Paul Martino, Bullpen Capital | CUBEConversation, February 2019
(upbeat music) >> Welcome to this special Cube Conversation. We're here in Palo Alto, California with a special guest. Dialing in remotely Paul Martino, the founder of Bullpen Capital and also the producer of an upcoming film called The Inside Game. It's a story about a true story about an NBA betting scandal. It's really, it's got everything you want to know. It's got sports, it's got gambling, it's got fixing of games. Paul Martino, known for being a serial entrepreneur and then an investor, investing in some great growth companies, and now running his own firm called Bullpen Capital, which bets on high-growth companies and takes them to the next level. Paul, great to see you. Thanks for spending the time. Good to see you again. >> John, always good to see you. Thanks for having me on the show. >> So, you're a unique individual. You're a computer science whiz, investor, entrepreneur, now film producer. This story kind of crosses over your interests. Obviously in Philly, you're kind of like me, kind of a blue collar kind of guy. You know hot starters when you see it. You also were an investor in a lot of the sports, gambling, betting, kind of online games, we've talked about in the past. But now you're crossing over into filming movies. Which is, seems like very cool and obviously we're living in a date of digital media where code is software, code is content, obviously we believe that. What's this movie all about? All the buzz is out there, Inside Game. You get it on sports radio all the time. Give us the scoop. Why Inside Game? What's it about? Give us the 411. >> Yeah, so John, I mean, this is a story that picked me. My producing partner in this is a guy named Michael Pierce who made a bunch of great movies, including The Cooler, one of the best gambling movies, with William H Macy. And he says sometimes the movie picks you and sometimes you pick the movie. And I wasn't sitting around one day going wow I want to be a movie producer, it was just much more that my cousin is the principal in the story. My cousin was the go-between between the gambler and the referee. The three of them were friends ever since they were kids. And when they all got out of jail Tommy called me, Tommy Martino. He said hey Paulie, you're about the only legitimate business guy I know. Could you help me with my life rights? And that's how this started almost six years ago. >> And what progressed next? You sat down, had a couple cocktails, beers, said okay here's how we're going to structure it. Was it more brainstorming and then it kind of went from there? Take us through that progression. >> It was a pure intellectual property exercise, and this is where being a startup guy was helpful. I was like, Tommy, I'll buy your life rights. Maybe we'll get a script written, we'll put it on the shelf, so that if anybody ever wants to make this story they have to go through us. Almost like a blocking patent or a copyright. And he's like okay cool. And so I said I have no delusions of ever making this movie. I actually don't know that, I don't know anybody to make a movie. This is not my skill set. But if anybody ever wants to make the movie, they're going to have to come deal with us. And then the lucky break happens, like anything in a startup. I have this random meeting with a guy named Michael Pierce, who was at a firm called WPS Challenger out of London. And we're down in Hillstone in Santa Monica, and I say to him, I say I've got this script written about this NBA betting scandal, would you do me a favor? He literally laughs in my face. He goes a venture guy from Silicon Valley is going to hand me a script. What a bad, anyway, I was like look dude, I'm a good guy to have owe you a favor so just read this dang thing. About 8 hours later my phone rings, he says who the hell is Andy Callahan? This is the best script I've ever read in my entire life. Let's go make a movie. Andy Callahan was a friend of a friend from high school who wrote the script. He actually once beat Kobe Bryant when he was a center at Haverford when Kobe Bryant played at Lower Merion here in the Philly suburbs. So, it's kind of this local Philly story. I'm a local Philly blue collar guy, we put the pieces together, and I'll be danged and now six years later the film is in the can and you're probably going to see it during the NBA finals this year in June. >> All right, so there's some news out there it's on the cover on ESPN Magazine, the site is now launched. I've been hearing buzz all morning on this in the sports radio world. A lot of buzz, a lot of organic virality around it. Reminds of the Crazy, Rich Asians, which kind of started organically, similar kind of community behind it. This has really got some legs to it. Give us some taste of what's some of the latest organic growth here around the buzz. >> Yeah so, think about this. This happened in, primarily '06 and '07. They were sentenced in 2010 and were in jail in 2011. It is 2019 and the front page story on ESPN is What Tim, Tommy, and Jimmy Battista Did. Those were the three guys, the gambler, the ref, and the go-between. And this is a front page story on ESPN all these years later. So we know this story has tremendous legs. We know this movie has a tremendous built-in audience. And so now it's just our job to leverage all those marketing channels, places we pioneered, like Zynga and FanDuel to get people who care about the story into the theaters. And we're hoping we can really show people how to do a modern way to market a film using those channels we've pioneered at places like FanDuel and Zynga. >> You and I have had many conversations privately and here on the Cube in the past around startups disruption, and it's the same pattern right? No one