(upbeat music) >> Hi everyone. Welcome back to this Cube conversation here in Palo Alto, California. I'm John Furrier, host of "theCUBE." Got a great conversation around Cloud Native, Cloud Native Journey, how enterprises are looking at Cloud Native and putting it all together. And it comes down to operations, developer productivity, and security. It's the hottest topic in technology. We got Chris Jones here in the studio, director of Product Management for Platform9. Chris, thanks for coming in. >> Hey, thanks. >> So when we always chat about, when we're at KubeCon. KubeConEU is coming up and in a few, in a few months, the number one conversation is developer productivity. And the developers are driving all the standards. It's interesting to see how they just throw everything out there and whatever gets adopted ends up becoming the standard, not the old school way of kind of getting stuff done. So that's cool. Security Kubernetes and Containers are all kind of now that next level. So you're starting to see the early adopters moving to the mainstream. Enterprises, a variety of different approaches. You guys are at the center of this. We've had a couple conversations with your CEO and your tech team over there. What are you seeing? You're building the products. What's the core product focus right now for Platform9? What are you guys aiming for? >> The core is that blend of enabling your infrastructure and PlatformOps or DevOps teams to be able to go fast and run in a stable environment, but at the same time enable developers. We don't want people going back to what I've been calling Shadow IT 2.0. It's, hey, I've been told to do something. I kicked off this Container initiative. I need to run my software somewhere. I'm just going to go figure it out. We want to keep those people productive. At the same time we want to enable velocity for our operations teams, be it PlatformOps or DevOps. >> Take us through in your mind and how you see the industry rolling out this Cloud Native journey. Where do you see customers out there? Because DevOps have been around, DevSecOps is rocking, you're seeing AI, hot trend now. Developers are still in charge. Is there a change to the infrastructure of how developers get their coding done and the infrastructure, setting up the DevOps is key, but when you add the Cloud Native journey for an enterprise, what changes? What is the, what is the, I guess what is the Cloud Native journey for an enterprise these days? >> The Cloud Native journey or the change? When- >> Let's start with the, let's start with what they want to do. What's the goal and then how does that happen? >> I think the goal is that promise land. Increased resiliency, better scalability, and overall reduced costs. I've gone from physical to virtual that gave me a higher level of density, packing of resources. I'm moving to Containers. I'm removing that OS layer again. I'm getting a better density again, but all of a sudden I'm running Kubernetes. What does that, what does that fundamentally do to my operations? Does it magically give me scalability and resiliency? Or do I need to change what I'm running and how it's running so it fits that infrastructure? And that's the reality, is you can't just take a Container and drop it into Kubernetes and say, hey, I'm now Cloud Native. I've got reduced cost, or I've got better resiliency. There's things that your engineering teams need to do to make sure that application is a Cloud Native. And then there's what I think is one of the largest shifts of virtual machines to containers. When I was in the world of application performance monitoring, we would see customers saying, well, my engineering team have this Java app, and they said it needs a VM with 12 gig of RAM and eight cores, and that's what we gave it. But it's running slow. I'm working with the application team and you can see it's running slow. And they're like, well, it's got all of its resources. One of those nice features of virtualization is over provisioning. So the infrastructure team would say, well, we gave it, we gave it all a RAM it needed. And what's wrong with that being over provisioned? It's like, well, Java expects that RAM to be there. Now all of a sudden, when you move to the world of containers, what we've got is that's not a set resource limit, really is like it used to be in a VM, right? When you set it for a container, your application teams really need to be paying attention to your resource limits and constraints within the world of Kubernetes. So instead of just being able to say, hey, I'm throwing over the fence and now it's just going to run on a VM, and that VMs got everything it needs. It's now really running on more, much more of a shared infrastructure where limits and constraints are going to impact the neighbors. They are going to impact who's making that decision around resourcing. Because that Kubernetes concept of over provisioning and the virtualization concept of over provisioning are not the same. So when I look at this problem, it's like, well, what changed? Well, I'll do my scale tests as an application developer and tester, and I'd see what resources it needs. I asked for that in the VM, that sets the high watermark, job's done. Well, Kubernetes, it's no longer a VM, it's a Kubernetes manifest. And well, who owns that? Who's writing it? Who's setting those limits? To me, that should be the application team. But then when it goes into operations world, they're like, well, that's now us. Can we change those? So it's that amalgamation of the two that is saying, I'm a developer. I used to pay attention, but now I need to pay attention. And an infrastructure person saying, I used to just give 'em what they wanted, but now I really need to know what they've wanted, because it's going to potentially have a catastrophic impact on what I'm running. >> So what's the impact for the developer? Because, infrastructure's code is what everybody wants. The developer just wants to get the code going and they got to pay attention to all these things, or don't they? Is that where you guys come in? How do you guys see the problem? Actually scope the problem that you guys solve? 'Cause I think you're getting at I think the core issue here, which is, I've got Kubernetes, I've got containers, I've got developer productivity that I want to focus on. What's the problem that you guys solve? >> Platform operation teams that are adopting Cloud Native in their environment, they've got that steep learning curve of Kubernetes plus this fundamental change of how an app runs. What we're doing is taking away the burden of needing to operate and run Kubernetes and giving them the choice of the flexibility of infrastructure and location. Be that an air gap environment like a, let's say a telco provider that needs to run a containerized network function and containerized workloads for 5G. That's one thing that we can deploy and achieve in a completely inaccessible environment all the way through to Platform9 running traditionally as SaaS, as we were born, that's remotely managing and controlling your Kubernetes environments on-premise AWS. That hybrid cloud experience that could be also Bare Metal, but it's our platform running your environments with our support there, 24 by seven, that's proactively reaching out. So it's removing a lot of that burden and the complications that come along with operating the environment and standing it up, which means all of a sudden your DevOps and platform operations teams can go and work with your engineers and application developers and say, hey, let's get, let's focus on the stuff that, that we need to be focused on, which is running our business and providing a service to our customers. Not figuring out how to upgrade a Kubernetes cluster, add new nodes, and configure all of the low level. >> I mean there are, that's operations that just needs to work. And sounds like as they get into the Cloud Native kind of ops, there's a lot of stuff that kind of goes wrong. Or you go, oops, what do we buy into? Because the CIOs, let's go, let's go Cloud Native. We want to, we got to get set up for the future. We're going to be Cloud Native, not just lift and shift and we're going to actually build it out right. Okay, that sounds good. And when we have to actually get done. >> Chris: Yeah. >> You got to spin things up and stand up the infrastructure. What specifically use case do you guys see that emerges for Platform9 when people call you up and you go talk to customers and prospects? What's the one thing or use case or cases that you guys see that you guys solve the best? >> So I think one of the, one of the, I guess new use cases that are coming up now, everyone's talking about economic pressures. I think the, the tap blows open, just get it done. CIO is saying let's modernize, let's use the cloud. Now all of a sudden they're recognizing, well wait, we're spending a lot of money now. We've opened that tap all the way, what do we do? So now they're looking at ways to control that spend. So we're seeing that as a big emerging trend. What we're also sort of seeing is people looking at their data centers and saying, well, I've got this huge legacy environment that's running a hypervisor. It's running VMs. Can we still actually do what we need to do? Can we modernize? Can we start this Cloud Native journey without leaving our data centers, our co-locations? Or if I do want to reduce costs, is that that thing that says maybe I'm repatriating or doing a reverse migration? Do I have to go back to my data center or are there other alternatives? And we're seeing that trend a lot. And our roadmap and what we have in the product today was specifically built to handle those, those occurrences. So we brought in KubeVirt in terms of virtualization. We have a long legacy doing OpenStack and private clouds. And we've worked with a lot of those users and customers that we have and asked the questions, what's important? And today, when we look at the world of Cloud Native, you can run virtualization within Kubernetes. So you can, instead of running two separate platforms, you can have one. So all of a sudden, if you're looking to modernize, you can start on that new infrastructure stack that can run anywhere, Kubernetes, and you can start bringing VMs over there as you are containerizing at the same time. So now you can keep your application operations in one environment. And this also helps if you're trying to reduce costs. If you really are saying, we put that Dev environment in AWS, we've got a huge amount of velocity out of it now, can we do that elsewhere? Is there a co-location we can go to? Is there a provider that we can go to where we can run that infrastructure or run the Kubernetes, but not have to run the infrastructure? >> It's going to be interesting too, when you see the Edge come online, you start, we've got Mobile World Congress coming up, KubeCon events we're going to be at, the conversation is not just about public cloud. And you guys obviously solve a lot of do-it-yourself implementation hassles that emerge when people try to kind of stand up their own environment. And we hear from developers consistency between code, managing new updates, making sure everything is all solid so they can go fast. That's the goal. And that, and then people can get standardized on that. But as you get public cloud and do it yourself, kind of brings up like, okay, there's some gaps there as the architecture changes to be more distributed computing, Edge, on-premises cloud, it's cloud operations. So that's cool for DevOps and Cloud Native. How do you guys differentiate from say, some the public cloud opportunities and the folks who are doing it themselves? How do you guys fit in that world and what's the pitch or what's the story? >> The fit that we look at is that third alternative. Let's get your team focused on what's high value to your business and let us deliver that public cloud experience on your infrastructure or in the public cloud, which gives you that ability to still be flexible if you want to make choices to run consistently for your developers in two different locations. So as I touched on earlier, instead of saying go figure out Kubernetes, how do you upgrade a hundred worker nodes in place upgrade. We've solved that problem. That's what we do every single day of the week. Don't go and try to figure out how to upgrade a cluster and then upgrade all of the, what I call Kubernetes friends, your core DNSs, your metrics server, your Kubernetes dashboard. These are all things that we package, we test, we version. So when you click upgrade, we've already handled that entire process. So it's saying don't have your team focused on that lower level piece of work. Get them focused on what is important, which is your business services. >> Yeah, the infrastructure and getting that stood up. I mean, I think the thing that's interesting, if you look at the market right now, you mentioned cost savings and recovery, obviously kind of a recession. I mean, people are tightening their belts for sure. I don't think the digital transformation and Cloud Native spend is going to plummet. It's going to probably be on hold and be squeezed a little bit. But to your point, people are refactoring looking at how to get the best out of what they got. It's not just open the tap of spend the cash like it used to be. Yeah, a couple months, even a couple years ago. So okay, I get that. But then you look at the what's coming, AI. You're seeing all the new data infrastructure that's coming. The containers, Kubernetes stuff, got to get stood up pretty quickly and it's got to be reliable. So to your point, the teams need to get done with this and move on to the next thing. >> Chris: Yeah, yeah, yeah. >> 'Cause there's more coming. I mean, there's a lot coming for the apps that are building in Data Native, AI-Native, Cloud Native. So it seems that this Kubernetes thing needs to get solved. Is that kind of what you guys are focused on right now? >> So, I mean to use a customer, we have a customer that's in AI/ML and they run their platform at customer sites and that's hardware bound. You can't run AI machine learning on anything anywhere. Well, with Platform9 they can. So we're enabling them to deliver services into their customers that's running their AI/ML platform in their customer's data centers anywhere in the world on hardware that is purpose-built for running that workload. They're not Kubernetes experts. That's what we are. We're bringing them that ability to focus on what's important and just delivering their business services whilst they're enabling our team. And our 24 by seven proactive management are always on assurance to keep that up and running for them. So when something goes bump at the night at 2:00am, our guys get woken up. They're the ones that are reaching out to the customer saying, your environments have a problem, we're taking these actions to fix it. Obviously sometimes, especially if it is running on Bare Metal, there's things you can't do remotely. So you might need someone to go and do that. But even when that happens, you're not by yourself. You're not sitting there like I did when I worked for a bank in one of my first jobs, three o'clock in the morning saying, wow, our end of day processing is stuck. Who else am I waking up? Right? >> Exactly, yeah. Got to get that cash going. But this is a great use case. I want to get to the customer. What do some of the successful customers say to you for the folks watching that aren't yet a customer of Platform9, what are some of the accolades and comments or anecdotes that you guys hear from customers that you have? >> It just works, which I think is probably one of the best ones you can get. Customers coming back and being able to show to their business that they've delivered growth, like business growth and productivity growth and keeping their organization size the same. So we started on our containerization journey. We went to Kubernetes. We've deployed all these new workloads and our operations team is still six people. We're doing way more with growth less, and I think that's also talking to the strength that we're bringing, 'cause we're, we're augmenting that team. They're spending less time on the really low level stuff and automating a lot of the growth activity that's involved. So when it comes to being able to grow their business, they can just focus on that, not- >> Well you guys do the heavy lifting, keep on top of the Kubernetes, make sure that all the versions are all done. Everything's stable and consistent so they can go on and do the build out and provide their services. That seems to be what you guys are best at. >> Correct, correct. >> And so what's on the roadmap? You have the product, direct product management, you get the keys to the kingdom. What is, what is the focus? What's your focus right now? Obviously Kubernetes is growing up, Containers. We've been hearing a lot at the last KubeCon about the security containers is getting better. You've seen verification, a lot more standards around some things. What are you focused on right now for at a product over there? >> Edge is a really big focus for us. And I think in Edge you can look at it in two ways. The mantra that I drive is Edge must be remote. If you can't do something remotely at the Edge, you are using a human being, that's not Edge. Our Edge management capabilities and being in the market for over two years are a hundred percent remote. You want to stand up a store, you just ship the server in there, it gets racked, the rest of it's remote. Imagine a store manager in, I don't know, KFC, just plugging in the server, putting in the ethernet cable, pressing the power button. The rest of all that provisioning for that Cloud Native stack, Kubernetes, KubeVirt for virtualization is done remotely. So we're continuing to focus on that. The next piece that is related to that is allowing people to run Platform9 SaaS in their data centers. So we do ag app today and we've had a really strong focus on telecommunications and the containerized network functions that come along with that. So this next piece is saying, we're bringing what we run as SaaS into your data center, so then you can run it. 'Cause there are many people out there that are saying, we want these capabilities and we want everything that the Platform9 control plane brings and simplifies. But unfortunately, regulatory compliance reasons means that we can't leverage SaaS. So they might be using a cloud, but they're saying that's still our infrastructure. We're still closed that network down, or they're still on-prem. So they're two big priorities for us this year. And that on-premise experiences is paramount, even to the point that we will be delivering a way that when you run an on-premise, you can still say, wait a second, well I can send outbound alerts to Platform9. So their support team can still be proactively helping me as much as they could, even though I'm running Platform9s control plane. So it's sort of giving that blend of two experiences. They're big, they're big priorities. And the third pillar is all around virtualization. It's saying if you have economic pressures, then I think it's important to look at what you're spending today and realistically say, can that be reduced? And I think hypervisors and virtualization is something that should be looked at, because if you can actually reduce that spend, you can bring in some modernization at the same time. Let's take some of those nos that exist that are two years into their five year hardware life cycle. Let's turn that into a Cloud Native environment, which is enabling your modernization in place. It's giving your engineers and application developers the new toys, the new experiences, and then you can start running some of those virtualized workloads with KubeVirt, there. So you're reducing cost and you're modernizing at the same time with your existing infrastructure. >> You know Chris, the topic of this content series that we're doing with you guys is finding the right path, trusting the right path to Cloud Native. What does that mean? I mean, if you had to kind of summarize that phrase, trusting the right path to Cloud Native, what does that mean? It mean in terms of architecture, is it deployment? Is it operations? What's the underlying main theme of that quote? What's the, what's? How would you talk to a customer and say, what does that mean if someone said, "Hey, what does that right path mean?" >> I think the right path means focusing on what you should be focusing on. I know I've said it a hundred times, but if your entire operations team is trying to figure out the nuts and bolts of Kubernetes and getting three months into a journey and discovering, ah, I need Metrics Server to make something function. I want to use Horizontal Pod Autoscaler or Vertical Pod Autoscaler and I need this other thing, now I need to manage that. That's not the right path. That's literally learning what other people have been learning for the last five, seven years that have been focused on Kubernetes solely. So the why- >> There's been a lot of grind. People have been grinding it out. I mean, that's what you're talking about here. They've been standing up the, when Kubernetes started, it was all the promise. >> Chris: Yep. >> And essentially manually kind of getting in in the weeds and configuring it. Now it's matured up. They want stability. >> Chris: Yeah. >> Not everyone can get down and dirty with Kubernetes. It's not something that people want to generally do unless you're totally into it, right? Like I mean, I mean ops teams, I mean, yeah. You know what I mean? It's not like it's heavy lifting. Yeah, it's important. Just got to get it going. >> Yeah, I mean if you're deploying with Platform9, your Ops teams can tinker to their hearts content. We're completely compliant upstream Kubernetes. You can go and change an API server flag, let's go and mess with the scheduler, because we want to. You can still do that, but don't, don't have your team investing in all this time to figure it out. It's been figured out. >> John: Got it. >> Get them focused on enabling velocity for your business. >> So it's not build, but run. >> Chris: Correct? >> Or run Kubernetes, not necessarily figure out how to kind of get it all, consume it out. >> You know we've talked to a lot of customers out there that are saying, "I want to be able to deliver a service to my users." Our response is, "Cool, let us run it. You consume it, therefore deliver it." And we're solving that in one hit versus figuring out how to first run it, then operate it, then turn that into a consumable service. >> So the alternative Platform9 is what? They got to do it themselves or use the Cloud or what's the, what's the alternative for the customer for not using Platform9? Hiring more people to kind of work on it? What's the? >> People, building that kind of PaaS experience? Something that I've been very passionate about for the past year is looking at that world of sort of GitOps and what that means. And if you go out there and you sort of start asking the question what's happening? Just generally with Kubernetes as well and GitOps in that scope, then you'll hear some people saying, well, I'm making it PaaS, because Kubernetes is too complicated for my developers and we need to give them something. There's some great material out there from the likes of Intuit and Adobe where for two big contributors to Argo and the Argo projects, they almost have, well they do have, different experiences. One is saying, we went down the PaaS route and it failed. The other one is saying, well we've built a really stable PaaS and it's working. What are they trying to do? They're trying to deliver an outcome to make it easy to use and consume Kubernetes. So you could go out there and say, hey, I'm going to build a Kubernetes cluster. Sounds like Argo CD is a great way to expose that to my developers so they can use Kubernetes without having to use Kubernetes and start automating things. That is an approach, but you're going to be going completely open source and you're going to have to bring in all the individual components, or you could just lay that, lay it down, and consume it as a service and not have to- >> And mentioned to it. They were the ones who kind of brought that into the open. >> They did. Inuit is the primary contributor to the Argo set of products. >> How has that been received in the market? I mean, they had the event at the Computer History Museum last fall. What's the momentum there? What's the big takeaway from that project? >> Growth. To me, growth. I mean go and track the stars on that one. It's just, it's growth. It's unlocking machine learning. Argo workflows can do more than just make things happen. Argo CD I think the approach they're taking is, hey let's make this simple to use, which I think can be lost. And I think credit where credit's due, they're really pushing to bring in a lot of capabilities to make it easier to work with applications and microservices on Kubernetes. It's not just that, hey, here's a GitOps tool. It can take something from a Git repo and deploy it and maybe prioritize it and help you scale your operations from that perspective. It's taking a step back and saying, well how did we get to production in the first place? And what can be done down there to help as well? I think it's growth expansion of features. They had a huge release just come out in, I think it was 2.6, that brought in things that as a product manager that I don't often look at like really deep technical things and say wow, that's powerful. But they have, they've got some great features in that release that really do solve real problems. >> And as the product, as the product person, who's the target buyer for you? Who's the customer? Who's making that? And you got decision maker, influencer, and recommender. Take us through the customer persona for you guys. >> So that Platform Ops, DevOps space, right, the people that need to be delivering Containers as a service out to their organization. But then it's also important to say, well who else are our primary users? And that's developers, engineers, right? They shouldn't have to say, oh well I have access to a Kubernetes cluster. Do I have to use kubectl or do I need to go find some other tool? No, they can just log to Platform9. It's integrated with your enterprise id. >> They're the end customer at the end of the day, they're the user. >> Yeah, yeah. They can log in. And they can see the clusters you've given them access to as a Platform Ops Administrator. >> So job well done for you guys. And your mind is the developers are moving 'em fast, coding and happy. >> Chris: Yeah, yeah. >> And and from a customer standpoint, you reduce the maintenance cost, because you keep the Ops smoother, so you got efficiency and maintenance costs kind of reduced or is that kind of the benefits? >> Yeah, yep, yeah. And at two o'clock in the morning when things go inevitably wrong, they're not there by themselves, and we're proactively working with them. >> And that's the uptime issue. >> That is the uptime issue. And Cloud doesn't solve that, right? Everyone experienced that Clouds can go down, entire regions can go offline. That's happened to all Cloud providers. And what do you do then? Kubernetes isn't your recovery plan. It's part of it, right, but it's that piece. >> You know Chris, to wrap up this interview, I will say that "theCUBE" is 12 years old now. We've been to OpenStack early days. We had you guys on when we were covering OpenStack and now Cloud has just been booming. You got AI around the corner, AI Ops, now you got all this new data infrastructure, it's just amazing Cloud growth, Cloud Native, Security Native, Cloud Native, Data Native, AI Native. It's going to be all, this is the new app environment, but there's also existing infrastructure. So going back to OpenStack, rolling our own cloud, building your own cloud, building infrastructure cloud, in a cloud way, is what the pioneers have done. I mean this is what we're at. Now we're at this scale next level, abstracted away and make it operational. It seems to be the key focus. We look at CNCF at KubeCon and what they're doing with the cloud SecurityCon, it's all about operations. >> Chris: Yep, right. >> Ops and you know, that's going to sound counterintuitive 'cause it's a developer open source environment, but you're starting to see that Ops focus in a good way. >> Chris: Yeah, yeah, yeah. >> Infrastructure as code way. >> Chris: Yep. >> What's your reaction to that? How would you summarize where we are in the industry relative to, am I getting, am I getting it right there? Is that the right view? What am I missing? What's the current state of the next level, NextGen infrastructure? >> It's a good question. When I think back to sort of late 2019, I sort of had this aha moment as I saw what really truly is delivering infrastructure as code happening at Platform9. There's an open source project Ironic, which is now also available within Kubernetes that is Metal Kubed that automates Bare Metal as code, which means you can go from an empty server, lay down your operating system, lay down Kubernetes, and you've just done everything delivered to your customer as code with a Cloud Native platform. That to me was sort of the biggest realization that I had as I was moving into this industry was, wait, it's there. This can be done. And the evolution of tooling and operations is getting to the point where that can be achieved and it's focused on by a number of different open source projects. Not just Ironic and and Metal Kubed, but that's a huge win. That is truly getting your infrastructure. >> John: That's an inflection point, really. >> Yeah. >> If you think about it, 'cause that's one of the problems. We had with the Bare Metal piece was the automation and also making it Cloud Ops, cloud operations. >> Right, yeah. I mean, one of the things that I think Ironic did really well was saying let's just treat that piece of Bare Metal like a Cloud VM or an instance. If you got a problem with it, just give the person using it or whatever's using it, a new one and reimage it. Just tell it to reimage itself and it'll just (snaps fingers) go. You can do self-service with it. In Platform9, if you log in to our SaaS Ironic, you can go and say, I want that physical server to myself, because I've got a giant workload, or let's turn it into a Kubernetes cluster. That whole thing is automated. To me that's infrastructure as code. I think one of the other important things that's happening at the same time is we're seeing GitOps, we're seeing things like Terraform. I think it's important for organizations to look at what they have and ask, am I using tools that are fit for tomorrow or am I using tools that are yesterday's tools to solve tomorrow's problems? And when especially it comes to modernizing infrastructure as code, I think that's a big piece to look at. >> Do you see Terraform as old or new? >> I see Terraform as old. It's a fantastic tool, capable of many great things and it can work with basically every single provider out there on the planet. It is able to do things. Is it best fit to run in a GitOps methodology? I don't think it is quite at that point. In fact, if you went and looked at Flux, Flux has ways that make Terraform GitOps compliant, which is absolutely fantastic. It's using two tools, the best of breeds, which is solving that tomorrow problem with tomorrow solutions. >> Is the new solutions old versus new. I like this old way, new way. I mean, Terraform is not that old and it's been around for about eight years or so, whatever. But HashiCorp is doing a great job with that. I mean, so okay with Terraform, what's the new address? Is it more complex environments? Because Terraform made sense when you had basic DevOps, but now it sounds like there's a whole another level of complexity. >> I got to say. >> New tools. >> That kind of amalgamation of that application into infrastructure. Now my app team is paying way more attention to that manifest file, which is what GitOps is trying to solve. Let's templatize things. Let's version control our manifest, be it helm, customize, or just a straight up Kubernetes manifest file, plain and boring. Let's get that version controlled. Let's make sure that we know what is there, why it was changed. Let's get some auditability and things like that. And then let's get that deployment all automated. So that's predicated on the cluster existing. Well why can't we do the same thing with the cluster, the inception problem. So even if you're in public cloud, the question is like, well what's calling that API to call that thing to happen? Where is that file living? How well can I manage that in a large team? Oh my God, something just changed. Who changed it? Where is that file? And I think that's one of big, the big pieces to be sold. >> Yeah, and you talk about Edge too and on-premises. I think one of the things I'm observing and certainly when DevOps was rocking and rolling and infrastructures code was like the real push, it was pretty much the public cloud, right? >> Chris: Yep. >> And you did Cloud Native and you had stuff on-premises. Yeah you did some lifting and shifting in the cloud, but the cool stuff was going in the public cloud and you ran DevOps. Okay, now you got on-premise cloud operation and Edge. Is that the new DevOps? I mean 'cause what you're kind of getting at with old new, old new Terraform example is an interesting point, because you're pointing out potentially that that was good DevOps back in the day or it still is. >> Chris: It is, I was going to say. >> But depending on how you define what DevOps is. So if you say, I got the new DevOps with public on-premise and Edge, that's just not all public cloud, that's essentially distributed Cloud Native. >> Correct. Is that the new DevOps in your mind or is that? How would you, or is that oversimplifying it? >> Or is that that term where everyone's saying Platform Ops, right? Has it shifted? >> Well you bring up a good point about Terraform. I mean Terraform is well proven. People love it. It's got great use cases and now there seems to be new things happening. We call things like super cloud emerging, which is multicloud and abstraction layers. So you're starting to see stuff being abstracted away for the benefits of moving to the next level, so teams don't get stuck doing the same old thing. They can move on. Like what you guys are doing with Platform9 is providing a service so that teams don't have to do it. >> Correct, yeah. >> That makes a lot of sense, So you just, now it's running and then they move on to the next thing. >> Chris: Yeah, right. >> So what is that next thing? >> I think Edge is a big part of that next thing. The propensity for someone to put up with a delay, I think it's gone. For some reason, we've all become fairly short-tempered, Short fused. You know, I click the button, it should happen now, type people. And for better or worse, hopefully it gets better and we all become a bit more patient. But how do I get more effective and efficient at delivering that to that really demanding- >> I think you bring up a great point. I mean, it's not just people are getting short-tempered. I think it's more of applications are being deployed faster, security is more exposed if they don't see things quicker. You got data now infrastructure scaling up massively. So, there's a double-edged swords to scale. >> Chris: Yeah, yeah. I mean, maintenance, downtime, uptime, security. So yeah, I think there's a tension around, and one hand enthusiasm around pushing a lot of code and new apps. But is the confidence truly there? It's interesting one little, (snaps finger) supply chain software, look at Container Security for instance. >> Yeah, yeah. It's big. I mean it was codified. >> Do you agree that people, that's kind of an issue right now. >> Yeah, and it was, I mean even the supply chain has been codified by the US federal government saying there's things we need to improve. We don't want to see software being a point of vulnerability, and software includes that whole process of getting it to a running point. >> It's funny you mentioned remote and one of the thing things that you're passionate about, certainly Edge has to be remote. You don't want to roll a truck or labor at the Edge. But I was doing a conversation with, at Rebars last year about space. It's hard to do brake fix on space. It's hard to do a, to roll a someone to configure satellite, right? Right? >> Chris: Yeah. >> So Kubernetes is in space. We're seeing a lot of Cloud Native stuff in apps, in space, so just an example. This highlights the fact that it's got to be automated. Is there a machine learning AI angle with all this ChatGPT talk going on? You see all the AI going the next level. Some pretty cool stuff and it's only, I know it's the beginning, but I've heard people using some of the new machine learning, large language models, large foundational models in areas I've never heard of. Machine learning and data centers, machine learning and configuration management, a lot of different ways. How do you see as the product person, you incorporating the AI piece into the products for Platform9? >> I think that's a lot about looking at the telemetry and the information that we get back and to use one of those like old idle terms, that continuous improvement loop to feed it back in. And I think that's really where machine learning to start with comes into effect. As we run across all these customers, our system that helps at two o'clock in the morning has that telemetry, it's got that data. We can see what's changing and what's happening. So it's writing the right algorithms, creating the right machine learning to- >> So training will work for you guys. You have enough data and the telemetry to do get that training data. >> Yeah, obviously there's a lot of investment required to get there, but that is something that ultimately that could be achieved with what we see in operating people's environments. >> Great. Chris, great to have you here in the studio. Going wide ranging conversation on Kubernetes and Platform9. I guess my final question would be how do you look at the next five years out there? Because you got to run the product management, you got to have that 20 mile steer, you got to look at the customers, you got to look at what's going on in the engineering and you got to kind of have that arc. This is the right path kind of view. What's the five year arc look like for you guys? How do you see this playing out? 'Cause KubeCon is coming up and we're you seeing Kubernetes kind of break away with security? They had, they didn't call it KubeCon Security, they call it CloudNativeSecurityCon, they just had in Seattle inaugural events seemed to go well. So security is kind of breaking out and you got Kubernetes. It's getting bigger. Certainly not going away, but what's your five year arc of of how Platform9 and Kubernetes and Ops evolve? >> It's to stay on that theme, it's focusing on what is most important to our users and getting them to a point where they can just consume it, so they're not having to operate it. So it's finding those big items and bringing that into our platform. It's something that's consumable, that's just taken care of, that's tested with each release. So it's simplifying operations more and more. We've always said freedom in cloud computing. Well we started on, we started on OpenStack and made that simple. Stable, easy, you just have it, it works. We're doing that with Kubernetes. We're expanding out that user, right, we're saying bring your developers in, they can download their Kube conflict. They can see those Containers that are running there. They can access the events, the log files. They can log in and build a VM using KubeVirt. They're self servicing. So it's alleviating pressures off of the Ops team, removing the help desk systems that people still seem to rely on. So it's like what comes into that field that is the next biggest issue? Is it things like CI/CD? Is it simplifying GitOps? Is it bringing in security capabilities to talk to that? Or is that a piece that is a best of breed? Is there a reason that it's been spun out to its own conference? Is this something that deserves a focus that should be a specialized capability instead of tooling and vendors that we work with, that we partner with, that could be brought in as a service. I think it's looking at those trends and making sure that what we bring in has the biggest impact to our users. >> That's awesome. Thanks for coming in. I'll give you the last word. Put a plug in for Platform9 for the people who are watching. What should they know about Platform9 that they might not know about it or what should? When should they call you guys and when should they engage? Take a take a minute to give the plug. >> The plug. I think it's, if your operations team is focused on building Kubernetes, stop. That shouldn't be the cloud. That shouldn't be in the Edge, that shouldn't be at the data center. They should be consuming it. If your engineering teams are all trying different ways and doing different things to use and consume Cloud Native services and Kubernetes, they shouldn't be. You want consistency. That's how you get economies of scale. Provide them with a simple platform that's integrated with all of your enterprise identity where they can just start consuming instead of having to solve these problems themselves. It's those, it's those two personas, right? Where the problems manifest. What are my operations teams doing, and are they delivering to my company or are they building infrastructure again? And are my engineers sprinting or crawling? 'Cause if they're not sprinting, you should be asked the question, do I have the right Cloud Native tooling in my environment and how can I get them back? >> I think it's developer productivity, uptime, security are the tell signs. You get that done. That's the goal of what you guys are doing, your mission. >> Chris: Yep. >> Great to have you on, Chris. Thanks for coming on. Appreciate it. >> Chris: Thanks very much. 0 Okay, this is "theCUBE" here, finding the right path to Cloud Native. I'm John Furrier, host of "theCUBE." Thanks for watching. (upbeat music)

(upbeat music) >> Hello, and welcome to Supercloud2. I'm John Furrier, host of theCUBE here. We're exploring all the new Supercloud trends around multiple clouds, hyper scale gaps in their systems, new innovations, new applications, new companies, new products, new brands emerging from this big inflection point. Got a great guest who's going to unpack it with me today, Ramesh Prabagaran, who's the co-founder and CEO of Prosimo, CUBE alumni. Ramesh, legend in the industry, you've been around. You've seen many cycles. Welcome to Supercloud2. >> Thank you. You're being too kind. >> Well, you know, you guys have been a technical, great technical founding team, multiple ventures, multiple times around the track as they say, but now we're seeing something completely different. This is our second event, kind of we're doing to start the the ball rolling around unpacking this idea of Supercloud which evolved from a riff with me and Dave to now a working group paper, multiple definitions. People are saying they're Supercloud. CloudFlare says this is their version. Someone says there over there. Fitzi over there in the blog is always, you know, challenging us on our definitions, but it's, the consensus is though something's happening. >> Ramesh: Absolutely. >> And what's your take on this kind of big inflection point? >> Absolutely, so if you just look at kind of this in layers right, so you have hyper scalers that are innovating really quickly on underlying capabilities, and then you have enterprises adopting these technologies, right, there is a layer in the middle that I would say is largely missing, right? And one that addresses the gaps introduced by these new capabilities, by the hyper scalers. At the same time, one that actually spans, let's say multiple regions, multiple clouds and so forth. So that to me is kind of the Supercloud layer of sorts. One that helps enterprises adopt the underlying hyper scaler capabilities a lot faster, and at the same time brings a certain level of consistency and homogeneity also. >> What do you think the big driver of Supercloud is? Is it the industry growing up or is it the demand for new kinds of capabilities or both? Or just evolution? What's your take? >> I would say largely it depends on kind of who the entity is that you're talking about, right? And so I would say both. So if you look at one cohort here, it's adoption, right? If I have a externally facing digital presence, for example, then I'm going to scale that up and get to as many subscribers and users no matter what, right? And at that time it's a different set of problems. If you're looking at kind of traditional enterprise inward that are bringing apps into the cloud and so forth, it's a different set of care abouts, right? So both are, I would say, equally important problems to solve for. >> Well, one reality that we're definitely tracking, and it's not really a debate anymore, is hybrid. >> Ramesh: Yep >> Hybrid happened. It happened faster than most people thought. But, you know, we were talking about this in 2015 when it first got kicked around, but now you see hybrid in the cloud, on premises and the edge. This kind of forms that distributed computing paradigm that we've always been predicting. And so if that continues to play out the way it is, you're now going to have a completely distributed, connected internet and sets of systems, intra and external within companies. So again, the world is connected 100%. Everything's changing, right? >> And that introduces. >> It wasn't your grandfather's networking anymore or storage. The game is still the same, but the play, the components are acting differently. What's your take on this? >> Absolutely. No, absolutely. That's a very key important point, and it's one that we always ask our customers right at the front end, right? Because your starting assumptions matter. If you have workloads of workloads in the cloud and data center is something that you want to connect into, then you'll make decisions kind of keeping cloud in the center and then kind of bolt on technologies for what that means to extend it to the data center. If your center of gravity is in the data center, and then cloud is let's say 10% right now, but you see that growing, then what choices do you have? Right, do you want to bring your data center technologies into the cloud because you want that consistency in operations? Or do you want to start off fresh, right? So this is a really key, important question, and one that many of our customers are actually are grappling with, right? They have this notion that going cloud native is the right approach, but at the same time that means I have a bifurcation in kind of how do I operate my data center versus my cloud, right? Two different operating models, and slowly it'll shift over to one. But you're going to have to deal with dual reality for a while. >> I was talking to an old friend of mine, CIO, very experienced CIO. Big time company, large deployment, a lot of IT. I said, so what's the big trend everyone's telling me about IT's going. He goes no, not really. IT's not going away for me. It's going everywhere in the company. >> Ramesh: Exactly. >> So I need to scale my IT-like capabilities everywhere and then make it invisible. >> Ramesh: Correct. >> Which is essentially code words for saying it's going to be completely cloud native everywhere. This is what is happening. Do you agree? >> Absolutely right, and so if you look at what do enterprises care about it? The reason to go to the cloud is to get speed of operations, and it's apps, apps, apps, right? Do you ever have a conversation on networking and infrastructure first? No, that kind of gets brought into the conversation because you want to deal with users, applications and services, right? And so the end goal is essentially how do users communicate with apps and get the right experience, security and whatnot, and how do apps talk to each other and make sure that you get all of the connectivity and security requirements? Underneath the covers, what does this mean for infrastructure, networking, security and whatnot? It's actually going to be someone else's job, right? And you shouldn't have to think too much about it. So this whole notion of kind of making that transparent is real actually, right? But at the same time, us and all the guys that we talk to on the customer side, that's their job, right? Like we have to work towards making that transparent. Some are going to be in the form of capability, some are going to be driven by data, but that's really where the two worlds are going to come together. >> Lots of debates going on. We just heard from Bob Muglia here on Supercloud2. He said Supercloud's a platform that provides programmatically consistent services hosted on heterogeneous cloud providers. So the question that's being debated is is Supercloud a platform or an architecture in your view? >> Okay, that's a tough one actually. I'm going to side on the side on kind of the platform side right, and the reason for that is architectural choices are things that you make ahead of time. And you, once you're in, there really isn't a fork in the road, right? Platforms continue to evolve. You can iterate, innovate and so on and so forth. And so I'm thinking Supercloud is more of a platform because you do have a choice. Hey, am I going AWS, Azure, GCP. You make that choice. What is my center of gravity? You make that choice. That's kind of an architectural decision, right? Once you make that, then how do I make things work consistently across like two or three clouds? That's a platform choice. >> So who's responsible for the architecture as the platform, the vendor serving the platform or is the platform vendor agnostic? >> You know, this is where you have to kind of peel the onion in layers, right? If you talk about applications, you can't go to a developer team or an app team and say I want you to operate on Google or AWS. They're like I'll pick the cloud that I want, right? Now who are we talking to? The infrastructure guys and the networking guys, right? They want to make sure that it's not bifurcated. It's like, hey, I want to make sure whatever I build for AWS I can equally use that on Azure. I can equally use that on GCP. So if you're talking to more of the application centric teams who really want infrastructure to be transparent, they'll say, okay, I want to make this choice of whether this is AWS, Azure, GCP, and stick to that. And if you come kind of down the layers of the stack into infrastructure, they are thinking a little more holistically, a little more Supercloud, a little more multicloud, and that. >> That's a good point. So that brings up the deployment question. >> Ramesh: Exactly! >> I want to ask you the next question, okay, what is the preferred deployment in your opinion for a Supercloud narrative? Is it single instance, spread it around everywhere? What's the, do you have a single global instance or do you have everything synchronized? >> So I would say first layer of that Supercloud really kind of fix the holes that have been introduced as a result of kind of adopting the hyper scaler technologies, right? So each, the hyper scalers have been really good at innovating and providing really massive scale elastic capabilities, right? But once you start to build capabilities on top of that to help serve the application, there's a few holes start to show up. So first job of Supercloud really is to plug those holes, right? Second is can I get to an operating model, so that I can replicate this not just in a single region, but across multiple regions, same cloud, and then across multiple clouds, right? And so both of those need to be solved for in order to be (cross talking). >> So is that multiple instantiations of the stack or? >> Yeah, so this again depends on kind of the capability, right? So if you take a more solution view, and so I can speak for kind of networking security combined right? There you always take a solution view. You don't ever look at, you know, what does this mean for a single instance in a single region. You take a macro view, and then you then break it down into what does this mean for region, what does it mean for instance, what does this mean for AZs? And so on and so forth. So you kind of have to go top to bottom. >> Okay, welcome you down into the trap now. Okay, synchronizing the data, latency, these are all questions. So what does the network Supercloud look like to you? Because networking is big here. >> Ramesh: Yes, absolutely. >> This is what you guys do. >> Exactly, yeah. So the different set of problems as you go up the stack, right? So if you have hundreds of workloads in a single region, the set of problems you're dealing with there are kind of app native connectivity, how do I go from kind of east/west, all of those fun things, right? Which are usually bound in terms of latency. You don't have those challenges as much, but can you build your entire enterprise application architecture in one region? No, you're going to have to create multiple instances, right? So my data lake is invariably going to be in one place. My business logic is going to be spread across a few places. What does that bring in? I need to go across regions. Am I going to put those two regions right next to each other? No, I'm not going to, right? I'm going to have places in Europe. I'm going to have APAC, and I'm going to have a North American presence, and I need to bring all these things together. So this is where, back to your point, latency really matters, right? Because I need to be able to find out not just best path but also how do I reduce the millisecond, microseconds that my application cares about, which brings in a layer of optimization and then so on and so on and so forth. So this is what we call kind of to borrow the Prosimo language full stack networking, right? Because I'm not just dealing with how do I go from one region to another because that's laws of physics. I can only control so much. But there are a few elements up the application stack in software that you can tweak to actually bring these things closer and closer. >> And on that point, you're seeing security being talked a lot more at the network layer. So how do you secure the Supercloud at the network layer? What's that look like? >> Yeah, we've been grappling with essentially is security kind of foundational, and then is the network on top. And then we had an alternative viewpoint which is kind of network and then security on top. And the answer is actually it's neither, right? It's almost like a meshed up sandwich of sorts. So you need to have networking security work really well together, right? Case in point, I mean we were talking to a customer yesterday. He said, hey, I have my data lake in one region that needs to talk to an analytics service in a completely different region of a different cloud. These two things just need to be able to talk to each other, which means I need to bring elements of networking. I need to bring elements of security, secure access, app segmentation, all of those things. Very simple, I have an analytics service that needs to contact a data lake. That's what he starts with, but then before you know it, it actually brings up a whole stack underneath, so that's. >> VMware calls that cloud chaos. >> Ramesh: Yes, exactly. >> And then that's the halfway point between cloud smart. Cloud first, cloud chaos, cloud smart, and the next thing, you can skip that whole step. But again, again, it's pick your strategy right? Again, this comes back down to your earlier point. I want to ask you from a customer standpoint, you got the hyper scalers doing very, very well. >> Ramesh: Yep, absolutely. >> And I love what their Amazon's doing. I think Microsoft again though they had a little bit of downgrade are catching up fast, and they have their installed base. So you got the land of the installed bases. >> Correct. >> First and greater, better cloud. Install base getting better, almost as good, almost as good is a gift, but close. Now you have them specializing. Silicon, special silicon. So there's gaps for other services. >> Ramesh: Correct. >> And Amazon Web Services, Adam Selipsky's a open book saying, hey, we want our ecosystem to pick up these gaps and build on them. Go ahead, go to town. >> So this is where I think choices are tough, right? Because if you had one choice, you would work with it, and you would work around it, right? Now I have five different choices. Now what do I do? Our viewpoint is there are a bunch of things that say AWS does really, really well. Use that as a foundational layer, right? Like don't reinvent the wheel on those things. Transit gateways, global accelerators and whatnot, they exist for a reason. Billions of dollars have gone into building those things. Use that foundational layer, right? But what you want to build on top of that is actually driven by the application. The requirements of a lambda application that's serverless, it's very different than a packaged application that's responding for transactions, right? Like it's just completely very, very different. And so bring in the right set of capabilities required for those set of applications, and then you go based on that. This is also where I think whether something is a regional construct versus an overall global construct really, really matters, right? Because if you start with the assumption that everything is going to be built regionally, then it's someone else's job to make sure that all of these things are connected. But if you start with kind of the global purview, then the rest of them start to (cross talking). >> What are some of the things that the enterprises might want that are gaps that are going to be filled by the, by startups like you guys and the ecosystem because we're seeing the ecosystem form into two big camps. >> Ramesh: Yep. >> ISVs, which is an old school definition of independent software vendor, aka someone who writes software. >> Ramesh: Exactly. >> SaaS app. >> Ramesh: Correct. >> And then ecosystem software players that were once ISVs now have people building on top of them. >> Ramesh: Correct. >> They're building on top of the cloud. So you have that new hyper scale effect going on. >> Ramesh: Exactly. >> You got ISVs, which is software developers, software vendors. >> Ramesh: Correct. >> And ecosystems. >> Yep. >> What's that impact of that? Cause it's a new dynamic. >> Exactly, so if you take kind of enterprises, want to make sure that that their apps and the data center migrate to the cloud, new apps are developed the right way in the cloud, right? So that's kind of table stakes. So now what choices do they have? They listen to AWS and say, okay, I have all these cloud native services. I want to be able to instantiate all that. Now comes the interesting choice that they have to make. Do I go hire a whole bunch of people and do it myself or do I go there on the platform route, right? Because I made an architectural choice. Now I have to decide whether I want to do this myself or the platform choice. DIY works great for some, but you don't know what you're getting into, and it's people involved, right? People, process, all those fun things involved, right? So we show up there and say, you don't know what you don't know, right? Like because that's the nature of it. Why don't you invest in a platform like what what we provide, and then you actually build on top of it. We will, it's our job to make sure that we keep up with the innovation happening underneath the covers. And at the same time, this is not a closed ended system. You can actually build on top of our platform, right? And so that actually gives you a good mix. Now the care abouts are interesting. Some apps care about experience. Some apps care about latency. Some apps are extremely charty and extremely data intensive, but nobody wants to pay for it, right? And so it's a interesting Jenga that you have to play between experience versus security versus cost, right? And that makes kind of head of infrastructure and cloud platform teams' life really, really, really interesting. >> And this is why I love your background, and Stu Miniman, when he was with theCUBE, and now he's at Red Hat, we used to riff about the network and how network folks are now, those concepts are now up the top of the stack because the cloud is one big network effect. >> Ramesh: Exactly, correct. >> It's a computer. >> Yep, absolutely. No, and case in point, right, like say we're in let's say in San Jose here or or Palo Alto here, and let's say my application is sitting in London, right? The cloud gives you different express lanes. I can go down to my closest pop location provided by AWS and then I can go ride that all the way up to up to London. It's going to give me better performance, low latency, but I'm going to have to incur some costs associated with it. Or I can go all the wild internet all the way from Palo Alta up to kind of the ingress point into London and then go access, but I'm spending time on the wild internet, which means all kinds of fun things happen, right? But I'm not paying much, but my experience is not going to be so great. So, and there are various degrees of shade in them, of gray in the middle, right? So how do you pick what? It all kind of is driven by the applications. >> Well, we certainly want you back for Supercloud3, our next version of this virtual/live event here in our Palo Alto studios. Really appreciate you coming on. >> Absolutely. >> While you're here, give a quick plug for the company. Next minute, we can take a minute to talk about the success of the company. >> Ramesh: Absolutely. >> I know you got a fresh financing this past year. Plenty of money in the bank, going to ride this new wave, Supercloud wave. Give us a quick plug. >> Absolutely, yeah. So three years going on to four this calendar year. So it's an interesting time for the company. We have proven that our technology, product and our initial customers are quite happy with it. Now comes essentially more of those and scale and so forth. That's kind of the interesting phase that we are in. Also heartened to see quite a few of kind of really large and dominant players in the market, partners, channels and so forth, invest in us to take this to the next set of customers. I would say there's been a dramatic shift in the conversation with our customers. The first couple of years or so of the company, we are about three years old right now, was really about us educating them. This is what you need. This is what you need. Now actually it's a lot of just pull, right? We've seen a good indication, as much as a hate RFIs, a good indication is the number of RFIs that show up at our door saying we want you to participate in this because we want to understand more, right? And so as a, I think we are at an interesting point of the, of that shift. >> RFIs always like do all this work and hope for the best. Pray for a deal. You know, you guys on the right side of history. If a customer asks with respect to Supercloud, multicloud, is that your focus? Is that the direction you guys are going into? >> Yeah, so I would say we are kind of both, right? Supercloud and multicloud because we, our customers are hybrid, multiple clouds, all of the above, right? Our main pitch and kind of value back to the customers is go embrace cloud native because that's the right approach, right? It doesn't make sense to go reinvent the wheel on that one, but then make a really good choice about whether you want to do this yourself or invest in a platform to make your life easy. Because we have seen this story play out with many many enterprises, right? They pick the right technologies. They do a simple POC overnight, and they say, yeah, I can make this work for two apps, right? And then they say, yes, I can make this work for 100. You go down a certain path. You hit a wall. You hit a wall, and it's a hard wall. It's like, no, there isn't a thing that you can go around it. >> A lot of dead bodies laying around. >> Ramesh: Exactly. >> Dead wall. >> And then they have to unravel around that, and then they come talk to us, and they say, okay, now what? Like help me, help me through this journey. So I would say to the extent that you can do this diligence ahead of time, do that, and then, and then pick the right platform. >> You've got to have the talent. And you got to be geared up. You got to know what you're getting into. >> Ramesh: Exactly. >> You got to have the staff to do this. >> And cloud talent and skillset in particular, I mean there's lots available but it's in pockets right? And if you look at kind of web three companies, they've gone and kind of amassed all those guys, right? So enterprises are not left with the cream of the crop. >> John: They might be coming back. >> Exactly, exactly, so. >> With this downturn. Ramesh, great to see you and thanks for contributing to Supercloud2, and again, love your team. Very technical team, and you're in the right side of history in this one. Congratulations. >> Ramesh: No, and thank you, thank you very much. >> Okay, this is Supercloud2. I'm John Furrier with Dave Vellante. We'll be back right after this short break. (upbeat music)

