing with that kind of phrase everyone kind of throws around so I want you to comment on that and then I want to share tweet with you then I'm going to ask you a sales motion question with how you guys are handling your sales motions with your customers in terms of the value proposition someone tweeted it's no longer the big beating the small it's the fast beating the slow get agile with VMware one cloud so one cloud any device are any on cloud and any device yeah is the key message so let's start with the cloud question first can't we all get along I think in some sense we can and we are getting along in another sense we're competing I mean this is a cooperative world we live in or I call it frenemies we're friends and enemies simultaneously it's just the world we live in an IT today and if you look at it through the lens of VMware the one thing we've said time and time again is we're going to give our customers freedom flexibility and choice I articulated this during my keynote yesterday morning and and really it's this whole notion of letting our customers choose who they partner with how they partner with them and then look to VMware and say will you still engage and we're doing that an example in the cloud space VMware obviously can run on premise with our private cloud and we can run our customers workloads in our vCloud air cloud itself or one of our partners but at the same time we'll look at our customers and say you know what if you want a provision any of your workloads and run them in an amazon cloud in a microsoft azure cloud or any other cloud out there will be the provisioning letter through what we call cmp cloud management platform and that's what helped us emerge to be the number one cloud management platform player in the industry so it's not necessarily we have to directly engage with with some of our competitors in a cloud space but we also look at our customers say hey they have great clouds we're not going to have one big homo genius cloud there's going to be many college there's going to be a heterogeneous set of infrastructure people want to use and we're going to allow them to do that but we're going to be the orchestrator of just a drill down on that the word engineering came up in Pat's cube conversation earlier today talking about cloud how cloud be many things to many people hybrid cloud is just a kind of like this should be the computing it's the outcome of engineering efforts and every customer is a different use case get workloads exactly so given that piece there that is where the resource piece comes up the unlimited resource so is that the key driver for your philosophy of in many clouds that hey let the customers engineer what they want per se is that kind of what you're getting at what we're saying is we know the customers who want to leverage many clouds out there I mean whether and it's not just infrastructure-as-a-service clouds its past clouds platform as a service and it says whether it's sales force or box or you know any of the others and we're saying we know they're going to want to use them at the same time we look at our customers and say listen we've been on a journey you know and we say we've been on a journey for the last 10 years together and there's probably no one who's provided more value right or more economic return in the data center than VMware in the last 10 years it's a rhetorical question and I'll ask customers that and they'll say yeah you're probably right and then I say it's not if it's when you're going to use a public cloud and they'll say yes and then I'll say well why don't we go on another decade long journey and make sure that exactly how you run your environment today we give you a safe passage way to go to the cloud not if but when you want to go there with the same operating model with the same tooling in the same infrastructure and when you have that conversation with VMware customers are like let's engage and let's go on another journey because I know why you can take me there and that's where our engineering comes in things like long distance vmotion backing up virtual machines in a public cloud so the engineering of what we're doing is deeply integrated into our solutions but it doesn't eliminate our customers from using other classes wiki there if I may is that you're enabling your idea giving credibility to the IT organizations that are subtitle those are your peeps right so it's the shadow IT that those guys are trying to avoid and obviously that's the edict of the organization that I t is responsible for so that to me is the key yeah I'm it's a great way to put I mean the thing that's happening now is is that what Pat brought up I want to get your conscious because this comes back your sales touch points out so you have your constituent in IT jobs so Pat said on the cube here he said they did a survey and the DevOps DevOps conference whether you're a developer or in ninety and majority the people were in IT mm-hmm so after you own that's your wheelhouse you have a great install base 10-year journey that's cool you own that so John you call it ops dev but this is nice i see i do the guys who kicked ass with virtualization so we know that exists out there but what's happening now that we're seeing here and i want to see if you guys are seeing it in the field is there's a whole nother pressure point from the app developers yeah that are rolling out massive projects are you guys touching that part of the organization the sales motion are you hearing that from customers thank you know I think the question really is how are we engaging or what are we doing to engage with probably a different set of customers and that's the developers and I would say if you talk to Robin and you talk to the marketing teams we're just reaching out to those developers we haven't historically as you both said really been talking to developers we supplied IT with an infrastructure that then they support the developer community but what you're seeing now is the developers don't believe I can give them what they want and they're going around them to other denture any cloud boat which is exactly why now VMware has a two-prong strategy we're going to go and what we're going to do is we're going to enable IT to remain the platform of choice for the developers but we're also going to go and touch the developers and give them the confidence that they can run on the existing unlimited shadow I teach that is the goal it will always exist I'm sure but for some things but you know it's been our shadow IT is always doing the cubes like it's been are indeed it's like at some point you got to operationalize it absolutely and you know if you think about it when we speak to customers what we want them to be as a service broker we want them to broker infrastructure services past services SAS service and developer services on the most efficient effective way they can run it whether its internal or external clouds and in and we don't want to create a bottleneck because you never want to slow down the speed of innovation from the developer community but if you can somehow funnel and through IT and they can get the confidence I t can get them the resources they want then it's a win-win shadow i t's born out of necessity if you can eliminate the necessity exactly wit everybody wins a crate so final question for me is what are the top conversations that you're having with customers when you know in terms of like look at just from metadata from you on like but what are some of the conversations that are there in the real down-and-dirty conversations with the customers what are they talking about what's their top concerns what's the point every probably three the first is you know the challenge they have with running their legacy data center where seventy percent of IT dollars are spent but also trying to address the needs of the business and devout developer community you know if you will supporting both sides that the divide is actually really hard and they're all struggling with it you talk to any customer of any size they're struggling with it how do you take your brownfield environment and make it capable of handling net new infrastructure of platforming solutions and applications and some of them just build brand new green field data centers and that's how they go forward so that's the first thing that we hear loud and clear from our customers the second is I don't think you know any of them believe the technology is not going to evolve and when we bring this whole notion it's a very big vision of software-defined data center to our customers they all get it and I'm confident we can deliver all the way from Network compute to storage and highly automated that is not their biggest challenge the single biggest challenge we see with our customers to getting massive scale adoption of the software-defined data center it's not technology its people their organizations are aligned on the network team on the compute team on the storage team on the dev ops team and all sudden this crappy company VMware comes in and says we're converging to technologies and now you have a mismatch between your technology organisation so sake for your transformation that people Jennifer mation is actually really hard for them to consume right so it's you know that I'd say that is the single biggest challenge that we see with our customers I'll tell you in our experience the successful organizations are the ones that damn the torpedoes bring in the technology and then figure it out as opposed to trying to figure out the organization because it'll never happen yes Oh work experience is there it's a forcing function exactly and then the third area conversation we're having with our customers you know he's around network virtualization this is you know not it's when and how fast i think we've eliminated the barrier of virtualizing the infrastructure just like we did years ago with you know ESX it took a long time for us to break through that barrier but because we broke through that barrier i think the there's a much more openness to something like that or virtualization because we've already proved it can be done in one component of the data center compute why can't we do it on networking so that's a that's a big discussion point yeah for the folks watching that last point if you look at Pat Gelson's interview he talks about where that hardon line is he sees the evolution so yeah Carl thanks for the insight I know you're super busy you got a lot of things to do your roaming the halls going to all the different events congratulations and thanks for coming on the Cuban sharing your insights thanks for having me appreciate being here every year with you guys great stuff from vmworld 2015 is the cube I'm John furrier with Dave allante live in San Francisco for the Emerald 2015 we'll be right back after this short break