thinks it's a great idea, you get the rights to it, and you kind of got to find that inflection point, that magical moment which comes through networking and just hard work and hustle. And then you've got everything comes together. And then it comes together. And then it grows. As the world changes, you're seeing digital completely change the game on Hollywood. For instance, Netflix, you've got Prime, you've got Hulu. This is, essentially, a democratization, I'm not saying, well first of all you've made some money so you had some dough to put into it, but here's a script from a friend. You guys put it together. This is now the new startup model going to Hollywood. Talk about that dynamic, what's your vision there? Because this, I think, is an important signal in how digital content, whether it's guys in the Cube doing stuff or Cube Studios, which we'll, we have a vision for. This is something that's real. Talk about the dynamic. How do you see the entrepeneurial vision around how movies are made, how content's made, and then, ultimately, how they're merchandised in the future. >> Right, there's a whole, there's a whole bunch of buckets. There's the intellectual property bucket of the story, the script, etc. Then there's the bucket of getting the movie made. You know, that's the on the set and that's the director and that's post-production, and then there's the marketing. And what was really interesting is even though I'd never made a movie, two of those three buckets I knew a tremendous amount about from my experience as a startup investor. The marketing and the IP side I understood almost completely, even though I'd never made a film. And so all of the disruptive technologies that we learn for doing disruptive things like marketing a new thing called Daily Fantasy Sports, we were able to bring to bear to this film. Now, I had fun on the set and meeting all the actors, etc. But I had no delusion that I knew about the making of the movie part. So I plead ignorance there, but of the three buckets that you need to go make something in the media space 66% of what I knew as a startup guy overlapped and I think this is what the future of the media is. Because guys like me and you, John, we actually know a lot about this because we're startup people as opposed to we have to learn about it in terms of how to market and how to get an audience. I mean, my last company Aggregate Knowledge designs custom audiences for ad targeting. So we know how to find gamblers to go see this movie. That's literally the company I started. And so that's a thing that I'm very, very comfortable with and it's exciting to then work with the producer who did the creative and the director and I say hey guys, I've got this marketing thing under control, I know how to do it, oh by the way, the old Head of Marketing from FanDuel, he's a consultant to the project. Right, so, we got that. >> You got that, and the movie's being made. That's also again, back to entrepreneurship, risk. You got to take risks, right? This is all about risk management at the end of the day and you know, navigating as the lead entrepreneur, getting it done, there's heavy lifting and costs involved in making the movie, >> Right >> How did you, that's like production, right? You got to build a product. That is ultimately the product when it has to get to market. How did that go, what's your thoughts on your first time running a movie like this, from a production standpoint, learnings, observations? >> I learned a tremendous amount. I must admit, I was along for the ride on that piece of the puddle, puzzle. The product development piece of this was all new to me. But then again, I mean think about it, John, I started four companies, a social network, an ad targeting company, a game company, and a security company. I didn't know anything about those four companies when I started them either in terms of what the product needed to do. So learning a new product called make a movie was kind of par for the course, even though I didn't really know anything about it. You know, if you're going to be a startup person you got to have no fear. That's the real attribute you need to have in these kinds of situations. >> So I got to >> And so, witnessed that first-hand and, you know what, now, if I ever make a movie again I kind of know how to make that product. >> Yeah, well looking forward. You've got great instincts as an entrepreneur. I love hanging out with you. I got to ask you a question. I talk to a lot of young people, my son and his friends and I see people coming out of business school, all this stuff. You know, every college has an entrepreneurial program. Music, film, you know, whatever, they all have kind of bolted on entrepreneurship. You're essentially breaking down that kind of dogma of that you have to have a discipline. Anyone can do this, right? So talk about the folks that are out there, trying to be entrepreneurial, whether you're a musician. This is direct to consumer. If you have skills as an entrepreneur it translates. Talk about what it takes to be an entrepreneur, if you're a musician or someone who has, say, content rights or has content story. What do they do? What's your advice? >> We have lived through, perhaps the most awesome period of the last five to 10 years, where it got cheap to do a startup. You know, when we're doing our first startups 20 years ago, it cost 5 million bucks to go get a license from Oracle and go hire a DBA and do all that stuff. You know what, for 5 grand you can get your website up, you can build, you can use your iPhone, you can film your movie. That's all happened in the last five to 10 years. And what it's done is exactly the word you used. It's democratized who can become an entrepreneur. Now people who never thought entrepreneurship