(intro music plays) >> Okay, welcome back to Supercloud 2. I'm John Furrier with my co-host, Dave Vellante, here in our Palo Alto Studio, with a live performance all day unpacking the wave of Supercloud. This is our second edition. Back for keynote review here is Vittorio Viarengo, talking about the hype and the reality of the Supercloud momentum. Vittorio, great to see you. You got a presentation. Looking forward to hearing the update. >> It's always great to be here on this stage with you guys. >> John Furrier: (chuckles) So the business imperative for cloud right now is clear and the Supercloud wave points to the builders and they want to break through. VMware, you guys have a lot of builders in the ecosystem. Where do you guys see multicloud today? What's going on? >> So, what we see is, when we talk with our customers is that customers are in a state of cloud chaos. Raghu Raghuram, our CEO, introduced this term at our user conference and it really resonated with our customers. And the chaos comes from the fact that most enterprises have applications spread across private cloud, multiple hyperscalers, and the edge increasingly. And so with that, every hyperscaler brings their own vertical integrated stack of infrastructure development, platform security, and so on and so forth. And so our customers are left with a ballooning cost because they have to train their employees across multiple stacks. And the costs are only going up. >> John Furrier: Have you talked about the Supercloud with your customers? What are they looking for when they look at the business value of Cross-Cloud Services? Why are they digging into it? What are some of the reasons? >> First of all, let's put this in perspective. 90, 87% of customers use two or more cloud including the private cloud. And 55%, get this, 55% use three or more clouds, right? And so, when you talk to these customers they're all asking for two things. One, they find that managing the multicloud is more difficult than the private cloud. And that goes without saying because it's new, they don't have the skills, and they have many of these. And pretty much everybody, 87% of them, are seeing their cost getting out of control. And so they need a new approach. We believe that the industry needs a new approach to solving the multicloud problem, which you guys have introduced and you call it the Supercloud. We call it Cross-Cloud Services. But the idea is that- and the parallel goes back to the private cloud. In the private cloud, if you remember the old days, before we called it the private cloud, we would install SAP. And the CIO would go, "Oh, I hear SAP works great on HP hardware. Oh, let's buy the HP stack", right? (hosts laugh) And then you go, "Oh, oh, Oracle databases. They run phenomenally on Sun Stack." That's another stack. And it wasn't sustainable, right? And so, VMware came in with virtualization and made everything look the same. And we unleashed a tremendous era of growth and speed and cost saving for our customers. So we believe, and I think the industry also believes, if you look at the success of Supercloud, first instance and today, that we need to create a new level of abstraction in the cloud. And this abstraction needs to be at a higher level. It needs to be built around the lingua franca of the cloud, which is Kubernetes, APIs, open source stacks. And by doing so, we're going to allow our customers to have a more unified way of building, managing, running, connecting, and securing applications across cloud. >> So where should that standardization occur? 'Cause we're going to hear from some customers today. When I ask them about cloud chaos, they're like, "Well, the way we deal with cloud chaos is MonoCloud". They sort of put on the blinders, right? But of course, they may be risking not being able to take advantage of best-of-breed. So where should that standardization layer occur across clouds? >> [Vittorio Viarengo] Well, I also hear that from some customers. "Oh, we are one cloud". They are in denial. There's no question about it. In fact, when I met at our user conference with a number of CIOs, and I went around the room and I asked them, I saw the entire spectrum. (laughs) The person is in denial. "Oh, we're using AWS." I said, "Great." "And the private cloud, so we're all set." "Okay, thank you. Next." "Oh, the business units are using AWS." "Ah, okay. So you have three." "Oh, and we just bought a company that is using Google back in Europe." So, okay, so you got four right there. So that person in denial. Then, you have the second category of customers that are seeing the problem, they're ahead of the pack, and they're building their solution. We're going to hear from Walmart later today. >> Dave Vellante: Yeah. >> So they're building their own. Not everybody has the skills and the scale of Walmart to build their own. >> Dave Vellante: Right. >> So, eventually, then you get to the third category of customers. They're actually buying solutions from one of the many ISVs that you are going to talk with today. You know, whether it is Azure Corp or Snowflake or all this. I will argue, any new company, any new ISV, is by definition a multicloud service company, right? And so these people... Or they're buying our Cross-Cloud Services to solve this problem. So that's the spectrum of customers out there. >> What's the stack you're focusing on specifically? What is VMware? Because virtualization is not going away. You're seeing a lot more in the cloud with networking, for example, this abstraction layer. What specifically are you guys focusing on? >> [Vittorio Viarengo] So, I like to talk about this beyond what VMware does, just 'cause I think this is an industry movement. A market is forming around multicloud services. And so it's an approach that pretty much a whole industry is taking of building this abstraction layer. In our approach, it is to bring these services together to simplify things even further. So, initially, we were the first to see multicloud happening. You know, Raghu and Sanjay, back in what, like 2016, 17, saw this coming and our first foray in multicloud was to take this sphere and our hypervisor and port it natively on all the hyperscaling, which is a phenomenal solution to get your enterprise application in the cloud and modernize them. But then we realized that customers were already in the cloud natively. And so we had to have (all chuckle) a religion discussion internally and drop that hypervisor religion and say, "Hey, we need to go and help our customers where they are, in a native cloud". And that's where we brought back Pivotal. We built tons around it. We shifted. And then Aria. And so basically, our evolution was to go from, you know, our hypervisor to cloud native. And then eventually we ended up at what we believe is the most comprehensive multicloud services solution that covers Application Development with Tanzu, Management with Aria, and then you have NSX for security and user computing for connectivity. And so we believe that we have the most comprehensive set of integrated services to solve the challenges of multicloud, bringing excess simplicity into the picture. >> John Furrier: As some would say, multicloud and multi environment, when you get to the distributed computing with the edge, you're going to need that capability. And you guys have been very successful with private cloud. But to be devil's advocate, you guys have been great with private cloud, but some are saying like, you guys don't get public cloud yet. How do you answer that? Because there's a lot of work that you guys have done in public cloud and it seems like private cloud successes are moving up into public cloud. Like networking. You're seeing a lot of that being configured in. So the enterprise-grade solutions are moving into the cloud. So what would you say to the skeptics out there that say, "Oh, I think you got private cloud nailed down, but you don't really have public cloud." (chuckles) >> [Vittorio Viarengo] First of all, we love skeptics. Our engineering team love skeptics and love to prove them wrong. (John laughs) And I would never ever bet against our engineering team. So I believe that VMware has been so successful in building a private cloud and the technology that actually became the foundation for the public cloud. But that is always hard, to be known in a new environment, right? There's always that period where you have to prove yourself. But what I love about VMware is that VMware has what I believe, what I like to call "enterprise pragmatism". The private cloud is not going away. So we're going to help our customers there, and then, as they move to the cloud, we are going to give them an option to adopt the cloud at their own pace, with VMware cloud, to allow them to move to the cloud and be able to rely on the enterprise-class capabilities we built on-prem in the cloud. But then with Tanzu and Aria and the rest of the Cross-Cloud Service portfolio, being able to meet them where they are. If they're already in the cloud, have them have a single place to build application, a single place to manage application, and so on and so forth. >> John Furrier: You know, Dave, we were talking in the opening. Vittorio, I want to get your reaction to this because we were saying in the opening that the market's obviously pushing this next gen. You see ChatGPT and the success of these new apps that are coming out. The business models are demanding kind of a digital transformation. The tech, the builders, are out there, and you guys have a interesting view because your customer base is almost the canary in the coal mine because this is an Operations challenge as well as just enabling the cloud native. So, I want to get your thoughts on, you know, your customer base, VMware customers. They've been in IT Ops for generations. And now, as that crowd moves and sees this Supercloud environment, it's IT again, but it's everywhere. It's not just IT in a data center. It's on-premises, it's cloud, it's edge. So, almost, your customer base is like a canary in the coal mine for this movement of how do you operationalize multiple environments? Which includes clouds, which includes apps. I mean, this is the core question. >> [Vittorio Viarengo] Yeah. And I want to make this an industry conversation. Forget about VMware for a second. We believe that there are like four or five major pillars that you need to implement to create this level of abstraction. It starts from observability. If you don't know- You need to know where your apps are, where your data is, how the the applications are performing, what is the security posture, what is their performance? So then, you can do something about it. We call that the observability part of this, creating this abstraction. The second one is security. So you need to be- Sorry. Infrastructure. An infrastructure. Creating an abstraction layer for infrastructure means to be able to give the applications, and the developer who builds application, the right infrastructure for the application at the right time. Whether it is a VM, whether it's a Kubernetes cluster, or whether it's microservices, and so on and so forth. And so, that allows our developers to think about infrastructure just as code. If it is available, whatever application needs, whatever the cost makes sense for my application, right? The third part of security, and I can give you a very, very simple example. Say that I was talking to a CIO of a major insurance company in Europe and he is saying to me, "The developers went wild, built all these great front office applications. Now the business is coming to me and says, 'What is my compliance report?'" And the guy is saying, "Say that I want to implement the policy that says, 'I want to encrypt all my data no matter where it resides.' How does it do it? It needs to have somebody logging in into Amazon and configure it, then go to Google, configure it, go to the private cloud." That's time and cost, right? >> Yeah. >> So, you need to have a way to enforce security policy from the infrastructure to the app to the firewall in one place and distribute it across. And finally, the developer experience, right? Developers, developers, developers. (all laugh) We're always trying to keep up with... >> Host: You can dance if you want to do... >> [Vittorio Viarengo] Yeah, let's not make a fool of ourselves. More than usual. Developers are the kings and queens of the hill. They are. Why? Because they build the application. They're making us money and saving us money. And so we need- And right now, they have to go into these different stacks. So, you need to give developers two things. One, a common development experience across this different Kubernetes distribution. And two, a way for the operators. To your point. The operators have fallen behind the developers. And they cannot go to the developer there and tell them, "This is how you're going to do things." They have to see how they're doing things and figure out how to bring the gallery underneath so that developers can be developers, but the operators can lay down the tracks and the infrastructure there is secure and compliant. >> Dave Vellante: So two big inferences from that. One is self-serve infrastructure. You got- In a decentralized cloud, a Supercloud world, you got to have self-serve infrastructure, you got to be simple. And the second is governance. You mentioned security, but it's also governance. You know, data sovereignty as we talked about. So the question I have, Vittorio, is where does the customer start? >> [Vittorio Viarengo] So I, it always depends on the business need, but to me, the foundational layer is observability. If you don't know where your staff is, you cannot manage, you cannot secure it, you cannot manage its cost, right? So I think observability is the bar to entry. And then it depends on the business needs, right? So, we go back to the CIO that I talked to. He is clearly struggling with compliance and security. >> Hosts: Mm hmm. >> And so, like many customers. And so, that's maybe where they start. There are other customers that are a little behind the head of the pack in terms of building applications, right? And so they're looking at these, you know, innovative companies that have the developers that get the cloud and build all these application. They are leader in the industry. They're saying, "How do I get some of that?" Well, the way you get some of that is by adopting modern application development and platform operational capabilities. So, that's maybe, that's where they should start. And so on and so forth. It really depends on the business. To me, observability is the foundational part of this. >> John Furrier: Vittorio, we've been on this conversation with you for over a year and a half now with Supercloud. You've been a leader in seeing the wave, you and Raghu and the team at VMware, among other industry leaders. This is our second event. If you're- In the minute and a half that we have left, when you get asked, "what is this Supercloud multicloud Cross-Cloud thing? What's it mean?" I mean, I mentioned earlier, the market, the business models are changing, tech's changing, society needs more economic value out of the cloud. Builders are out there. If someone says, "Hey, Vittorio, what's the bottom line? What's really going on? Why should I pay attention to this wave? What's going on?" How would you describe the relevance of Supercloud? >> I think that this industry is full of smart vendors and smart customers. And if we are smart about it, we look at the history of IT and the history of IT repeats itself over and over again. You follow the- He said, "Follow the money." I say, "Follow the developers." That's how I made my career. I follow great developers. I look at, you know, Kit Colbert. I say, "Okay. I'm going to get behind that guy wherever he is going." And I try to add value to that person. I look at Raghu and all the great engineers that I was blessed to work with. And so the engineers go and explore new territories and then the rest of the stacks moves around. The developers have gone multicloud. And just like in any iteration of IT, at some point, the way you get the right scales at the right cost is with abstractions. And you can see it everywhere from, you know, bits and bytes, integration, to SOA, to APIs and microservices. You can see it now from best-of-breed hyperscaler across multiple clouds to creating an abstraction layer, a Supercloud, that creates a unified way of building, managing, running, securing, and accessing applications. So if you're a customer- (laughs) A minute and a half. (hosts chuckle) If you are customers that are out there and feeling the pain, you got to adopt this. If you are customers that is behind and saying, "Maybe you're in denial" look at the customers that are solving the problems today, and we're going to have some today. See what they're doing and learn from them so you don't make the same mistakes and you can get there ahead of it. >> Dave Vellante: Gracely's Law, John. Brian Gracely. That history repeats itself and- >> John Furrier: And I think one of these, "follow the developers" is interesting. And the other big wave, I want to get your comment real quick, is that developers aren't just application developers. They're network developers. The stack has completely been software-enabled so that you have software-defined networking, you have all kinds of software at all aspects of observability, infrastructure, security. The developers are everywhere. It's not just software. Software is everywhere. >> [Vittorio Viarengo] Yeah. Developers, developers, developers. The other thing that we can tell, I can tell, and we know, because we live in Silicon Valley. We worship developers but if you are out there in manufacturing, healthcare... If you have developers that understand this stuff, pamper them, keep them happy. (hosts laugh) If you don't have them, figure out where they hang out and go recruit them because developers indeed make the IT world go round. >> John Furrier: Vittorio, thank you for coming on with that opening keynote here for Supercloud 2. We're going to unpack what Supercloud is all about in our second edition of our live performance here in Palo Alto. Virtual event. We're going to talk to customers, experts, leaders, investors, everyone who's looking at the future, what's being enabled by this new big wave coming on called Supercloud. I'm John Furrier with Dave Vellante. We'll be right back after this short break. (ambient theme music plays)

(light corporate music) >> Welcome back, everyone, to VMware Explore 22. I'm John Furrier, host of theCUBE with Dave Vellante. Our 12th year covering VMware's User Conference, formerly known as VMworld, now rebranded as VMware Explore. Two great cube alumnus coming down the cube. Ricky Cooper, SVP, Worldwide Partner Commercials VMware, great to see you. Thanks for coming on. >> Thank you. >> We just had a great chat- >> Good to see you again. >> With the Discovery and, of course, Joseph George, vice president of Compute Industry Alliances. Great to have you on. Great to see you. >> Great to see you, John. >> So guys this year is very curious in VMware. A lot goin' on, the name change, the event. Big, big move. Bold move. And then they changed the name of the event. Then Broadcom buys them. A lot of speculation, but at the end of the day, this conference kind of, people were wondering what would be the barometer of the event. We're reporting this morning on the keynote analysis. Very good mojo in the keynote. Very transparent about the Broadcom relationship. The expo floor last night was buzzing. >> Mhm. >> I mean, this is not a show that's lookin' like it's going to be, ya' know, going down. >> Yeah. >> This is clearly a wave. We're calling it Super Cloud. Multi-Cloud's their theme. Clearly the cloud's happenin'. We not to date ourselves, but 2013 we were discussing on theCUBE- >> We talked about that. Yeah. Yeah. >> Discover about DevOps infrastructure as code- >> Mhm. >> We're full realization now of that. >> Yep. >> This is where we're at. You guys had a great partnership with VMware and HPE. Talk about where you guys see this coming together because customers are refactoring. They are lookin' at Cloud Native. The whole Broadcom visibility to the VMware customer bases activated them. They're here and they're leaning in. >> Yeah. >> What's going on? >> Yeah. Absolutely. We're seeing a renewed interest now as customers are looking at their entire infrastructure, bottoms up, all the way up the stack, and the notion of a hybrid cloud, where you've got some visibility and control of your data and your infrastructure and your applications, customers want to live in that sort of a cloud environment and so we're seeing a renewed interest. A lot of conversations we're having with customers now, a lot of customers committing to that model where they have applications and workloads running at the Edge, in their data center, and in the public cloud in a lot of cases, but having that mobility, having that control, being able to have security in their own, you know, in their control. There's a lot that you can do there and, obviously, partnering with VMware. We've been partners for so long. >> 20 years about. Yeah. Yeah. >> Yeah. At least 20 years, back when they invented stuff, they were inventing way- >> Yeah. Yeah. Yeah. >> VMware's got a very technical culture, but Ricky, I got to say that, you know, we commented earlier when Raghu was on, the CEO, now CEO, I mean, legendary product. I sent the trajectory to VMware. Everyone knows that. VMware, I can't know whether to tell it was VMware or HP, HP before HPE, coined hybrid- >> Yeah. >> 'Cause you guys were both on. I can't recall, Dave, which company coined it first, but it was either one of you guys. Nobody else was there. >> It was the partnership. >> Yes. I- (cross talking) >> They had a big thing with Pat Gelsinger. Dave, remember when he said, you know, he got in my grill on theCUBE live? But now you see- >> But if you focus on that Multi-Cloud aspect, right? So you've got a situation where our customers are looking at Multi-Cloud and they're looking at it not just as a flash in the pan. This is here for five years, 10 years, 20 years. Okay. So what does that mean then to our partners and to our distributors? You're seeing a whole seed change. You're seeing partners now looking at this. So, look at the OEMs, you know, the ones that have historically been vSphere customers are now saying, they're coming in droves saying, okay, what is the next step? Well, how can I be a Multi-Cloud partner with you? >> Yep. Right. >> How can I look at other aspects that we're driving here together? So, you know, GreenLake is a great example. We keep going back to GreenLake and we are partaking in GreenLake at the moment. The real big thing for us is going to be, right, let's make sure that we've got the agreements in place that support this SaaS and subscription motion going forward and then the sky's the limit for us. >> You're pluggin' that right into GreenLake, right? >> Well, here's why. Here's why. So customers are loving the fact that they can go to a public cloud and they can get an SLA. They come to a, you know, an On-Premise. You've got the hardware, you've got the software, you've got the, you know, the guys on board to maintain this through its life cycle. >> Right. I mean, this is complicated stuff. >> Yeah. >> Now we've got a situation where you can say, hey, we can get an SLA On-Premise. >> Yeah. And I think what you're seeing is it's very analogous to having a financial advisor just manage your portfolio. You're taking care of just submitting money. That's really a lot of what the customers have done with the public cloud, but now, a lot of these customers are getting savvy and they have been working with VMware Technologies and HPE for so long. They've got expertise. They know how they want their workloads architected. Now, we've given them a model where they can leverage the Cloud platform to be able to do this, whether it's On-Premise, The Edge, or in the public cloud, leveraging HPE GreenLake and VMware. >> Is it predominantly or exclusively a managed service or do you find some customers saying, hey, we want to manage ourself? How, what are you seeing is the mix there? >> It is not predominantly managed services right now. We're actually, as we are growing, last time we talked to HPE Discover we talked about a whole bunch of new services that we've added to our catalog. It's growing by leaps and bounds. A lot of folks are definitely interested in the pay as you go, obviously, the financial model, but are now getting exposed to all the other management that can happen. There are managed services capabilities, but actually running it as a service with your systems On-Prem is a phenomenal idea for all these customers and they're opening their eyes to some new ways to service their customers better. >> And another phenomenon we're seeing there is where partners, such as HPA, using other partners for various areas of their services implementation as well. So that's another phenomenon, you know? You're seeing the resale motion now going into a lot more of the services motion. >> It's interesting too, you know, I mean, the digital modernization that's goin' on. The transformation, whatever you want to call it, is complicated. >> Yeah. >> That's clear. One of the things I liked about the keynote today was the concept of cloud chaos. >> Yeah. >> Because we've been saying, you know, quoting Andy Grove at Intel, "Let chaos rain and rain in the chaos." >> Mhm. >> And when you have inflection points, complexity, which is the chaos, needs to be solved and whoever solves it kicks the inflection point, that's up into the right. So- >> Prime idea right here. Yeah. >> So GreenLake is- >> Well, also look at the distribution model and how that's changed. A couple of points on a deal. Now they're saying, "I'll be your aggregator. I'll take the strain and I'll give you scale." You know? "I'll give you VMware Scale for all, you know, for all of the various different partners, et cetera." >> Yeah. So let's break this down because this is, I think, a key point. So complexity is good, but the old model in the Enterprise market was- >> Sure. >> You solve complexity with more complexity. >> Yeah. >> And everybody wins. Oh, yeah! We're locked in! That's not what the market wants. They want some self-service. They want, as a service, they want easy. Developer first security data ops, DevOps, is already in the cycle, so they're going to want simpler. >> Yeah. >> Easier. Faster. >> And this is kind of why I'll say, for the big announcement today here at VMware Explore, around the VMware vSphere Distributed Services Engine, Project Monterey- >> Yeah. >> That we've talked about for so long, HPE and VMware and AMD, with the Pensando DPU, actually work together to engineer a solution for exactly that. The capabilities are fairly straightforward in terms of the technologies, but actually doing the work to do integration, joint engineering, make sure that this is simple and easy and able to be running HPE GreenLake, that's- >> That's invested in Pensando, right? >> We are. >> We're all investors. Yeah. >> What's the benefit of that? What's, that's a great point you made. What's the value to the customer, bottom line? That deep co-engineering, co-partnering, what does it deliver that others don't do? >> Yeah. Well, I think one example would be, you know, a lot of vendors can say we support it. >> Yep. >> That's great. That's actually a really good move, supporting it. It can be resold. That's another great move. I'm not mechanically inclined to where I would go build my own car. I'll go to a dealership and actually buy one that I can press the button and I can start it and I can do what I need to do with my car and that's really what this does is the engineering work that's gone on between our two companies and AMD Pensando, as well as the business work to make that simple and easy, that transaction to work, and then to be able to make it available as a service, is really what made, it's, that's why it's such a winner winner with our- >> But it's also a lower cost out of the box. >> Yep. >> Right. >> So you get in whatever. Let's call it 20%. Okay? But there's, it's nuanced because you're also on a new technology curve- >> Right. >> And you're able to absorb modern apps, like, you know, we use that term as a bromide, but when I say modern apps, I mean data-rich apps, you know, things that are more AI-driven not the conventional, not that people aren't doing, you know, SAP and CRM, they are, but there's a whole slew of new apps that are coming in that, you know, traditional architectures aren't well-suited to handle from a price performance standpoint. This changes that doesn't it? >> Well, you think also of, you know, going to the next stage, which is to go to market between the two organizations that before. At the moment, you know, HPE's running off doing various different things. We were running off to it again, it's that chaos that you're talking about. In cloud chaos, you got to go to market chaos. >> Yeah. >> But by simplifying four or five things, what are we going to do really well together? How do we embed those in GreenLake- >> Mhm. >> And be known in the marketplace for these solutions? Then you get a, you know, an organization that's really behind the go to market. You can help with sales activation the enablement, you know, and then we benefit from the scale of HPE. >> Yeah. >> What are those solutions I mean? Is it just, is it I.S.? Is it, you know, compute storage? >> Yeah. >> Is it, you know, specific, you know, SAP? Is it VDI? What are you seeing out there? >> So right now, for this specific technology, we're educating our customers on what that could be and, at its core, this solution allows customers to take services that normally and traditionally run on the compute system and run on a DPU now with Project Monterey, and this is now allowing customers to think about, okay, where are their use cases. So I'm, rather than going and, say, use it for this, we're allowing our customers to explore and say, okay, here's where it makes sense. Where do I have workloads that are using a lot of compute cycles on services at the compute level that could be somewhere else like networking as a great example, right? And allowing more of those compute cycles to be available. So where there are performance requirements for an application, where there is timely response that's needed for, you know, for results to be able to take action on, to be able to get insight from data really quick, those are places where we're starting to see those services moving onto something like a DPU and that's where this makes a whole lot more sense. >> Okay. So, to get this right, you got the hybrid cloud, right? >> [Ricky And Joseph] Yes. >> You got GreenLake and you got the distributed engine. What's that called the- >> For, it's HPE ProLiant- >> ProLiant with- >> The VMware- >> With vSphere. >> That's the compute- >> Distributed. >> Okay. So does the customer, how do you guys implement that with the customer? All three at the same time or they mix and match? What's that? How does that work? >> All three of those components. Yeah. So the beauty of the HP ProLiant with VMware vSphere-distributed services engine- >> Mhm. >> Also known as Project Monterey for those that are keeping notes at home- >> Mhm. >> It's, again, already pre-engineered. So we've already worked through all the mechanics of how you would have to do this. So it's not something you have to go figure out how you build, get deployment, you know, work through those details. That's already done. It is available through HPE GreenLake. So you can go and actually get it as a service in partnership with our customer, our friends here at VMware, and because, if you're familiar and comfortable with all the things that HP ProLiant has done from a security perspective, from a reliability perspective, trusted supply chain, all those sorts of things, you're getting all of that with this particular (indistinct). >> Sumit Dhawan had a great quote on theCUBE just an hour or so ago. He said you have to be early to be first. >> Yeah. (laughing) >> I love that quote. Okay. So you were- >> I fought the urge. >> You were first. You were probably a little early, but do you have a lead? I know you're going to say yes, okay. Let's just- >> Okay. >> Let's just assume that. >> Okay. Yeah. >> Relative to the competition, how do you know? How do you determine that? >> If we have a lead or not? >> Yeah. If you lead. If you're the best. >> We go to the source of the truth which is our customers. >> And what do they tell you? What do you look at and say, okay, now, I mean, when you have that honest conversation and say, okay, we are, we're first, we're early. We're keeping our lead. What are the things that you- >> I'll say it this way. I'll say it this way. We've been in a lot of businesses where there, where we do compete head-to-head in a lot of places. >> Mhm. >> And we know how that sales process normally works. We're seeing a different motion from our customers. When we talk about HPE GreenLake, there's not a lot of back and forth on, okay, well, let me go shop around. It is HP Green. Let's talk about how we actually build this solution. >> And I can tell you, from a VMware perspective, our customers are asking us for this the other way around. So that's a great sign is that, hey, we need to see this partnership come together in GreenLake. >> Yeah. >> It's the old adage that Amazon used to coin and Andy Jassy, you know, they do the undifferentiated heavy lifting. >> [Ricky And Joseph] Yeah. >> A lot of that's now Cloud operations. >> Mhm. >> Underneath it is infrastructure's code to the developer. >> That's right. >> That's at scale. >> That's right. >> And so you got a lot of heavy lifting being done with GreenLake- >> Right. >> Which is why there's no objections probably. >> Right. >> What's the choice? What are you going to shop? >> Yeah. >> There's nothing to shop around. >> Yeah, exactly. And then we've got, you know, that is really icing on the cake that we've, you know, that we've been building for quite some time and there is an understanding in the market that what we do with our infrastructure is hardened from a reliability and quality perspective. Like, times are tough right now. Supply chain issues, all that stuff. We've talked, all talked about it, but at HPE, we don't skimp on quality. We're going to spend the dollars and time on making sure we got reliability and security built in. It's really important to us. >> We had a great use case. The storage team, they were provisioning with containers. >> Yes. >> Storage is a service instantly we're seeing with you guys with VMware. Your customers' bringing in a lot of that into the mix as well. I got to ask 'cause every event we talk about AI and machine learning- >> Mhm. >> Automation and DevOps are now infiltrating in with the CICD pipeline. Security and data become a big conversation. >> [Ricky And Joseph] Agreed. >> Okay. So how do you guys look at that? Okay. You sold me on Green. Like, I've been a big fan from day one. Now, it's got maturity on it. I know it's going to get a lot more headroom to do. There's still a lot of work to do, but directionally it's pretty accurate, you know? It's going to be a success. There's still concern about security, the data layer. That's agnostic of environment, private cloud, hybrid, public, and Edge. So that's important and security- >> Great. >> Has got a huge service area. >> Yeah. >> These are on working progress. >> Yeah. Yeah. >> How do you guys view those? >> I think you've just hit the net on the head. I mean, I was in the press and journalist meetings yesterday and our answer was exactly the same. There is still so much work that can be done here and, you know, I don't think anybody is really emerging as a true leader. It's just a continuation of, you know, tryin' to get that right because it is what is the most important thing to our customers. >> Right. >> And the industry is really sort of catching up to that. >> And, you know, when you start talking about privacy and when you, it's not just about company information. It's about individuals' information. It's about, you know, information that, if exposed, actually could have real impact on people. >> Mhm. >> So it's more than just an I.T. problem. It is actually, and from HPE's perspective, security starts from when we're picking our suppliers for our components. Like, there are processes that we put into our entire trusted supply chain from the factory on the way up. I liken it to my golf swing. My golf swing. I slice right like you wouldn't believe. (John laughing) But when I go to the golf pros, they start me back at the mechanics, the foundational pieces. Here's where the problems are and start workin' on that. So my view is, our view is, if your infrastructure is not secure, you're goin' to have troubles with security as you go further up. >> Stay in the sandbox. >> Yeah. >> Yeah. So to speak, you know, they're driving range on the golf analogy there. I love that. Talk about supply chain security real quick because you mentioned supply chain on the hardware side. You're seeing a lot of open source and supply chain in software, trusted software. >> Yep. >> How does GreenLake look at that? How do you guys view that piece of it? That's an important part. >> Yeah. Security is one of the key pillars that we're actually driving as a company right now. As I said, it's important to our customers as they're making purchasing decisions and we're looking at it from the infrastructure all the way up to the actual service itself and that's the beauty of having something like HPE GreenLake. We don't have to pick, is the infrastructure or the middle where, or the top of stack application- >> It's (indistinct), right? >> It's all of it. >> Yeah. >> It's all of it. That matters. >> Quick question on the ecosystem posture. So- >> Sure. >> I remember when HP was, you know, one company and then the GSIs were a little weird with HP because of EDS, you know? You had data protector so we weren't really chatting up Veeam at the time, right? And as soon as the split happened, ecosystem exploded. Now you have a situation where you, Broadcom, is acquiring VMware. You guys, big Broadcom customer. Has your attitude changed or has it not because, oh, we meet with the customers already. Well, you've always said that, but have you have leaned in more? I mean, culturally, is HPE now saying, hmm, now we have some real opportunities to partner in new ways that we don't have to sleep with one eye open, maybe. (John laughing) >> So first of all, VMware and HPE, we've got a variety of different partners. We always have. >> Mhm. >> Well before any Broadcom announcement came along. >> Yeah, sure. >> We've been working with a variety of partners. >> And that hasn't changed. >> And that hasn't changed. And, if your question is, has our posture toward VMware changed at all, the answer's absolutely not. We believe in what VMware is doing. We believe in what our customers are doing with VMware and we're going to continue to work with VMware and partner with the (indistinct). >> And of course, you know, we had to spin out ourselves in November of last year, which I worked on, you know, the whole Dell thing. >> Yeah. We still had the same chairman. >> Yeah. There- (Dave chuckling) >> Yeah, but since then, I think what's really become very apparent and not, it's not just with HPE, but with many of our partners, many of the OEM partners, the opportunity in front of us is vast and we need to rely on each other to help us as, you know, solve the customer problems that are out there. So there's a willingness to overlook some things that, in the past, may have been, you know, barriers. >> But it's important to note also that it's not that we have not had history- >> Yeah. >> Right? Over, we've got over 200,000 customers join- >> Hundreds of millions of dollars of business- >> 100,000, over 10,000, or 100,000 channel partners that we all have in common. >> Yeah. Yeah. >> Yep. >> There's numerous- >> And independent of the whole Broadcom overhang there. >> Yeah. >> There's the ecosystem floor. >> Yeah. >> The expo floor. >> Right. >> I mean, it's vibrant. I mean, there's clearly a wave coming, Ricky. We talked about this briefly at HPE Discover. I want to get an update from your perspectives, both of you, if you don't mind weighing in on this. Clearly, the wave, we're calling it the Super Cloud, 'cause it's not just Multi-Cloud. It's completely different looking successes- >> Smart Cloud. >> It's not just vendors. It's also the customers turning into clouds themselves. You look at Goldman Sachs and- >> Yep. >> You know, I think every vertical will have its own power law of Cloud players in the future. We believe that to be true. We're still testing that assumption, but it's trending in when you got OPEX- >> [Ricky And Joseph] Right. >> Has to go to in-fund statement- >> Yeah. >> CapEx goes too. Thanks for the Cloud. All that's good, but there's a wave coming- >> Yeah. >> And we're trying to identify it. What do you guys see as this wave 'cause beyond Multi-Cloud and the obvious nature of that will end up happening as a state and what happens beyond that interoperability piece, that's a whole other story, and that's what everyone's fighting for, but everyone out in that ecosystem, it's a big wave coming. They've got their surfboards. They're ready to go. So what do you guys see? What is the next wave that everyone's jacked up about here? >> Well, I think that the Multi-Cloud is obviously at the epicenter. You know, if you look at the results that are coming in, a lot of our customers, this is what's leading the discussion and now we're in a position where, you know, we've brought many companies over the last few years. They're starting to come to fruition. They're starting to play a role in, you know, how we're moving forward. >> Yeah. >> Some of those are a bit more applicable to the commercial space. We're finding commercial customers that never bought from us before. Never. Hundreds and hundreds are coming through our partner networks every single quarter, you know? So brand new to VMware. The trick then is how do you nurture them? How do you encourage them? >> So new logos are comin' in. >> New logos are coming in all the time, all the time, from, you know, from across the ecosystem. It's not just the OEMs. It's all the way back- >> So the ecosystem's back of VMware. >> Unbelievably. So what are we doing to help that? There's two big things that we've announced in the recent weeks is that Partner Connect 2.0. When I talked to you about Multi-Cloud and what the (indistinct), you know, the customers are doing, you see that trend. Four, five different separate clouds that we've got here. The next piece is that they're changing their business models with the partners. Their services is becoming more and more apparent, et cetera, you know? And the use of other partners to do other services, deployment, or this stuff is becoming prevalent. Then you've got the distributors that I talked about with their, you know, their, then you route to market, then you route to business. So how do you encapsulate all of that and ensure your rewarding partners on all aspects of that? Whether it's deployment, whether it's test and depth, it's a points-based system we've put in place now- >> It's a big pie that's developing. The market's getting bigger. >> It's getting so much bigger. And then you help- >> I know you agree, obviously, with that. >> Yeah. Absolutely. In fact, I think for a long time we were asking the question of, is it going to be there or is it going to be here? Which was the wrong question. (indistinct cross talking) Now it's everything. >> Yeah. >> And what I think that, what we're seeing in the ecosystem, is that people are finding the spots that, where they're going to play. Am I going to be on the Edge? >> Yeah. >> Am I going to be on Analytics Play? Am I going to be, you know, Cloud Transition Play? There's a lot of players are now emerging and saying, we're- >> Yeah. >> We're, we now have a place, a part to play. And having that industry view not just of, you know, a commercial customer at that level, but the two of us are lookin' at Teleco, are looking at financial services, at healthcare, at manufacturing. How do these new ecosystem players fit into the- >> (indistinct) lifting. Everyone can see their position there. >> Right. >> We're now being asked for simplicity and talk to me about partner profitability. >> Yes. >> How do I know where to focus my efforts? Am I spread too thin? And, you know, that's, and my advice that the partner ecosystem out there is, hey, let's pick out spots together. Let's really go to, and then strategic solutions that we were talking about is a good example of that. >> Yeah. >> Sounds like composability to me, but not to go back- (laughing) Guys, thanks for comin' on. I think there's a big market there. I think the fog is lifted. People seeing their spot. There's value there. Value creation equals reward. >> Yeah. >> Simplicity. Ease of use. This is the new normal. Great job. Thanks for coming on and sharing. (cross talking) Okay. Back to live coverage after this short break with more day one coverage here from the blue set here in Moscone. (light corporate music)

(bright intro music) >> Welcome back everyone to VMware Explore '22. I'm John Furrier, host of the key with David Lante, our 12th year covering VMware's user conference, formerly known as VM-World now rebranded as VMware Explore. You got two great Cube alumni coming on the Cube. Ricky Cooper, SVP worldwide partner commercial VMware. Great to see you, thanks for coming on. >> Thank you. >> We just had a great chat-- >> Good to see you again. >> At HPE discover. And of course, Joseph George, Vice President of Compute Industry Alliances. Great to have you on. Great to see you. >> Great to see you, John. >> So guys, this year is very curious, VMware, a lot going on. The name change of the event. Big move, Bold move. And then they changed the name of the event. Then Broadcom buys them. A lot of speculation, but at the end of the day, this conference... Kind of people were wondering what would be the barometer of the event. We were reporting this morning on the keynote analysis. Very good mojo in the keynote. Very transparent about the Broadcom relationship. The expo floor last night was buzzing. I mean, this is not a show that's looking like it's going to be, you know, going down. This is clearly a wave. We're calling it super cloud, multi-cloud's their theme. Clearly the cloud's happening. Not to date ourselves, but 2013 we were discussing on the-- >> We talked about that, yeah. >> HPE Discover about DevOps infrastructure as code. We're full realization now of that. This is where we're at. You guys had a great partnership with VMware and HPE. Talk about where you guys see this coming together because the customers are refactoring, they are looking at cloud native, the whole Broadcom visibility to the VMware customer bases activated them. They're here and they're leaning in. What's going on? >> Yeah absolutely, we're seeing a renewed interest now as customers are looking at their entire infrastructure, bottoms up all the way up the stack and the notion of a hybrid cloud, where you've got some visibility and control of your data and your infrastructure and applications. Customers want to live in that sort of a cloud environment. And so we're seeing a renewed interest, a lot of conversations we're having with customers now, a lot of customers committing to that model, where they have applications and workloads running at the edge in their data center and in the public cloud in a lot of cases. But having that mobility, having that control, being able to have security in their own control. There's a lot that you can do there. And obviously partnering with VMware. We've been partners for so long. >> 20 years, at least. >> At least 20 years. Back when they invented stuff. They were inventing way-- >> VMware's got a very technical culture, but Ricky, I got to say that we commented earlier when Ragu was on the CEO now CEO, I mean legendary product guy, set the trajectory to VMware, everyone knows that. I can't know whether it was VMware or HP, HP before HPE coined Hybrid. Cause you guys were both on, I can't recall Dave, which company coined it first, but it was either one of you guys. Nobody else was there. >> It was the partnership. (men chuckle) >> Hybrid Cloud I had a big thing with Pat Gelsinger, Dave. Remember when he said he got in my grill on theCube, live, but now you see. >> You focus on that multi-cloud aspect. So you've got a situation where our customers are looking at multi-cloud and they're looking at it, not just as a flash in the pan. This is here for five years, 10 years, 20 years. Okay. So what does that mean then to our partners and to our distributors, you're seeing a whole seed change. You're seeing partners now looking at this. So look at the OEMs, the ones that have historically been vSphere customers and now saying they're coming in, drove saying, okay, what is the next step? Well, how can I be a multi-cloud partner with you? How can I look at other aspects that we're driving here together? So GreenLake is a great example. We keep going back to GreenLake and we are partaking in GreenLake at the moment. The real big thing for us is going to be right. Let's make sure that we've got the agreements in place that support this Sasson subscription motion going forward. And then the sky's the limit for us. >> You're plugging that right into. >> Well, here's why, here's why, so customers are loving the fact that they can go to a public cloud and they can get an SLA. They come to an on-premise, you've got the hardware, you've got the software, you've got the guys on board to maintain this through its life cycle. I mean, this is complicated stuff. Now we've got a situation where you can say, Hey, we can get an SLA on premise. >> And I think what you're seeing is it's very analogous to having a financial advisor, just manage your portfolio. You're taking care of just submitting money. That's really a lot of what a lot of the customers have done with the public cloud. But now a lot of these customers are getting savvy. They have been working with VMware technologies and HPE for so long. they've got expertise. They know how they want their workloads architected. Now we've given them a model where they can leverage the cloud platform to be able to do this, whether it's on premise, the edge or in the public cloud, leveraging HPE GreenLake and VMware. >> Is it predominantly or exclusively a managed service or do you find some customers saying, hey, we want to manage ourself. What are you seeing is the mix there? >> It is not predominantly managed services right now. We're actually, as we are growing last time we talked at HPE discover. We talked about a whole bunch of new services that we've added to our catalog. It's growing by leaps and bounds. A lot of folks are definitely interested in the pay as you go, obviously the financial model, but are now getting exposed to all the other management that can happen. There are managed services capabilities, but actually running it as a service with your systems on-prem is a phenomenal idea for all these customers. And they're opening their eyes to some new ways to service their customers better. >> And another phenomenon we're seeing there is where partners such as HPA, using other partners for various areas of the services implementation as well. So that's another phenomenon. You're seeing the resale motion now going into a lot more of the services motion. >> It's interesting too. I mean the digital modernization that's going on, the transformation whatever you want to call it, is complicated, that's clear. One of the things I liked about the keynote today was the concept of cloud chaos, because we've been saying quoting Andy Grove, Next Intel, let chaos rain and rain in the chaos. And when you have inflection points, complexity, which is the chaos, needs to be solved and whoever solves it and kicks the inflection point, that's up and to the right. >> So prime idea right here. So. >> GreenLake is, well. >> Also look at the distribution model and how that's changed a couple of points on a deal. Now they're saying I'll be your aggregator. I'll take the strain and I'll give you scale. I'll give you VMware scale for all of the various different partners, et cetera. >> Yeah. So let's break this down because this is, I think a key point. So complexity is good, but the old model in the enterprise market was, you solve complexity with more complexity and everybody wins. Oh yeah, we're locked in. That's not what the market wants. They want self- service, they want as a service, they want easy, developer first security data ops. DevOps is already in the cycle. So they're going to want simpler, easier, faster. >> And this is kind of why I I'll say for the big announcement today here at VMware Explorer around the VMware vSphere distributed services engine, project Monterey that we've talked about for so long, HPE and VMware and AMD with the Pensando DPU actually work together to engineer a solution for exactly that. The capabilities are fairly straightforward in terms of the technologies, but actually doing the work to do integration, joint engineering, make sure that this is simple and easy and able to be running HPE GreenLake. >> We invested in Pensando right, we are investors. >> What's the benefit of that. That's a great point. You made what's the value to the customer bottom line, that deep, co-engineering, co-partnering, what is it deliver that others don't do? >> Yeah. Well, I think one example would be a lot of vendors can say we support it. >> Yep. That's great. That's actually a really good move, supporting it. It can be resold. That's another great move. I'm not mechanically inclined to where I would go build my own car. I'll go to a dealership and actually buy one that I can press the button and I can start it and I can do what I need to do with my car. And that's really what this does is the engineering work that's gone on between our two companies and AMD Pensando as well as the business work to make that simple and easy that transaction to work. And then to be able to make it available as a service is really what made, that's why it's such a winner here... >> But, it's also a lower cost out of the box. Yes. So you get in whatever it's called a 20%. Okay. But there's nuance because you're also on a new technology curve and you're able to absorb modern apps. We use that term as a promo, but when I say modern apps, I mean data, rich apps, things that are more AI driven. Not the conventional, not that people aren't doing, you know, SAP and CRM, they are. But, there's a whole slew of new apps that are coming in that traditional architectures aren't well suited to handle from a price performance standpoint. This changes that doesn't it? >> Well, you think also of going to the next stage, which is the go to market between the two organizations that before at the moment, HPE is running off doing various different things. We were running off to. Again, that chaos that you're talking about in cloud chaos, you got to go to market chaos, but by simplifying four or five things, what are we going to do really well together? How do we embed those in GreenLake and be known in the marketplace for these solutions? Then you get an organization that's really behind the go to market. You can help with sales, activation, the enablement. And then we benefit from the scale of HPE. >> Yeah. What are those solutions, I mean... Is it just, is it IS? Is it compute storage? Is it specific SAP? Is it VDI? What are you seeing out there? >> So right now for this specific technology, we're educating our customers on what that could be. And at its core, this solution allows customers to take services that normally and traditionally run on the compute system and run on a DPU now with project Monterey. And this is now allowing customers to think about where are their use cases. So I'm rather than going and say, use it for this. We're allowing our customers to explore and say, okay, here's where it makes sense. Where do I have workloads that are using a lot of compute cycles on services at the compute level? That could be somewhere else like networking as a great example, and allowing more of those compute cycles to be available. So where there are performance requirements for an application where there are timely response that's needed for results to be able to take action on, to be able to get insight from data really quick. Those are places where we're starting to see the services moving onto something like a DPU. And that's where this makes a whole lot more sense. >> Okay, so to get this right? You got the hybrid cloud, right? You got GreenLake and you got the distributed engine. What's that called? >> It's HPE Proliant Proliant with the VMware, VSphere. >> VSphere. That's the compute distributed. Okay. So does the customer, how do you guys implement that with the customer all three at the same time or they mix and match? How's that work? >> All three of those components. So the beauty of the HP Proliant with VMware vSphere distributed services engine also now is project Monterey for those that are keeping notes at home. Again already pre-engineered so we've already worked through all the mechanics of how you would have to do this. So it's not something you have to go figure out how you build, get deployment, work through those details. That's already done. It is available through HPE GreenLake. So you can go and actually get it as a service in partnership with our customer, our friends here at VMware. And because if you're familiar and comfortable with all the things that HP Proliant has done from a security perspective, from a reliability perspective, trusted supply chain, all those sorts of things, you're getting all of that with this particular solution. >> Sumit Dhawan had a great quote on theCube just a hour or so ago. He said you have to be early to be first. Love that quote. Okay. So you were first, you were probably a little early, but do you have a lead? I know you're going to say yes. Okay. Let's just assume that okay. Relative to the competition, how do you know? How do you determine that? >> If we have a lead or not? >> Yeah, if you lead, if you're the best. >> We go to the source of the truth, which is our customers. >> And what do they tell you? What do you look at and say, okay, now, I mean, when you have that honest conversation and say, okay, we are, we're first, we're early, we're keeping our lead. What are the things that you look at, as indicators? >> I'll say it this way. We've been in a lot of businesses where we do compete head-to-head in a lot of places and we know how that sales process normally works. We're seeing a different motion from our customers. When we talk about HPE GreenLake, there's not a lot of back and forth on, okay, well let me go shop around. It is HP GreenLake, let's talk about how we actually build this solution. >> And I can tell you from a VMware perspective, our customers are asking us for this the other way around. So that's a great sign. Is that, Hey, we need to see this partnership come together in GreenLake. >> Yeah. Okay. So you would concur with that? >> Absolutely. So third party validation. >> From Switzerland. Yeah. >> Bring it with you over here. >> We're talking about this earlier on, I mean, of course with I mentioned earlier on there's some contractual things that you've got to get in place as you are going through this migration into Sasson subscription, et cetera. And so we are working as hard as we can to make sure, Hey, let's really get this contract in place as quickly as possible, it's what the customers are asking us. >> We've been talking about this for years, you know, see containers being so popular. Now, Kubernetes becoming that layer of bringing people to bringing things together. It's the old adage that Amazon used to coin and Andy Jassy, they do the undifferentiated, heavy lifting. A lot of that's now that's now cloud operations. Underneath is infrastructure's code to the developer, right. That's at scale. >> That's right. >> And so you got a lot of heavy lifting being done with GreenLake. Which is why there's no objections probably. >> Right absolutely. >> What's the choice. What do you even shop? >> Yeah. There's nothing to shop around. >> Yeah, exactly. And then we've, that is really icing on the cake that we've, we've been building for quite some time. There is an understanding in the market that what we do with our infrastructure is hardened from a reliability and quality perspective. Times are tough right now, supply chain issues, all that stuff, we've talked about it. But at HPE, we don't skimp on quality. We're going to spend the dollars and time on making sure we got reliability and security built in. It's really important to us. >> We get a great use case, the storage team, they were provisioning with containers. Storage is a service, instantly. We're seeing with you guys with VMware, your customers bringing in a lot of that into the mix as well. I got to ask. Cause every event we talk about AI and machine learning, automation and DevOps are now infiltrating in with the Ci/CD pipeline security and data become a big conversation. >> Agreed. >> Okay. So how do you guys look at that? Okay. You sold me on green. I've been a big fan from day one. Now it's got maturity on it. I know it's going to get a lot more headroom to do there. It's still a lot of work to do, but directionally it's pretty accurate. It's going to be going to be success. There's still concerns about security, the data layer. That's agnostic of environment, private cloud hybrid, public and edge. So that's important and security has got a huge service area. These are a work in progress. How do you guys view those? >> I think you've just hit the nail on the head. I mean, I was in the press and journalist meetings yesterday and our answer was exactly the same. There is still so much work that can be done here. And I don't think anybody is really emerging as a true leader. It's just a continuation of trying to get that right. Because it is what is the most important thing to our customers. And the industry is really sort of catching up to that. >> And when you start talking about privacy and when you... It's not just about company information, it's about individuals information. It's about information that if exposed actually could have real impact on people. So it's more than just an IT problem. It is actually, and from HP's perspective, security starts from when we're picking our suppliers for our components. There are processes that we put into our entire trusted supply chain from the factory on the way up. I liken it to my golf swing, my golf swinging. I slice, right lik you wouldn't believe. But when I go to the golf pros, they start me back at the mechanics, the foundational pieces, here's where the problems are and start working on that. So my view is our view is if your infrastructure is not secure, you're going to have troubles with security as you go further up. >> Stay in the sandbox, so to speak, they're driving range on the golf analogy there. I love that. Talk about supply chain security real quick. Because you mentioned supply chain on the hardware side, you're seeing a lot of open source and supply chain in software trusted software. How does GreenLake look at that? How do you guys view that piece of it? That's an important part. >> Yeah, security is one of the key pillars that we're actually driving as a company right now. As I said, it's important to our customers as they're making purchasing decisions. And we're looking at it from the infrastructure all the way up to the actual service itself. And that's the beauty of having something like HP GreenLake, we don't have to pick is the infrastructure or the middle where, or the top of stack application, we can look at all of it. Yeah. It's all of it. That matters. >> Question on the ecosystem posture, so, I remember when HP was one company and then the GSIs were a little weird with HP because of EDS, you know, had data protector. So we weren't really chatting up Veeam at the time. And as soon as the split happened, ecosystem exploded. Now you have a situation where your Broadcom is acquiring VMware. You guys big Broadcom customer, has your attitude changed or has it not because, oh, we meet where the customers are. You've always said that, but have you have leaned in more? I mean, culturally is HPE, HPE now saying, hmm, now we have some real opportunities to partner in new ways that we don't have to sleep with one eye open, maybe. >> So I would some first of all, VMware and HPE, we've got a variety of different partners, we always have. If well, before any Broadcom announcement came along. We've been working with a variety of partners and that hasn't changed and that hasn't changed. And if your question is, has our posture toward VMware changed that all the answers absolutely not. We believe in what VMware is doing. We believe in what our customers are doing with VMware, and we're going to continue to work with VMware and partner with you. >> And of course we had to spin out ourselves in November of last year, which I worked on the whole Dell, whole Dell piece. >> But, you still had the same chairman. >> But since then, I think what's really become very apparent. And it's not just with HPE, but with many of our partners, many of the OEM partners, the opportunity in front of us is vast. And we need to rely on each other to help us solve the customer problems that are out there. So there's a willingness to overlook some things that in the past may have been barriers. >> But it's important to note also that it's not that we have not had history, right? Over... We've got over 200,000 customers join. >> Hundreds of millions of dollars of business. >> 100,000, over 10,000 or a 100,000 channel partners that we have in common. Numerous , numerous... >> And independent of the whole Broadcom overhang there, there's the ecosystem floor. Yeah, the expo floor. I mean, it's vibrant. I mean, there's clearly a wave coming. Ricky, we talked about this briefly at HPE Discover. I want to get an update from your perspective, both of you, if you don't mind weighing in on this, clearly the wave we calling it super cloud. Cause it's not just, multi-cloud completely different looking successes, >> Smart Cloud. >> It's not just vendors. It's also the customers turning into clouds themselves. You look at Goldman Sachs. I think every vertical will have its own power law of cloud players in the future. We believe that to be true. We're still testing that assumption, but it's trending in when you got OPEX has to go to in fund statement. CapEx goes to thanks for the cloud. All that's good, but there's a wave coming and we're trying to identify it. What do you guys see as this wave cause beyond multi-cloud and the obvious nature of that will end up happening as a state and what happens beyond that interoperability piece? That's a whole nother story and that's what everyone's fighting for. But everyone out in that ecosystem, it's a big wave coming. They got their surfboards. They're ready to go. So what do you guys see? What is the next wave that everyone's jacked up about here? >> Well, I think the multi-cloud is obviously at the epicenter. If you look at the results that are coming in, a lot of our customers, this is what's leading the discussion. And now we're in a position where we've brought many companies over the last few years, they're starting to come to fruition. They're starting to play a role in how we're moving forward. Some of those are a bit more applicable to the commercial space. We're finding commercial customers are never bought from us before never hundreds and hundreds are coming through our partner networks every single quarter. So brand new to VMware, the trick then is how do you nurture them? How do you encourage them? >> So new logos are coming in? >> New logos are coming in all the time, all the time from across the ecosystem. It's not just the OEMs, it's all the way back. >> So the ecosystem's back for VMware. >> Unbelievably. So what are we doing to help that? There's two big things that we've announced in the recent weeks is that partner connect 2.0. When I talk to you about multi-cloud and multicardt the customers are doing, you see that trend. Four, five different separate clouds that we've got here. The next piece is that they're changing their business models with the partners. Their services is becoming more and more apparent, etc. And the use of other partners to do other services deployment or this stuff is becoming prevalent. Then you've got the distributors that I talked about were there. Then you route to market, then you route to business. So how do you encapsulate all of that and ensure your rewarding partners on all aspects of that? Whether it's deployment, whether it's test and debt, it's a points based system we've put in place now. >> It's a big pie. That's developing the market's getting bigger. >> It's getting so much bigger and then help. >> You agree obviously with that. >> Yeah, absolutely, in fact, I think for a long time we were asking the question of, is it going to be there or is it going to be here? Which was the wrong question now it's everything. Yes. And what I think that what we're seeing in the ecosystem is people are finding the spots where they're going play. Am I going to be on the edge? Am I going to be an analytics play? Am I going to be a cloud transition play? A lot of players are now emerging and saying, we now have a place, a part to play. And having that industry view, not just of a commercial customer at that level, but the two of us are looking at Telco, are looking at financial services, at healthcare, at manufacturing. How do these new ecosystem players fit into it? >> ... is lifting, everyone can see their position there. >> We're now being asked for simplicity and talk to me about partner profitability. How do I know where to focus my efforts? Am I've spread too thin? And my advice that a partner ecosystem out there is, Hey, let's pick out spots together. Let's really go to, and then strategic solutions that we were talking about is good example of that. >> Sounds like composability to me, but not to go back guys. Thanks for coming on. I think there's a big market there. I think the fog is lifted, people seeing their spot there's value there. Value creation equals reward. Yeah. Simplicity, ease of use. This is the new normal great job. Thanks for coming on sharing. Okay. Back live coverage after this short break with more day one coverage here from the blue set here in Moscone.

>>Okay, welcome back everyone. There's the cubes coverage of VMware Explorer, 22 formerly world. We've been here since 2010 and world 2010 to now it's 2022. And it's VMware Explorer. We're here at the CEO, regular writer. Welcome back to the cube. Great to see you in person. >>Yeah. Great to be here in person, >>Dave and I are, are proud to say that we've been to 12 straight years of covering VMware's annual conference. And thank you. We've seen the change in the growth over time and you know, it's kind of, I won't say pinch me moment, but it's more of a moment of there's the VMware that's grown into the cloud after your famous deal with Andy jazzy in 2016, we've been watching what has been a real sea change and VMware since taking that legacy core business and straightening out the cloud strategy in 2016, and then since then an acceleration of, of cloud native, like direction under your leadership at VMware. Now you're the CEO take us through that because this is where we are right now. We are here at the pinnacle of VMware 2.0 or cloud native VMware, as you point out on your keynote, take us through that history real quick. Cuz I think it's important to know that you've been the architect of a lot of this change and it's it's working. >>Yeah, definitely. We are super excited because like I said, it's working, the history is pretty simple. I mean we tried running our own cloud cloud air. We cloud air didn't work so well. Right. And then at that time, customers really gave us strong feedback that the hybrid they wanted was a Amazon together. Right. And so that's what we went back and did and the andjay announcement, et cetera. And then subsequently as we were continue to build it out, I mean, once that happened, we were able to go work with the Satia and Microsoft and others to get the thing built out all over. Then the next question was okay, Hey, that's great for the workloads that are running on vSphere. What's the story for workloads that are gonna be cloud native and benefit a lot from being cloud native. So that's when we went the Tansu route and the Kubernetes route, we did a couple of acquisitions and then we started that started paying off now with the Tansu portfolio. And last but not the least is once customers have this distributed portfolio now, right. Increasingly everything is becoming multi-cloud. How do you manage and connect and secure. So that's what you start seeing that you saw the management announcement, networking and security and everything else is cooking. And you'll see more stuff there. >>Yeah know, we've been talking about super cloud. It's kinda like a multi-cloud on steroids kind a little bit different pivot of it. And we're seeing some use cases. >>No, no, it's, it's a very great, it's a, it's pretty close to what we talk about. >>Awesome. I mean, and we're seeing this kind of alignment in the industry. It's kind of open, but I have to ask you, when did you, you have the moment where you said multicloud is the game changer moment. When did you have, because you guys had hybrid, which is really early as well. When was the Raghu? When did you have the moment where you said, Hey, multicloud is what's happening. That's we're doubling down on that go. >>I mean, if you think about the evolution of the cloud players, right. Microsoft really started picking up around the 2018 timeframe. I mean, I'm talking about Azure, right? >>In a big way. >>Yeah. In a big way. Right. When that happened and then Google got really serious, it became pretty clear that this was gonna be looking more like the old database market than it looked like a single player cloud market. Right. Equally sticky, but very strong players all with lots of IP creation capability. So that's when we said, okay, from a supplier side, this is gonna become multi. And from a customer side that has always been their desire. Right. Which is, Hey, I don't want to get locked into anybody. I want to do multiple things. And the cloud vendors also started leveraging that OnPrem. Microsoft said, Hey, if you're a windows customer, your licensing is gonna be better off if you go to Azure. Right. Oracle did the same thing. So it just became very clear. >>I am, I have gone make you laugh. I always go back to the software mainframe because I, I think you were here. Right. I mean, you're, you're almost 20 years in. Yeah. And I, the reason I appreciate that is because, well, that's technically very challenging. How do you make virtualization overhead virtually non-existent how do you run any workload? Yeah. How do you recover from, I mean, that's was not trivial. Yeah. Okay. So what's the technical, you know, analog today, the real technical challenge. When you think about cross cloud services. >>Yeah. I mean, I think it's different for each of these layers, right? So as I was alluding to for management, I mean, you can go each one of them by themselves, there is one way of Mo doing multi-cloud, which is multiple clouds. Right. You could say, look, I'm gonna build a great product for AWS. And then I'm gonna build a great product for Azure. I'm gonna build a great product for Google. That's not what aria is. Aria is a true multi-cloud, which means it pulls data in from multiple places. Right? So there are two or three, there are three things that aria has done. That's I think is super interesting. One is they're not trying to take all the data and bring it in. They're trying to federate the data sources. And secondly, they're doing it in real time and they're able to construct this graph of a customer's cloud resources. >>Right. So to keep the graph constructed and pulling data, federating data, I think that's a very interesting concept. The second thing that, like I said is it's a real time because in the cloud, a container might come and go like that. Like that is a second technical challenge. The third it's not as much a technical challenge, but I really like what they have done for the interface they've used GraphQL. Right? So it's not about if you remember in the old world, people talk about single pan or glass, et cetera. No, this is nothing to do with pan or glass. This is a data model. That's a graph and a query language that's suited for that. So you can literally think of whatever you wanna write. You can write and express it in GraphQL and pull all sorts of management applications. You can say, Hey, I can look at cost. I can look at metrics. I can look at whatever it is. It's not five different types of applications. It's one, that's what I think had to do it at scale is the other problem. And, and >>The, the technical enable there is just it's good software. It's a protocol. It's >>No, no, it's, it's, it's it's software. It's a data model. And it's the Federation architecture that they've got, which is open. Right. You can pull in data from Datadog, just as well as from >>Pretty >>Much anything data from VR op we don't care. Right? >>Yeah. Yeah. So rego, I have to ask you, I'm glad you like the Supercloud cuz you know, we, we think multi-cloud still early, but coming fast. I mean, everyone has multiple clouds, but spanning this idea of spanning across has interesting sequences. Do you data, do you do computer both and a lot of good things happening. Kubernetes been containers, all that good stuff. Okay. How do you see the first rev of multi-cloud evolving? Like is it what happens? What's the sequence, what's the order of operations for a client standpoint? Customer standpoint of, of multicloud or Supercloud because we think we're seeing it as a refactoring of something like snowflake, they're a data base, they're a data warehouse on the cloud. They, they say data cloud they'd they like they'll tell us no, you, we're not a data. We're not a data warehouse. We're data cloud. Okay. You're a data warehouse refactored for the CapEx from Amazon and cooler, newer things. Yeah, yeah, yeah. That's a behavior change. Yeah. But it's still a data warehouse. Yeah. How do you see this multi-cloud environment? Refactoring? Is there something that you see that might be different? That's the same if you know what I'm saying? Like what's what, what's the ne the new thing that's happening with multi-cloud, that's different than just saying I'm I'm doing SAS on the cloud. >>Yeah. So I would say, I would point to a, a couple of things that are different. Firstly, my, the answer depends on which category you are in. Like the category that snowflake is in is very different than Kubernetes or >>Something or Mongo DB, right? >>Yeah. Or Mongo DB. So, so it is not appropriate to talk about one multi-cloud approach across data and compute and so, so on and so forth. So I'll talk about the spaces that we play. Right. So step one, for most customers is two application architectures, right? The cloud native architecture and an enterprise native architecture and tying that together either through data or through networks or through et cetera. So that's where most of the customers are. Right. And then I would say step two is to bring these things together in a more, in a closer fashion and that's where we are going. And that is why you saw the cloud universal announcement and that's already, you've seen the Tansu announcement, et cetera. So it's really, the step one was two distinct clouds. That is just two separate islands. >>So the other thing that we did, that's really what my, the other thing that I'd like to get to your reaction on, cause this is great. You're like a masterclass in the cube here. Yeah, totally is. We see customers becoming super clouds because they're getting the benefit of, of VMware, AWS. And so if I'm like a media company or insurance company, if I have scale, if I continue to invest in, in cloud native development, I do all these things. I'm gonna have a da data scale advantage, possibly agile, which means I can build apps and functionality very quick for customers. I might become my own cloud within the vertical. Exactly. And so I could then service other people in the insurance vertical if I'm the insurance company with my technology and create a separate power curve that never existed before. Cause the CapEx is off the table, it's operating expense. Yep. That runs into the income statement. Yep. This is a fundamental business model shift and an advantage of this kind of scenario. >>And that's why I don't think snowflakes, >>What's your reaction to that? Cuz that's something that, that is not really, talk's highly nuanced and situational. But if Goldman Sachs builds the biggest cloud on the planet for financial service for their own benefit, why wouldn't they >>Exactly. >>And they're >>Gonna build it. They sort of hinted at it that when they were up on stage on AWS, right. That is just their first big step. I'm pretty sure over time they would be using other clouds. Think >>They already are on >>Prem. Yeah. On prem. Exactly. They're using VMware technology there. Right? I mean think about it, AWS. I don't know how many billions of dollars they're spending on AWS R and D Microsoft is doing the same thing. Google's doing the same thing we are doing. Not as much as them that you're doing oral chair. Yeah. If you are a CIO, you would be insane not to take advantage of all of this IP that's getting created and say, look, I'm just gonna bet on one. Doesn't make any sense. Right. So that's what you're seeing. And then >>I think >>The really smart companies, like you talked about would say, look, I will do something for my industry that uses these underlying clouds as the substrate, but encapsulates my IP and my operating model that I then offer to other >>Partners. Yeah. And their incentive for differentiation is scale. Yeah. And capability. And that's a super cloud. That's a, or would be say it environment. >>Yeah. But this is why this, >>It seems like the same >>Game, but >>This, I mean, I think it environment is different than >>Well, I mean it advantage to help the business, the old day service, you >>Said snowflake guys out the marketing guys. So you, >>You said snowflake data warehouse. See, I don't think it's in data warehouse. It's not, that's like saying, you >>Know, I, over >>VMware is a virtualization company or service now is a help desk tool. I, this is the change. Yes. That's occurring. Yes. And that you're enabling. So take the Goldman Sachs example. They're gonna run OnPrem. They're gonna use your infrastructure to do selfer. They're gonna build on AWS CapEx. They're gonna go across clouds and they're gonna need some multi-cloud services. And that's your opportunity. >>Exactly. That's that's really, when you, in the keynote, I talked about cloud universal. Right? So think of a future where we can go to a customer and say, Mr. Customer buy thousand scores, a hundred thousand cores, whatever capacity you can use it, any which way you want on any application platform. Right. And it could be OnPrem. It could be in the cloud, in the cloud of their choice in multiple clouds. And this thing can be fungible and they can tie it to the right services. If they like SageMaker they could tie it to Sage or Aurora. They could tie it to Aurora, cetera, et cetera. So I think that's really the foundation that we are setting. Well, I think, I >>Mean, you're building a cloud across clouds. I mean, that's the way I look at it. And, and that's why it's, to me, the, the DPU announcement, the project Monterey coming to fruition is so important. Yeah. Because if you don't have that, if you're not on that new Silicon curve yep. You're gonna be left behind. Oh, >>Absolutely. It allows us to build things that you would not otherwise be able to do, >>Not to pat ourselves on the back Ragu. But we, in what, 2013 day we said, feel >>Free. >>We, we said with Lou Tucker when OpenStack was crashing. Yeah. Yeah. And then Kubernetes was just a paper. We said, this could be the interoperability layer. Yeah. You got it. And you could have inter clouding cuz there was no clouding. I was gonna riff on inter networking. But if you remember inter networking during the OSI model, TCP and IP were hardened after the physical data link layer was taken care of. So that enabled an entire new industry that was open, open interconnect. Right. So we were saying inter clouding. So what you're kind of getting at with cross cloud is you're kind of creating this routing model if you will. Not necessarily routing, but like connection inter clouding, we called it. I think it's kinda a terrible name. >>What you said about Kubernetes is super critical. It is turning out to be the infrastructure API so long. It has been an infrastructure API for a certain cluster. Right. But if you think about what we said about VSE eight with VSE eight Kubernetes becomes the data center API. Now we sort of glossed over the point of the keynote, but you could do operations storage, anything that you can do on vSphere, you can do using a Kubernetes API. Yeah. And of course you can do all the containers in the Kubernetes clusters and et cetera, is what you could always do. Now you could do that on a VMware environment. OnPrem, you could do that on EKS. Now Kubernetes has become the standard programming model for infrastructure across. It >>Was the great equalizer. Yeah. You, we used to say Amazon turned the data center through an API. It turns, turns of like a lot of APIs and a lot of complexity. Right. And Kubernetes changed. >>Well, the role, the role of defacto standards played a lot into the T C P I P revolution before it became a standard standard. What the question Raghu, as you look at, we had submit on earlier, we had tutorial on as well. What's the disruptive enabler from a defacto. What in your mind, what should, because Kubernetes became kind of defacto, even though it was in the CNCF and in an open source open, it wasn't really standard standard. There's no like standards, body, but what de facto thing has to happen in your mind's eye around making inter clouding or connecting clouds in a, in a way that's gonna create extensibility and growth. What do you see as a de facto thing that the industry should rally around? Obviously Kubernetes is one, is there something else that you see that's important for in an open way that the industry can discuss and, and get behind? >>Yeah. I mean, there are things like identity, right? Which are pretty critical. There is connectivity and networking. So these are all things that the industry can rally around. Right. And that goes along with any modern application infrastructure. So I would say those are the building blocks that need to happen on the data side. Of course there are so many choices as well. So >>How about, you know, security? I think about, you know, when after stuck net, the, the whole industry said, Hey, we have to do a better job of collaborating. And then when you said identity, it just sort of struck me. But then a lot of people tried to sort of monetize private reporting and things like that. So you do you see a movement within the technology industry to do a better job of collaborating to, to solve the acute, you know, security problems? >>Yeah. I think the customer pressure and government pressure right. Causes that way. Yeah. Even now, even in our current universe, you see, there is a lot of behind the scenes collaboration amongst the security teams of all of the tech companies that is not widely seen or known. Right. For example, my CISO knows the AWS CSO or the Microsoft CSO and they all talk and they share the right information about vulnerability attacks and so on and so forth. So there's already a certain amount of collaboration that's happening and that'll only increase. Do, >>Do you, you know, I was somewhat surprised. I didn't hear more in your face about security would, is that just because you had such a strong multi-cloud message that you wanted to get, get across, cuz your security story is very strong and deep. When you get into the DPU side of things, the, you know, the separation of resources and the encryption and I'll end to end >>I'm well, we have a phenomenal security story. Yeah. Yeah. Tell security story and yes. I mean I'll need guilty to the fact that in the keynote you have yeah, yeah, sure time. But what we are doing with NSX and you will hear about some NSX projects as you, if you have time to go to some of the, the sessions. Yeah. There's one called project, not star. Another is called project Watchman or watch, I think it's called, we're all dealing with this. That is gonna strengthen the security story even more. Yeah. >>We think security and data is gonna be a big part of it. Right. As CEO, I have to ask you now that you're the CEO, first of all, I'd love to talk about product with you cuz you're yeah. Yeah. We just great conversation. We want to kind of read thet leaves and ask pointed questions cuz we're putting the puzzle together in real time here with the audience. But as CEO, now you have a lot of discussions around the business. You, the Broadcom thing happening, you got the rename here, you got multi-cloud all good stuff happening. Dave and I were chatting before we came on this morning around the marketplace, around financial valuations and EBIDA numbers. When you have so much strategic Goodwill and investment in the oven right now with the, with the investments in cloud native multi-year investments on a trajectory, you got economies of scale there. >>It's just now coming out to be harvest and more behind it. Yeah. As you come into the Broadcom and or the new world wave that's coming, how do you talk about that value? Cuz you can't really put a number on it yet because there's no customers on it. I mean some customers, but you can't probably some for form. It's not like sales numbers. Yeah. Yeah. How do you make the argument to the PE type folks out there? Like EBIDA and then all the strategic value. What's the, what's the conversation like if you can share any, I know it's obviously public company, all the things going down, but like how do you talk about strategic value to numbers folks? >>Yeah. I mean, we are not talking to PE guys at all. Right. I mean the only conversation we have is helping Broadcom with >>Yeah. But, but number people who are looking at the number, EBIDA kind of, >>Yeah. I mean, you'd be surprised if, for, for example, even with Broadcom, they look at the business holistically as what are the prospects of this business becoming a franchise that is durable and could drive a lot of value. Right. So that's how they look at it holistically. It's not a number driven. >>They do. They look at that. >>Yeah. Yeah, absolutely. So I think it's a misperception to say, Hey, it's a numbers driven conversation. It's a business driven conversation where, I mean, and Hawk's been public about it. He says, look, I look at businesses. Can they be leaders in their market? Yeah. Because leaders get, as we all know a disproportionate share of the economic value, is it a durable franchise that's gonna last 10 years or more, right. Obviously with technology changes in between, but 10 years or more >>Or 10, you got your internal, VMware talent customers and >>Partners. Yeah. Significant competitive advantage. So that's, that's really where the conversation starts and the numbers fall out of it. Got it. >>Okay. So I think >>There's a track record too. >>That culture >>That VMware has, you've always had an engineering culture. That's turned, you know, ideas and problems into products that, that have been very successful. >>Well, they had different engineering cultures. They're chips. You guys are software. Right. You guys know >>Software. Yeah. Mean they've been very successful with Broadcom, the standalone networking company since they took it over. Right. I mean, it's, there's a lot of amazing innovation going on there. >>Yeah. Not, not that I'm smiling. I want to kind of poke at this question question. I'll see if I get an answer out of you, when you talk to Hawk tan, does he feel like he bought a lot more than he thought or does he, did he, does he know it's all here? So >>The last two months, I mean, they've been going through a very deliberate process of digging into each business and certainly feels like he got a phenomenal asset base. Yeah. He said that to me even today after the keynote, right. Is the amazing amount of product capability that he's seeing in every one of our businesses. And that's been the constant frame. >>But congratulations on that. >>I've heard, I've heard Hawk talk about the shift to, to Mer merchant Silicon. Yeah. From custom Silicon. But I wanted to ask you when you look at things like AWS nitro yeah. And graviton and train and the advantage that AWS has with custom Silicon, you see Google and Microsoft sort of Alibaba following suit. Would it benefit you to have custom Silicon for, for DPU? I mean, I guess you, you know, to have a tighter integration or do you feel like with the relationships that you have that doesn't buy you anything? >>Yeah. I mean we have pretty strong relationships with in fact fantastic relationships with the Invidia and Intel and AMD >>Benon and AMD now. >>Yeah. Yeah. I mean, we've been working with the Pendo team in their previous incarnations for years. Right, right. When they were at Cisco and then same thing with the, we know the Melanox team as well as the invi original teams and Intel is the collaboration right. From the get go of the company. So we don't feel a need for any of that. We think, I mean, it's clear for those cloud folks, right. They're going towards a vertical integration model and select portions of their stack, like you talked about, but there is always a room for horizontal integration model. Right. And that's what we are a part of. Right. So there'll be a number of DPU pro vendors. There'll be a number of CPU vendors. There'll be a number of other storage, et cetera, et cetera. And we think that is goodness in an alternative model compared to a vertically integr >>And yeah. What this trade offs, right. It's not one or the other, I mean I used to tell, talk to Al Shugar about this all the time. Right. I mean, if vertically integrated, there may be some cost advantages, but then you've got flexibility advantages. If you're using, you know, what the industry is building. Right. And those are the tradeoffs, so yeah. Yeah. >>Greg, what are you excited about right now? You got a lot going on obviously great event. Branding's good. Love the graphics. I was kind of nervous about the name changed. I likem world, but you know, that's, I'm kind of like it >>Doesn't readily roll off your phone. Yeah. >>I know. We, I had everyone miscue this morning already and said VMware Explorer. So >>You pay Laura fine. Yeah. >>Now, I >>Mean a quarter >>Curse jar, whatever I did wrong. I don't believe it. Only small mistake that's because the thing wasn't on. Okay. Anyway, what's on your plate. What's your, what's some of the milestones. Do you share for your employees, your customers and your partners out there that are watching that might wanna know what's next in the whole Broadcom VMware situation. Is there a timeline? Can you talk publicly about what? To what people can expect? >>Yeah, no, we, we talk all the time in the company about that. Right? Because even if there is no news, you need to talk about what is where we are. Right. Because this is such a big transaction and employees need to know where we are at every minute of the day. Right? Yeah. So, so we definitely talk about that. We definitely talk about that with customers too. And where we are is that the, all the processes are on track, right? There is a regulatory track going on. And like I alluded to a few minutes ago, Broadcom is doing what they call the discovery phase of the integration planning, where they learn about the business. And then once that is done, they'll figure out what the operating model is. What Broadcom is said publicly is that the acquisition will close in their fiscal 23, which starts in November of this year, runs through October of next year. >>So >>Anywhere window, okay. As to where it is in that window. >>All right, Raghu, thank you so much for taking valuable time out of your conference time here for the queue. I really appreciate Dave and I both appreciate your friendship. Congratulations on the success as CEO, cuz we've been following your trials and tribulations and endeavors for many years and it's been great to chat with you. >>Yeah. Yeah. It's been great to chat with you, not just today, but yeah. Over a period of time and you guys do great work with this, so >>Yeah. And you guys making, making all the right calls at VMware. All right. More coverage. I'm shot. Dave ante cube coverage day one of three days of world war cup here in Moscone west, the cube coverage of VMware Explorer, 22 be right back.