was for them, are able to do it. One of our great examples of this is Ipsy, our cosmetics company. You know, Michelle Phan was a cocktail waitress working in Florida, but she had this YouTube following around watching her videos of her putting her makeup on. And you know when we met her, we're like you know what? You're the next generation of what entrepreneurs look like. Because no, she didn't go to Stanford. She didn't have a PhD in computer science, but she knew what this next generation of content marketing was going to look like. She knew what it was to be a celebrity influencer. You know, that company Ipsy makes hundreds of millions of dollars every year now, and I don't think most people on Sand Hill would've necessarily given Michelle the chance because she didn't look like what the traditional entrepreneur looked like. So it's so cool we live in a time where you don't need to look like what you think an entrepreneur needs to look like or went to the school you had to think you'd go to to become an entrepreneur. It's open to everybody now. >> And the key to success, you know, again, we've talked about those privately all the time when we meet, but I want to get your comment on the record here. But I mean, there's some basic blocking and tackling that's independent of where you went to school that's being creative, networking, networking, networking, you know, and being, good hustle. And being, obviously good judgment and being smart. Do your thoughts on the keys to success for as those folks saying hey you know I didn't have to go to these big, fancy schools. I want to go out there. I want to test my idea. I want to go push the envelope. I want to go for it. What's the tried and true formula from your perspective? >> So when you're in the early stage of hustling and you want to figure out if you're good at being an entrepreneur, I tell entrepreneurs this all the time. Every meeting is a job interview. Now, you might not think it's a job interview, but you want to think about every meeting, this might be the next person I start my company with. This might be the person I end up hiring to go run something at my company. This might be the person I end up getting money for, from to start my company. And so show up, have some skills, have some passion, have a vision, and impress the person on the other side of the table. Every once in a while I get invited to a college and they're like well Paul, life's easy for you, you started a company with Mark Pinkus and you're friend with Reid Hoffman and this... Well how the hell do you think I met those people? I did the same thing I'm telling you to do. When I was nobody coming out of school, I went and did stuff for these guys. I helped them with a business plan. I wrote the code of Tribe, and then now all of the sudden we've got a whole network of people you can go to. Well, that didn't happen by accident. You had to show up and have some skills, talent, and passion and then impress the person on the other side of the table. >> Yeah >> And guess what? If you do that enough times in a row, you're going to end up having your own network. And then you're going to have kids come in and say, wow, how can I impress you? >> Be authentic, be genuine, hustle, do networking, do the job interview, great stuff. All right, back to final point I want to get your thoughts on because I think this is your success and getting this movie out of the gate. Everyone, first, everyone should go see Inside Game. Insidegamemovie.com is the URL. The site just went up. This should be a great movie. I'm looking forward to it, and knowing the work that went in, I followed your journey on this. It should be great. I'm looking forward to seeing it. Uh, digital media, um, your thoughts because we're seeing a direct to consumer model. You've got the big companies, YouTube, Amazon, others. There's kind of a, a huge distribution of those guys. The classic Web 2.0 search kind of paradigm and portal. But now you've got a whole 'nother set of distribution or network effects. Your thoughts, because you were involved in, again, social networking before it became the monster that it is now. How is digital media changing? What's your vision of how that's happening and how does someone jump on that wave and be successful? >> Yeah, we're in the midst of disruption. I mean, I'm in the discussions and final negotiations right now on how we're going to end up ultimately doing the film distribution. And I am very disappointed with the quality of the thinking of the people on the other side of the table. Because they come from very traditional backgrounds. And I'm talking to them about, I want to do a site takeover across Zynga. I want to do a digital download on FanDuel of a 20 minute clip of the film. And they're like what's FanDuel? Who's Zynga? And I'm sitting there, I'm like guys, this is the new media. Oh, by the way, there's a sports app called Wave and Wave is where the local influencers in the markets who want to write the stories are, and we want to do a deal with those guys. And oh, by the way, the CEO of that company is a buddy of mine I met years ago, right? One of those kids I gave advice to, and now I'm going to ask him for a favor from, right, that's how it works. But, it's amazing when you have these conversations with traditional old line media companies. They don't understand any of the words coming out of your mouth. They're like Paul, here's how much I'll give you for your film. Thank you, we'll go market it. I'm like, really? Seriously? I got the former CMO of FanDuel going to help out on this. You don't want to talk to him? >> Yeah >> And so this is where the industry is really ripe for disruption. Because the people from the startup world have already disrupted the apple cart and now we've