(light music) >> Welcome back to Supercloud 22. I'm John Furrier, host of theCUBE. We're here Palo Alto for a big event. Supercloud 22, we've got a great ecosystem conversation here. Ramesh Prabagaran, who's the co-founder and CEO, Prosimo. Ramesh, great to see you. Thanks for coming on. >> Thanks for having me, John. >> So, I wanted to bring you in because we've had previous CUBE conversations around cloud networking, latency, you also have some, some pedigree, Viptela. The folks in the industry know that's been a deep tech company. >> Yep. >> You have been around the block. You've seen the movie before. You've seen the tech trends. You've seen the hype. You've seen the fluff. Where's the meat on the bone with Supercloud in your opinion? >> So it, it starts with what enterprises are struggling with, right? And if you take a very simple example, it's actually quite fresh in my mind because I was just having this conversation this morning. A large bank has an application sitting in AWS, right? And they have to provide the application access to the treasury, to their suppliers, to ticker feeds, to all their downstream partners, and so on and so forth. Guess what? They don't control, where all those things are. They're in very different regions and very different clouds. And so you, whether you like it or not, you have a problem here, right? And so it starts with, for the particular bank, what are the capabilities that they need, right? And so AWS provides a whole host of native capabilities, but they still need to build a few more things on top. So going by, essentially the definition of Supercloud, even within a single cloud you need to build a few more capabilities on top. That gets worsened by the fact that now you need to provide access to various other clouds, various other regions and, and so forth. So, whether we like it or not, this movie is here to stay. >> What's the difference between Supercloud and multi-cloud? Because multi-cloud, I've been saying, is not necessarily a market yet. >> Correct, yes. So, Supercloud is essentially the cloud native capabilities provided by the hyperscalers, get you probably 30, 40% of the way, right? But then, in order to deliver on a care about, right? In our case, from a cloud networking standpoint, that is experience, that's performance, reliability, zero trust access, and then so forth. You have to take that a little bit further, and so we have vendors, like us, that actually build capabilities on top of the hyperscalers, right? Now, even if you think of a single cloud, how you build that is different on AWS than it's on Azure, than on GCP. But do the customers care? No, they want to be able to consume it in exactly the same way across all of them. So, whether it's multi-cloud or a single cloud, you have a problem that is white space on top of the hyperscalers capabilities that you just need to build. >> And what problems is it solving today? Because again, I, again, multi-cloud, I've yet seen the problem. I kind of get what's happening. Multiple clouds do exist. Use cases matter, maybe best debri, but they're standalone. They're not really interoperating, so to speak. So people have been successful on, on public cloud. >> That's correct, yes. >> For use cases? >> Absolutely. So even if you take a single cloud, for example, right? You have multiple problems to, to address. So let's take the example of, I have users coming from various different regions, around the globe, and I have apps that are spread, maybe not across like all clouds, but single cloud, maybe multiple regions, right? Now, I have a reach problem, which is, I need to go from where the user is to where the application is sitting. I have an experience problem because if my spinning wheel shows up, I'm going to go crazy. I have a security problem because I want to make sure it's only me that have access to it, right? But does the cloud provider solve for this entirely? No, they give you the nuts, the bolts, or what we call ours essentially, what you need is a, is a latte. They give you really nice coffee beans, not just one flavor, 20 flavors of those. They give you raw sugar and a few other things. They give you five different flavors of milk, but you got to make your own latte. So, that's what we do. >> And this is where the infrastructure transformation's happening. >> Exactly. >> And the super paz layer, as Dave Vellante and I have talked about in cloud, is you have to integrate a native cloud. >> Correct. >> Which is beautiful. It's integrated, everything works together, there's a lot of lattes to be made or espressos. >> Exactly. >> I mean, tons of great things there. So, big check marks, double check, gold star for AWS. >> Correct. >> All good. Now, on premises, we've found that hybrid is a steady state. >> Exactly. >> Okay, that's cloud operations. Now, you got the edge. Where does the Supercloud strategy come in? For the folks watching there, it's like, "Hey, okay, I get that." "But I don't want to just buy into another vendor's hype." >> Absolutely. >> "I got to build my own cloud," to your point about the lattes. >> Correct. >> They have to make their own infrastructure an application environment to power the developer. >> Exactly. And, and hybrid is here to stay as, as you pointed out, right, John? So, I have my data center and let's say when most folks start out they start to like a single region of a single cloud, right? And what are you most concerned about there? Hey, can I migrate? Can I start to build applications in the public cloud, right? And all you care about is can you talk back into my data center? Like, as long as some basic hygiene is there that's all they care about, right? The problem happens when you go from, kind of, the first five EC2 instances to 50 to a hundred, then you have a few other things that you need to care about, right? That's really kind of where the, the Supercloud capabilities start to come in, right? Because you have the cloud native things you can make that work for the first few days, but then after that you need augmented capabilities. >> So Ramesh, some people will say, "Hey, John, Supercloud okay, it's funny, ha ha ha." But isn't it just SAS? >> No, SAS is a delivery mechanism, right? And so, so there is the capability and that is how do you want to consume, right? And so capabilities or cloud native capabilities or piece of software capabilities or (unintelligible) cluster form factor and so forth. How do you want to consume? Maybe it's a package form factor, it is a size, it could even be passive if it's sitting in the, in the element, and then so forth, right? And so you really want to distinguish those two. And, and, and that's how we see the, the industry evolve. >> Can Superclouds be specialty clouds? Like is Snowflake a Supercloud? Is Goldman Sachs financial cloud a Supercloud? >> Absolutely, right. So Supercloud is not like a, a conglomeration of multiple capabilities, right? It can be for a specific use case, it can be for a specific functionality. So we, we consider our capabilities by the definition as a Supercloud in, in networking, right? In cloud networking, in Prosimo. So, does that solve the entirety of what I want to do in the cloud? No, absolutely not. There's data, there's computers, a whole bunch of other things, but for a specialty you do have some Supercloud. >> Yeah, in fact, I had a note here. I was going to ask you will, when will there be specialty clouds, apps, identity, data, security, nteworking, we will see those? >> Absolutely, yeah. And, and those are slowly starting to brew, right? So you have, you have identity as one, you have networking as one, you have the zero trust piece as, as another one, you have data as a, as another one. So when all these things come together, absolutely. That's what, that's what enterprise customers care about. >> So I love infrastructure as code, that drove a lot of the evolution and revolution of DevOps. When are we going to see security as code and network as code? Or is it there? >> No networkers code, for sure. It's already, it's already there. It's probably in its early innings, I would say, but we are starting to see that already. The reason for that is really simple. Enough CIOs have yelled at their networking teams to say, "my app guys can get this done three," "four times a day, you get this done once a week." Right? And so, that has actually driven quite a bit of innovation, >> It's slow, >> It's slow, right? And so that's driven quite a bit of innovation. It all starts with, hey, can I build a Terraform provider and then just integrate into Terraform? But it doesn't, it doesn't stop there, right? There's a whole bunch of additional capabilities, a day in troubleshooting, a whole bunch of things that need to come together. But I would say networkers code has already started to, to, to take ship. >> Which, that's a great point about specialty clouds. What about vertical clouds too? 'Cause you got insurance, oil and gas, FinTech. Both sides of the stack can have specialty clouds. >> Absolutely, yeah. So, it, what's driving specialty clouds, right? Some of it is compliance, mainly because you just have to shard the data, and when you shard the data, the entirety gets, gets sharded, right? Some of it driven by use case, because some are a little more serverless, service mesh and intelligence focused, some are a little more infrastructure focused. So you do see that taking off. I would say we've seen a whole lot more, kind of, on the horizontal side, less on the vertical side, but that's really happening, right? >> Yeah, I think that, to me, indicates a Supercloud. The fact that the diversity of the application on the clouds themselves, someone could be spending, say, Liberty Mutual or Goldman Sachs. They were once spending that as CapEx. >> Exactly. >> Now it's OPEX, so they become a service provider. So, if you have scale with data and expertise, you become a Supercloud by default. And you don't have to pay for the CapEx, >> Yeah. You're already paying in. >> Exactly, yeah. >> And that's what snowflake basically did with data warehouse. >> That's right, yeah. >> I mean they're basically a data warehouse. Refactored on the cloud and then go, "whoa, let's go to Azure." >> Yeah. And, and where does that data decide do you ask that question? No, right? You just assume that, hey, retrospective of it's a single cloud, multiple regions, it's there. If it's stretched to multiple clouds, yes, it's just there, but you, you talk about like that. >> In our cloud already panel earlier, we talked about how companies are going fast on one native cloud, 'cause they don't want to have multiple development teams and different ops teams. They go all in say, hey, mostly AWS wins this, unless it's specially Azure productivity software or SQL database, go hard in on Amazon, get speed and velocity, get that flywheel, win, get scale, get value. Then go to Azure, provide that same value to that marketplace and other clouds. Then the next dot to connect is, can the customer have the same experience across the clouds? That's where it gets interesting. What's your thoughts on that? >> Actually, it gets interesting even when they go from a single cloud in a single region to multiple regions, right? And the, the more spread out the regions are, you have requirements around application performance, application experience and so forth. So, suddenly the networking conversation starts to become an experience and a performance conversation. The security conversation starts to become a zero trust conversation and so forth. And so you, you do see that, that interesting shift that's happening. >> Of course. >> Exactly. And then that gets worsened by the fact that now you have multiple clouds, multiple regions, and then... >> So you got regions, clouds, >> and then you have edge locations now. >> And edge. >> You mentioned edge. >> This, this is why I think multi-cloud is BS, because this is all coming so fast. You got to get your Supercloud first. >> Exactly. >> Then you extend into, what it looks like a multi-vendor or multifaceted environment that should be automated by that time. >> Exactly. >> So it's evolutionary, we're not there yet. >> Exactly. >> So you agree, no market yet? >> That's right, yes. So unless it's like the super large enterprises where we have seen a really good mix of multiple different clouds or super large enterprises where each business unit is free to choose the cloud of their choice for the application developers because they just like a certain cloud, right? >> Or negotiations. >> Or negotiations, right? Exactly, so there you find yourself in a healthy mix. It's not like you're 80, 10, 10. It's, it's a healthy mix of three different clouds, right? But vast majority of the enterprises, they have a concerted strategy, I have a primary cloud 'cause that's where two, two big CEOs shake hands and assign multi billion dollar deals, right? >> It's just a song with Howie Shute, who's now a Zscaler, former VMware. Probably know Howie, he's a legend in the community as well. We were talking about the old days of the data center and you remember that? We'll go back to our, into our, you know, historical views of experience. Back when the data center became popular this was the glass house. Mainframes to mini computers. It became a complex environment. You had to have pretty much a PhD or serious networking or some sort of technical background. And then IT was born, the local area networks, the mini computers, and the PCs change that dynamic. IT was born. Okay, and let's just say it, most IT guys aren't PhDs. >> Exactly. >> So what's happened there is democratization and the operations side of that wave. We're kind of going th&rough it now, don't ya think, with cloud? Like, you got to be super smart to wrangle the data. I mean, some of the data pipelining stuff is super complex, after Snowflake and data bricks. >> Absolutely. And largely depends on the maturity, right? Like, so once you pass a certain scale in the cloud the care abouts start to be very different. The care abouts are, how can I operate this at scale? Because I might have started off with a relatively inefficient infrastructure, right? But now if I start to operate that at scale with like thousands of VPCs and so forth, somebody is looking at an AWS bill there and going, "ah, no, no, no, we're not going to do that." >> We're getting to the good part now. So, so here's where I wanted to get to, 'Cause we're kind of getting there, The proof points of Supercloud is IT like operations, >> Correct. >> Easy. >> Yep. >> Not overstaffed and maybe an SRE model one too many. >> Yeah, exactly. >> What are the proof points do you see that would be evidence that Supercloud is working? >> So in a well functional model where we have seen enterprises take the applications that they care about and then move that into the public cloud or build it organically. If they have staffed their team, I think a good leading indicator is that they have staffed the team so that there are a bunch of guys who understand what it means for cloud native capabilities. There are a bunch of guys who then put it together and then you look at the care abouts, right? Ultimately at the end of the day, the goal, if you go higher up in the layers, is it about application experience? Is it about kind of reducing the blast radius of my security? Is it about my data cleanliness and, and hygiene? You don't care about kind of how the pipelining works underneath the covers or how do I put a transit gateway and this and that together? No, that's not what you care about. You care about kind of the outcomes and, and- >> Palmer (unintelligible) that VMware, when he was there. You just say the hardened top, no one talks about what's in an Intel processor. I mean it's just works. >> Exactly, yeah. And it's what applications you build on top of that Intel processor that actually makes it more powerful, right? And so the first evidence I would say is kind of how is the team structured? The second evidence would be kind of what, what are the care abouts for the guys that are building these applications, right? Because even the application developers more than the application, they care about kind of, is it helping? Is it delivering on the experience? Is it being used the way it's supposed to? >> Is it value? >> Exactly, right? And those are not areas that the cloud providers are solely focused on, right? Like you don't see an AWS or an Azure dashboard show that particular thing for the entirety of the application, they'll tell you for the ATR services that you, that you use, here's the SLA for each one of these services. >> And that's where the customer has to build it. >> Exactly right. Now, does that give you the full picture? No, it doesn't. Somebody has to pull this together. Somebody has to aggregate this together and then make sense as to whether this is working or not, right? So whether you call it Supercloud, or whether you call it kind of the care abouts on top of the cloud native stuff, they're all the same. I'm glad you guys came up with a, with a name for this. And I think it's going to be here to stay. >> Well, thank you for sharing your expertise. You got a great background in this area and you got, I think you guys are right on the front wave of this new change. I think a little bit early, but that's good, but don't be too early. >> Yeah, exactly. No, and, and, and that's really important, right, John? So, you don't want to be too early. You certainly don't want to be too late, but at the same time, the pace at which things are evolving are fast enough that you, you will see. I think when, if we have this conversation even three months from now, it might be a very different conversation. >> Yeah, people want to go fast and they don't want to get stuck with a vendor. They made a bad choice that slows 'em down 'cause they got problems to solve, things to build. >> Yeah, exactly. >> Ramesh, thanks for coming on, Supercloud 22, we're breaking it all down. We're exposing it out to everyone. We're discussing it. We're going to challenge it. But ultimately it is a thing. Supercloud 22. Thanks for watching. >> Wonderful, thanks John. (light music)

>> Announcer: theCube presents HPE Discover 2022, brought to you by HPE. >> Hey, everyone. Welcome back to Las Vegas. This is Lisa Martin with Dave Vellante live at HPE Discover '22. Dave, it's great to be here. This is the first Discover in three years and we're here with about 7,000 of our closest friends. >> Yeah. You know, I tweeted out this, I think I've been to 14 Discovers between the U.S. and Europe, and I've never seen a Discover with so much energy. People are not only psyched to get back together, that's for sure, but I think HPE's got a little spring in its step and it's feeling more confident than maybe some of the past Discovers that I've been to. >> I think so, too. I think there's definitely a spring in the step and we're going to be unpacking some of that spring next with one of our alumni who joins us, Keith White's here, the executive vice president and general manager of GreenLake Cloud Services. Welcome back. >> Great. You all thanks for having me. It's fantastic that you're here and you're right, the energy is crazy at this show. It's been a lot of pent up demand, but I think what you heard from Antonio today is our strategy's changing dramatically and it's really embracing our customers and our partners. So it's great. >> Embracing the customers and the partners, the ecosystem expansion is so critical, especially the last couple of years with the acceleration of digital transformation. So much challenge in every industry, but lots of momentum on the GreenLake side, I was looking at the Q2 numbers, triple digit growth in orders, 65,000 customers over 70 services, eight new services announced just this morning. Talk to us about the momentum of GreenLake. >> The momentum's been fantastic. I mean, I'll tell you, the fact that customers are really now reaccelerating their digital transformation, you probably heard a lot, but there was a delay as we went through the pandemic. So now it's reaccelerating, but everyone's going to a hybrid, multi-cloud environment. Data is the new currency. And obviously, everyone's trying to push out to the Edge and GreenLake is that edge to cloud platform. So we're just seeing tons of momentum, not just from the customers, but partners, we've enabled the platform so partners can plug into it and offer their solutions to our customers as well. So it's exciting and it's been fun to see the momentum from an order standpoint, but one of the big numbers that you may not be aware of is we have over a 96% retention rate. So once a customer's on GreenLake, they stay on it because they're seeing the value, which has been fantastic. >> The value is absolutely critically important. We saw three great big name customers. The Home Depot was on stage this morning, Oak Ridge National Laboratory was as well, Evil Geniuses. So the momentum in the enterprise is clearly present. >> Yeah. It is. And we're hearing it from a lot of customers. And I think you guys talk a lot about, hey, there's the cloud, data and Edge, these big mega trends that are happening out there. And you look at a company like Barclays, they're actually reinventing their entire private cloud infrastructure, running over a hundred thousand workloads on HPE GreenLake. Or you look at a company like Zenseact, who's basically they do autonomous driving software. So they're doing massive parallel computing capabilities. They're pulling in hundreds of petabytes of data to then make driving safer and so you're seeing it on the data front. And then on the Edge, you look at anyone like a Patrick Terminal, for example. They run a whole terminal shipyard. They're getting data in from exporters, importers, regulators, the works and they have to real-time, analyze that data and say, where should this thing go? Especially with today's supply chain challenges, they have to be so efficient, that it's just fantastic. >> It was interesting to hear Fidelma, Keith, this morning on stage. It was the first time I'd really seen real clarity on the platform itself and that it's obviously her job is, okay, here's the platform, now, you guys got to go build on top of it. Both inside of HPE, but also externally, so your ecosystem partners. So, you mentioned the financial services companies like Barclays. We see those companies moving into the digital world by offering some of their services in building their own clouds. >> Keith: That's right. >> What's your vision for GreenLake in terms of being that platform, to assist them in doing that and the data component there? >> I think that was one of the most exciting things about not just showcasing the platform, but also the announcement of our private cloud enterprise, Cloud Service. Because in essence, what you're doing is you're creating that framework for what most companies are doing, which is they're becoming cloud service providers for their internal business units. And they're having to do showback type scenarios, chargeback type scenarios, deliver cloud services and solutions inside the organization so that open platform, you're spot on. For our ecosystem, it's fantastic, but for our customers, they get to leverage it as well for their own internal IT work that's happening. >> So you talk about hybrid cloud, you talk about private cloud, what's your vision? You know, we use this term Supercloud. This in a layer that goes across clouds. What's your thought about that? Because you have an advantage at the Edge with Aruba. Everybody talks about the Edge, but they talk about it more in the context of near Edge. >> That's right. >> We talked to Verizon and they're going far Edge, you guys are participating in that, as well as some of your partners in Red Hat and others. What's your vision for that? What I call Supercloud, is that part of the strategy? Is that more longer term or you think that's pipe dream by Dave? >> No, I think it's really thoughtful, Dave, 'cause it has to be part of the strategy. What I hear, so for example, Ford's a great example. They run Azure, AWS, and then they made a big deal with Google cloud for their internal cars and they run HPE GreenLake. So they're saying, hey, we got four clouds. How do we sort of disaggregate the usage of that? And Chris Lund, who is the VP of information technology at Liberty Mutual Insurance, he talked about it today, where he said, hey, I can deliver these services to my business unit. And they don't know, am I running on the public cloud? Am I running on our HPE GreenLake cloud? Like it doesn't matter to the end user, we've simplified that so much. So I think your Supercloud idea is super thoughtful, not to use the super term too much, that I'm super excited about because it's really clear of what our customers are trying to accomplish, which it's not about the cloud, it's about the solution and the business outcome that gets to work. >> Well, and I think it is different. I mean, it's not like the last 10 years where it was like, hey, I got my stuff to work on the different clouds and I'm replicating as much as I can, the cloud experience on-prem. I think you guys are there now and then to us, the next layer is that ecosystem enablement. So how do you see the ecosystem evolving and what role does Green Lake play there? >> Yeah. This has been really exciting. We had Tarkan Maner who runs Nutanix and Karl Strohmeyer from Equinix on stage with us as well. And what's happening with the ecosystem is, I used to say, one plus one has to equal three for our customers. So when you bring these together, it has to be that scenario, but we are joking that one plus one plus one equals five now because everything has a partner component to it. It's not about the platform, it's not about the specific cloud service, it's actually about the solution that gets delivered. And that's done with an ISV, it's done with a Colo, it's done even with the Hyperscalers. We have Azure Stack HCI as a fully integrated solution. It happens with managed service providers, delivering managed services out to their folks as well. So that platform being fully partner enabled and that ecosystem being able to take advantage of that, and so we have to jointly go to market to our customers for their business needs, their business outcomes. >> Some of the expansion of the ecosystem. we just had Red Hat on in the last hour talking about- >> We're so excited to partner with them. >> Right, what's going on there with OpenShift and Ansible and Rel, but talk about the customer influence in terms of the expansion of the ecosystem. We know we've got to meet customers where they are, they're driving it, but we know that HPE has a big presence in the enterprise and some pretty big customer names. How are they from a demand perspective? >> Well, this is where I think the uniqueness of GreenLake has really changed HPE's approach with our customers. Like in all fairness, we used to be a vendor that provided hardware components for, and we talked a lot about hardware costs and blah, blah, blah. Now, we're actually a partner with those customers. What's the business outcome you're requiring? What's the SLA that we offer you for what you're trying to accomplish? And to do that, we have to have it done with partners. And so even on the storage front, Qumulo or Cohesity. On the backup and recovery disaster recovery, yes, we have our own products, but we also partner with great companies like Veeam because it's customer choice, it's an open platform. And the Red Hat announcement is just fantastic. Because, hey, from a container platform standpoint, OpenShift provides 5,000 plus customers, 90% of the fortune 500 that they engage with, with that opportunity to take GreenLake with OpenShift and implement that container capabilities on-prem. So it's fantastic. >> We were talking after the keynote, Keith Townsend came on, myself and Lisa. And he was like, okay, what about startups? 'Cause that's kind of a hallmark of cloud. And we felt like, okay, startups are not the ideal customer profile necessarily for HPE. Although we saw Evil Geniuses up on stage, but I threw out and I'd love to get your thoughts on this that within companies, incumbents, you have entrepreneurs, they're trying to build their own clouds or Superclouds as I use the term, is that really the target for the developer audience? We've talked a lot about OpenShift with their other platforms, who says as a partner- >> We just announced another extension with Rancher and- >> Yeah. I saw that. And you have to have optionality for developers. Is that the way we should think about the target audience from a developer standpoint? >> I think it will be as we go forward. And so what Fidelma presented on stage was the new developer platform, because we have come to realize, we have to engage with the developers. They're the ones building the apps. They're the ones that are delivering the solutions for the most part. So yeah, I think at the enterprise space, we have a really strong capability. I think when you get into the sort of mid-market SMB standpoint, what we're doing is we're going directly to the managed service and cloud service providers and directly to our Disty and VARS to have them build solutions on top of GreenLake, powered by GreenLake, to then deliver to their customers because that's what the customer wants. I think on the developer side of the house, we have to speak their language, we have to provide their capabilities because they're going to start articulating apps that are going to use both the public cloud and our on-prem capabilities with GreenLake. And so that's got to work very well. And so you've heard us talk about API based and all of that sort of scenario. So it's an exciting time for us, again, moving HPE strategy into something very different than where we were before. >> Well, Keith, that speaks to ecosystem. So I don't know if you were at Microsoft, when the sweaty Steve Ballmer was working with the developers, developers. That's about ecosystem, ecosystem, ecosystem. I don't expect we're going to see Antonio replicating that. But that really is the sort of what you just described is the ecosystem developing on top of GreenLake. That's critical. >> Yeah. And this is one of the things I learned. So, being at Microsoft for as long as I was and leading the Azure business from a commercial standpoint, it was all about the partner and I mean, in all fairness, almost every solution that gets delivered has some sort of partner component to it. Might be an ISV app, might be a managed service, might be in a Colo, might be with our hybrid cloud, with our Hyperscalers, but everything has a partner component to it. And so one of the things I learned with Azure is, you have to sell through and with your ecosystem and go to that customer with a joint solution. And that's where it becomes so impactful and so powerful for what our customers are trying to accomplish. >> When we think about the data gravity and the value of data that put massive potential that it has, even Antonio talked about it this morning, being data rich but insights poor for a long time. >> Yeah. >> Every company in today's day and age has to be a data company to be competitive, there's no more option for that. How does GreenLake empower companies? GreenLake and its ecosystem empower companies to really live being data companies so that they can meet their customers where they are. >> I think it's a really great point because like we said, data's the new currency. Data's the new gold that's out there and people have to get their arms around their data estate. So then they can make these business decisions, these business insights and garner that. And Dave, you mentioned earlier, the Edge is bringing a ton of new data in, and my Zenseact example is a good one. But with GreenLake, you now have a platform that can do data and data management and really sort of establish and secure the data for you. There's no data latency, there's no data egress charges. And which is what we typically run into with the public cloud. But we also support a wide range of databases, open source, as well as the commercial ones, the sequels and those types of scenarios. But what really comes to life is when you have to do analytics on that and you're doing AI and machine learning. And this is one of the benefits I think that people don't realize with HPE is, the investments we've made with Cray, for example, we have and you saw on stage today, the largest supercomputer in the world. That depth that we have as a company, that then comes down into AI and analytics for what we can do with high performance compute, data simulations, data modeling, analytics, like that is something that we, as a company, have really deep, deep capabilities on. So it's exciting to see what we can bring to customers all for that spectrum of data. >> I was excited to see Frontier, they actually achieve, we hosted an event, co-produced event with HPE during the pandemic, Exascale day. >> Yeah. >> But we weren't quite at Exascale, we were like right on the cusp. So to see it actually break through was awesome. So HPC is clearly a differentiator for Hewlett Packard Enterprise. And you talk about the egress. What are some of the other differentiators? Why should people choose GreenLake? >> Well, I think the biggest thing is, that it's truly is a edge to cloud platform. And so you talk about Aruba and our capabilities with a network attached and network as a service capabilities, like that's fairly unique. You don't see that with the other companies. You mentioned earlier to me that compute capabilities that we've had as a company and the storage capabilities. But what's interesting now is that we're sort of taking all of that expertise and we're actually starting to deliver these cloud services that you saw on stage, private cloud, AI and machine learning, high performance computing, VDI, SAP. And now we're actually getting into these industry solutions. So we talked last year about electronic medical records, this year, we've talked about 5g. Now, we're talking about customer loyalty applications. So we're really trying to move from these sort of baseline capabilities and yes, containers and VMs and bare metal, all that stuff is important, but what's really important is the services that you run on top of that, 'cause that's the outcomes that our customers are looking at. >> Should we expect you to be accelerating? I mean, look at what you did with Azure. You look at what AWS does in terms of the feature acceleration. Should we expect HPE to replicate? Maybe not to that scale, but in a similar cadence, we're starting to see that. Should we expect that actually to go faster? >> I think you couched it really well because it's not as much about the quantity, but the quality and the uses. And so what we've been trying to do is say, hey, what is our swim lane? What is our sweet spot? Where do we have a superpower? And where are the areas that we have that superpower and how can we bring those solutions to our customers? 'Cause I think, sometimes, you get over your skis a bit, trying to do too much, or people get caught up in the big numbers, versus the, hey, what's the real meat behind it. What's the tangible outcome that we can deliver to customers? And we see just a massive TAM. I want to say my last analysis was around $42 billion in the next three years, TAM and the Azure service on-prem space. And so we think that there's nothing but upside with the core set of workloads, the core set of solutions and the cloud services that we bring. So yeah, we'll continue to innovate, absolutely, amen, but we're not in a, hey we got to get to 250 this and 300 that, we want to keep it as focused as we can. >> Well, the vast majority of the revenue in the public cloud is still compute. I mean, not withstanding, Microsoft obviously does a lot in SaaS, but I'm talking about the infrastructure and service. Still, well, I would say over 50%. And so there's a lot of the services that don't make any revenue and there's that long tail, if I hear your strategy, you're not necessarily going after that. You're focusing on the quality of those high value services and let the ecosystem sort of bring in the rest. >> This is where I think the, I mean, I love that you guys are asking me about the ecosystem because this is where their sweet spot is. They're the experts on hyper-converged or databases, a service or VDI, or even with SAP, like they're the experts on that piece of it. So we're enabling that together to our customers. And so I don't want to give you the impression that we're not going to innovate. Amen. We absolutely are, but we want to keep it within that, that again, our swim lane, where we can really add true value based on our expertise and our capabilities so that we can confidently go to customers and say, hey, this is a solution that's going to deliver this business value or this capability for you. >> The partners might be more comfortable with that than, we only have one eye sleep with one eye open in the public cloud, like, okay, what are they going to, which value of mine are they grab next? >> You're spot on. And again, this is where I think, the power of what an Edge to cloud platform like HPE GreenLake can do for our customers, because it is that sort of, I mentioned it, one plus one equals three kind of scenario for our customers so. >> So we can leave your customers, last question, Keith. I know we're only on day one of the main summit, the partner growth summit was yesterday. What's the feedback been from the customers and the ecosystem in terms of validating the direction that HPE is going? >> Well, I think the fantastic thing has been to hear from our customers. So I mentioned in my keynote recently, we had Liberty Mutual and we had Texas Children's Hospital, and they're implementing HPE GreenLake in a variety of different ways, from a private cloud standpoint to a data center consolidation. They're seeing sustainability goals happen on top of that. They're seeing us take on management for them so they can take their limited resources and go focus them on innovation and value added scenarios. So the flexibility and cost that we're providing, and it's just fantastic to hear this come to life in a real customer scenario because what Texas Children is trying to do is improve patient care for women and children like who can argue with that. >> Nobody. >> So, yeah. It's great. >> Awesome. Keith, thank you so much for joining Dave and me on the program, talking about all of the momentum with HPE Greenlake. >> Always. >> You can't walk in here without feeling the momentum. We appreciate your insights and your time. >> Always. Thank you you for the time. Yeah. Great to see you as well. >> Likewise. >> Thanks. >> For Keith White and Dave Vellante, I'm Lisa Martin. You're watching theCube live, day one coverage from the show floor at HPE Discover '22. We'll be right back with our next guest. (gentle music)

>>Hello and welcome today's cube presentation of eight of us startup showcase. I'm john for your host highlighting the hottest companies and devops data analytics and cloud management lisa martin and David want are here to kick it off. We've got a great program for you again. This is our, our new community event model where we're doing every quarter, we have every new episode, this is quarter three this year or episode three, season one of the hottest cloud startups and we're gonna be featured. Then we're gonna do a keynote package and then 15 countries will present their story, Go check them out and then have a closing keynote with a practitioner and we've got some great lineups, lisa Dave, great to see you. Thanks for joining me. >>Hey guys, >>great to be here. So David got to ask you, you know, back in events last night we're at the 14 it's event where they had the golf PGA championship with the cube Now we got the hybrid model, This is the new normal. We're in, we got these great companies were showcasing them. What's your take? >>Well, you're right. I mean, I think there's a combination of things. We're seeing some live shows. We saw what we did with at mobile world Congress. We did the show with AWS storage day where it was, we were at the spheres, there was no, there was a live audience, but they weren't there physically. It was just virtual and yeah, so, and I just got pained about reinvent. Hey Dave, you gotta make your flights. So I'm making my flights >>were gonna be at the amazon web services, public sector summit next week. At least a lot, a lot of cloud convergence going on here. We got many companies being featured here that we spoke with the Ceo and their top people cloud management, devops data, nelson security. Really cutting edge companies, >>yes, cutting edge companies who are all focused on acceleration. We've talked about the acceleration of digital transformation the last 18 months and we've seen a tremendous amount of acceleration in innovation with what these startups are doing. We've talked to like you said, there's, there's C suite, we've also talked to their customers about how they are innovating so quickly with this hybrid environment, this remote work and we've talked a lot about security in the last week or so. You mentioned that we were at Fortinet cybersecurity skills gap. What some of these companies are doing with automation for example, to help shorten that gap, which is a big opportunity >>for the job market. Great stuff. Dave so the format of this event, you're going to have a fireside chat with the practitioner, we'd like to end these programs with a great experienced practitioner cutting edge in data february. The beginning lisa are gonna be kicking off with of course Jeff bar to give us the update on what's going on AWS and then a special presentation from Emily Freeman who is the author of devops for dummies, she's introducing new content. The revolution in devops devops two point oh and of course jerry Chen from Greylock cube alumni is going to come on and talk about his new thesis castles in the cloud creating moats at cloud scale. We've got a great lineup of people and so the front ends can be great. Dave give us a little preview of what people can expect at the end of the fireside chat. >>Well at the highest level john I've always said we're entering that sort of third great wave of cloud. First wave was experimentation. The second big wave was migration. The third wave of integration, Deep business integration and what you're >>going to hear from >>Hello Fresh today is how they like many companies that started early last decade. They started with an on prem Hadoop system and then of course we all know what happened is S three essentially took the knees out from, from the on prem Hadoop market lowered costs, brought things into the cloud and what Hello Fresh is doing is they're transforming from that legacy Hadoop system into its running on AWS but into a data mess, you know, it's a passionate topic of mine. Hello Fresh was scaling they realized that they couldn't keep up so they had to rethink their entire data architecture and they built it around data mesh Clements key and christoph Soewandi gonna explain how they actually did that are on a journey or decentralized data >>measure it and your posts have been awesome on data measure. We get a lot of traction. Certainly you're breaking analysis for the folks watching check out David Landes, Breaking analysis every week, highlighting the cutting edge trends in tech Dave. We're gonna see you later, lisa and I are gonna be here in the morning talking about with Emily. We got Jeff Barr teed up. Dave. Thanks for coming on. Looking forward to fireside chat lisa. We'll see you when Emily comes back on. But we're gonna go to Jeff bar right now for Dave and I are gonna interview Jeff. Mm >>Hey Jeff, >>here he is. Hey, how are you? How's it going really well. So I gotta ask you, the reinvent is on, everyone wants to know that's happening right. We're good with Reinvent. >>Reinvent is happening. I've got my hotel and actually listening today, if I just remembered, I still need to actually book my flights. I've got my to do list on my desk and I do need to get my >>flights. Uh, >>really looking forward >>to it. I can't wait to see the all the announcements and blog posts. We're gonna, we're gonna hear from jerry Chen later. I love the after on our next event. Get your reaction to this castle and castles in the cloud where competitive advantages can be built in the cloud. We're seeing examples of that. But first I gotta ask you give us an update of what's going on. The ap and ecosystem has been an incredible uh, celebration these past couple weeks, >>so, so a lot of different things happening and the interesting thing to me is that as part of my job, I often think that I'm effectively living in the future because I get to see all this really cool stuff that we're building just a little bit before our customers get to, and so I'm always thinking okay, here I am now, and what's the world going to be like in a couple of weeks to a month or two when these launches? I'm working on actually get out the door and that, that's always really, really fun, just kind of getting that, that little edge into where we're going, but this year was a little interesting because we had to really significant birthdays, we had the 15 year anniversary of both EC two and S three and we're so focused on innovating and moving forward, that it's actually pretty rare for us at Aws to look back and say, wow, we've actually done all these amazing things in in the last 15 years, >>you know, it's kind of cool Jeff, if I may is is, you know, of course in the early days everybody said, well, a place for startup is a W. S and now the great thing about the startup showcases, we're seeing the startups that >>are >>very near, or some of them have even reached escape velocity, so they're not, they're not tiny little companies anymore, they're in their transforming their respective industries, >>they really are and I think that as they start ups grow, they really start to lean into the power of the cloud. They as they start to think, okay, we've we've got our basic infrastructure in place, we've got, we were serving data, we're serving up a few customers, everything is actually working pretty well for us. We've got our fundamental model proven out now, we can invest in publicity and marketing and scaling and but they don't have to think about what's happening behind the scenes. They just if they've got their auto scaling or if they're survivalists, the infrastructure simply grows to meet their demand and it's it's just a lot less things that they have to worry about. They can focus on the fun part of their business which is actually listening to customers and building up an awesome business >>Jeff as you guys are putting together all the big pre reinvented, knows a lot of stuff that goes on prior as well and they say all the big good stuff to reinvent. But you start to see some themes emerged this year. One of them is modernization of applications, the speed of application development in the cloud with the cloud scale devops personas, whatever persona you want to talk about but basically speed the speed of of the app developers where other departments have been slowing things down, I won't say name names, but security group and I t I mean I shouldn't have said that but only kidding but no but seriously people want in minutes and seconds now not days or weeks. You know whether it's policy. What are some of the trends that you're seeing around this this year as we get into some of the new stuff coming out >>So Dave customers really do want speed and for we've actually encapsulate this for a long time in amazon in what we call the bias for action leadership principle >>where >>we just need to jump in and move forward and and make things happen. A lot of customers look at that and they say yes this is great. We need to have the same bias fraction. Some do. Some are still trying to figure out exactly how to put it into play. And they absolutely for sure need to pay attention to security. They need to respect the past and make sure that whatever they're doing is in line with I. T. But they do want to move forward. And the interesting thing that I see time and time again is it's not simply about let's adopt a new technology. It's how do we >>how do we keep our workforce >>engaged? How do we make sure that they've got the right training? How do we bring our our I. T. Team along for this. Hopefully new and fun and exciting journey where they get to learn some interesting new technologies they've got all this very much accumulated business knowledge they still want to put to use, maybe they're a little bit apprehensive about something brand new and they hear about the cloud, but there by and large, they really want to move forward. They just need a little bit of >>help to make it happen >>real good guys. One of the things you're gonna hear today, we're talking about speed traditionally going fast. Oftentimes you meant you have to sacrifice some things on quality and what you're going to hear from some of the startups today is how they're addressing that to automation and modern devoPS technologies and sort of rethinking that whole application development approach. That's something I'm really excited to see organization is beginning to adopt so they don't have to make that tradeoff anymore. >>Yeah, I would >>never want to see someone >>sacrifice quality, >>but I do think that iterating very quickly and using the best of devoPS principles to be able to iterate incredibly quickly and get that first launch out there and then listen with both ears just >>as much >>as you can, Everything. You hear iterate really quickly to meet those needs in, in hours and days, not months, quarters or years. >>Great stuff. Chef and a lot of the companies were featuring here in the startup showcase represent that new kind of thinking, um, systems thinking as well as you know, the cloud scale and again and it's finally here, the revolution of deVOps is going to the next generation and uh, we're excited to have Emily Freeman who's going to come on and give a little preview for her new talk on this revolution. So Jeff, thank you for coming on, appreciate you sharing the update here on the cube. Happy >>to be. I'm actually really looking forward to hearing from Emily. >>Yeah, it's great. Great. Looking forward to the talk. Brand new Premier, Okay, uh, lisa martin, Emily Freeman is here. She's ready to come in and we're going to preview her lightning talk Emily. Um, thanks for coming on, we really appreciate you coming on really, this is about to talk around deVOPS next gen and I think lisa this is one of those things we've been, we've been discussing with all the companies. It's a new kind of thinking it's a revolution, it's a systems mindset, you're starting to see the connections there she is. Emily, Thanks for coming. I appreciate it. >>Thank you for having me. So your teaser video >>was amazing. Um, you know, that little secret radical idea, something completely different. Um, you gotta talk coming up, what's the premise behind this revolution, you know, these tying together architecture, development, automation deployment, operating altogether. >>Yes, well, we have traditionally always used the sclc, which is the software delivery life cycle. Um, and it is a straight linear process that has actually been around since the sixties, which is wild to me um, and really originated in manufacturing. Um, and as much as I love the Toyota production system and how much it has shown up in devops as a sort of inspiration on how to run things better. We are not making cars, we are making software and I think we have to use different approaches and create a sort of model that better reflects our modern software development process. >>It's a bold idea and looking forward to the talk and as motivation. I went into my basement and dusted off all my books from college in the 80s and the sea estimates it was waterfall. It was software development life cycle. They trained us to think this way and it came from the mainframe people. It was like, it's old school, like really, really old and it really hasn't been updated. Where's the motivation? I actually cloud is kind of converging everything together. We see that, but you kind of hit on this persona thing. Where did that come from this persona? Because you know, people want to put people in buckets release engineer. I mean, where's that motivation coming from? >>Yes, you're absolutely right that it came from the mainframes. I think, you know, waterfall is necessary when you're using a punch card or mag tape to load things onto a mainframe, but we don't exist in that world anymore. Thank goodness. And um, yes, so we, we use personas all the time in tech, you know, even to register, well not actually to register for this event, but a lot events. A lot of events, you have to click that drop down. Right. Are you a developer? Are you a manager, whatever? And the thing is personas are immutable in my opinion. I was a developer. I will always identify as a developer despite playing a lot of different roles and doing a lot of different jobs. Uh, and this can vary throughout the day. Right. You might have someone who has a title of software architect who ends up helping someone pair program or develop or test or deploy. Um, and so we wear a lot of hats day to day and I think our discussions around roles would be a better, um, certainly a better approach than personas >>lease. And I've been discussing with many of these companies around the roles and we're hearing from them directly and they're finding out that people have, they're mixing and matching on teams. So you're, you're an S R E on one team and you're doing something on another team where the workflows and the workloads defined the team formation. So this is a cultural discussion. >>It absolutely is. Yes. I think it is a cultural discussion and it really comes to the heart of devops, right? It's people process. And then tools deVOps has always been about culture and making sure that developers have all the tools they need to be productive and honestly happy. What good is all of this? If developing software isn't a joyful experience. Well, >>I got to ask you, I got you here obviously with server list and functions just starting to see this kind of this next gen. And we're gonna hear from jerry Chen, who's a Greylock VC who's going to talk about castles in the clouds, where he's discussing the moats that could be created with a competitive advantage in cloud scale. And I think he points to the snowflakes of the world. You're starting to see this new thing happening. This is devops 2.0, this is the revolution. Is this kind of where you see the same vision of your talk? >>Yes, so DeVOps created 2000 and 8, 2000 and nine, totally different ecosystem in the world we were living in, you know, we didn't have things like surveillance and containers, we didn't have this sort of default distributed nature, certainly not the cloud. Uh and so I'm very excited for jerry's talk. I'm curious to hear more about these moz. I think it's fascinating. Um but yeah, you're seeing different companies use different tools and processes to accelerate their delivery and that is the competitive advantage. How can we figure out how to utilize these tools in the most efficient way possible. >>Thank you for coming and giving us a preview. Let's now go to your lightning keynote talk. Fresh content. Premier of this revolution in Devops and the Freemans Talk, we'll go there now. >>Hi, I'm Emily Freeman, I'm the author of devops for dummies and the curator of 97 things every cloud engineer should know. I am thrilled to be here with you all today. I am really excited to share with you a kind of a wild idea, a complete re imagining of the S DLC and I want to be clear, I need your feedback. I want to know what you think of this. You can always find me on twitter at editing. Emily, most of my work centers around deVOps and I really can't overstate what an impact the concept of deVOPS has had on this industry in many ways it built on the foundation of Agile to become a default a standard we all reach for in our everyday work. When devops surfaced as an idea in 2008, the tech industry was in a vastly different space. AWS was an infancy offering only a handful of services. Azure and G C P didn't exist yet. The majority's majority of companies maintained their own infrastructure. Developers wrote code and relied on sys admins to deploy new code at scheduled intervals. Sometimes months apart, container technology hadn't been invented applications adhered to a monolithic architecture, databases were almost exclusively relational and serverless wasn't even a concept. Everything from the application to the engineers was centralized. Our current ecosystem couldn't be more different. Software is still hard, don't get me wrong, but we continue to find novel solutions to consistently difficult, persistent problems. Now, some of these end up being a sort of rebranding of old ideas, but others are a unique and clever take to abstracting complexity or automating toil or perhaps most important, rethinking challenging the very premises we have accepted as Cannon for years, if not decades. In the years since deVOps attempted to answer the critical conflict between developers and operations, engineers, deVOps has become a catch all term and there have been a number of derivative works. Devops has come to mean 5000 different things to 5000 different people. For some, it can be distilled to continuous integration and continuous delivery or C I C D. For others, it's simply deploying code more frequently, perhaps adding a smattering of tests for others. Still, its organizational, they've added a platform team, perhaps even a questionably named DEVOPS team or have created an engineering structure that focuses on a separation of concerns. Leaving feature teams to manage the development, deployment, security and maintenance of their siloed services, say, whatever the interpretation, what's important is that there isn't a universally accepted standard. Well, what deVOPS is or what it looks like an execution, it's a philosophy more than anything else. A framework people can utilize to configure and customize their specific circumstances to modern development practices. The characteristic of deVOPS that I think we can all agree on though, is that an attempted to capture the challenges of the entire software development process. It's that broad umbrella, that holistic view that I think we need to breathe life into again, The challenge we face is that DeVOps isn't increasingly outmoded solution to a previous problem developers now face. Cultural and technical challenge is far greater than how to more quickly deploy a monolithic application. Cloud native is the future the next collection of default development decisions and one the deVOPS story can't absorb in its current form. I believe the era of deVOPS is waning and in this moment as the sun sets on deVOPS, we have a unique opportunity to rethink rebuild free platform. Even now, I don't have a crystal ball. That would be very handy. I'm not completely certain with the next decade of tech looks like and I can't write this story alone. I need you but I have some ideas that can get the conversation started, I believe to build on what was we have to throw away assumptions that we've taken for granted all this time in order to move forward. We must first step back. Mhm. The software or systems development life cycle, what we call the S. D. L. C. has been in use since the 1960s and it's remained more or less the same since before color television and the touch tone phone. Over the last 60 or so odd years we've made tweaks, slight adjustments, massaged it. The stages or steps are always a little different with agile and deVOps we sort of looped it into a circle and then an infinity loop we've added pretty colors. But the sclc is more or less the same and it has become an assumption. We don't even think about it anymore, universally adopted constructs like the sclc have an unspoken permanence. They feel as if they have always been and always will be. I think the impact of that is even more potent. If you were born after a construct was popularized. Nearly everything around us is a construct, a model, an artifact of a human idea. The chair you're sitting in the desk, you work at the mug from which you drink coffee or sometimes wine, buildings, toilets, plumbing, roads, cars, art, computers, everything. The sclc is a remnant an artifact of a previous era and I think we should throw it away or perhaps more accurately replace it, replace it with something that better reflects the actual nature of our work. A linear, single threaded model designed for the manufacturer of material goods cannot possibly capture the distributed complexity of modern socio technical systems. It just can't. Mhm. And these two ideas aren't mutually exclusive that the sclc was industry changing, valuable and extraordinarily impactful and that it's time for something new. I believe we are strong enough to hold these two ideas at the same time, showing respect for the past while envisioning the future. Now, I don't know about you, I've never had a software project goes smoothly in one go. No matter how small. Even if I'm the only person working on it and committing directly to master software development is chaos. It's a study and entropy and it is not getting any more simple. The model with which we think and talk about software development must capture the multithreaded, non sequential nature of our work. It should embody the roles engineers take on and the considerations they make along the way. It should build on the foundations of agile and devops and represent the iterative nature of continuous innovation. Now, when I was thinking about this, I was inspired by ideas like extreme programming and the spiral model. I I wanted something that would have layers, threads, even a way of visually representing multiple processes happening in parallel. And what I settled on is the revolution model. I believe the visualization of revolution is capable of capturing the pivotal moments of any software scenario. And I'm going to dive into all the discrete elements. But I want to give you a moment to have a first impression, to absorb my idea. I call it revolution because well for one it revolves, it's circular shape reflects the continuous and iterative nature of our work, but also because it is revolutionary. I am challenging a 60 year old model that is embedded into our daily language. I don't expect Gartner to build a magic quadrant around this tomorrow, but that would be super cool. And you should call me my mission with. This is to challenge the status quo to create a model that I think more accurately reflects the complexity of modern cloud native software development. The revolution model is constructed of five concentric circles describing the critical roles of software development architect. Ng development, automating, deploying and operating intersecting each loop are six spokes that describe the production considerations every engineer has to consider throughout any engineering work and that's test, ability, secure ability, reliability, observe ability, flexibility and scalability. The considerations listed are not all encompassing. There are of course things not explicitly included. I figured if I put 20 spokes, some of us, including myself, might feel a little overwhelmed. So let's dive into each element in this model. We have long used personas as the default way to do divide audiences and tailor messages to group people. Every company in the world right now is repeating the mantra of developers, developers, developers but personas have always bugged me a bit because this approach typically either oversimplifies someone's career are needlessly complicated. Few people fit cleanly and completely into persona based buckets like developers and operations anymore. The lines have gotten fuzzy on the other hand, I don't think we need to specifically tailor messages as to call out the difference between a devops engineer and a release engineer or a security administrator versus a security engineer but perhaps most critically, I believe personas are immutable. A persona is wholly dependent on how someone identifies themselves. It's intrinsic not extrinsic. Their titles may change their jobs may differ, but they're probably still selecting the same persona on that ubiquitous drop down. We all have to choose from when registering for an event. Probably this one too. I I was a developer and I will always identify as a developer despite doing a ton of work in areas like devops and Ai Ops and Deverell in my heart. I'm a developer I think about problems from that perspective. First it influences my thinking and my approach roles are very different. Roles are temporary, inconsistent, constantly fluctuating. If I were an actress, the parts I would play would be lengthy and varied, but the persona I would identify as would remain an actress and artist lesbian. Your work isn't confined to a single set of skills. It may have been a decade ago, but it is not today in any given week or sprint, you may play the role of an architect. Thinking about how to design a feature or service, developer building out code or fixing a bug and on automation engineer, looking at how to improve manual processes. We often refer to as soil release engineer, deploying code to different environments or releasing it to customers or in operations. Engineer ensuring an application functions inconsistent expected ways and no matter what role we play. We have to consider a number of issues. The first is test ability. All software systems require testing to assure architects that designs work developers, the code works operators, that infrastructure is running as expected and engineers of all disciplines that code changes won't bring down the whole system testing in its many forms is what enables systems to be durable and have longevity. It's what reassures engineers that changes won't impact current functionality. A system without tests is a disaster waiting to happen, which is why test ability is first among equals at this particular roundtable. Security is everyone's responsibility. But if you understand how to design and execute secure systems, I struggle with this security incidents for the most part are high impact, low probability events. The really big disasters, the one that the ones that end up on the news and get us all free credit reporting for a year. They don't happen super frequently and then goodness because you know that there are endless small vulnerabilities lurking in our systems. Security is something we all know we should dedicate time to but often don't make time for. And let's be honest, it's hard and complicated and a little scary def sec apps. The first derivative of deVOPS asked engineers to move security left this approach. Mint security was a consideration early in the process, not something that would block release at the last moment. This is also the consideration under which I'm putting compliance and governance well not perfectly aligned. I figure all the things you have to call lawyers for should just live together. I'm kidding. But in all seriousness, these three concepts are really about risk management, identity, data, authorization. It doesn't really matter what specific issue you're speaking about, the question is who has access to what win and how and that is everyone's responsibility at every stage site reliability engineering or sorry, is a discipline job and approach for good reason. It is absolutely critical that applications and services work as expected. Most of the time. That said, availability is often mistakenly treated as a synonym for reliability. Instead, it's a single aspect of the concept if a system is available but customer data is inaccurate or out of sync. The system is not reliable, reliability has five key components, availability, latency, throughput. Fidelity and durability, reliability is the end result. But resiliency for me is the journey the action engineers can take to improve reliability, observe ability is the ability to have insight into an application or system. It's the combination of telemetry and monitoring and alerting available to engineers and leadership. There's an aspect of observe ability that overlaps with reliability, but the purpose of observe ability isn't just to maintain a reliable system though, that is of course important. It is the capacity for engineers working on a system to have visibility into the inner workings of that system. The concept of observe ability actually originates and linear dynamic systems. It's defined as how well internal states of a system can be understood based on information about its external outputs. If it is critical when companies move systems to the cloud or utilize managed services that they don't lose visibility and confidence in their systems. The shared responsibility model of cloud storage compute and managed services require that engineering teams be able to quickly be alerted to identify and remediate issues as they arise. Flexible systems are capable of adapting to meet the ever changing needs of the customer and the market segment, flexible code bases absorb new code smoothly. Embody a clean separation of concerns. Are partitioned into small components or classes and architected to enable the now as well as the next inflexible systems. Change dependencies are reduced or eliminated. Database schemas accommodate change well components, communicate via a standardized and well documented A. P. I. The only thing constant in our industry is change and every role we play, creating flexibility and solutions that can be flexible that will grow as the applications grow is absolutely critical. Finally, scalability scalability refers to more than a system's ability to scale for additional load. It implies growth scalability and the revolution model carries the continuous innovation of a team and the byproducts of that growth within a system. For me, scalability is the most human of the considerations. It requires each of us in our various roles to consider everyone around us, our customers who use the system or rely on its services, our colleagues current and future with whom we collaborate and even our future selves. Mhm. Software development isn't a straight line, nor is it a perfect loop. It is an ever changing complex dance. There are twirls and pivots and difficult spins forward and backward. Engineers move in parallel, creating truly magnificent pieces of art. We need a modern model for this modern era and I believe this is just the revolution to get us started. Thank you so much for having me. >>Hey, we're back here. Live in the keynote studio. I'm john for your host here with lisa martin. David lot is getting ready for the fireside chat ending keynote with the practitioner. Hello! Fresh without data mesh lisa Emily is amazing. The funky artwork there. She's amazing with the talk. I was mesmerized. It was impressive. >>The revolution of devops and the creative element was a really nice surprise there. But I love what she's doing. She's challenging the status quo. If we've learned nothing in the last year and a half, We need to challenge the status quo. A model from the 1960s that is no longer linear. What she's doing is revolutionary. >>And we hear this all the time. All the cube interviews we do is that you're seeing the leaders, the SVP's of engineering or these departments where there's new new people coming in that are engineering or developers, they're playing multiple roles. It's almost a multidisciplinary aspect where you know, it's like going into in and out burger in the fryer later and then you're doing the grill, you're doing the cashier, people are changing roles or an architect, their test release all in one no longer departmental, slow siloed groups. >>She brought up a great point about persona is that we no longer fit into these buckets. That the changing roles. It's really the driver of how we should be looking at this. >>I think I'm really impressed, really bold idea, no brainer as far as I'm concerned, I think one of the things and then the comments were off the charts in a lot of young people come from discord servers. We had a good traction over there but they're all like learning. Then you have the experience, people saying this is definitely has happened and happening. The dominoes are falling and they're falling in the direction of modernization. That's the key trend speed. >>Absolutely with speed. But the way that Emily is presenting it is not in a brash bold, but it's in a way that makes great sense. The way that she creatively visually lined out what she was talking about Is amenable to the folks that have been doing this for since the 60s and the new folks now to really look at this from a different >>lens and I think she's a great setup on that lightning top of the 15 companies we got because you think about sis dig harness. I white sourced flamingo hacker one send out, I oh, okay. Thought spot rock set Sarah Ops ramp and Ops Monte cloud apps, sani all are doing modern stuff and we talked to them and they're all on this new wave, this monster wave coming. What's your observation when you talk to these companies? >>They are, it was great. I got to talk with eight of the 15 and the amount of acceleration of innovation that they've done in the last 18 months is phenomenal obviously with the power and the fuel and the brand reputation of aws but really what they're all facilitating cultural shift when we think of devoPS and the security folks. Um, there's a lot of work going on with ai to an automation to really kind of enabled to develop the develops folks to be in control of the process and not have to be security experts but ensuring that the security is baked in shifting >>left. We saw that the chat room was really active on the security side and one of the things I noticed was not just shift left but the other groups, the security groups and the theme of cultural, I won't say war but collision cultural shift that's happening between the groups is interesting because you have this new devops persona has been around Emily put it out for a while. But now it's going to the next level. There's new revolutions about a mindset, a systems mindset. It's a thinking and you start to see the new young companies coming out being funded by the gray locks of the world who are now like not going to be given the we lost the top three clouds one, everything. there's new business models and new technical architecture in the cloud and that's gonna be jerry Chen talk coming up next is going to be castles in the clouds because jerry chant always talked about moats, competitive advantage and how moats are key to success to guard the castle. And then we always joke, there's no more moz because the cloud has killed all the boats. But now the motor in the cloud, the castles are in the cloud, not on the ground. So very interesting thought provoking. But he's got data and if you look at the successful companies like the snowflakes of the world, you're starting to see these new formations of this new layer of innovation where companies are growing rapidly, 98 unicorns now in the cloud. Unbelievable, >>wow, that's a lot. One of the things you mentioned, there's competitive advantage and these startups are all fueled by that they know that there are other companies in the rear view mirror right behind them. If they're not able to work as quickly and as flexibly as a competitor, they have to have that speed that time to market that time to value. It was absolutely critical. And that's one of the things I think thematically that I saw along the eighth sort of that I talked to is that time to value is absolutely table stakes. >>Well, I'm looking forward to talking to jerry chan because we've talked on the queue before about this whole idea of What happens when winner takes most would mean the top 3, 4 cloud players. What happens? And we were talking about that and saying, if you have a model where an ecosystem can develop, what does that look like and back in 2013, 2014, 2015, no one really had an answer. Jerry was the only BC. He really nailed it with this castles in the cloud. He nailed the idea that this is going to happen. And so I think, you know, we'll look back at the tape or the videos from the cube, we'll find those cuts. But we were talking about this then we were pontificating and riffing on the fact that there's going to be new winners and they're gonna look different as Andy Jassy always says in the cube you have to be misunderstood if you're really going to make something happen. Most of the most successful companies are misunderstood. Not anymore. The cloud scales there. And that's what's exciting about all this. >>It is exciting that the scale is there, the appetite is there the appetite to challenge the status quo, which is right now in this economic and dynamic market that we're living in is there's nothing better. >>One of the things that's come up and and that's just real quick before we bring jerry in is automation has been insecurity, absolutely security's been in every conversation, but automation is now so hot in the sense of it's real and it's becoming part of all the design decisions. How can we automate can we automate faster where the keys to automation? Is that having the right data, What data is available? So I think the idea of automation and Ai are driving all the change and that's to me is what these new companies represent this modern error where AI is built into the outcome and the apps and all that infrastructure. So it's super exciting. Um, let's check in, we got jerry Chen line at least a great. We're gonna come back after jerry and then kick off the day. Let's bring in jerry Chen from Greylock is he here? Let's bring him in there. He is. >>Hey john good to see you. >>Hey, congratulations on an amazing talk and thesis on the castles on the cloud. Thanks for coming on. >>All right, Well thanks for reading it. Um, always were being put a piece of workout out either. Not sure what the responses, but it seemed to resonate with a bunch of developers, founders, investors and folks like yourself. So smart people seem to gravitate to us. So thank you very much. >>Well, one of the benefits of doing the Cube for 11 years, Jerry's we have videotape of many, many people talking about what the future will hold. You kind of are on this early, it wasn't called castles in the cloud, but you were all I was, we had many conversations were kind of connecting the dots in real time. But you've been on this for a while. It's great to see the work. I really think you nailed this. I think you're absolutely on point here. So let's get into it. What is castles in the cloud? New research to come out from Greylock that you spearheaded? It's collaborative effort, but you've got data behind it. Give a quick overview of what is castle the cloud, the new modes of competitive advantage for companies. >>Yeah, it's as a group project that our team put together but basically john the question is, how do you win in the cloud? Remember the conversation we had eight years ago when amazon re event was holy cow, Like can you compete with them? Like is it a winner? Take all? Winner take most And if it is winner take most, where are the white spaces for Some starts to to emerge and clearly the past eight years in the cloud this journey, we've seen big companies, data breaks, snowflakes, elastic Mongo data robot. And so um they spotted the question is, you know, why are the castles in the cloud? The big three cloud providers, Amazon google and Azure winning. You know, what advantage do they have? And then given their modes of scale network effects, how can you as a startup win? And so look, there are 500 plus services between all three cloud vendors, but there are like 500 plus um startups competing gets a cloud vendors and there's like almost 100 unicorn of private companies competing successfully against the cloud vendors, including public companies. So like Alaska, Mongo Snowflake. No data breaks. Not public yet. Hashtag or not public yet. These are some examples of the names that I think are winning and watch this space because you see more of these guys storm the castle if you will. >>Yeah. And you know one of the things that's a funny metaphor because it has many different implications. One, as we talk about security, the perimeter of the gates, the moats being on land. But now you're in the cloud, you have also different security paradigm. You have a different um, new kinds of services that are coming on board faster than ever before. Not just from the cloud players but From companies contributing into the ecosystem. So the combination of the big three making the market the main markets you, I think you call 31 markets that we know of that probably maybe more. And then you have this notion of a sub market, which means that there's like we used to call it white space back in the day, remember how many whites? Where's the white space? I mean if you're in the cloud, there's like a zillion white spaces. So talk about this sub market dynamic between markets and that are being enabled by the cloud players and how these sub markets play into it. >>Sure. So first, the first problem was what we did. We downloaded all the services for the big three clowns. Right? And you know what as recalls a database or database service like a document DB and amazon is like Cosmo dB and Azure. So first thing first is we had to like look at all three cloud providers and you? Re categorize all the services almost 500 Apples, Apples, Apples # one number two is you look at all these markets or sub markets and said, okay, how can we cluster these services into things that you know you and I can rock right. That's what amazon Azure and google think about. It is very different and the beauty of the cloud is this kind of fat long tail of services for developers. So instead of like oracle is a single database for all your needs. They're like 20 or 30 different databases from time series um analytics, databases. We're talking rocks at later today. Right. Um uh, document databases like Mongo search database like elastic. And so what happens is there's not one giant market like databases, there's a database market And 30, 40 sub markets that serve the needs developers. So the Great News is cloud has reduced the cost and create something that new for developers. Um also the good news is for a start up you can find plenty of white speeds solving a pain point, very specific to a different type of problem >>and you can sequence up to power law to this. I love the power of a metaphor, you know, used to be a very thin neck note no torso and then a long tail. But now as you're pointing out this expansion of the fat tail of services, but also there's big tam's and markets available at the top of the power law where you see coming like snowflake essentially take on the data warehousing market by basically sitting on amazon re factoring with new services and then getting a flywheel completely changing the economic unit economics completely changing the consumption model completely changing the value proposition >>literally you >>get Snowflake has created like a storm, create a hole, that mode or that castle wall against red shift. Then companies like rock set do your real time analytics is Russian right behind snowflakes saying, hey snowflake is great for data warehouse but it's not fast enough for real time analytics. Let me give you something new to your, to your parallel argument. Even the big optic snowflake have created kind of a wake behind them that created even more white space for Gaza rock set. So that's exciting for guys like me and >>you. And then also as we were talking about our last episode two or quarter two of our showcase. Um, from a VC came on, it's like the old shelf where you didn't know if a company's successful until they had to return the inventory now with cloud you if you're not successful, you know it right away. It's like there's no debate. Like, I mean you're either winning or not. This is like that's so instrumented so a company can have a good better mousetrap and win and fill the white space and then move up. >>It goes both ways. The cloud vendor, the big three amazon google and Azure for sure. They instrument their own class. They know john which ecosystem partners doing well in which ecosystems doing poorly and they hear from the customers exactly what they want. So it goes both ways they can weaponize that. And just as well as you started to weaponize that info >>and that's the big argument of do that snowflake still pays the amazon bills. They're still there. So again, repatriation comes back, That's a big conversation that's come up. What's your quick take on that? Because if you're gonna have a castle in the cloud, then you're gonna bring it back to land. I mean, what's that dynamic? Where do you see that compete? Because on one hand is innovation. The other ones maybe cost efficiency. Is that a growth indicator slow down? What's your view on the movement from and to the cloud? >>I think there's probably three forces you're finding here. One is the cost advantage in the scale advantage of cloud so that I think has been going for the past eight years, there's a repatriation movement for a certain subset of customers, I think for cost purposes makes sense. I think that's a tiny handful that believe they can actually run things better than a cloud. The third thing we're seeing around repatriation is not necessary against cloud, but you're gonna see more decentralized clouds and things pushed to the edge. Right? So you look at companies like Cloudflare Fastly or a company that we're investing in Cato networks. All ideas focus on secure access at the edge. And so I think that's not the repatriation of my own data center, which is kind of a disaggregated of cloud from one giant monolithic cloud, like AWS east or like a google region in europe to multiple smaller clouds for governance purposes, security purposes or legacy purposes. >>So I'm looking at my notes here, looking down on the screen here for this to read this because it's uh to cut and paste from your thesis on the cloud. The excellent cloud. The of the $38 billion invested this quarter. Um Ai and ml number one, um analytics. Number two, security number three. Actually, security number one. But you can see the bubbles here. So all those are data problems I need to ask you. I see data is hot data as intellectual property. How do you look at that? Because we've been reporting on this and we just started the cube conversation around workflows as intellectual property. If you have scale and your motives in the cloud. You could argue that data and the workflows around those data streams is intellectual property. It's a protocol >>I believe both are. And they just kind of go hand in hand like peanut butter and jelly. Right? So data for sure. I. P. So if you know people talk about days in the oil, the new resource. That's largely true because of powers a bunch. But the workflow to your point john is sticky because every company is a unique snowflake right? Like the process used to run the cube and your business different how we run our business. So if you can build a workflow that leverages the data, that's super sticky. So in terms of switching costs, if my work is very bespoke to your business, then I think that's competitive advantage. >>Well certainly your workflow is a lot different than the cube. You guys just a lot of billions of dollars in capital. We're talking to all the people out here jerry. Great to have you on final thought on your thesis. Where does it go from here? What's been the reaction? Uh No, you put it out there. Great love the restart. Think you're on point on this one. Where did we go from here? >>We have to follow pieces um in the near term one around, you know, deep diver on open source. So look out for that pretty soon and how that's been a powerful strategy a second. Is this kind of just aggregation of the cloud be a Blockchain and you know, decentralized apps, be edge applications. So that's in the near term two more pieces of, of deep dive we're doing. And then the goal here is to update this on a quarterly and annual basis. So we're getting submissions from founders that wanted to say, hey, you missed us or he screwed up here. We got the big cloud vendors saying, Hey jerry, we just lost his new things. So our goal here is to update this every single year and then probably do look back saying, okay, uh, where were we wrong? We're right. And then let's say the castle clouds 2022. We'll see the difference were the more unicorns were there more services were the IPO's happening. So look for some short term work from us on analytics, like around open source and clouds. And then next year we hope that all of this forward saying, Hey, you have two year, what's happening? What's changing? >>Great stuff and, and congratulations on the southern news. You guys put another half a billion dollars into early, early stage, which is your roots. Are you still doing a lot of great investments in a lot of unicorns. Congratulations that. Great luck on the team. Thanks for coming on and congratulations you nailed this one. I think I'm gonna look back and say that this is a pretty seminal piece of work here. Thanks for sharing. >>Thanks john thanks for having us. >>Okay. Okay. This is the cube here and 81 startup showcase. We're about to get going in on all the hot companies closing out the kino lisa uh, see jerry Chen cube alumni. He was right from day one. We've been riffing on this, but he nails it here. I think Greylock is lucky to have him as a general partner. He's done great deals, but I think he's hitting the next wave big. This is, this is huge. >>I was listening to you guys talking thinking if if you had a crystal ball back in 2013, some of the things Jerry saying now his narrative now, what did he have a crystal >>ball? He did. I mean he could be a cuBA host and I could be a venture capital. We were both right. I think so. We could have been, you know, doing that together now and all serious now. He was right. I mean, we talked off camera about who's the next amazon who's going to challenge amazon and Andy Jassy was quoted many times in the queue by saying, you know, he was surprised that it took so long for people to figure out what they were doing. Okay, jerry was that VM where he had visibility into the cloud. He saw amazon right away like we did like this is a winning formula and so he was really out front on this one. >>Well in the investments that they're making in these unicorns is exciting. They have this, this lens that they're able to see the opportunities there almost before anybody else can. And finding more white space where we didn't even know there was any. >>Yeah. And what's interesting about the report I'm gonna dig into and I want to get to him while he's on camera because it's a great report, but He says it's like 500 services I think Amazon has 5000. So how you define services as an interesting thing and a lot of amazon services that they have as your doesn't have and vice versa, they do call that out. So I find the report interesting. It's gonna be a feature game in the future between clouds the big three. They're gonna say we do this, you're starting to see the formation, Google's much more developer oriented. Amazon is much more stronger in the governance area with data obviously as he pointed out, they have such experience Microsoft, not so much their developer cloud and more office, not so much on the government's side. So that that's an indicator of my, my opinion of kind of where they rank. So including the number one is still amazon web services as your long second place, way behind google, right behind Azure. So we'll see how the horses come in, >>right. And it's also kind of speaks to the hybrid world in which we're living the hybrid multi cloud world in which many companies are living as companies to not just survive in the last year and a half, but to thrive and really have to become data companies and leverage that data as a competitive advantage to be able to unlock the value of it. And a lot of these startups that we talked to in the showcase are talking about how they're helping organizations unlock that data value. As jerry said, it is the new oil, it's the new gold. Not unless you can unlock that value faster than your competition. >>Yeah, well, I'm just super excited. We got a great day ahead of us with with all the cots startups. And then at the end day, Volonte is gonna interview, hello, fresh practitioners, We're gonna close it out every episode now, we're going to do with the closing practitioner. We try to get jpmorgan chase data measures. The hottest area right now in the enterprise data is new competitive advantage. We know that data workflows are now intellectual property. You're starting to see data really factoring into these applications now as a key aspect of the competitive advantage and the value creation. So companies that are smart are investing heavily in that and the ones that are kind of slow on the uptake are lagging the market and just trying to figure it out. So you start to see that transition and you're starting to see people fall away now from the fact that they're not gonna make it right, You're starting to, you know, you can look at look at any happens saying how much ai is really in there. Real ai what's their data strategy and you almost squint through that and go, okay, that's gonna be losing application. >>Well the winners are making it a board level conversation >>And security isn't built in. Great to have you on this morning kicking it off. Thanks John Okay, we're going to go into the next set of the program at 10:00 we're going to move into the breakouts. Check out the companies is three tracks in there. We have an awesome track on devops pure devops. We've got the data and analytics and we got the cloud management and just to run down real quick check out the sis dig harness. Io system is doing great, securing devops harness. IO modern software delivery platform, White Source. They're preventing and remediating the rest of the internet for them for the company's that's a really interesting and lumbago, effortless acres land and monitoring functions, server list super hot. And of course hacker one is always great doing a lot of great missions and and bounties you see those success continue to send i O there in Palo alto changing the game on data engineering and data pipe lining. Okay. Data driven another new platform, horizontally scalable and of course thought spot ai driven kind of a search paradigm and of course rock set jerry Chen's companies here and press are all doing great in the analytics and then the cloud management cost side 80 operations day to operate. Ops ramps and ops multi cloud are all there and sunny, all all going to present. So check them out. This is the Cubes Adria's startup showcase episode three.

>>Yeah. Welcome to the cubes coverage for mobile world Congress 2021. I'm john for your host of the cube we're here in person as well as remote. It's a hybrid event were on the ground. Mobile concert green. All the action here were remote with vodka, who is the managing director of the telecom industry solutions team and google cloud, a big leader and driving a lot of the change. Well, thank you for coming on the cube here in the hybrid event from over world Congress. >>Thank you john thank you john thank you for having me. >>So hybrid event which means it's in person were on the floor as well as doing remote interviews and people are virtual. This is the new normal kind of highlights where we are in the telecom world because last time mobile World Congress actually had a physical event was winter of 2019. A ton has changed in the industry. Look at the momentum at the edge. Hybrid cloud is now standard Multi cloud is being set being set up as we speak. This is all now the new normal. What is your take it? It's pretty active in your, in your industry. Tell us your opinion. >>Yes, john, I mean the last two years have been >>seismic to say the >>least, right. I mean, in terms of the change that the CSP industries had had to >>do, you >>know, jOHn uh, in the last two years, the importance of a CSP infrastructure has never become so important, right? The infrastructure is paramount. I'm talking to you remotely over a CSB infrastructure right now and everything that we're doing in the last two years, whether it's working or studying or entertaining ourselves all on that CSP infrastructure. So from that perspective, they are really becoming a critical national, global information fabric on which the society is actually depending >>on and >>That we see at Google as well, in the sense that we have seen up to 60% increase in demand John in the last two years for that infrastructure. And then when I look at the industry itself, unfortunately, all of that huge demand is not translating into revenue because as an industry, the revenue is still flatlining, in fact the forecasted Revenue for globally for all the industry over the next 12 months is 3-5% negative on revenue. Right? So one starts to think how come there is so much demand over the last two years post pandemic and that's not translating to revenue. Having said that, the other thing that's happening is this demand is driving significant Capex and Opec's investments in the infrastructure, as much as 8 to $900 billion over the next decade is going to get spent in this infrastructure from >>our perspective, >>which means it's really a perfect storm, john that we have massive demand, massive need to invest to meet that demand, yet not translating to revenue. And the crux of all this is customer experience because ultimately all of that translates into not having that kind of radically disruptive or transformational customer experience. Right? So that's a backdrop that we find ourselves in the industry and that really sets the stage for us to look at these challenges in terms of how does the CSP industry as a whole growth up line? Radically transformed PST CEO at the same time reinventing the customer experience and finding those capital efficiency, it's almost an impossible problem to solve them. >>It's a perfect storm. The waves are kind of coming together to form one big wave. You mentioned Capex and Opec's that's obviously changing the investments. Are there post pandemic growth and changing the user behavior and expectations. The modern applications are being built on top of the infrastructure. That's changing all of this is being driven by cloud native and that's clear. And you're seeing a lot more open kind of approaches, I T and O. T. Coming together whatever you want to do, this is just it's a collision, right? It's a collision of many things and this positive innovation coming out of. So I have to ask you, what are you seeing the solutions that are showing the most promise for these telco industry leaders because they're digitally transforming so they gotta re factor their platforms while enabling innovation, which is a key growth for the revenue. >>Yes. So john from a solution standpoint, what we actually did first and foremost as google cloud was look at ourselves. So just like the transformation we just talked about in the CSB industry, we are seeing google being transformed over the last two decades or so. Right. And it's important to understand that there's a lot google did over the last two decades that we can actually now externalize all of that innovation, all of that open source, all of that multi cloud was originally built for all the google applications that all of us use daily, whether it's Youtube or mail or maps, you know, same infrastructure, same open source, same multi cloud. And we decided to sort of use the same paradigms to build the telecom solutions that I'm going to talk about next. Right? So that's important to bear in mind that those assets were there and we wanted to externalize those assets right. There are really four big solutions that are resonating really well with our CSP partners, john you know, number one to your point is how can they monitor? Is the edge all of this happens at the edge. All of these kids can watch at the edge we believe with five G acting as a brilliant catalyst to really drive this edge deployment, CSP s would be in a very strong position, partnering with cloud players like ourselves to drive growth, not just for that offline, but also to add value to the actual end enterprises that are seeking to use that age. Let me give you a couple of examples. We've been working with industries like retail and manufacturing to create a solutions in a post pandemic world solutions like contact less shopping or visual inspection of an assembly line in a manufacturing plant without the need for having a human there because of the digitization of workforce, which meant these kind of solutions can actually work well at the edge Driven by 5G, but of course they can't be done in isolation. So what we do is we partner with CSP s, we bring our set of solutions and we actually launched in december 30 partners that already on our google cloud solutions and then we partner with the CSP is based on our infrastructure and their infrastructure to ultimately bring this ball to life at the end customer which opened, tends to be an enterprise, whether it's a manufacturing plant, you >>guys got some great examples there, I love that edge story, I think it's huge and it's only gonna get bigger. I gotta ask you, Well, I got you here because again, you're in the industry the managing director, so you have to oversee this whole telecom industry, but it's bigger. It's beyond telecom right now, telecoms. Just one another. Edge network piece of the pie. And the distributed computing, as we say. So I have to ask you one of the big things that google brings to the table is the developer mojo and open source and scale obviously the scales unprecedented. Everyone knows everyone knows that. Um, but ecosystems are super important and telcos kind of really aren't good at that. So, you know, the telco ecosystem was, I mean, I'd say okay, but mostly driven by carriers and and moving bits from point A to point B. But now you've got a developer mindset, public cloud developer ecosystem. How is this changing the landscape of the CSP and how are they changing how is it changing this cloud service providers ability to execute? Because that's the key in this new world. What's your opinion? >>Absolutely, john So there are two things, there are two dimensions. Look at. One is when we came to market a couple of years ago with anti offs, we recognize exactly what you said, jOHn which is the world is moving to multi cloud hybrid cloud. We needed to provide a common platform that the developer community can utilize through microservices and A P I and that platform had to, by definition work not just from google cloud but any club. It could work on any public cloud can work on CSP s private cloud And of course for >>some google cloud. Right. >>The reason was once you deploy and tossed once as a seamless application development platform, You could put all kinds of developer acts on top. So I just talked about 5GH John a minute ago. Those acts can sit on Santa's but at the same time I did to your point John I thi apps could also sit on the same and toss paradigm and network apps. So as network start becoming cloud native, whether it's ran, whether it's all ran, whether it's five G core same principle and that's why we believe when we partner with the SPS were saying, hey, you give this Antos to an ecosystem of community, whether that community is network with the communities, it with the communities, edge apps, all of those can reside seamlessly on this sort of Antos fabric. >>And that's going to set the table for multi cloud, which is basically cloud words for multi vendor, multi app. Well I got to ask you while you have here, first of all, thank you for coming on and sharing your insights. It's really great industry perspective and it's a google clouds got huge scale, great leadership and again, you know, the big, the big cloud players are moving in and helping out and enabling a lot of value. I gotta ask you if you don't mind sharing. If someone asked you him all, tell me about the uh impact that public cloud is having on the telco industry, what would you say? What's, what's the, what's the answer to that is? A lot of people are like, OK, public cloud, I get it, I know what it looks like, but now everyone knows it's going hybrid. So everyone ask, we'll ask you the question, what is public cloud doing for the telecom sector? >>Yeah, I think it's been treating john and great question by the way. Um number one, we are actually providing unprecedented amount of insight on data that the CSP traditionally already had but have never looked at it from the angle we have looked at whether that insights are at the network layer, whether those insights are to personalize customer experiences on the front end systems or whether those insights are to drive care solutions in contact centers and so on and so forth. So it's a massive uplift of customer experience that we can help, Right? So that's that's a very important point because we do have a significant amount of leadership johN at google cloud and analytics and data and insects. Right? So and we offer goes to overseas people. Number two is really what I talked about which is helping them build an ecosystem because let's take retail as an example as a minimum. There are five constituents in that ecosystem, jOHN there is a CSP, there is google cloud, there is an actual retail store, there is a hardware supplier, there's a software developer, all of them as a minimum have to work together to build that ecosystem which is where we give those solutions, Right? So that's the second part. And in the third part is as they move towards cloud Native, we are really helping them change their business model to become a deVOPS. A cloud native mindset, not just a cloud native network. Alrighty, but a cloud native mindset that creates unparalleled agility and flexibility in how they work as a business. So those are the three things I would say as a response to that question >>and obviously the retail, great vertical for google to go in there, given the amazon fear out there, people want this certainly low hanging fruit. I think the devops piece is going to be a big winning opportunity to see how the developers get driven into the landscape. I think that's a huge point and well that's really great insight. A final question for you. I got you here. Um, if someone says, Hey, what's happened in the industry since 2019? We last time we had multiple Congress, they were talking speeds and feeds. Now the world has changed. We're coming out of the pandemic California's opening up. Um, there's going to be in a physical event, the world's going hybrid certainly on the event and certainly cloud what's different in the telecom industry from, you know, many, many months ago, over a year and a half ago from 2019. >>I would say primarily it's the adoption of digital everywhere, which previously, you know, there were all these inhibitions and oh would this work? Would my customer systems become fully digital? Would I be able to offer a are we are experiences? Ah, that's a futuristic thing, you know, And suddenly the pandemic has created this acceleration that says, oh, even post pandemic, half my customers are always gonna talk to me why our digital channel only, which means the way they experience us has to be through these new experiences. Whether it's a are we are, whether it's some other types of applications. So that has been accelerated, johN and the C. S. P. S have therefore really started to go to the application and to the services, which is why you're seeing less on, You know, speeds and feeds because 5Gs here, five years being deployed. Now, how do you monetize? How can we leverage the biggest, so that's the biggest changes >>down stack and then there's the top of the stack for applications and certainly there's a lot of assets in the telecom landscape, a lot of value, A lot of re factoring going on and new opportunities that are out there. Great, great conversation. Well thank you Wolf Pataca, Managing Director, telecom industry. So thanks for coming on the key. Appreciate it. >>Thank you john thank you for having me. Okay. >>Mobile Rule Congress here in person and hybrid and remote. I'm john for a host of the cube. Thank you for watching. We are here in person at the Cloud City Expo community area. Thanks for watching.