just got to demonstrate that this model is going to continue to work for the future and be ready when the next new kind of digital transmedia thing comes along and embrace that, as opposed to be scared to death of it or not even know how to talk the language of the people on it. >> Well, you're doing some amazing venturing in your, kind of, unique venture capital model on Bullpen Capital. Certainly isn't your classic venture capital thing, so I'm sure people are going to be talking to you about oh, Paul, are all VCs going to be doing movies? I'm sure that's a narrative that's out there. But you're not just a normal venture capital. You certainly invest. So, venture capitals have reputation issues right now. People talk about, well, you know, they're group think. You know, they only invest in who they see themselves. You mentioned that comment there. The world's changing in venture. Your thoughts on that, how you guys started your firm, and your evolution of venture capital. And is this a sign that you'll see venture capitalists go into movies? >> Well, I don't know about that part. There have been a couple venture people who have done movies. But the part I will talk about is the you got to know somebody, it's an inside game, ha ha, we'll play double entendre on Inside Game here. You know, 20% of the deal we've done at Bullpen, we've done over 100. 20% of them were cold emails on something like LinkedIn or business plans at bullpen.com. 20%, now there's this old trope in venture if you don't get a warm intro I won't even talk to you. Well 20% of our deals came in and we had no idea who the person on the other side was. That's how we run the firm. And so if you're out there going I'm one of those entrepreneurs in the Midwest and no one, I don't know anyone. I'm not in a network, send me a plan. I'm someone who's going to look at it. It doesn't mean I'm going to be an investor, but you know what I'm going to do? I'm going to give you a shot. And I don't care where you're from or what school you went to or what social clique you're in or what your political persuasion is. Matter of fact, I literally don't care. I'm going to give you a shot. Come into my office and that, I think, is what was missing in a lot of firms, where it's a we only do security and we only look at companies that spun out of Berkeley and Stanford. And yeah, there can be an old boys network in that. But you know what, we like to talk to everybody. And the more blue collar the CEO is, the more we love them at Bullpen. >> That's awesome. Talk about the movie real quick on terms of how Hollywood's handling it. Um, expectations, in terms of reaction, was it positive, is it positive, what's the vibe going on in Hollywood, is this going to be a grassroots kind of thing around the FanDuels and your channels? What's your plan for that and what's the reaction of Hollywood? >> So it's going to be a lot of all of the above. But PR is going to be a huge component, I mean, part of the reason we're on today is there's a huge front page story on ESPN about Tim Donaghy and the NBA betting scandal of 2007. And so the earned media is going to be a huge component of this. And I think this is where the Hollywood people do understand the language we're speaking. We're like, look, we have a huge built-in audience that we know how to market to. We have a story. Actually, in the early days, you asked about risk? Back when I was thinking about if I would do this project I would do the following little market research. I'd walk into a sports bar, it didn't matter what town I was in. I could be in Dallas, I could be in Houston, I could be in Boston. I would literally walk up to the bar and say, hey, uh, six of you at the bar, ever hear of Tim Donaghy? It'd be amazing. About seven out of 10 people would go yeah he was the referee, crooked referee in the NBA. I'm like, this is amazing. Seven out of 10 people I meet in a bar know about the story I want to go tell. That sounds like a good chance to make a movie, as opposed to a movie that has no built-in audience. And so, a built-in audience with PR channels that we know work, I think we can really show Hollywood how to do this in a different way if this all works. >> And this comes back to my point around built-in audiences. You know, YouTube has got a million subscribers. That's kind of an old metric. That means they, like an RSS feed kind of model. That's a million people that are, could be, amplifying their network connections. It is a massive built-in audience. The iteration, the DevOps kind of mindset, we talk about cloud computing, can be applied to movies. It's agile movie making. That's what you're talking about. >> Yeah, and by the way, so we have a social network of all the actors and people in the film. So when it's ready, let's go activate our network of all the actors that are in the film. Each of them have a couple million followers. So let's go be smart. Let's, two weeks before the movie, let's send some screenshots. A week before the movie let's show some exclusive videos. Two days before the film, go see it, it's now out in the theaters. You know what, that's pretty, that's 101. We've got actors. We've got producers. Like, let's go use the influencer network we built that actually got the movie made. Let's go on Sports Talk, talk about the movie. Let's go on places like this and talk about how a venture guy made a movie. This is the confluence of all of the pieces all coming together at once. And I just don't think enough people in the film business or in the media business think big enough about going after these audiences. It's oh, we're going to take ads out on TV and I'm going to see my trailer and we're going to do this and that's how we do it. There's so many better ways to get your audience now. >> And