(upbeat music) >> Okay, thanks to the studio there for the handoff. Appreciate it, we're here for breaking news and it's exciting that we have Amol Phadke who's the Managing Director, Google is breaking some hard news here, Dave, so we want to bring him in and get commentary while we end out day two. Obviously, the story here is CLOUD CITY. We are in the CLOUD CITY. Amol, thanks for coming on remotely into our physical hybrid set here. Thanks for coming on. >> Thank you, John. I'm very excited to be here, virtually at MWC 21. >> Oh we got Bon Jovi ready to play. Everyone's waiting for that concert and you're the only thing standing between Bon Jovi and all the great stuff so. >> A lot of people watching. >> Thanks for coming on. Seriously you guys got some big news first Ericsson partners with you guys on 5G, platform deal with anthesis as well as open O-ran Alliance. You guys are joining huge testament to the industry. Obviously Google with all your innovation you guys have in the big three cloud hyperscalers. Obviously you guys invented SRE, so you know, you're no stranger to large scale. What's the news? Tell us why this Ericsson news is so important. Let's start with the Ericsson announcement. >> Sure, so, John, I mean, we are very excited today to finally bring to the market, the strategic partnership that we've been building with Ericsson for the last few months, the partnership, the reason we feel this is very important to the industry is we are actually doing this in conjunction with very large CSPs. So it's not done in isolation. You in fact saw in the press release that we have already launched something together with Telecom Italia in Italy. Because you will see that also in the press. And really the partnership is on three pillars. Number one, how can CSPs monetize 5G and Edge, which is a real team at the moment using Google Clouds solutions like the Edge computing platform and Anthos and Ericsson's cutting Edge 5G components, 5G solutions. And if we can onboard this together at the CSPs, such as Telecom Italia, that creates massive time to market efficiency. So that's point 1. Speed and agility is key John. But then point 2, it also unlocks a lot of Edge use cases for a bunch of verticals, retail, manufacturing, healthcare and so on. Which we are already starting to launch together with Ericsson. And so that's the second pillar. And then the final pillar of course, is this continuous wave of Cloud Native innovation that you just highlighted, John. We are going to try and double down on it between ourselves and Ericsson to really try and create this Cloud Native Application Suite for 5G over time. >> Talk about the innovations around Cloud, because the message we're hearing this year at Mobile World Congress is that the public cloud is driving the innovation and you know, I can be a little bit over the top and say, so the Telcos are slow, they're like glaciers, they move slow, but they're just moving packets. They are there, they're moving the network around. The innovation is happening on top. So there's some hardened operations operating the networks. Now you have a build concept, Cloud Native enables that. So you've got containers. You can put that, encapsulate that older technology and integrate it in. So this is not a rip and replace, someone has to die to win. This is a partnership with the Telco's. Can you share your thoughts on that piece? >> Spot on, John, spot on. We, we believe that it's a massive partnership opportunity. There's zero conflict or tensions in this sort of ecosystem. And the reason for that is, when you talk about that containerization and write once and deploy everywhere type architecture, that we are trying to do, that's where the Cloud Native be really helps. Like when you create Ericsson 5G solutions with the operators at Telecom Italia, once you build a solution, you don't have to worry about, do I need to go create that again and again for every deployment. As long as you have Anthos and Ericsson working, you should be able to have the same experience everywhere. >> Yeah, John and I talk all the time in theCUBE about how developers are really going to drive the Edge. You're clearly doing that with your Distributor Cloud, building out a Telco Cloud. I wonder if you could talk a little bit more about how you see that evolving and a lot of the AI that's done today is done in the cloud. A lot of modeling being done. When you think about Edge, you think about AI inferencing, you think about all these monetization opportunities. How are you thinking about that? >> Sure, so I think David first of all, it's a fantastic segue into how we are looking at analytics at the Edge, right? So we, we have realized that (connection disruption) is a very, very data computing, heavy operation. So certainly the training of the models is still going to stay in cloud for the foreseeable future. But the influencing part that you mentioned, is definitely something that we can offload to the Edge? Why is that so important? In the pandemic era think of running a shop or a factory floor, completely autonomously, needing zero minimal human intervention. And if you want to look at an assembly line and look at AI influencing as a way to find out assembly line defects on products and manufacturing. That's a very difficult problem to solve unless you actually create those influencing models at the Edge. So creating that ecosystem of an Ericsson and a Google Cloud and Telecom Italia type of carrier, gives you that Edge placement of the workloads that would fit right next to a factory floor in our manufacturing example. And then on top of that, you could run the AI influencing to really put in the hands of the manufacturer, a visual inspection capability to just bring this to life. >> Great, thank you for that and now the other piece of the announcement of course is the open, Open RAN. We've been talking about that all week. And you know, you well remember when Cloud first came out, people were concerned about security. And of course, now everybody's asking the question, can we still get the reliability and the security that we're used to with the Telcos? And of course over time we learned that you guys actually are pretty good at security. So how do you see the security component? Maybe first talk about the Open RAN piece, why that's important and how security fits? >> Sure, so first of all, Open RAN is something that we have taken great interest in the last year or so as it started evolving. And the reason for that is fairly simple Dave, this aggregation of networks has been happening for some time. In the radio layer, we believe that's the final frontier of sort of unlocking and desegregating that radio layer. And why is that so important? 80% of the operators spent globally is on radio across the entire infrastructure, 80% is on radio. If you disaggregate that and if you created synergies for your CSP partners and clients, that meant you have standard purpose hardware, standard purpose software with open interfaces, number one, massive difference in PCO. Number two, the supply chain gets streamlined and becomes a really, really simple way to manage a fairly large distribution, that's about to get larger with 5G and the capillarity that 5G needs. You're thinking of tens of thousands of micro cells and radio cells going everywhere. And having that kind of standardized hardware, software with open interfaces, is an extremely important cost dimension too. And on the revenue side, the things is that, the reason we got so excited with Open RAN was, you can now run a lot of API's on the radio net itself. That then suddenly brings a whole developer community on the radio layer. That then helps you do a bunch of things like closed loop automation for network optimization, as well as potentially looking at monetization opportunities by hyper personalizing yours and mine experiences at a device level, from the cell tower. And so that really is what is driving us towards this Open RAN type announcement. >> John: Amol, we've only got a minute and a half. I want to get your thoughts real quick on, on Open Source and the innovation. Danielle Royston, who's the CEO of TelcoDr. She's a keynote today. And she mentioned that the iPhone, 14 years ago was launched, okay. And you think about Open, and you mentioned proprietary with the 5G, and having O-RAN be more commodity and industry standard. That's going to lower the costs, increase the surface area of infrastructure. Everyone wins, 'cause everyone wants more connectivity options. Software is going to be the key to success for the telco industry, and Open Source is driving that. Is Android the playbook that you guys pioneered, obviously at Google with phones was very successful. How is that a playbook or an indicator to what could happen at Telco? >> Absolutely John and the parallel analogy that you raised is spot on. We believe in the Telco world Anthos multi-cloud as a unifying software development layer and the app development platform is the way that people will start to drive this innovation. Whether it's a radio or whether it's in the core or whether it's on the IT side of house. Same software running everywhere. That really allows you that whole CICD SRE type development models that we are familiar with, but on the telecom side. And that's where we are seeing some massive innovation opportunities for start, that would be for systems to come on. >> John: That's great stuff. And I was, just heard someone in the hallway just yesterday and say, you want to be the smartphone. You don't want to be the Blackberry going forward. That's pretty much the consensus here at Mobile World Congress. Amol, thank you for coming on and sharing the hard news with Google. Congratulations on the Ericsson Anthos platform deal as well as the Open Ran Alliance. Congratulations, good to see you. And by the way, you'll be keynoting tomorrow on theCUBE featured segments. So, watch that interview. >> Thank you John. Glad to be here. >> Thanks Amol. Managing Director, Telecom Industry Solutions at Google, obviously player, he's managing that business. Big opportunities for Google because they have the technology to get the chops Dave, and we're going to now, bring on Danielle Royston, she's here, I want to bring her up on the stage. Bon Jovi's about to go on, behind us, Bon Jovi's here. And this is like a nightclub, small intimate setting here in CLOUD CITY. Dave, Bon Jovi is right there. He's going to come on stage after we close down here, but first let's bring up the CEO of TelcoDR, Danielle Royston, great to see you. She's hot off the keynote. We're going to see you have a mic. Great to see you. >> Oh, it's great to be here, awesome. >> We are going to see you tomorrow for an official unpacking of the keynote but thanks for coming by and closing, swinging by. >> I know we're closing down the show. It's been a big, it's been a big day today at MWC and in CLOUD CITY. >> And Bon Jovi by the way. >> Day two, I mean really starting to get packed. >> And I mean, everyone's coming in, the band's warming up. You can kind of hear it. I think Elon Musk is about to go on as well. So I mean, it's really happening. >> A lot of buzz about CLOUD CITY out there in the hallway. >> Yeah, yeah. No, I mean, I think everyone's talking about it. I'm really, really excited >> Awesome. >> with how it's going, so yeah. >> Well, this is awesome, while we got you here, we want to put you to work being theCUBE analyst for this segment. You just heard Google. We broke them in for a breaking news segment. Obviously, so hard news Ericsson partnership. We're in the, actually former Ericsson booth. They're not even here, it's now the TelcoDR booth. But that's and then Open RAN again, Open Source. You got 5G, you got Open Source all happening. What's your take on this, as you're seeing this? >> Yeah, I think, you know, there's two big, and I talked about in my keynote this morning, there's two big technological changes that are happening in our industry simultaneously. And I don't think we could have had it--MWC 21 I certainly wanted to make it about the Public Cloud. I think I'm sort of successful in doing that. And I think the other piece is Open RAN, right? And I think these two big shifts are happening and I'm really thrilled about it. And so, yeah, we saw these two. >> I loved your keynote, we were here live Chloe was here filling in for Dave while Dave was going to do some research and getting some breaking stories. But you are on stage and, and we were talking, Chloe's like, these there's trillions of dollars, John on the table. And I was making the point, that the money's in the middle of the table and it's changing hands. If people don't watch it. And then you onstage said there's trillions of dollars. This is a real competitive shift with dollars on the table. And you've got cultural collision. You've got operators and builders trying to figure out, it feels like Dev Ops is coming in here. >> Yeah. >> I mean, what's the, what's the holistic vibe. What's the, what do you? >> Yeah, I think my message is about, we can use the software and specifically the software, the Public Cloud, to double your ARPU without massive CapEx expenditure. And I think the CSPs has always viewed to get the increase in ARPU, I got to build out the network, I got to spend a lot of money. And with these two technologies that require might be dropped. And then in exchange for doubling our ARPU, why not? We should do that absolutely. >> You know, your message has been pretty clear that you got to get on, on the wave. Got to ride the wave or become driftwood, as John said yesterday. And I think it's pretty, it's becoming pretty clear that that's the case for the Telcos. I feel like Danielle, that they entering this decade, perhaps with a little bit more humility than they have in the past. And then, you know, maybe, especially as it relates to developers, we're just talking about building out the Edge. We always talk about how developers are really going to be a key factor in the Edge and that's not a wheelhouse necessarily. But, obviously they're going to have to partner for that to have, they're going to have to embrace Cloud Native. I mean, it's pretty clear that your premise is right on. We'll see how long it takes, but if it, if they don't move fast, you know, what's going to happen. >> Well, I think you look at it from the enterprise's perspective. And we just heard Google talking about it. We need to provide a tech stack that the enterprises can write to. Now, historically they haven't had this opportunity. Historically that CSPs have provided it. Now you're going to be able to write against Google's tech stack. And that's something that is documented, it's available. There's developers out there that know it. And so I think that's the big opportunity. And this might be the, the big use case that they've been looking for with 5G and looking forward to 6G. And so it's a huge opportunity for CSPs to do that. >> I think that's an important point because you've got to place bets. And if I'm betting on Google or Amazon, Microsoft, okay, those are pretty safe bets, right? Those guys are going to be around. >> You think, I mean, they're like, no, don't trust the hyperscalers. And like, are you guys nuts? They're safe bets. >> Safe bets in terms of your investment in technology, now you've got to move fast. >> Yeah. >> That's the other piece of it. >> Yeah. >> You got to change your business model. >> Yeah, absolutely. >> Well, you got to be in the right side of history too. I mean, I mean, what is trust actually really mean? Does Snowflake trust Amazon? It sure did to get them where they are, but now they're looking at other options. >> That is a great example, John. It really is, because there's a company that can move fast, but the same time they compete, but the same time they add incremental value. >> And so here you can see the narrative like, oh no, we're partnering, Telcos aren't bad. No one needs to die to bring in the new. Well containers do, will help them manage that operational legacy, but culturally, if they don't move, they're going to have an asset that'll get rolled up into a SPAC or some sort of private equity deal. And because the old model of building CapEx and extract rents is kind of shifting because the value's shifting. So to me, I think this is what we're watching still kind of unknown. Danielle, love to get your thoughts on this, because if the value shifts to services, which is a consumption model like cloud, >> Yeah. >> Then you can, don't have to try to extract the rents out of the CapEx or, what's your thought, I mean. >> Yeah, I don't think you need to own the entire stack to provide value. And I think that's where we are today in Telco, right. There, I mean, nuts and bolts of the stack, the servers, you know, the cabling, everything. And I'm like, stand on the shoulders of these amazing tech giants that have solved, you know, mega data centers, right? Huge data centers at scale, and just leverage their investment and for your own benefit and start to focus, and we heard Amol talking about it, starts to focus on your subscriber and driving a great experience for us, right, yeah. >> Well, you've talking about that many times that you exhibit, you're right. If the conversation has been, has to go beyond, okay, we're just connectivity. It's got to be going to be like, oh, it's $10 a month for roaming charges, ah great. >> Yeah. >> Tick that box. Right, it's those value added services that you're talking about. And it's an infinite number of those that can be developed. And that's where the partnerships come in, and creativity in the industry. It's just a blank piece of paper. >> Well, we, you know, everyone thinks Google knows everything about you, right? We've had the experience on our phone where they're serving up ads and you're like, how did it? >> Facebook does? >> Right, Facebook. But you know who knows more about us than, than Google or your mother even, your Telco. >> Yeah. >> You take your phone with you everywhere, right? And so it's time to start unlocking all of that knowledge and using it to provide a really great experience. >> And by the way, congratulations on the CEO to Totogi and the investment hundred million dollars. That's a game changer statement again, back to the billing and the there's a good, there's a whole new team, even all up and down the stack of solutions, great stuff. And I want to unpack that tomorrow. I want to hold that, we're going to meet tomorrow. I want to, I want to, leave that here. >> Stay in the data for a second, because you made the point before in your keynote as well. That, it's that it's the data that drives the value of these companies. Why is it that Apple, Amazon, Google, Facebook now trillion dollar valuations. >> Yeah. >> It's all about the data and the Telco's have the data, but they can't figure out how to turn that into valuation. >> I think there's two parts of the data problem, which is number one, the data is trapped in on-premise, siloed systems that are not open. You can't connect them, and you certainly do it without, and we talked about it, I think yesterday, you know, millions of dollars of expenditure. And I think the other piece that's really interesting is that it's not connected to a mechanism to get it out in a timely manner, right? This is data that's aging by the minute. And when it takes you weeks to get the insight , it's useless, right? And so to Totogi, we announced the launch of Totogi, I'll get a little to Totogi plug in there, right. Totogi is connecting that insight to the charger, to the engagement engine and getting it out to subscribers. I think that's the beginning of this connection. I think it's a hard problem to solve it would have been solved already. But I think the key is leveraging the Public Cloud to get your data out of on-premise and, and mashing it up against these great services that Google and Azure and Amazon provide to drive it into the hands of the subscriber, make it very actionable, very monetizeable right at the end, that's what they want. More ARPU, more revenue, right. And you know, we've heard some keynotes from GSMA yesterday, some big, big guys, you know, talking about how, you know, it's not fair that these other communication platforms are not regulated. You know, Telco is heavily regulated and they're like, it's not fair. And I'm like, yep, it's not fair. That's life, right? >> Yeah. >> Stop complaining about it and start treating your customers better. So they're happy to give you more money. >> Yeah, and I think that's the message about the assets too. But one thing I will say, this Mobile World Congress, is that we've been having a lot of fun here in CLOUD CITY. I have to ask you a personal question. Have you been having fun? You look great on the keynote. You have a spring to your step. CLOUD CITY is beautiful, spectacular here. >> Yeah. >> Give us some highlights, personal highlights from your trip so far. >> Well number one, I'm, I'm psyched that the keynote is delivered in and done. I mean, I think it takes my blood pressure down a bunch. You know, the spring in my step, I wore these fun little tennis shoes and that was really fun. But yeah, I'm having, I'm having, I think a lot of things, great conversations. Yes the attendance is reduced. You know, usually you see hundreds of people from the big group carriers, especially the European groups. And yeah the attendance is reduced, but the senior guys are here, right? The senior leadership teams are in the booth. We're having meetings, we're having amazing conversations. I think the last year we really did live a decade in one year. I think they woke up to the power of the Public Cloud. >> Yeah, the pandemic helped. >> I mean, there was no way that they got business done without cloud based tools. And I think the light bulb went off. I think I'm right in the right moment. It's Awesome. >> Do you think that, do you think that they'll think in there, like left money on the table because you look at the pandemic, there were three categories of companies, losers, people who held the line, struggled and then winners. >> Yeah. >> Big time tale wind, booming. Obviously the Zooms of the world. Telco's did well. They were up and running, business was good. You think they might've left some money on the table? They could have done more. >> Yeah, I think the ones that were, you know, people talk about digital transformation. We're digital Telco, we're digitally enabled. And I think the pandemic really tested this, right. Can you deliver a contactless SIM? Or do you need to go to a store, in person, to get to go pick it up? And I had a broken SIM during the pandemic. My provider made me go to the store and I'm like, is it even open? And so I heard other stories of Telcos that were very digitally enabled, right. They were using Uber to deliver sims, and all sorts of fun, crazy stuff and new ideas. And they were able to pivot. >> Agile. >> Right, agile. And so I think, I think that was a really big wake up call. >> Telemedicine booming. >> So If you were in a digital business during the pandemic. In general, you're out of business, maybe unless you were a Telco, but I think you're right. I think the light bulb went off. It was an aha moment. And they said, oh-oh, if we don't move. >> I mean, I am not kidding right. As an ex-CEO where I was trying to collect signatures on renewals, right. Here's a DocuSign, which for the world is like, duh. I mean, our school uses DocuSign. I had telcos that required an in-person signature, >> Facts. >> Right, in some country, once a month on Tuesday between 10 and 2. And I'm like, how are you doing business, like that? That's like the dark ages. >> Yeah, this is where the crypto guys got it right, with know your customer. >> Yeah, right. >> 'Cause they have the data. >> Well, they had to, they had to. >> Yeah. >> There's a lot of things that's going wrong on crypto, we don't want to, we could do a whole show on that. But Danielle great to have you drop by, obviously Bon Jovi's here. How did you get Bon Jovi? Huge fan, New Jersey boy, Patriot's fan. >> Yeah. >> Dave, we love him. >> Fantastic. >> Well, I mean, who doesn't love Bon Jovi, right? We knew we wanted a rocker, right. Rock and roll is all about challenging the status quo. That, I mean, since the beginning and that's what we're doing here, right. We're really challenging like the way things have been done in Telco. Kind of just shattering the glass ceiling in lots of different ways, right. Calling the old guys dinosaurs. I'm sure those guys love me, right. I mean, how much do they hate me right now? Or they're like that girl, oh, so. >> Well we are punk rock. They're rock and roll. >> Right, right. I mean, maybe we should have gotten The Clash, right. Black Flag, right. I'm a little bit older than you. >> Bon Jovi's good. >> Right, we'll go with Bon Jovi. >> We like both of them. >> Accessible, right. >> Once's more conservative rock and roll still edgy. >> Yeah, so really excited to get them here. I've met him before. And so hopefully he'll remember me. It's been a couple of years since I've seen him. So can't wait to connect with him again. I think we have Elon Musk coming up and that's going to be, it's always exciting to hear that guy talk, so yeah. >> Yeah, he's going to be inspiration he'll talk space, SpaceX, >> Oh yeah. >> And possibly Starlink. >> Talking about the edge. >> Starlink, right. >> Starlink. >> I mean, those guys are launching rockets and deploying satellites and I think that's really interesting for rural. For rural right in Telco, right. Being able to deploy very quickly in rural where the, maybe the cost, you know, per gig doesn't make sense. You know, the cost for deployment of tower, I think. I mean, that's an interesting idea right there, yeah. >> It's exciting, he's inspirational. I think a lot of people look at the younger generation coming in and saying why are we doing things? A lot of people are questioning and they see the cloud. They're saying, oh, A or B, why are we doing this? This is such an easier, better way. >> Yeah. >> I think eventually the generation shifts in time. >> It's coming. I'm so excited to be a part of it, yeah. >> Great, great leadership. And I want to say that you are real innovative, glad to have us here and presenting with you here. >> Awesome team. >> I'm excited to have you guys. We talked last night about how great this partnership is, so thank you so much, yeah. >> TheCUBE, theCUBE's rocking inside the CLOUD CITY. The streets of the CLOUD CITY are hustling and booming. >> Packed. >> Packed in here. All stuff, great stuff. Thanks for coming on. >> Yep, thanks so much. >> Bon Jovi is here, we got a shot of Bon Jovi. Do we have a screenshot of Bon Jovi? >> Yeah, there it is. >> There it is, yeah. >> Okay, he's about to come on stage and we're going to take a break here. We're going to take and send it back to Adam and the team in the studio. Thanks guys.

(bright music) >> Welcome back to the CUBE presents the AWS Startup Showcase The Next Big Thing in cloud startups with AI security and life science tracks, 15 hottest growing startups are presented. And we had a great opening keynote with luminaries in the industry. And now our closing keynote is to get a deeper dive on cracking the code in the enterprise, how startups are changing the game and helping companies change. And they're also changing the game of open source. We have a great guest, Katie Drucker, Head of Business Development, Madrona Venture Group. Katie, thank you for coming on the CUBE for this special closing keynote. >> Thank you for having me, I appreciate it. >> So one of the topics we talked about with Soma from Madrona on the opening keynote, as well as Ali from Databricks is how startups are seeing success faster. So that's the theme of the Cloud speed, agility, but the game has changed in the enterprise. And I want to really discuss with you how growth changes and growth strategy specifically. They talk, go to market. We hear things like good sales to enterprise sales, organic, freemium, there's all kinds of different approaches, but at the end of the day, the most successful companies, the ones that might not be known that just come out of nowhere. So the economics are changing and the buyers are thinking differently. So let's explore that topic. So take us through your view 'cause you have a lot of experience. But first talk about your role at Madrona, what you do. >> Absolutely all great points. So my role at Madrona, I think I have personally one of the more enviable jobs and that my job is to... I get the privilege of working with all of these fantastic entrepreneurs in our portfolio and doing whatever we can as a firm to harness resources, knowledge, expertise, connections, to accelerate their growth. So my role in setting up business development is taking a look at all of those tools in the tool chest and partnering with the portfolio to make it so. And in our portfolio, we have a wide range of companies, some rely on enterprise sales, some have other go to markets. Some are direct to consumer, a wide range. >> Talk about the growth strategies that you see evolving because what's clear with the pandemic. And as we come out of it is that there are growth plays happening that don't look a little bit differently, more obvious now because of the Cloud scale, we're seeing companies like Databricks, like Snowflake, like other companies that have been built on the cloud or standalone. What are some of the new growth techniques, or I don't want to say growth hacking, that is a pejorative term, but like just a way for companies to quickly describe their value to an enterprise buyer who's moving away from the old RFP days of vendor selection. The game has changed. So take us through how you see secret key and unlocking that new equation of how to present value to an enterprise and how you see enterprises evaluating startups. >> Yes, absolutely. Well, and that's got a question, that's got a few components nestled in what I think are some bigger trends going on. AWS of course brought us the Cloud first. I think now the Cloud is more and more a utility. And so it's incumbent upon thinking about how an enterprise 'cause using the Cloud is going to go up the value stack and partner with its cloud provider and other service providers. I think also with that agility of operations, you have thinning, if you will, the systems of record and a lot of new entrance into this space that are saying things like, how can we harness AIML and other emerging trends to provide more value directly around work streams that were historically locked into those systems of record? And then I think you also have some price plans that are far more flexible around usage based as opposed to just flat subscription or even these big clunky annual or multi-year RFP type stuff. So all of those trends are really designed in ways that favor the emerging startup. And I think if done well, and in partnership with those underlying cloud providers, there can be some amazing benefits that the enterprise realizes an opportunity for those startups to grow. And I think that's what you're seeing. I think there's also this emergence of a buyer that's different than the CIO or the site the CISO. You have things with low code, no code. You've got other buyers in the organization, other line of business executives that are coming to the table, making software purchase decisions. And then you also have empowered developers that are these citizen builders and developer buyers and personas that really matter. So lots of inroads in places for a startup to reach in the enterprise to make a connection and to bring value. That's a great insight. I want to ask that just if you don't mind follow up on that, you mentioned personas. And what we're seeing is the shift happens. There's new roles that are emerging and new things that are being reconfigured or refactored if you will, whether it's human resources or AI, and you mentioned ML playing a role in automation. These are big parts of the new value proposition. How should companies posture to the customer? Because I don't want to say pivot 'cause that means it's not working but mostly extending our iterating around their positioning because as new things have not yet been realized, it might not be operationalized in a company or maybe new things need to be operationalized, it's a new solution for that. Positioning the value is super important and a lot of companies often struggle with that, but also if they get it right, that's the key. What's your feeling on startups in their positioning? So people will dismiss it like, "Oh, that's marketing." But maybe that's important. What's your thoughts on the great positioning question? >> I've been in this industry a long time. And I think there are some things that are just tried and true, and it is not unique to tech, which is, look, you have to tell a story and you have to reach the customer and you have to speak to the customer's need. And what that means is, AWS is a great example. They're famous for the whole concept of working back from the customer and thinking about what that customer's need is. I think any startup that is looking to partner or work alongside of AWS really has to embody that very, very customer centric way of thinking about things, even though, as we just talked about those personas are changing who that customer really is in the enterprise. And then speaking to that value proposition and meeting that customer and creating a dialogue with them that really helps to understand not only what their pain points are, but how you were offering solves those pain points. And sometimes the customer doesn't realize that that is their pain point and that's part of the education and part of the way in which you engage that dialogue. That doesn't change a lot, just generation to generation. I think the modality of how we have that dialogue, the methods in which we choose to convey that change, but that basic discussion is what makes us human. >> What's your... Great, great, great insight. I want to ask you on the value proposition question again, the question I often get, and it's hard to answer is am I competing on value or am I competing on commodity? And depending on where you're in the stack, there could be different things like, for example, land is getting faster, smaller, cheaper, as an example on Amazon. That's driving down to low cost high value, but it shifts up the stack. You start to see in companies this changing the criteria for how to evaluate. So an enterprise might be struggling. And I often hear enterprises say, "I don't know how to pick who I need. I buy tools, I don't buy many platforms." So they're constantly trying to look for that answer key, if you will, what's your thoughts on the changing requirements of an enterprise? And how to do vendor selection. >> Yeah, so obviously I don't think there's a single magic bullet. I always liked just philosophically to think about, I think it's always easier and frankly more exciting as a buyer to want to buy stuff that's going to help me make more revenue and build and grow as opposed to do things that save me money. And just in a binary way, I like to think which side of the fence are you sitting on as a product offering? And the best ways that you can articulate that, what opportunities are you unlocking for your customer? The problems that you're solving, what kind of growth and what impact is that going to lead to, even if you're one or two removed from that? And again, that's not a new concept. And I think that the companies that have that squarely in mind when they think about their go-to market strategy, when they think about the dialogue they're having, when they think about the problems that they're solving, find a much faster path. And I think that also speaks to why we're seeing so many explosion in the line of business, SAS apps that are out there. Again, that thinning of the systems of record, really thinking about what are the scenarios and work streams that we can have happened that are going to help with that revenue growth and unlocking those opportunities. >> What's the common startup challenge that you see when they're trying to do business development? Usually they build the product first, product led value, you hear that a lot. And then they go, "Okay, we're ready to sell, hire a sales guy." That seems to be shifting away because of the go to markets are changing. What are some of the challenges that startups have? What are some that you're seeing? >> Well, and I think the point that you're making about the changes are really almost a result of the trends that we're talking about. The sales organization itself is becoming... These work streams are becoming instrumented. Data is being collected, insights are being derived off of those things. So you see companies like Clary or Highspot or two examples or tutorial that are in our portfolio that are looking at that action and making the art of sales and marketing far more sophisticated overall, which then leads to the different growth hacking and the different insights that are driven. I think the common mistakes that I see across the board, especially with earlier stage startups, look you got to find product market fit. I think that's always... You start with a thesis or a belief and a passion that you're building something that you think the market needs. And it's a lot of dialogue you have to have to make sure that you do find that. I think once you find that another common problem that I see is leading with an explanation of technology. And again, not focusing on the buyer or the... Sorry, the buyer about solving a problem and focusing on that problem as opposed to focusing on how cool your technology is. Those are basic and really, really simple. And then I think setting a set of expectations, especially as it comes to business development and partnering with companies like AWS. The researching that you need to adequately meet the demand that can be turned on. And then I'm sure you heard about from Databricks, from an organization like AWS, you have to be pragmatic. >> Yeah, Databricks gone from zero a software sales a few years ago to over a billion. Now it looks like a Snowflake which came out of nowhere and they had a great product, but built on Amazon, they became the data cloud on top of Amazon. And now they're growing just whole new business models and new business development techniques. Katie, thank you for sharing your insight here. The CUBE's closing keynote. Thanks for coming on. >> Appreciate it, thank you. >> Okay, Katie Drucker, Head of Business Development at Madrona Venture Group. Premier VC in the Seattle area and beyond they're doing a lot of cloud action. And of course they know AWS very well and investing in the ecosystem. So great, great stuff there. Next up is Peter Wagner partner at Wing.VX. Love this URL first of all 'cause of the VC domain extension. But Peter is a long time venture capitalist. I've been following his career. He goes back to the old networking days, back when the internet was being connected during the OSI days, when the TCP IP open systems interconnect was really happening and created so much. Well, Peter, great to see you on the CUBE here and congratulations with success at Wing VC. >> Yeah, thanks, John. It's great to be here. I really appreciate you having me. >> Reason why I wanted to have you come on. First of all, you had a great track record in investing over many decades. You've seen many waves of innovation, startups. You've seen all the stories. You've seen the movie a few times, as I say. But now more than ever, enterprise wise it's probably the hottest I've ever seen. And you've got a confluence of many things on the stack. You were also an early seed investor in Snowflake, well-regarded as a huge success. So you've got your eye on some of these awesome deals. Got a great partner over there has got a network experience as well. What is the big aha moment here for the industry? Because it's not your classic enterprise startups anymore. They have multiple things going on and some of the winners are not even known. They come out of nowhere and they connect to enterprise and get the lucrative positions and can create a moat and value. Like out of nowhere, it's not the old way of like going to the airport and doing an RFP and going through the stringent requirements, and then you're in, you get to win the lucrative contract and you're in. Not anymore, that seems to have changed. What's your take on this 'cause people are trying to crack the code here and sometimes you don't have to be well-known. >> Yeah, well, thank goodness the game has changed 'cause that old thing was (indistinct) So I for one don't miss it. There was some modernization movement in the enterprise and the modern enterprise is built on data powered by AI infrastructure. That's an agile workplace. All three of those things are really transformational. There's big investments being made by enterprises, a lot of receptivity and openness to technology to enable all those agendas, and that translates to good prospects for startups. So I think as far as my career goes, I've never seen a more positive or fertile ground for startups in terms of penetrating enterprise, it doesn't mean it's easy to do, but you have a receptive audience on the other side and that hasn't necessarily always been the case. >> Yeah, I got to ask you, I know that you're a big sailor and your family and Franks Lubens also has a boat and sailing metaphor is always good to have 'cause you got to have a race that's being run and they have tactics. And this game that we're in now, you see the successes, there's investment thesises, and then there's also actually bets. And I want to get your thoughts on this because a lot of enterprises are trying to figure out how to evaluate startups and starts also can make the wrong bet. They could sail to the wrong continent and be in the wrong spot. So how do you pick the winners and how should enterprises understand how to pick winners too? >> Yeah, well, one of the real important things right now that enterprise is facing startups are learning how to do and so learning how to leverage product led growth dynamics in selling to the enterprise. And so product led growth has certainly always been important consumer facing companies. And then there's a few enterprise facing companies, early ones that cracked the code, as you said. And some of these examples are so old, if you think about, like the ones that people will want to talk about them and talk about Classy and want to talk about Twilio and these were of course are iconic companies that showed the way for others. But even before that, folks like Solar Winds, they'd go to market model, clearly product red, bottom stuff. Back then we didn't even have those words to talk about it. And then some of the examples are so enormous if think about them like the one right in front of your face, like AWS. (laughing) Pretty good PLG, (indistinct) but it targeted builders, it targeted developers and flipped over the way you think about enterprise infrastructure, as a result some how every company, even if they're harnessing relatively conventional sales and marketing motion, and you think about product led growth as a way to kick that motion off. And so it's not really an either word even more We might think OPLJ, that means there's no sales keep one company not true, but here's a way to set the table so that you can very efficiently use your sales and marketing resources, only have the most attractive targets and ones that are really (indistinct) >> I love the product led growth. I got to ask you because in the networking days, I remember the term inevitability was used being nested in a solution that they're just going to Cisco off router and a firewall is one you can unplug and replace with another vendor. Cisco you'd have to go through no switching costs were huge. So when you get it to the Cloud, how do you see the competitiveness? Because we were riffing on this with Ali, from Databricks where the lock-in might be value. The more value provider is the lock-in. Is their nestedness? Is their intimate ability as a competitive advantage for some of these starts? How do you look at that? Because startups, they're using open source. They want to have a land position in an enterprise, but how do they create that sustainable competitive advantage going forward? Because again, this is what you do. You bet on ones that you can see that could establish a model whatever we want to call it, but a competitive advantage and ongoing nested position. >> Sometimes it has to do with data, John, and so you mentioned Snowflake a couple of times here, a big part of Snowflake's strategy is what they now call the data cloud. And one of the reasons you go there is not to just be able to process data, to actually get access to it, exchange with the partners. And then that of course is a great reason for the customers to come to the Snowflake platform. And so the more data it gets more customers, it gets more data, the whole thing start spinning in the right direction. That's a really big example, but all of these startups that are using ML in a fundamental way, applying it in a novel way, the data modes are really important. So getting to the right data sources and training on it, and then putting it to work so that you can see that in this process better and doing this earlier on that scale. That's a big part of success. Another company that I work with is a good example that I call (indistinct) which works in sales technology space, really crushing it in terms of building better sales organizations both at performance level, in terms of the intelligence level, and just overall revenue attainment using ML, and using novel data sources, like the previously lost data or phone calls or Zoom calls as you already know. So I think the data advantages are really big. And smart startups are thinking through it early. >> It's interest-- >> And they're planning by the way, not to ramble on too much, but they're betting that PLG strategy. So their land option is designed not just to be an interesting way to gain usage, but it's also a way to gain access to data that then enables the expand in a component. >> That is a huge call-out point there, I was going to ask another question, but I think that is the key I see. It's a new go to market in a way. product led with that kind of approach gets you a beachhead and you get a little position, you get some data that is a cloud model, it means variable, whatever you want to call it variable value proposition, value proof, or whatever, getting that data and reiterating it. So it brings up the whole philosophical question of okay, product led growth, I love that with product led growth of data, I get that. Remember the old platform versus a tool? That's the way buyers used to think. How has that changed? 'Cause now almost, this conversation throws out the whole platform thing, but isn't like a platform. >> It looks like it's all. (laughs) you can if it is a platform, though to do that you can reveal that later, but you're looking for adoption, so if it's down stock product, you're looking for adoption by like developers or DevOps people or SOEs, and they're trying to solve a problem, and they want rapid gratification. So they don't want to have an architectural boomimg, placed in front of them. And if it's up stock product and application, then it's a user or the business or whatever that is, is adopting the application. And again, they're trying to solve a very specific problem. You need instant and immediate obvious time and value. And now you have a ticket to the dance and build on that and maybe a platform strategy can gradually take shape. But you know who's not in this conversation is the CIO, it's like, "I'm always the last to know." >> That's the CISO though. And they got him there on the firing lines. CISOs are buying tools like it's nobody's business. They need everything. They'll buy anything or you go meet with sand, they'll buy it. >> And you make it sound so easy. (laughing) We do a lot of security investment if only (indistinct) (laughing) >> I'm a little bit over the top, but CISOs are under a lot of pressure. I would talk to the CISO at Capital One and he was saying that he's on Amazon, now he's going to another cloud, not as a hedge, but he doesn't want to focus development teams. So he's making human resource decisions as well. Again, back to what IT used to be back in the old days where you made a vendor decision, you built around it. So again, clouds play that way. I see that happening. But the question is that I think you nailed this whole idea of cross hairs on the target persona, because you got to know who you are and then go to the market. So if you know you're a problem solving and the lower in the stack, do it and get a beachhead. That's a strategy, you can do that. You can't try to be the platform and then solve a problem at the same time. So you got to be careful. Is that what you were getting at? >> Well, I think you just understand what you're trying to achieve in that line of notion. And how those dynamics work and you just can't drag it out. And they could make it too difficult. Another company I work with is a very strategic cloud data platform. It's a (indistinct) on systems. We're not trying to foist that vision though (laughs) or not adopters today. We're solving some thorny problems with them in the short term, rapid time to value operational needs in scale. And then yeah, once they found success with (indistinct) there's would be an opportunity to be increasing the platform, and an obstacle for those customers. But we're not talking about that. >> Well, Peter, I appreciate you taking the time and coming out of a board meeting, I know that you're super busy and I really appreciate you making time for us. I know you've got an impressive partner in (indistinct) who's a former Sequoia, but Redback Networks part of that company over the years, you guys are doing extremely well, even a unique investment thesis. I'd like you to put the plug in for the firm. I think you guys have a good approach. I like what you guys are doing. You're humble, you don't brag a lot, but you make a lot of great investments. So could you take them in to explain what your investment thesis is and then how that relates to how an enterprise is making their investment thesis? >> Yeah, yeah, for sure. Well, the concept that I described earlier that the modern enterprise movement as a workplace built on data powered by AI. That's what we're trying to work with founders to enable. And also we're investing in companies that build the products and services that enable that modern enterprise to exist. And we do it from very early stages, but with a longterm outlook. So we'll be leading series and series, rounds of investment but staying deeply involved, both operationally financially throughout the whole life cycle of the company. And then we've done that a bunch of times, our goal is always the big independent public company and they don't always make it but enough for them to have it all be worthwhile. An interesting special case of this, and by the way, I think it intersects with some of startup showcase here is in the life sciences. And I know you were highlighting a lot of healthcare websites and deals, and that's a vertical where to disrupt tremendous impact of data both new data availability and new ways to put it to use. I know several of my partners are very focused on that. They call it bio-X data. It's a transformation all on its own. >> That's awesome. And I think that the reason why we're focusing on these verticals is if you have a cloud horizontal scale view and vertically specialized with machine learning, every vertical is impacted by data. It's so interesting that I think, first start, I was probably best time to be a cloud startup right now. I really am bullish on it. So I appreciate you taking the time Peter to come in again from your board meeting, popping out. Thanks for-- (indistinct) Go back in and approve those stock options for all the employees. Yeah, thanks for coming on. Appreciate it. >> All right, thank you John, it's a pleasure. >> Okay, Peter Wagner, Premier VC, very humble Wing.VC is a great firm. Really respect them. They do a lot of great investing investments, Snowflake, and we have Dave Vellante back who knows a lot about Snowflake's been covering like a blanket and Sarbjeet Johal. Cloud Influencer friend of the CUBE. Cloud commentator and cloud experience built clouds, runs clouds now invests. So V. Dave, thanks for coming back on. You heard Peter Wagner at Wing VC. These guys have their roots in networking, which networking back in the day was, V. Dave. You remember the internet Cisco days, remember Cisco, Wellfleet routers. I think Peter invested in Arrow Point, remember Arrow Point, that was about in the 495 belt where you were. >> Lynch's company. >> That was Chris Lynch's company. I think, was he a sales guy there? (indistinct) >> That was his first big hit I think. >> All right, well guys, let's wrap this up. We've got a great program here. Sarbjeet, thank you for coming on. >> No worries. Glad to be here todays. >> Hey, Sarbjeet. >> First of all, really appreciate the Twitter activity lately on the commentary, the observability piece on Jeremy Burton's launch, Dave was phenomenal, but Peter was talking about this dynamic and I think ties this cracking the code thing together, which is there's a product led strategy that feels like a platform, but it's also a tool. In other words, it's not mutually exclusive, the old methods thrown out the window. Land in an account, know what problem you're solving. If you're below the stack, nail it, get data and go from there. If you're a process improvement up the stack, you have to much more of a platform longer-term sale, more business oriented, different motions, different mechanics. What do you think about that? What's your reaction? >> Yeah, I was thinking about this when I was listening to some of the startups pitching, if you will, or talking about what they bring to the table in this cloud scale or cloud era, if you will. And there are tools, there are applications and then they're big monolithic platforms, if you will. And then they're part of the ecosystem. So I think the companies need to know where they play. A startup cannot be platform from the get-go I believe. Now many aspire to be, but they have to start with tooling. I believe in, especially in B2B side of things, and then go into the applications, one way is to go into the application area, if you will, like a very precise use cases for certain verticals and stuff like that. And other parties that are going into the platform, which is like horizontal play, if you will, in technology. So I think they have to understand their age, like how old they are, how new they are, how small they are, because when their size matter when you are procuring as a big business, procuring your technology vendors size matters and the economic viability matters and their proximity to other windows matter as well. So I think we'll jump into that in other discussions later, but I think that's key, as you said. >> I would agree with that. I would phrase it in my mind, somewhat differently from Sarbjeet which is you have product led growth, and that's your early phase and you get product market fit, you get product led growth, and then you expand and there are many, many examples of this, and that's when you... As part of your team expansion strategy, you're going to get into the platform discussion. There's so many examples of that. You take a look at Ali Ghodsi today with what's happening at Databricks, Snowflake is another good example. They've started with product led growth. And then now they're like, "Okay, we've got to expand the team." Okta is another example that just acquired zero. That's about building out the platform, versus more of a point product. And there's just many, many examples of that, but you cannot to your point, very hard to start with a platform. Arm did it, but that was like a one in a million chance. >> It's just harder, especially if it's new and it's not operationalized yet. So one of the things Dave that we've observed the Cloud is some of the best known successes where nobody's not known at all, database we've been covering from the beginning 'cause we were close to that movement when they came out of Berkeley. But they still were misunderstood and they just started generating revenue in only last year. So again, only a few years ago, zero software revenue, now they're approaching a billion dollars. So it's not easy to make these vendor selections anymore. And if you're new and you don't have someone to operate it or your there's no department and the departments changing, that's another problem. These are all like enterprisey problems. What's your thoughts on that, Dave? >> Well, I think there's a big discussion right now when you've been talking all day about how should enterprise think about startups and think about most of these startups they're software companies and software is very capital efficient business. At the same time, these companies are raising hundreds of millions, sometimes over a billion dollars before they go to IPO. Why is that? A lot of it's going to promotion. I look at it as... And there's a big discussion going on but well, maybe sales can be more efficient and more direct and so forth. I really think it comes down to the golden rule. Two things really mattered in the early days in the startup it's sales and engineering. And writers should probably say engineering and sales and start with engineering. And then you got to figure out your go to market. Everything else is peripheral to those two and you don't get those two things right, you struggle. And I think that's what some of these successful startups are proving. >> Sarbjeet, what's your take on that point? >> Could you repeat the point again? Sorry, I lost-- >> As cloud scale comes in this whole idea of competing, the roles are changing. So look at IOT, look at the Edge, for instance, you got all kinds of new use cases that no one actually knows is a problem to solve. It's just pure opportunity. So there's no one's operational I could have a product, but it don't know we can buy it yet. It's a problem. >> Yeah, I think the solutions have to be point solutions and the startups need to focus on the practitioners, number one, not the big buyers, not the IT, if you will, but the line of business, even within that sphere, like just focus on the practitioners who are going to use that technology. I talked to, I think it wasn't Fiddler, no, it was CoreLogics. I think that story was great today earlier in how they kind of struggle in the beginning, they were trying to do a big bang approach as a startup, but then they almost stumbled. And then they found their mojo, if you will. They went to Don the market, actually, that's a very classic theory of disruption, like what we study from Harvard School of Business that you go down the market, go to the non-consumers, because if you're trying to compete head to head with big guys. Because most of the big guys have lot of feature and functionality, especially at the platform level. And if you're trying to innovate in that space, you have to go to the practitioners and solve their core problems and then learn and expand kind of thing. So I think you have to focus on practitioners a lot more than the traditional oracle buyers. >> Sarbjeet, we had a great thread last night in Twitter, on observability that you started. And there's a couple of examples there. Chaos searches and relatively small company right now, they just raised them though. And they're part of this star showcase. And they could've said, "Hey, we're going to go after Splunk." But they chose not to. They said, "Okay, let's kind of disrupt the elk stack and simplify that." Another example is a company observed, you've mentioned Jeremy Burton's company, John. They're focused really on SAS companies. They're not going after initially these complicated enterprise deals because they got to get it right or else they'll get churn, and churn is that silent killer of software companies. >> The interesting other company that was on the showcase was Tetra Science. I don't know if you noticed that one in the life science track, and again, Peter Wagner pointed out the life science. That's an under recognized in the press vertical that's exploding. Certainly during the pandemic you saw it, Tetra science is an R&D cloud, Dave, R&D data cloud. So pharmaceuticals, they need to do their research. So the pandemic has brought to life, this now notion of tapping into data resources, not just data lakes, but like real deal. >> Yeah, you and Natalie and I were talking about that this morning and that's one of the opportunities for R&D and you have all these different data sources and yeah, it's not just about the data lake. It's about the ecosystem that you're building around them. And I see, it's really interesting to juxtapose what Databricks is doing and what Snowflake is doing. They've got different strategies, but they play a part there. You can see how ecosystems can build that system. It's not one company is going to solve all these problems. It's going to really have to be connections across these various companies. And that's what the Cloud enables and ecosystems have all this data flowing that can really drive new insights. >> And I want to call your attention to a tweet Sarbjeet you wrote about Splunk's earnings and they're data companies as well. They got Teresa Carlson there now AWS as the president, working with Doug, that should change the game a little bit more. But there was a thread of the neath there. Andy Thry says to replies to Dave you or Sarbjeet, you, if you're on AWS, they're a fine solution. The world doesn't just revolve around AWS, smiley face. Well, a lot of it does actually. So (laughing) nice point, Andy. But he brings up this thing and Ali brought it up too, Hybrid now is a new operating system for what now Edge does. So we got Mobile World Congress happening this month in person. This whole Telco 5G brings up a whole nother piece of the Cloud puzzle. Jeff Barr pointed out in his keynote, Dave. Guys, I want to get your reaction. The Edge now is... I'm calling it the super Edge because it's not just Edge as we know it before. You're going to have these pops, these points of presence that are going to have wavelength as your spectrum or whatever they have. I think that's the solution for Azure. So you're going to have all this new cloud power for low latency applications. Self-driving delivery VR, AR, gaming, Telemetry data from Teslas, you name it, it's happening. This is huge, what's your thoughts? Sarbjeet, we'll start with you. >> Yeah, I think Edge is like bound to happen. And for many reasons, the volume of data is increasing. Our use cases are also expanding if you will, with the democratization of computer analysis. Specialization of computer, actually Dave wrote extensively about how Intel and other chip players are gearing up for that future if you will. Most of the inference in the AI world will happen in the field close to the workloads if you will, that can be mobility, the self-driving car that can be AR, VR. It can be healthcare. It can be gaming, you name it. Those are the few use cases, which are in the forefront and what alarm or use cases will come into the play I believe. I've said this many times, Edge, I think it will be dominated by the hyperscalers, mainly because they're building their Metro data centers now. And with a very low latency in the Metro areas where the population is, we're serving the people still, not the machines yet, or the empty areas where there is no population. So wherever the population is, all these big players are putting their data centers there. And I think they will dominate the Edge. And I know some Edge lovers. (indistinct) >> Edge huggers. >> Edge huggers, yeah. They don't like the hyperscalers story, but I think that's the way were' going. Why would we go backwards? >> I think you're right, first of all, I agree with the hyperscale dying you look at the top three clouds right now. They're all in the Edge, Hardcore it's a huge competitive battleground, Dave. And I think the missing piece, that's going to be uncovered at Mobile Congress. Maybe they'll miss it this year, but it's the developer traction, whoever wins the developer market or wins the loyalty, winning over the market or having adoption. The applications will drive the Edge. >> And I would add the fourth cloud is Alibaba. Alibaba is actually bigger than Google and they're crushing it as well. But I would say this, first of all, it's popular to say, "Oh not everything's going to move into the Cloud, John, Dave, Sarbjeet." But the fact is that AWS they're trend setter. They are crushing it in terms of features. And you'd look at what they're doing in the plumbing with Annapurna. Everybody's following suit. So you can't just ignore that, number one. Second thing is what is the Edge? Well, the edge is... Where's the logical place to process the data? That's what the Edge is. And I think to your point, both Sarbjeet and John, the Edge is going to be won by developers. It's going to be one by programmability and it's going to be low cost and really super efficient. And most of the data is going to stay at the Edge. And so who is in the best position to actually create that? Is it going to be somebody who was taking an x86 box and throw it over the fence and give it a fancy name with the Edge in it and saying, "Here's our Edge box." No, that's not what's going to win the Edge. And so I think first of all it's huge, it's wide open. And I think where's the innovation coming from? I agree with you it's the hyperscalers. >> I think the developers as John said, developers are the kingmakers. They build the solutions. And in that context, I always talk about the skills gravity, a lot of people are educated in certain technologies and they will keep using those technologies. Their proximity to that technology is huge and they don't want to learn something new. So as humans we just tend to go what we know how to use it. So from that front, I usually talk with consumption economics of cloud and Edge. It has to focus on the practitioners. And in this case, practitioners are developers because you're just cooking up those solutions right now. We're not serving that in huge quantity right now, but-- >> Well, let's unpack that Sarbjeet, let's unpack that 'cause I think you're right on the money on that. The consumption of the tech and also the consumption of the application, the end use and end user. And I think the reason why hyperscalers will continue to dominate besides the fact that they have all the resource and they're going to bring that to the Edge, is that the developers are going to be driving the applications at the Edge. So if you're low latency Edge, that's going to open up new applications, not just the obvious ones I did mention, gaming, VR, AR, metaverse and other things that are obvious. There's going to be non-obvious things that are going to be huge that are going to come out from the developers. But the Cloud native aspect of the hyperscalers, to me is where the scales are tipping, let me explain. IT was built to build a supply resource to the businesses who were writing business applications. Mostly driven by IBM in the mainframe in the old days, Dave, and then IT became IT. Telcos have been OT closed, "This is our thing, that's it." Now they have to open up. And the Cloud native technologies is the fastest way to value. And I think that paths, Sarbjeet is going to be defined by this new developer and this new super Edge concept. So I think it's going to be wide open. I don't know what to say. I can't guess, but it's going to be creative. >> Let me ask you a question. You said years ago, data's new development kit, does low code and no code to Sarbjeet's point, change the equation? In other words, putting data in the hands of those OT professionals, those practitioners who have the context. Does low-code and no-code enable, more of those protocols? I know it's a bromide, but the citizen developer, and what impact does that have? And who's in the best position? >> Well, I think that anything that reduces friction to getting stuff out there that can be automated, will increase the value. And then the question is, that's not even a debate. That's just fact that's going to be like rent, massive rise. Then the issue comes down to who has the best asset? The software asset that's eating the world or the tower and the physical infrastructure. So if the physical infrastructure aka the Telcos, can't generate value fast enough, in my opinion, the private equity will come in and take it over, and then refactor that business model to take advantage of the over the top software model. That to me is the big stare down competition between the Telco world and this new cloud native, whichever one yields in valley is going to blink first, if you say. And I think the Cloud native wins this one hands down because the assets are valuable, but only if they enable the new model. If the old model tries to hang on to the old hog, the old model as the Edge hugger, as Sarbjeet says, they'll just going to slowly milk that cow dry. So it's like, it's over. So to me, they have to move. And I think this Mobile World Congress day, we will see, we will be looking for that. >> Yeah, I think that in the Mobile World Congress context, I think Telcos should partner with the hyperscalers very closely like everybody else has. And they have to cave in. (laughs) I usually say that to them, like the people came in IBM tried to fight and they cave in. Other second tier vendors tried to fight the big cloud vendors like top three or four. And then they cave in. okay, we will serve our stuff through your cloud. And that's where all the buyers are congregating. They're going to buy stuff along with the skills gravity, the feature proximity. I've got another term I'll turn a coin. It matters a lot when you're doing one thing and you want to do another thing when you're doing all this transactional stuff and regular stuff, and now you want to do data science, where do you go? You go next to it, wherever you have been. Your skills are in that same bucket. And then also you don't have to write a new contract with a new vendor, you just go there. So in order to serve, this is a lesson for startups as well. You need to prepare yourself for being in the Cloud marketplaces. You cannot go alone independently to fight. >> Cloud marketplace is going to replace procurement, for sure, we know that. And this brings up the point, Dave, we talked about years ago, remember on the CUBE. We said, there's going to be Tier two clouds. I used that word in quotes cause nothing... What does it even mean Tier two. And we were talking about like Amazon, versus Microsoft and Google. We set at the time and Alibaba but they're in China, put that aside for a second, but the big three. They're going to win it all. And they're all going to be successful to a relative terms, but whoever can enable that second tier. And it ended up happening, Snowflake is that example. As is Databricks as is others. So Google and Microsoft as fast as they can replicate the success of AWS by enabling someone to build their business on their cloud in a way that allows the customer to refactor their business will win. They will win most of the lion's share my opinion. So I think that applies to the Edge as well. So whoever can come in and say... Whichever cloud says, "I'm going to enable the next Snowflake, the next enterprise solution." I think takes it. >> Well, I think that it comes back... Every conversation coming back to the data. And if you think about the prevailing way in which we treated data with the exceptions of the two data driven companies in their quotes is as we've shoved all the data into some single repository and tried to come up with a single version of the truth and it's adjudicated by a centralized team, with hyper specialized roles. And then guess what? The line of business, there's no context for the business in that data architecture or data Corpus, if you will. And then the time it takes to go from idea for a data product or data service commoditization is way too long. And that's changing. And the winners are going to be the ones who are able to exploit this notion of leaving data where it is, the point about data gravity or courting a new term. I liked that, I think you said skills gravity. And then enabling the business lines to have access to their own data teams. That's exactly what Ali Ghodsi, he was saying this morning. And really having the ability to create their own data products without having to go bow down to an ivory tower. That is an emerging model. All right, well guys, I really appreciate the wrap up here, Dave and Sarbjeet. I'd love to get your final thoughts. I'll just start by saying that one of the highlights for me was the luminary guests size of 15 great companies, the luminary guests we had from our community on our keynotes today, but Ali Ghodsi said, "Don't listen to what everyone's saying in the press." That was his position. He says, "You got to figure out where the puck's going." He didn't say that, but I'm saying, I'm paraphrasing what he said. And I love how he brought up Sky Cloud. I call it Sky net. That's an interesting philosophy. And then he also brought up that machine learning auto ML has got to be table stakes. So I think to me, that's the highlight walk away. And the second one is this idea that the enterprises have to have a new way to procure and not just the consumption, but some vendor selection. I think it's going to be very interesting as value can be proved with data. So maybe the procurement process becomes, here's a beachhead, here's a little bit of data. Let me see what it can do. >> I would say... Again, I said it was this morning, that the big four have given... Last year they spent a hundred billion dollars more on CapEx. To me, that's a gift. In so many companies, especially focusing on trying to hang onto the legacy business. They're saying, "Well not everything's going to move to the Cloud." Whatever, the narrative should change to, "Hey, thank you for that gift. We're now going to build value on top of the Cloud." Ali Ghodsi laid that out, how Databricks is doing it. And it's clearly what Snowflake's new with the data cloud. It basically a layer that abstracts all that underlying complexity and add value on top. Eventually going out to the Edge. That's a value added model that's enabled by the hyperscalers. And that to me, if I have to evaluate where I'm going to place my bets as a CIO or IT practitioner, I'm going to look at who are the ones that are actually embracing that investment that's been made and adding value on top in a way that can drive my data-driven, my digital business or whatever buzzword you want to throw on. >> Yeah, I think we were talking about the startups in today's sessions. I think for startups, my advice is to be as close as you can be to hyperscalers and anybody who awards them, they will cave in at the end of the day, because that's where the whole span of gravity is. That's what the innovation gravity is, everybody's gravitating towards that. And I would say quite a few times in the last couple of years that the rate of innovation happening in a non-cloud companies, when I talk about non-cloud means are not public companies. I think it's like diminishing, if you will, as compared to in cloud, there's a lot of innovation. The Cloud companies are not paying by power people anymore. They have all sophisticated platforms and leverage those, and also leverage the marketplaces and leverage their buyers. And the key will be how you highlight yourself in that cloud market place if you will. It's like in a grocery store where your product is placed and you have to market around it, and you have to have a good story telling team in place as well after you do the product market fit. I think that's a key. I think just being close to the Cloud providers, that's the way to go for startups. >> Real, real quick. Each of you talk about what it takes to crack the code for the enterprise in the modern era now. Dave, we'll start with you. What's it take? (indistinct) >> You got to have it be solving a problem that is 10X better at one 10th a cost of anybody else, if you're a small company, that rule number one. Number two is you obviously got to get product market fit. You got to then figure out. And I think, and again, you're in your early phases, you have to be almost processed builders, figure out... Your KPIs should all be built around retention. How do I define customer success? How do I keep customers and how do I make them loyal so that I know that my cost of acquisition is going to be at least one-third or lower than my lifetime value of that customer? So you've got to nail that. And then once you nail that, you've got to codify that process in the next phase, which really probably gets into your platform discussion. And that's really where you can start to standardize and scale and figure out your go to market and the relationship between marketing spend and sales productivity. And then when you get that, then you got to move on to figure out your Mot. Your Mot might just be a brand. It might be some secret sauce, but more often than not though, it's going to be the relationship that you build. And I think you've got to think about those phases and in today's world, you got to move really fast. Sarbjeet, real quick. What's the secret to crack the code? >> I think the secret to crack the code is partnership and alliances. As a small company selling to the bigger enterprises, the vendors size will be one of the big objections. Even if they don't say it, it's on the back of their mind, "What if these guys disappear tomorrow what would we do if we pick this technology?" And another thing is like, if you're building on the left side, which is the developer side, not on the right side, which is the operations or production side, if you will, you have to understand the sales cycles are longer on the right side and left side is easier to get to, but that's why we see a lot more startups. And on the left side of your DevOps space, if you will, because it's easier to sell to practitioners and market to them and then show the value correctly. And also understand that on the left side, the developers are very know how hungry, on the right side people are very cost-conscious. So understanding the traits of these different personas, if you will buyers, it will, I think set you apart. And as Dave said, you have to solve a problem, focus on practitioners first, because you're small. You have to solve political problems very well. And then you can expand. >> Well, guys, I really appreciate the time. Dave, we're going to do more of these, Sarbjeet we're going to do more of these. We're going to add more community to it. We're going to add our community rooms next time. We're going to do these quarterly and try to do them as more frequently, we learned a lot and we still got a lot more to learn. There's a lot more contribution out in the community that we're going to tap into. Certainly the CUBE Club as we call it, Dave. We're going to build this actively around Cloud. This is another 20 years. The Edge brings us more life with Cloud, it's really exciting. And again, enterprise is no longer an enterprise, it's just the world now. So great companies here, the next Databricks, the next IPO. The next big thing is in this list, Dave. >> Hey, John, we'll see you in Barcelona. Looking forward to that. Sarbjeet, I know in a second half, we're going to run into each other. So (indistinct) thank you John. >> Trouble has started. Great talking to you guys today and have fun in Barcelona and keep us informed. >> Thanks for coming. I want to thank Natalie Erlich who's in Rome right now. She's probably well past her bedtime, but she kicked it off and emceeing and hosting with Dave and I for this AW startup showcase. This is batch two episode two day. What do we call this? It's like a release so that the next 15 startups are coming. So we'll figure it out. (laughs) Thanks for watching everyone. Thanks. (bright music)

>> Announcer: From the theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hey, welcome back, everybody. Jeff Frick here with theCUBE coming to you from our Palo Alto studios. Today we're going to have a CUBE conversation really about this kind of ongoing evolution of cloud, and it was a huge deal, and AWS came on the scene and really launched kind of the public cloud evolution, which not only was a different technology stack, but really a different way to think about things, a different way to think about workloads. And that has evolved to hybrid cloud and multicloud, and it just continues to evolve over time. So we're going to get some of the experts in from IBM to talk about their perspective and what they're doing all about it. So we're excited to invite our next guest. She is Briana Frank. She's the director of product management for IBM. Briana, good to see you. Where are you joining us from today? >> I am joining you from Wake Forest, North Carolina. And as you can see, I'm from my home office, but always busy working and fun doing things in the cloud and thinking about new technologies even when we're at home. >> Excellent. And also joining us, many-time CUBE alumni Jason McGee, IBM fellow, vice president and CTO of IBM Cloud Platform. Jason, great to see you again. I looked it up before we turned on the cameras. I think you've been on, like, eight times. So you're definitely a VIP in the CUBE alumni world. Where are you joining us from today? >> Yeah, I mean, I'm in Apex, which is outside of Raleigh, and great to be here again. It's always fun to talk to you guys. It's been a little while, but great to be back. >> Yeah, so let's just jump into it, right? You've all seen the memes revolving around what's driving your digital transformation. Is it the CEO, the CIO, or COVID? And we all know the answer to the question. It's really been an interesting time, right? It was kind of a light switch moment in mid-March. And then people are saying, you know, years and years of digital transformation kind of suddenly compressed into this light switch moment. But now we're months and months and months later, we're in October, and it's clear that this is not just a a one-time fix and wait till we all go back to work. This is going to continue for a while. And cloud is such a huge enabler. Had this happened five years ago, 10 years ago, 15 years ago, the ability for information workers, like the businesses that we're in, would've been much more difficult. So acknowledging that there's still a lot of people hurting, a lot, hospitality industry, restaurant industry, sports places that aggregate people, concerts. We're fortunate we're in the information industry. And I'd just love to get your perspective, Jason, on cloud as an enabling platform and really an enabling way of thinking about things that have made this transition a little bit less painful than it otherwise would've been. >> Yeah, that's a great point, Jeff, and I think on one hand it's been pretty amazing to see how much our industry in technology and IT has been able to kind of adapt to COVID, adapt to working at home, adapt to these kinds of changing models. But what's been really interesting is as someone who spends all their time thinking about cloud every day, it's been really incredible to see how much it's accelerated people's adoption of cloud. Like, obviously everyone was leveraging cloud. They had plans to move more and more workloads to cloud. But I think over the last six months we've really seen a massive acceleration, and I also think kind of a mindset shift that maybe before there was some hesitation and conversation about what things move to cloud and what things don't, and that seems to have kind of gone away, and everyone's like, this is the model that not only will carry us through moments like this, but we have newfound confidence that it's the right model for us to move the majority of our businesses to. >> Right. >> So really massive acceleration. >> Massive acceleration. And Briana, get your take, 'cause you're a product manager, so you're in the weeds on the speeds and feeds and the features and functions. Cloud as a concept sounds kind of simple, but the execution is not so simple. And we've seen kind of this morphing from moving your test dev maybe to a public cloud, IBM has a cloud, to there's some stuff that just can't go on the cloud or shouldn't go to the cloud or I'm not sure if it should go in the cloud. So now we're hearing talk of hybrid cloud and multicloud, and we're hearing pieces of public cloud in my own data center and pieces of my own data center in a public cloud. It's a pretty complicated space. I wonder if you can kind of share your perspective as this thing morphs from kind of a simple concept and a beautiful little icon to a much more complex execution in the real world. >> Well, great question and insights. And I think, building off of what Jason said, I think the most important shift I've seen is really a mind shift, a mindset shift. And there's so much more empathy that I'm seeing across the board, whether it's children running in the background or cats and pets, there's a lot more tolerance for work-life balance and a lot more empathy for how people are getting through this really challenging pandemic. And what I think is interesting is that kind of carries over into the technology. And so now where some of our clients were solving problems like keeping their workforce safe by using video analytics to see if someone's using or wearing maybe a hard hat in a construction zone. Now that use case has sort of shifted, and now it's is someone wearing a mask? Do they have a temperature? How do we make sure that the office areas are sanitized and clean so that when people go back to work, they'll be working in a safe environment? So I think that the mindset shift is really driving a lot of these technology innovations. And then of course you need cloud to make those real. So I think that's the kind of aha moment I've seen is that people are leading with empathy and that's driving kind of the next wave of innovation that I'm seeing. >> I have to say I've been doing these many, many years, and Briana, I don't think anyone has brought up empathy at the at the head end of the open. And I love that 'cause I think that's a way to think about it, right? 'Cause these are people trying to execute business activities, and it's not easy. And that's a really great take. Jason, I want to go back to you and talk about one of the things we talked about the cloud, but really it's about enabling applications, right? And really, the application now has become this first class citizen where it's, this is the app I want. Cloud enables me to use whatever infrastructure I need versus this is the infrastructure I have. Hm, what can I put on this app? So I'd love to get your take. As you said, you think about cloud all the time, but really, cloud is an app enabler. And how has, as that capability has been gifted to people, how has that made the the cloud execution a lot more complex? >> Yeah, you know, it's interesting. I think you're hitting on a really key transformation that's happened in cloud over the last few years, which is that it's gone from infrastructure kind of cost optimization to an application delivery accelerator. And what I think that's caused is everyone's starting to kind of move their thinking up the stack in cloud, and you see the rise of technologies like Kubernetes and OpenShift as a platform that enables application developers to build applications and deliver them more quickly. I think the acceleration that we've been talking about here has cemented that. At the end of the day, we're all trying to figure out in our businesses how to adapt to change. We have some new changes this year that maybe we didn't predict we would have last year. We're trying to figure out how to adapt to those to deliver new capabilities, to maybe build a digital experience for something that we didn't have a digital experience for before, 'cause now nobody is face to face. And that requires cloud to be much more application-centric. It requires cloud, you alluded to this kind of evolution. I think it's starting to drive cloud into more places. Cloud isn't about just getting into some big cloud data center somewhere. Cloud is about a style of working and a set of technologies that I want to be able to consume wherever I need them. So that kind of application-centric capability and the rise of cloud-native technologies I think go hand in hand. >> Right, so it got to us from a simple dev swiping a credit card to do a little project on Amazon to now enterprising having very complex ecosystems, right? Very complex situation because they've got lots of different clouds and lots of different apps running on lots of different clouds, and the application and the control of those is now much more complicated than probably when you just had it all in your own data center or if you're some cloud data organization and you grew up on the public cloud and you really are kind of a single app that happens to be a big one in hyperscale. So I'm curious, Briana, you guys have a ton of customers. What are they telling you about what they're doing with hybrid cloud, managing hybrid cloud, trying to get back to some of the simplicity and kind of the simplistic vision and execution when what's happening is probably increasing complexity as different apps are running on different clouds, different places. >> Yeah, great question. You know, I think that what we're hearing from our clients is really a couple of things. One is that they have to find ways to unburden their teams. They only have limited resources and the sky's the limit in terms of what's possible. So they need to be able to innovate faster, but they have to unburden the team. So the rise of "as a service" I think is really coming into its own because teams don't have time to manage things like Kubernetes. They have to go higher in the stack and really start to build and innovate for their own business differentiation. But another I think really important thing that we're hearing from our clients is that we have to meet them where they are in their journey. So what you said was great. A lot of our clients are using five to nine different clouds today, and that's extraordinarily fragmented, and being able to manage and have one way to see what workload is running where and what is running on that workload is really important. And having kind of one single pane of glass where they can manage everything is one of the single most important features that I hear that is needed. And I think the other thing that I hear a lot from clients is they need flexibility. They need flexibility for, you know, where they are in their journey. Some folks, they need to be able to deploy to existing infrastructure that they have in their data center, and others need to be able to deploy to another public cloud. And having the flexibility to run anywhere is one of the more common themes that I'm seeing. >> Right, so, and you guys built something to help with that, right? It's the IBM cloud satellite. So you just basically outlined the customer challenge, so what did you have to do to enable them to have a single pane of glass, to have more control across these disparate projects running in disparate clouds. >> Well, so one of the things that we found is our clients really, all of the agility that they need to adopt cloud data best practices, really comes from the public cloud. The public cloud services, DevOps, all the tools that allow you to really run and move faster and innovate faster, but they needed that ability to consume those public cloud services anywhere. So at the edge, on another public cloud, or in their existing infrastructure. And of course there's tons of infrastructure options. We have infrastructure for our clients that they can use. We have turnkey appliances. But really having that public cloud, cloud-native agility, but really bringing that anywhere that our clients want to run it is the key to satellite. >> Right, right. So it's not kind of what would be typically thought of as a hybrid cloud solution per se, but it's really almost kind of a level up, if I'm hearing you correctly, in controlling all the different kind of instances or instantiations of your cloud execution. That'd be accurate, Jason? >> Yeah, well, or maybe another way to think about it is it's a way of consuming hybrid, right? It's a way of consuming these hybrid cloud capabilities. Hybrid starts with a common platform, and this idea that we are using things like OpenShift as that common technology platform that enables customers to build applications once and run them anywhere. What satellite brings to the table is it takes that base technology platform and it delivers it as a cloud service, and a cloud service that's flexible enough to be anywhere. And so you kind of combine the best of both. You combine a common technology approach and you combine the as a service API-based consumption model of public cloud to get a hybrid strategy that's super flexible, right? And now really lets customers focus on the work that they're doing going faster. And at IBM, we've been pretty clear that we think the future of hybrid cloud computing is rooted in technologies like Kubernetes and OpenShift, that that's the platform of the future. The acquisition of Red Hat was motivated by that strategy. Our public cloud for the last three-plus years has been built internally on top of the same technologies. And so what we've done with satellite from a technology perspective is we've taken the things that we do in our cloud and we've used the power of of Kubernetes and OpenShift to deliver those anywhere, right? And to give customers that same experience on their infrastructure or on some other public cloud. >> Right. I love it because it's kind of cloud on cloud, if you will, but it really supports this notion of the customer experience, and even more importantly in some ways, the developer experience to make sure that your developers inside the house are feeling good, have a great productive environment so they can do a better job with what they're working on. And that that sounds like something they would really, really enjoy and be native to the way they're used to working already. >> It's interesting too, one of the kind of interesting, I don't know, adoption trends we're starting to see with approaches like satellite is if you think about cloud, I'll oversimplify, but you could say there's kind of two big transformations. One is move my workload to a public cloud, and the other is change how my team works, right? Adopt cloud-native, agile best practices. And often to get to the culture change of the team, you had to start with moving the app, but that's hard, especially for the kind of 80% of workloads that we're seeing move to cloud now where they're complex. They have lots of ties into data that you have in your data center. So it's hard to move them sometimes. So with approaches like satellite, you can kind of flip the order. You can bring the cloud in house, if you will. You can start to adopt self-service and API-based consumption and DevOps and change how your teams work and make them more efficient without moving the applications. And then later, if it makes sense to move them, you can, right? And I think that's really powerful. >> Right, right. Briana, I want to go back to you on kind of the nuts and bolts. 'Cause I don't know if you've read "Innovator's Dilemma" by Christian Clayton. You should if you haven't. But one of the things is how do you prioritize what you're building? How do you prioritize your feature stack? Because you have to, right? You have to put one in front of the other, and it's going to drive your design decisions and what you ultimately ship. So as you were thinking about satellite, what were kind of your top-level design priorities that you're really building this towards that you wanted to make sure you really nailed? >> Oh, what a great question. I love that question. I'm so passionate about product and design and I think we take it very seriously at IBM, and it's, we have an amazing design department, if you will, at IBM. And one of the things we do is just relentlessly interview our clients, and we really try to understand what their main issues are. And one of the first use cases that we we looked at was actually in the financial industry, which was, in the financial services industry, the differentiation is really all about the technology itself, and so they're constantly having to innovate at a faster pace so they can bring new features and functions to their clients but they have this dilemma where they have to, in some cases, in many cases, keep the data on-prem in a specific location. And that starts to get really interesting, because sometimes the regulations, it could be country, it could be a compliance thing, but for whatever reason, there is a specific requirement, and sometimes that comes with a fine if that data doesn't reside in that location. So having the ability to move at an incredibly fast pace and keep innovating, but keep that data on-prem and offload the management of Kubernetes and the services that allow them to move fast. That was one of the first use cases that we tackled. And I think that's a pretty important one, because if you can get that right, that starts to permeate all other industries, because you want to, you have to be secure. You have to make sure that the data resides and is on-prem and in a specific location and that it's auditable. So I think that was one of our first use cases, and that has served us really well. We also, one of the things that we do inside of IBM is that we co-develop using our own internal workloads. And so we use the data and AI team within IBM will GA with us when we GA IBM Cloud Satellite, and so their workloads are running on top of satellite. And I think that's a great way to come to market because when you're delivering an MVP, but if you can deliver an MVP that's already running a really complex AI workload, that's a pretty impressive MVP, if you ask me. So we try to do that whenever we release new products, and I think that has served us very well because it really forces us to solve the really hard problems first. We don't have a choice. We have to be able to make some pretty strategic choices upfront to be able to deliver something like that. >> That's great. Jason, I want to go back to you and talk about a little bit beyond the cloud, but things that are really interesting and happening, right? You already talked about this big enabler with containers and Kubernetes, but this next thing that's coming, right, is just edge, which is an extension of the cloud, an outpost to the cloud, but this whole concept of getting outside of the data center but actually now starting to bring the compute to the devices that generate the data as well as need that. How do you see that kind of impacting your cloud thoughts? I love that you're thinking cloud all the time. And the other piece, keying off of what Briana just said, is applied AI, right? I mean, I think we all would agree that AI and machine learning as kind of a standard, generic thing is okay, but really the application of the AI and the machine learning for specific use cases is where we're seeing huge, huge benefit. And I would imagine there's many, many kind of areas within cloud execution that AI and machine learning can start to add even more and more and more efficiencies and automation. >> Sure, sure. So maybe a couple comments. I mean, I think the edge thing is so interesting because if you really kind of step back and think about what we were talking about with cloud, what is a cloud is becoming much more diverse. Started as it's these three regions and it's becoming everybody's data centers plus on-prem, and then it's becoming edge, large edge locations, and then it's becoming devices. So clouds are becoming pervasive as a concept across all IT consumption models. And there's core technologies, even, like containers that we think apply at all those levels. They apply in the core cloud, in the data center, at the edge, in a device. And so things like satellite certainly give us a mechanism to push that boundary, to push closer to the end user. And there's a ton of scenarios motivating that. 5G telecommunications and high-speed networking for mobile devices is necessitating pushing closer to where the data's getting generated. IoT, same thing. If you think about the IoT edge case, that's massive data generation. You don't necessarily want to backhaul that all the way back to a central cloud. You want to be able to do AI and training and inferencing on that data close to where it lives. And so you need this whole idea of cloud to kind of expand, and if it doesn't, then what happens is all of these different use cases become like different technology stacks or different operational models and you get tons of complexity. So it's this really interesting intersection, and I think we're getting much more complex in how we deploy, but we're trying to put common ideas over the top of it to simplify, and I think that's pretty interesting. On the AI question, you're right, there's tons of places where AI, applied AI will come into the picture. At IBM, we're doing a ton of work on AI for IT operations and how do we apply AI modeling to monitoring, to resiliency, even to workload placement. I mean, just think about the world we just described. As a customer, maybe I have IBM cloud and I have 20 satellite locations in all our fun places in the world, and now I have to make decisions about what runs where and where should I deploy my workloads and what's the most efficient way to place workloads to get availability or better performance, and AI plays a role there. So I see a really bright future as we build out this infrastructure to then use AI as a mechanism to further simplify the customer's consumption of cloud. >> Yeah, that's great. So I want to give you both the last word before we sign off, and that was a good summary, Jason. Cloud's been around for a while and it gets tossed around, and again, now we have hybrid and multi and all these different flavors. You guys are in the weeds and you're seeing down the road a little bit. What is it about cloud that most people probably aren't talking about when you kind of look in your crystal ball, obviously don't share any secrets that you can't share, that gets you excited and makes you think, wow, we're still really, hard to believe, but really in the early days of what this really, the kind of opportunities that this opens up. And I'll go with you first, Briana. >> Well, that's a great question. I think we're already starting to see that with the example of all of the work that we're seeing in the COVID space. It just feels like whatever challenge that might lie ahead in our future, we have an ability to quickly iterate and change and adapt. It's so interesting to see how fast we can roll out new technologies and new ideas. Things that would take years to put together you can kind of put together in a week or so with a quick POC. And that's really an exciting kind of place to be that you can adapt and change so quickly. So I think that's one. And I do think your point about edge is really an important one. There's more and more opportunities to distribute workloads closer to, compute goes closer to where the users are, so therefore you're reducing latency, so you're getting instant feedback. And I think that's really going to be interesting. And then I think the third element, again, is like security and compliance. How do you know exactly that your data stays exactly where you want it to, and you can have proof and you can audit that data. I think that's really where the future's headed. >> Yeah, that's great. And Jason, to you, what's getting you up in the morning today? >> Oh, you don't want to know what gets me up today. But if we talk about what's coming, so for me, my whole career, I've really been thinking about applications. And I think one of the kind of macro trends that everyone doesn't always see that's going on in cloud is we're switching from an IT infrastructure-centric view of computing to an application-centric view. And all of these things we've been talking about are kind of steps along that journey. We're getting to a point where I can build applications, I can build them in a consistent way, I can deploy them anywhere in the world on this incredibly diverse infrastructure. As a developer, I have simple, immediate access to world-class capabilities, to specialized hardware. We are really in the midst of a transformation on how we build computing technology and really a democratization of that technology that 10 or 15 years ago you wouldn't have had the, most people would not have had the funds to stand up the technology they needed to build these things. And that's what really gets me excited, because I think about, well, then what's all the innovation that's going to come from that? As more and more developers have access to this powerful infrastructure in these diverse ways, what are they going to create? And that's what's, I think, going on under the covers. I think we're in the middle of a generational transformation of technology that will result in things we can't predict today because we'll open up so many people's ability to leverage that platform. >> What a great thought to close on, Jason, 'cause I think we hear that consistently all the time. What's the key to innovation? Give more people the access to the tools, give more people access to the data and more people the power to do something with it and create. And we hear all the time about the disadvantaged classes of people that just didn't get the opportunity, and if all those people had the same school, the same education, and now the same basically infinite compute power at their disposal, what are they going to invent? And I think it's an exciting future, and I think that's a great place to close. So we'll leave it at that. I want to thank you both for checking in. Briana, great to meet you, and Jason, always good to see you, as well. >> Yeah, nice to meet you. >> Yeah, great to be here, thank you. >> All right, thanks a lot and have a great day. >> Thank you. >> All right, that was Briana and Jason. I'm Jeff. You're watching theCUBE. Thanks for watching. We'll see you next time. (bright music)

>>From around the globe. It's the cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS, and our community partners. >>Hi, everyone. Welcome back to the cubes. Live coverage of AWS reinvent 2020 I'm John Farrow, your hosts. We've got the cube virtual. We're not there in person with remote this year, and we're excited to cover three weeks of wall-to-wall coverage. It's virtual events, so they don't over three weeks. We're in week three, day two. Um, and if you're watching this live on the platform tomorrow, Thursday at two o'clock Andy Jassy, we'll be live here on the cube with one-on-one with me to address all the hard questions, but here we're doing a day two of week three analysis with Jeremy Burton industry legend entrepreneur. Now the CEO of observe Inc, um, formerly the CMO of Dell technologies before that EMC has done a variety of ventures, seeing many ways of innovation, friend of the cube. Jeremy, thank you for coming on. >>Yeah, my pleasure. Great. Always great to be on the cube. >>Uh, great to have you on in particularly because, um, yesterday Verner, Vogel's talked a lot about observability and I noticed you got your observed shirt on, uh, observe Inc is your company's name, which is one of the many, uh, hot startups around observability, where you're making a business out of basically what he talked about yesterday. Um, and today's keynote. You had the extended cloud, uh, edge applications. You had bill Vass who leads up both edge and quantum. And then you had Rudy Valdez who, who talked a lot about, uh, evolution of cloud architecture. And of course you finally had, um, David Richardson, who is the VP of serverless. So you got edge. Quantum serverless architecture speaks to the sea change, Jeremy, and you have a good read on these big waves. When you look at serverless and then quantum, you look at, uh, edge, which is data, and you look at, um, all this coming together and on their architecture, Verner's keynote yesterday kind of makes sense. It's a systems architecture and this new observability trend, isn't like a point product. It's a broader concepts. You have a complete rethinking of distributed computing in the cloud. This is kinda what this Amazon feels like. What's your, what's your take? >>Yeah, it's a, it's a good observation. You know, the, the, the, the sort of punchline is, is that people are building applications differently. Um, so the, the, the, the, the technologies that people are using to build apps are different, um, the way in which they build applications is different. Um, the way folks released codes into production is different, and it stands to reason. Therefore, you're going to need a different approach, uh, when you want to troubleshoot these applications. So, uh, when you find, uh, you know, w w what is show when you want to find out what issues customers are having? So what, what we fell a couple of three years ago when we started to observe was that, um, uh, a new approach was required, what you're going to need to monitor your application. And, you know, 2020 is not the same as what you needed in 2015 or 2010. >>And we felt very strongly that this new wave was, was going to be called observability. It, it brings a tear to my eye to hear a Verner, talk about it, because as much as we observe, you know, believe that we can do big things in future. It's the big vendors today that can move markets. And so the Amazon and vulnerable particular talk about observability, I think it lends more credence to the topic. Um, we think that organizations should have observability teams. We think there should be a head of observability. And again, you know, Amazon and Dawson this, uh, I think means that there's a much stronger chance that that's going to happen. And they're going to start, start to shine a light on, I think, a topic that almost everybody needs to pay attention to as they build their next generation of applications. >>When you guys, I know you guys are launched and you have couple of campaign customers now and growing rapidly, um, well-funded, um, uh, get some great investors have found that the investors of snowflake also, um, invested in you guys. So they see this cloud trend LC snowflake when public, and I know you're on the board of snowflake as well. So, uh, you, you, you know, a little bit about what's going on with Amazon and the opportunity when you look at observability, okay, you're building a business around it. And again, you think about head of observability. That's not like a small thing when you make, put someone in charge of something. So why do you say that? I mean, what, I mean, you know, some would say, you know, Hey, it's a feature, not a company. I mean, this is two mindsets that are different. How do you address that? >>Yeah, the, the, the, the thing I'd say is, look, the number one job in America is, um, is a software engineer is writing code. The number two job is fixing it. And so, you know, th th the job think about that for a second. The job of fixing our applications is almost as big as the job of creating our applications. Uh, something has to change, right? I know the job of fixing cars is not as big as the auto industry. Why, because over time that industry has matured and there are better tools to diagnose cars. Uh, and so they're, they, they become easy to fix over time. We've, we've not made that leap with our applications. Um, the tools that the engineering team use to debug and troubleshoot their application are often still very different to what the dev ops team is using, um, which is very different to what maybe the SRE team is using. >>And so it's a huge problem in our industry. Um, really not being able to diagnose troubleshoot issues when they arise. It, it costs the industry, a fortune, it costs, you know, sort of in indirect wasted productivity of development teams, but it also costs in terms of customer experience. Um, I mean, you know, you and I both know is, look, if we're, if we're having a bad experience with maybe a new service that we're trying out online, w w we're probably going to go somewhere else. And so the there's never been like a more important time for people to invest in observing the entire environment, the entire customer experience, not only will you have happier customers, you might actually reduce the costs and improve the productivity in your engineering team as well. So I feel like the opportunity there is, is, is, is, is vast. Um, I also think longer term, um, it doesn't just apply to troubleshooting distributed applications. >>Um, I think the security systems are very related to the way we build software. Um, I mean, I think in, in, in the news in recent days, we've, we've come attuned, uh, uh, to, to software defects, um, or malware in software causing breaches and government agencies. Um, Hey, that, that could be anybody's software right there. Yeah. And so security has got a role to play in observability and the customer experience. It doesn't stop when they have a bad experience on the website. What if they complain? You know, what if a help desk ticket get, how do you track that? >>Yeah, I'm going to, I have a lot of questions for chassis tomorrow. One of them I'm going to ask him, and I want to get your thoughts on it. Cause you brought that up. And I think it's a key point, you know, building applications and supporting them and fixing them. It kind of reminds me of the old adage of, um, you know, you know, you gotta run it running the operation, 70% of the budget using to running it. If you look at what's happening and if you talk to customers and this is what I'm going to ask chassis tomorrow, Verner actually talked about, I on day two operations in his keynote. Yeah. I mean, this is Amazon they're, they're targeting builders. And so I talked to, um, a few other entrepreneurs, um, who were growing companies and some CIA CIOs and CEOs and the basic enterprises. >>They don't want to be building things like they, that's not their DNA. They don't build things like, that's not what they do. I mean, first of all, I love the builder mentality and with Amazon. Um, but they might be at a time where there might not be enough builders, Jeremy right out there. So you've got skill shortages and then ultimately are enterprises really builders. Yeah. They'll build something, but then they just run it it's. So, so at what point do they stop building or they build their own thing in the cloud and then they got to run it. So I think Amazon is going to shift quickly to day two operations, get bill, bill, bill run, run, run. >>Yeah. That's a great topic of conversation. I think what you sort of poking out is, is sort of the maturation of this digital age in the state that we're at. Um, I mean, if you, if you go back, you, you know, to, you know, 10, 10, 20 years, um, I mean, look at the mid nineties, um, there were a lot of people building custom applications, right? I mean, you know, it was innovation, it was all about building custom apps. And I think that golden era of application development whack that now, um, and, and customers in order to get competitive advantage, they are building their own applications. When you talk about digital transformation, what does that mean? Well, it means, you know, often a traditional company building a new digital experience for services that they've potentially offered in a physical way, uh, in the past. So make no mistake, P people are builders or they are writing code, they are becoming digital. >>I think what you'll find at some point as the industry's mature, some of these digital experience is become packaged. And so you can buy those off the shelf. And so there's less building required. But I think as we sit today, um, that there's probably more code been written in anger by more organizations that at any point in the last 30 years. And, and I think this is another reason why observability is so important, um, as you're building that code and as you're developing that customer experience, you want to be able to understand, um, where the issues are and, and, um, uh, like along the way, you don't want to wait until there's a, a big customer disaster on the day of you roll that, something to production before you start investigate. And you want to do that as you go. >>Yeah. And I think that's a kill. I do agree with you, by the way. I think the, there is a builder mentality, but it's probably right. But remember those days back in it, if you want to put our, our time machine hat on and go through the time machine is, you know, that was during the mainframe client server transition. And it was called spaghetti code. You know, it's like the monoliths were built and then it had to be supported and that became legacy. So I kind of see that happening today, where, um, people are moving to the cloud, they are building, but at some point you got to build your thing in the cloud. If I'm a company. And again, this isn't some dots trying to connect in real time. I got serverless, which is totally cool. I'm gonna have quantum has headroom for compute. >>I'm going to have, um, kind of a S a SOA service oriented architecture with web services, with observability. I'm gonna have all these modern apps great that, or run them. And I'm now I'm gonna shift them. Multiple clouds is so, you know, maybe the private cloud waves coming back, you're seeing telco clouds. You start to see these new tier. I won't say tier two clouds, but I mean, people will build their own cloud environment. There's no doubt as going to the cloud. And Steve Malania, Aviatrix kind of made this point yesterday in his analysis where he's like, he thinks private cloud will be back. I was just, it'll just be public cloud. People will build their own clouds and run them. >>Yeah. I feel well, what happens over time is, is the, the sort of line above which you would add value rises. So I kind of feel like, look, cloud is just going to the infrastructure. We can debate, you know, private cloud, public cloud. Is it a public cloud, or is it a private cloud served up by a public cloud provider? My view is, is look, all of that is, is, um, just going to be commodity, right? Um, it's going to be served up for an ever decreasing cost. And so then it's incumbent on organizations to innovate above that line. And, you know, 20 years ago, you know, we, we built our own data centers. Um, and now increasingly that, that seeming like a crazy idea. Um, and you know, now you can get almost all of your infrastructure from the cloud. The great thing is, I mean, look at observe. >>We have no people running data center operations, none, right? We have no people building a database, non, you know, we use snowflake in the cloud. It runs on AWS. We have, we have one dev ops, uh, engineer. And so all the people in the company right now, we're focused on adding value, helping people understand and analyze data, uh, above that line. And we just pay for a service level and, and look, uh, as time goes by, there's going to be more and more services and that line's going to rise. And so, you know, what, what I care about and what I think a lot of CEOs care about is are most of my resources innovating above that sort of value creation line, um, because that's what people are going to pay for in our business. And I think that's, what's going to represent you, you know, sort of value add for you, you know, organizations big and small. >>Yeah. That's a good point. I want to shift to the next topic and then we'll get into some observability questions I have for you and update on your company. Um, complexity has been a big theme. That's come out of all the conversations with analysts that have come on the cube, as you hear it with Amazon, a lot of undifferentiated, heavy lifting, being extracted away to your point about value layers and competing on value. Amazon continues to do that all great stuff, but some are saying, and we had said on the cube, yes, two days ago you put them complexity behind the curtain. It's still complexity, right? So, so complexity with the edge is highlighted. Uh, even though they got green, uh, I, um, edge core Greengrass, which has core thing, IOT core, a lot of cool things happening, but it's still not yet super easy. So complexity tends to slow things down became striction, what's your view on this? Because taming, the complexity seems to be a post COVID pandemic mandate for cloud journeys. What's your thing. >>Yeah, I totally agree. I think, I think in certainly you look organizations that have been in existence, but you know, 30, 40 years, or maybe even 10 years look at there's an amount of technical debt and complexity that you build up over time. Um, but even newer companies, um, the way that people are building modern distributed applications and in some respects is, is more complex than in days gone by, you know, microservices. Um, some of which maybe you own some of which maybe you don't, and what you've gotta be able to do is, is see the big picture, you know, w w when, when there's something in my code, but then when am I making a call out to maybe a third party microservice and, and that microservices bailing out on me, like people have got to see the big picture. And I think what hasn't been available as people have changed the architecture and their applications, there hasn't been an equivalent set of innovation or evolution in the tools that they use to manage that environment. And so you, you, you, you've got this sort of dichotomy of, uh, a better way for software developers to write code and deploy it into production microservices. But at the same time, you don't have good information and good tools to make sense of that complexity. >>That's great stuff. Jeremy Burton is here. He's the CEO of observe Inc cube, alumni, VIP cube alumni, by the way, has been on the cube every year, since the Q has been around 2010, when he took the new job as the CMO of EMC prior to being bought by Dell, Jeremy, you're a legend in the industry, certainly on as an executive and a marketer. And as an entrepreneur, um, I gotta ask you observe Inc, your company now, um, you're right in the middle of all this, you, you got a big bet going on. Could you share, in your opinion, your words, what is the big bet that you're making with observing? Uh, what are you betting on? How do you see the preferred future unfolding and where are you guys going to capture that value? >>Yes, I I'll big bat. Hey, uh, really is to take a new approach, um, in, in, in, in terms of enabling people to observe their systems, that the term observability actually goes back, uh, to a guy in control systems theory in the sixties. And then it's got quite a simple definition, which is, you know, being able to determine the, uh, I've been able to diagnose a system by the telemetry data that it emits. So let's look at the external outputs. And then based on that, can I determine the internal state of the application? And so from the get-go, we felt like observability was not about building another tool, right? We're not, you know, it's not about building another monitoring tool, a logging tool. Um, it's about analyzing data. And I, I was struck many years ago. Uh, I spent a bit of time with, with Andy McAfee, uh, from the sea sail lab at MIT. >>And he made a statement that I thought at the time was quite profound, which he said, look, everything's a matter of data. If you have enough data, you can solve any problem. And that stuck with me for a long time. And, um, you know, observe really what we do is we ingest vast quantities of telemetry data. We treat everything as events and we try and make sense of it. And the economics of the infrastructure now is such, that is you truly can ingest all the Alltel telemetry data and it's affordable, right? I mean, one of the wonderful things that Amazon has done is they've brought you, you know, very cheap, affordable storage. You can ingest all your data and keep it forever. Um, but, but now can you make sense of it? Well, you know, compute is pretty cheap these days and you've got amazing processing engines like snowflake. >>And so I was sense was that if we could allow folks to ingest all of this telemetry data process, that data and help people easily analyze that data, then they could find almost any problem that existed, uh, in their applications or in their infrastructure. So we really set out to create a data company, which I think is fundamentally different to, to really what everybody else is doing. And today we're troubleshooting distributed applications, but I think in future, we, my hope is that we can, we can help people analyze almost anything around their applications or infrastructure. >>And what's the use case problem statement that you're entering the market on? Is it just making sure microservices can be deployed as a Kubernetes? Is it managing containers? Is there a specific, um, customer adoption use case that you're focused on right now? >>Yeah, we've tried to target our ideal customer if you like has been the three or 4,000, uh, uh, SAS companies. Uh, we're, we're really focused on the U S right now, but three to 5,000 SAS companies, um, predominantly, uh, obviously running on AWS often, uh, Kubernetes infrastructure, but, you know, people who, uh, having a hard time, uh, understanding the complexity of the application that they've created, and they're having a hard time understanding, uh, the experience that their customers are having and tracking that back to root cause. So, you know, really helping those SAS companies troubleshoot their applications and having a better customer experience that's where the early customers are. And if we can do a good job in that area, I think we can, you know, over time, you know, start to take on some of the bigger companies and maybe some of the more established companies that are moving in this, this digital direction. >>Jeremy, thanks for sharing that. And I got one last set of questions for you around the industry, but before I get there, give a quick plug for observe. What are you guys looking to do hire, I mean, give a quick, uh, a PSA on what's going on with observed. >>Yeah, so we're, uh, the company is now what a rough and tough. About three years old, we got about 40 people. Uh we're well-funded by sort of Hill ventures. Uh, they were the original investors in, in snowflake. Um, and, um, yeah, I mean, we we've, we've well, more than doubled in size since the COVID lockdown began. We had about 15 people when that began. We've got almost 40 now. Um, and I would anticipate in the next year we're, we're probably going to double in size again, but, um, yeah, really the core focus in the company is, is understanding and analyzing vast quantities of data. And so anybody who is interested in, uh, that space look us up >>Mainly any areas, obviously engineering and the other areas okay. >>Near in all over. I mean, we, you know, w w w as you'll see, if you go to observing.com, we've got a pretty slick front end. Uh, we invested very early on in design and UX design. So we believe that you are, can be a differentiator. So we've got some amazing engineers on the front end. Uh, so going to can always do with the help there, but obviously, um, you know, there's a data processing platform here as well. Um, we, uh, we do run on top of snowflake. We, we do have a number of folks here who are very familiar, uh, you know, with the snowflake database and, and how to write efficiency equals. So, so front and backend. Um, we very soon, I think we'll be starting to expand the sales team. Um, we're really starting to get our initial set of customers and the feedback loop rule in rolling into engineering. And my hope would be, you know, probably early part of next year, we re we really start to nail the product market fit. Um, and we've got a huge release coming in the early part of next year where that the metrics and alerting functionality will be in the product. So, yeah, it's, it's sort of all systems go right now. >>Congratulations. Love to see the entrepreneurial journey. We'll keep an eye out for you and you're in a hot space. So we'll be riding, you'll be riding that wave, uh, question for you on the, um, just kind of the industry, uh, you're in the heart of Silicon Valley. Like I am honestly, I'm fellow Alto, you're up in the Hillsborough area. Um, I think you're in Hillsborough, right? That's where you, where you live. Um, San Francisco, the Valley, the pandemic pretty hard hit right now. People are sheltering in place, but still a lot of activity. Um, what are you hearing in, um, in, in the VC circles, startup circles, as everyone looks at coming out of the pandemic and you look at Amazon and you look at what snowflake has done. I mean, snowflake was built on top of Amazon competing against Redshift. Um, okay. They were hugely successful at doing that. So there's kind of this new playbook emerging. What are, what are people talking about? What's the scuttlebutt. >>Yeah. I mean, clearly TAC has done very well throughout what has been, you know, like just a terrible environment. Um, I think both kind of socially and economically, and I think what's going on in the stock market right now is probably not reflective of the, of the economic situation. And I think a lot of the indices are dominated by tech companies. So you, if you're not careful, you can get a little bit of a false read. Um, but look, what is undisputed is, is that the world is going to become more digital, more tech centric than, than less. Um, so I think there is a very, very bright future, you know, for tech, um, that there is certainly plenty of VC money, um, available. Um, you know, that is not really changed materially in the last year. Um, so if you have a good idea, if you're on one of these major trends, I think that there is a very good chance that you can get the company funded. >>Um, and you know, our, our expectation is that, you know, next year, obviously industries are going to return to work that have been dominant maybe for the last six, nine months. And so some parts of the economy should pick up again, but I would also tell you, I think certain, uh, sort of habits are not going to die. I mean, I think more things are going to be done online and we've gotten used to that way of working and, and you know, what, not, some of it is measurable. I don't know about cocktails over zoom, but working with customers, um, in some respects is easier because they're not traveling, we're not traveling. So we both have more time. Uh, it's sometimes easy to get meetings with people that you would never get. Now. Now, can you do an efficient sales process, education proof of concept? You know, those processes maybe have to grow up a little bit to be taken online, but I think the certain parts of the last, maybe six to nine months that we don't want to throw away and go back to the way we were doing it, because I think, you know, maybe this way of doing it is, is more efficient. >>What do you think about the, uh, entrepreneurial journeys out there? Obviously, um, Amazon we're here covering re-invent is really kind of, you know, building a massive compute engine. They've got higher level services and, you know, I've been speculating for years. I think snowflake is the first kind of big sign. That points to kind of what I said five years ago, which is there's going to be an opportunity for these other clouds as specialty clouds. I called them might be the wrong word, but snowflake basically built on top of Amazon, you know, most valuable company ever on wall street, uh, IPO on someone else's cloud. So is that a playbook? I mean, is that a move? I mean, this is kind of like a new thing. >>Yeah. I mean, that's, I mean, I, I feel like on databases, I've got a lot of history on management, Oracle almost 10 years. And you know, what snowflake does they did was they, they rearchitected the database explicitly for the cloud. I mean, you can run Oracle on the cloud, but, but it, but it doesn't do things the way that snowflake does it. Right. I mean, snowflake uses commodity storage. It uses S3 it's elastic. And so when you're not using it, you're not paying it. And these things sound very simple and very obvious now, which is I think what, what, what the genius of the founders, you know, Ben Warren and Tre, uh, work, and, and I think there will be other costs, you know, categories of infrastructure that will get rearchitected and reinvented for the cloud. And, you know, I've got equally big opportunities. Um, and so, yeah, I mean, I think the model, I believe firmly that the model is if you're a startup, you don't need to waste a lot of time, like reinventing the wheel on data center, infrastructure and databases, and a lot of the services that you would use to construct an application. >>You, you, you can start, you know, if, if the building that you're trying to build is like 12 floors, you can start at the eighth or ninth floor. Um, you know, I've, I've got like what three or 400 quality engineers at snowflake that are building our database. I don't, I don't need to do that. I can just piggyback on top of what they've done and add value. And, you know, the, the, the beautiful thing, you know, now, if you're a business out there thinking of, of, of, of becoming digital and reinventing yourself, or you're a startup just getting going, there's a lot of stuff you just don't have to build anymore. You just don't even have to think about it. >>Yeah. This is the new program of bull internet. It's internet, truly 2.0 or 3.0, whatever 4.0, a complete reset of online. And I think the pandemic, as you pointed out on many cube interviews and Andy Jassy send his keynote is on full display right now. And I think the smart money and smart entrepreneurs are going to see the opportunities. Okay. >>Yeah. It comes back to ideas and a great, I mean, I've always been a product person. Um, but look at great idea, a great product idea and a great product idea that, that capitalizes on the big trends in the industry. I think there's always going to be funding for those kinds of things. I don't know a lot about the consumer world I've always worked in, in B2B, but, um, you know, the kind of things that you're going to be able to do in future. I mean, think about it. If storage is essentially free and compute is essentially free. Just imagine what you could do, right. Jeremy, >>This is the new consumer. Get out. Let's understand that. Finally, B2B is the new consumer enterprise is hot. I was, again, it was riffing on this all week. All the things going on in enterprise is complex is now the new consumers now all connected. It's all one thing. The consumerization of it, the condition of computing has happened. It's going on. So you're a leader. Thank you for coming on. Great to see you as always, um, say hi to your family and stay safe. >>Yeah, you too. Thanks for the invite. Always, always a pleasure. >>Jeremy Burton breaking down the analysis of day two of week three of re-invent coverage. I'm John furry with the cube virtual. We're not in person anymore. Virtualization has allowed us to do more interviews over 110 interviews so far for re-invent and tomorrow, Thursday at two o'clock, Andy Jassy will spend 30 minutes with me here on the cube, looking back at re-invent the highs, the lows, and what's next for Amazon web services. I'm chef Aria. Thanks for watching.

okay here we go hi everybody this is dave vellante and you're watching thecube's coverage of the cube on cloud our own virtual event where we're trying to understand the future of cloud where we've come from and where we're going and we're bringing in visionaries to really have that that detailed conversation daniel dines is here he's the ceo of automation specialist uipath daniel thanks for coming on and sharing your insights here thank you so much for inviting me dave appreciate it that's always a pleasure to get together with with folks that have started companies with a seed of a vision and have exploded into you know great success and and but i want to go back to the the founding days of uipath 2005. it was pre-cloud there's certainly pre-cloud as we know it today aws came out in 2006 and then we we saw the clouds ascendancy but but your original founding premise there was no cloud you know it wasn't like a startup that could just spin up stuff in the cloud but you've seen that evolution so when you first started to see cloud evolve what did you think did you think oh well we'll see what happens or did you did you know at the time that this was going to be as big as it actually has become what were your thoughts back then well i honestly i i thought that we are kind of ancient and maybe it's stupid to not to private into the new trends in technology like cloud mobile social but i we kept you know working on this computer vision technology that uh 15 years ago was not really hot but with the evolution of self-driving cars and the latest development in ai we we've been able to capture our investments in a domain that was not hot but suddenly you know became the word of the greatest minds in i.t and we definitely we we specialize our computer vision to a narrow use case but still it's the it's the key of what we've done in uh in the end the robots are powered by computer vision technology this kind of a robot emulate how human user work so obviously we use vision a lot in our day by day work and having the best technology that allows our robots to interact with the computer screen more like a human user is quintessential in uh in making our business reliable and easy to use so we were lucky but i always felt that maybe i should change it and we we were feeling i i remember you know many discussions with my you know initial developers because we like what we were doing but we felt a bit left outside by the world but we got lucky in the end so so i have a premise here and that when you go back to the early days of cloud what they got right was they were attacking the the human labor problem and they automated it was storage it was it was networking it was compute but really the automation that they brought to it and the quality that that drove and the flexibility uh was you know a game changer of course we we know that now and you know many of us at the time were very excited about cloud i'm not sure we predicted the impact that it had but my premise is that there's a parallel in your business with the automation that you're driving into the business we've talked to people for instance some of your customers have said you know i can't do six sigma i can't afford to do six sigma before things like rpa for business process i do that for mission critical things but now i can apply six sigma thinking across my entire business that drives quality it takes cost out of my business so what do you think about that premise that there's a parallel between the early days of cloud taking human labor out of the equation and driving quality and flexibility cost saving speed and revenue etc and what you're doing on the business side it is clearly a parallel i can tell that the cloud was built by looking at it automation use cases first of all because this is what software engineers understand the most software engineers let's be you know honest they don't understand the business work they they don't understand all how the real work is performed in a big enterprise and they don't care sometimes when in my own discussions with our cfo he is surprised that i don't know all the use cases in the world yes of course i don't know exactly how an insurance company work all the processes in healthcare all the banking processes i have intellectual curiosity how they work but what interests me the most is our computer vision technology that works uniformly well across different that was the same from the cloud so initially they built in the they built the cloud to help them when what they know the best and now for we were put in the face of having great technology this computer vision technology but without having a great use case in the iit world that we understood and when we when i'm speaking about our early days like 12 13 14 i believe this technology has a lot less applicability in the real world because again we were thinking of some sorts of small it automation gigs that were not possible just doing the apis but when i discovered the messy world of business processes and how important is to emulate people when you think automation that was the big aha moment so i believe that we can do for business processes what the cloud has done for i.t processes and we are really patient now about these business processes and helping people to eliminate all the repetitive work that is there delegate this work to robots and have the people that are required to do this work do do better a smaller number of tasks every day everyone has one as on her or him played today like let's say 10 20 different activities some of them can be completely delegated to rock to robots and they are the low value type of activities while they can focus on the high value activities like interaction with people creativity decision making and this type of human-like things that we as humans really love i love that uh you shared that story but you you thought it was a very narrow sort of set of use cases when you first started and then you know that's that's just an awesome founders you know realization i i love it when we've often said in the cube that you know for decades we've marched to the the tune of moore's law that was the innovation engine no longer is the case it's a combination of of data applied machine intelligence and cloud for scale and i guess the computer vision piece is how you ingest the data uh you you've you've made some investments in in ai and there's many more to come the industry in general and the cloud is is sort of the piece of that equation that we see for scale so i wonder how you see those pieces fitting to your business and how important is the cloud for your scale at last uh at last ui path forward there was a lot of talk amongst our customers about scaling is the cloud critical for that scale yeah i believe so and we are thinking of cloud in two distinct ways number one we are offering and manage automation service in our own cloud using uh where we host everything by ourselves including our orchestrator and then next we have the plans to include our the robots that execute the automation and people simply can connect to our cloud build an automation and just schedule it to run without any maintenance and they will have have access to great analytics everything integrated so this is a major focus to us and the way we launching ga this cloud offering in april this year and i can tell you that until now 20 percent of our customers already are in a shape or another in this type of offering not 20 dollar amount but 20 of our customers and it's clear that at this point this has more applicability into the long tail a smaller customers than in the on our biggest customers but the second distinct type of cloud offering that we focus on is to have best-in-class support in best-in-class multi-cloud support for the cloud of choice of our customers for instance if you go in if you go in aws gcp azure and you buy a subscription there you we we are building specialized editions where with one click you will be able to install our technology in those clouds and you will be able to to scale up and down your robots you can connect your robots to our many services were within your tenant but basically the end goal is to lessen a lot the administration the maintenance footprint of your installation either on our own cloud even on your cloud of choice i'm a strong believer that we will see an accelerated transition from the completely on prem workloads into these two source cloud workloads i want to ask you as a as a technologist if you see so you mentioned that you're going to take your products and you support multiple clouds it'll run on any cloud and a lot of companies are talking about that you know for their respective whether it's a database or you know whatever storage device etc do you see the the day where you'll actually start you're collaborating across clouds where the user uh maybe maybe the user today doesn't know but but maybe a developer does know which cloud it's running on but do you see any value in actual you know connecting across clouds where the data in one cloud is relevant for the data another cloud is i know there are latency issues is is that you know technically feasible and is it will it drive business value what do you think about that cross-cloud connection i believe it is already happening there is a mesh between between various services and who knows in which cloud they are offered already i feel the latency is less and less of a problem as much as the biggest cloud provider have have a very distributed geographically present so as long as i can play in aws in east coast on azure in east coast it's not such a big latency issue and frankly in the past our customers at least are telling us they seen how it is to be completely locked into one technology and people would like to have optionality it's not necessarily that i will use three clouds but i would like to use a vendor that gives me optionality even the and this is what we are trying to offer do you when you think about the future of work i mean as i said before the cloud 1.0 is infrastructure storage networking compute and it seems like 2.0 we're bringing in more ai new workloads uh we're seeing you know analytics and and machine intelligence applied to the data and then you know distributed at scale self-serve to the business how do you see the future of work specifically as it relates to automation affecting that uh and you know what role does cloud play there what's your vision so as the workloads will move to cloud it's absolutely critical that the processes will move to cloud so there is no way back and i i think that uh moving into moving from opera and software into cloud will make even easier to automate this type of workloads into the cloud it's gonna be less maintenance you will deal less with legacy applications that require some special care it's kind of a bit more easier to automate modern only web-based type of application so that's uh we will see an acceleration on the on the moving to cloud but again there will be different sorts of cloud from a completely managed automation service from us to managing yourself the automation in your cloud tenant but not on-prem i'm not a big believer that we will ex unless very few critical sectors i don't think that we will see on-prem workloads in the past five years i mean i agree in the business the business case for on-prem just gets you know less and less i mean it'll there's certain applications for sure my last question is when thinking about from a software developer standpoint you obviously you're going to want to run in aws and gcp and azure uh perhaps alibaba do you look at other clouds whether they're regional clouds of course you've got your own cloud maybe oracle ibm how do you think about those do you just sort of evaluate them on a case-by-case basis you let customers you know tell you where where you need to be yeah we we we focus on the on the three big clouds today but we are building on the top of kubernetes most of our we we have a big shift into building kubernetes microservices and my guess is that all modern clouds will offer fantastic support for kubernetes so what what it takes when you create an edition for another cloud is to is to have the underlying services like if we plan to use snowflake for instance in our analytics offering you better have snowflake in another cloud otherwise probably the the analytics will will have to be delayed or use less of one part technology so it's not only about what we are building but it's also you know the vast availability of other set of technologies that we try to use when you choose a technology now first of all we are looking we need to choose something that is multi-cloud versus dedicated from one cloud vendor that's that's our first priority this is why i've mentioned snowflake and then when you when we move into a cloud we are limited by the offerings that are there but i my belief is in the in the main clouds probably in the us i don't know on other regions what's going to happen but in the main clouds in the us and i believe that they will in the end they will catch up in terms of offering and convincing other other vendors to to have kind of similar offering on their own i don't know if besides the big three we will see someone and that is able to compete could be too much fragmented maybe they will be dedicated clouds for certain services but for general cloud i think three is more than enough yeah and so you know in the early days of cloud people talked about dial tone and essentially that's what's becoming it's the it's the value that's running on top of the cloud from software companies like uipath and others that is really driving sort of the cloud 2.0 the next generation daniel dines thanks so much for sharing your your vision uh and participating in the cube on cloud really appreciate it my pleasure dave thank you so much for inviting you're welcome always great to talk to you and thank you for watching everybody keep it right there we'll be back with our next guest ready for this short break this is dave vellante for the cube

>>from around the >>globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Welcome back to the Cubes Coverage Cube Virtual coverage of AWS reinvent 2020 which is also virtual. We're not in person this year. We're doing the remote interviews. But of course, getting all the stories, of course, reinvented, full of partnerships full of news. And we've got a great segment here with Salesforce and AWS. Eileen Schneider Win, who is the senior vice president of strategic partnerships, and Maureen Lundergan, director of worldwide training and certification address. Maureen Eileen. Great to see you. Thanks for coming on. And nice keynote. What's up with the partnership? Give us a quick over your lien. What's what's the Salesforce? A day was partnership. Take a minute to explain it. >>Sure, thank you. I think I'll start out by talking about how sales were thinks about strategic partnerships. So for us, it's really it starts with the customer and being where they want us to be. And we've been so fortunate to be in this relationship with AWS for over five years now. It really started out as an infrastructure based partnership as we were seeing customers start their digital transformation journeys and moved to the cloud. But what has been really exciting as we've spent more time working together and working with our customers, we have now started to move into emotion of really bringing some differentiated solutions between the number one CRM and the most broadly adopted cloud platform to market for customers, uh, in areas like productivity, security and training and certification which will talk more about in a bit Onda. Specifically, some of those solutions are service Cloud Voice Product, which we launched this summer, announced last fall, a dream force as well as our private connect product which creates great security between the AWS platform and Salesforce. >>What? Some of the impact area is actually the two clouds you mentioned CRM and Amazon. We're seeing data obviously being a part of the equation ai machine learning. Um, what's been the impact I lean to your customer specifically >>Yeah, so specifically I'd call out to areas what one is really that foundation of security. Specifically, as government regulations and data security has become more critical, we've really been able to partner together there and and that's been crucial for certain customers in certain regions as well a certain industries like government. Uh, in addition, I would call out again that service cloud voice partnership, a zoo. We see the world moving more digital. This really allows customers to go quickly and, uh, turn on. There are solutions from anywhere at any time. >>You know, I love that any time, anywhere kind of philosophy. Now more than ever. With the pandemic collaborations required more than ever, and some people are used to it. You know, I've seen more technical developers have used to working at home, but not everyone else. The workforce still needs to get the job done. So this idea of collaboration, what is the impact in for your customers and how are you guys helping them? Because I think this is a big theme of this year That's gonna not only carry over, even when the pandemics over this idea of anywhere is all about collaboration. >>Yeah, I totally agree. I mean, the exciting thing about the partnership is we've been talking digital transformation with customers for years, but I think what we saw at the beginning of this year, as we were all thrown home and forced Thio, you know, fire up our jobs from our bedrooms or our garages. It really came down to our ability to work quickly and turn on our solutions. It's and these unprecedented times, while we're going through this now, everything we're building really is the future. So it's not just the tools and technology, it's also the processes and how work is getting done that's really come into play. But again, I'll anchor back to that service blood voice solution. So for us, call centers were completely disrupted. You think of call centers and you know, pre 2020 everyone sitting in a room together, agent side by side managers, having the ability to pop over and assist with a call or managing escalation. Now that's been completely disrupted. And it's been very exciting for us to work with our customers, to reimagine what that looks like again both from a technology perspective but also from a process perspective. And along with that, you had to reimagine how employees are learning these solutions and being trained. So we're very grateful for the partnership with AWS, and we're doing some really amazing things together. >>You know this is one of my favorite things about the enablement of Cloud. But in Salesforce has been a pioneer. As you pointed out, this connectedness feature has always been there. Now more than ever, it's highlighted with call centers, not the call center more. It's the connected center. People are connecting. And I think, Maureen, I think last time you're in the Cube. A few years ago, we were talking about virtual training online, and that was pre pet pandemic. Now you're seeing surge of online training not only because people's jobs are changing and being displaced or even shut down. New roles are emerging, right? So the virtual space Virtual world digital world, there's everyone's getting more digital faster now. How has the cove in 19 changed the landscape for training and skills demand? From your perspective, I >>mean at AWS, we've been working on our virtual capabilities for a while, so we had a digital platform out. We had a great partnership, have a great partnership with Salesforce and putting content on trailhead. We had to pivot very rapidly to virtual instructor led training and also our certifications right. We were lucky that our vendors partnered with us rapidly to pivot certification toe proctor environment. And this actually has helped to expand our ability to deliver the both training and certification in locations that we may not have been able to do before. And we have seen while it slowed. Initially, we have seen such an uptake and training over the last, um, 6 to 8 months. It's been incredible. We've been working with our customers. We've been working with our partnerships like Salesforce. We've been pushing more content out. I think customers and partners air really looking for how toe upscale their employees, uh, in a in a way, that is easy for them. And so it's actually been a great surprise to see the adoption of all of our curriculum over the last couple months. >>Well, congratulations knows a lot more work to do. It's gonna get more engaging, more virtual, more rich media. But this idea of connecting lean I wanna get back to the your your thoughts earlier, um, mentioned trailhead. Maury mentioned trailhead. You guys were doing some work with the virtual training there. What? Can you tell us more about that? And how that's going so far? >>Sounds great. So trailhead is our free online learning platform. And it really started because we have a commitment to democratizing anyone's ability to enter our industry s so you could go there and both online or with our trail head go app and experience what we call trails, which our paths for learning again on different areas of knowledge and skills and technology. And late last year, we announced an incredible partnership with AWS, where we're bringing the AWS learning content and certification to trailhead. And this is really again driven by our customers to are asking us to do our part in bringing mawr of these skilled resource is into the ecosystem. But something I also wanna highlight is I feel like this moment that we're in right now has also forced everyone to reimagine how they're doing learning even businesses, how they're training their employees and again having this free platform. And the partnership with AWS has really helped us go very quickly and create a lot of impact with customers. >>I just want to say I love the trailhead metaphor because, you know, learnings nonlinear. It's asynchronous. You've got digital. So you want to take a shortcut? You gotta know the maps And I think that's, you know, people wanna learn versus the linear, you know, tracks on. And I think that's how people have been learning online. And AWS has got a data driven strategy. Marine, I want to get your take on this because as you bring content on the trailhead, can you talk about how that works? And how you working with Railhead? >>Yeah. I mean, we started conversations a couple of years ago, and I think the interesting thing is that Salesforce and AWS have a very similar philosophy about bringing education to anybody who wants it. You'll hear me talk a lot about that in my leadership talk at reinvent, but, um, we really believe that we wanna provide content where learners learn and salesforce and trailhead have this amazing captured audience. And, um, you know, we're really looking at exploring. How do we bring education to people that might not otherwise have access to it? On DSO, we started with really foundational level content, a ws Cloud, Practitioner Essentials and AWS Cloud for technical professionals. And the interesting thing is, both of those courses have been consumed. ITT's not enough to just put it out there you want people to complete the trails and we've seen such an amazing uptake on the courses with, like 85% completion rate on one of the trails and 95% completion rate on the other one. And to keep customers engage is really a credit toe. How trailhead is designed. >>You know, it's interesting. The certification people don't lose sight of the fact that that's kind of the in the end state. Then you start a new trail. I mean, this >>is >>the this is really what it's all about. Can you just share some observations that you've seen for people that are coming into this now to say, Hey, okay, what do I expect? And what are some of the outcomes? >>Yeah, I mean, first, what we're seeing is our customers are being very clear that they need more of these skills. So we're also seeing the need for Salesforce administrators out in our ecosystem. And I think with everything going on this year, it's also an opportunity for people who are looking to pivot. Their careers were moving to tech and again, this free learning platform and the content that we're bringing has been really powerful and again for us. The need for salesforce administrators and cloud practitioners out in our ecosystem are in more demand than ever. >>Maureen. From your perspective on AWS, you see a lot of the new new jobs cybersecurity, Brazilian openings. Where do you see the most needs on for training and certification? Can you highlight some of the areas that are emerging and trending, if you will? >>I would say it's interesting because what we're seeing is is both ends of the spectrum. People that are really trying to just really understand who cloud is, whether it's, ah, business leader within an organization, a finance person, a marketing person. So cloud practitioner, you know, we're seeing huge adoption and consumption on both our platform in on Salesforce. But also some other areas are security and machine learning machine learning. We have five learning paths on our digital platform. We've also extended that content out to other platforms and the consumption rate is significant. And so, you know, I think we're seeing, uh, customers consume that. But the other thing that we're doing is we're really focused on looking at who doesn't have access to education and making sure that's available. So I think the large adoption of Cloud Practitioner in Practitioner is is largely due to the other things that we're doing with programs like Restart our academic programs >>to close it out, Alina want to get your thoughts and final thoughts on the relationship and how people can find more information about this partnership and what it means. Take, take it home. >>Thank you for asking. So just like everything else we've been talking about today, we've had to reimagine how we're showing up at this event together and very exciting thing that my team has created is the AWS Virtual Park. And anyone can access that at salesforce dot com slash aws. So please go check it out. You can experience our products here from our experts and experience its innovation on your own. >>Great insight. Thanks for coming on and participating. Really appreciate Salesforce and AWS two big winning leading clouds working together Trail had great great offering. Thanks for coming on sharing the news. Appreciate >>it. Thank you. >>It's the Cube virtual covering. It was reinvent virtual. Of course. Check out all the information here All three weeks. Walter Wall coverage. I'm John Fury with the Cube. Thanks for watching