this is going to change, just while I've got you here, it's just awesome, awesome conversation. Bringing it back to kind of the CMO in big companies, whether it's consumer or B to B or whatever, movies, the old model of here's our channels. There's certainly this earned media kind of formula and it's not your classic we've got a website, we're going to do all this instrumentation, it's a whole 'nother mechanism. So talk about, in your opinion, the importance of earned media, vis a vis the old other buckets. Owned media, paid media, well-defined Web 1.0, Web 2.0 tactics, earned media is not just how good is our PR? It's actually infrastructure channels, it's networks, a new kind of way to do things. How relevant and how important will this be going forward? Because there's no more website. It's a, you're basically building a media company for this movie. >> That is exactly right. We're building an ad hoc media business. I think this is what the next generation of digital agencies are going to look like. And there are some agencies that we've talked to that really understand all of what you've just said. They are few and far between, unfortunately. >> Yeah, well, Paul, this was theCube. We love talking to people, making it happen. Again, our model's the same as yours. We're open to anyone who's got signal, and you certainly are doing a great job and great to know you and follow your entrepreneur journey, your investment journey, and now your film making journey. Paul Martino, General Pen on Bullpen Capital, with the hot film Inside Game. I'm definitely going to see it. It should be really strong and it's going to be one of those movies like Crazy, Rich Asians, where not looking, not really well produced, I mean not predicted to be great and then goes game buster so I think this is going to be one of those examples. Paul, thanks for coming on. >> Love it, thank you! >> This Cube Conversation, I'm John Furrier here in Palo Alto, California, bringing ya all the action. Venture capitalist turned film maker Paul Martino with the movie Inside Game. I'm John Furrier, thanks for watching. (triumphant music)
SUMMARY :
and also the producer of an upcoming film Thanks for having me on the show. in a lot of the sports, And he says sometimes the movie picks you going to structure it. I'm a good guy to have owe you a favor Reminds of the Crazy, Rich Asians, It is 2019 and the and here on the Cube in the past but of the three buckets that you need and costs involved in making the movie, You got to build a product. That's the real attribute you need to have I kind of know how to make that product. I got to ask you a question. period of the last five to 10 years, And the key to success, you know, Well how the hell do you And then you're going to and knowing the work that went in, of the people on the of the people on it. to be talking to you about You know, 20% of the deal is this going to be a And so the earned media is going to be And this comes back to my point of all the actors and people in the film. And this is going to change, I think this is what the next generation and great to know you and follow your here in Palo Alto, California,
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Nathan Dyer, Tenable | AWS Marketplace 2018
>> From the Aria Resort in Las Vegas, it's theCUBE. Covering AWS marketplace. Brought to you by Amazon Web Services. >> Hey, welcome back everybody, Jeff Frick here with theCUBE. We are kicking off three crazy days at AWS re:Invent. It is the place to be the week after Thanksgiving. There's got to be 50,000 people, we haven't got the official word, but it's packed and it kicks off tonight with a reception. We're here at the AWS Marketplace and Service Catalog Experience over at the Aria, in the quad, come check us out. A lot of good stuff going on. A lot of fun stuff going on. And we're excited to have first time to theCUBE, he's Nathan Dyer, Senior Product Manager for Tenable. Great to see you. >> Jeff, great to be here. Thanks for having me. >> Yeah, have the energy the opened the doors the people are streaming in. >> I don't know if it's the food or the drinks or the vendors. >> All of the above. Probably more the food and the drinks. All right. So give us an overview of Tenable for people who aren't familiar with the company. >> Yeah, so Tenable, we are the cyber exposure company. We help organizations assess, manage, and measure their cyber risk across their entire organization, across their monitored tax surface. And so what we try to do is help answer four fundamental questions around security. How exposed are we? How do we prioritize based on risk, how are we doing over time from a measurement standpoint, and then how do we compare with our peers? And so, if you haven't heard of Tenable, chances are you've heard of Nessus, which is one of our flagship brands. Nessus just turned 20 years young earlier this year. If you're pen tester, if you're a consultant if you're a practitioner, you know Nessus. But over the years we've added some other brands as well. Security Center which is now renamed Tenable.sc which is our On-Prem vulnerability management solution. And then tenable.io which was released in 2017 which is our cloud based vulnerability management solution and built on AWS. >> Right. So I was doing some research, I love your guys' little mantra here, it's security for code, for clouds and containers. You got all the C's there. The containers, you know, what's going on with Docker over the last couple of years and now obviously the huge groundswell with Kubernetes, you know this container thing, depending on who you talk to has been around for a long time but it certainly didn't have the momentum. How's the kind of the growth of the container world impacted the securities base? >> Oh, it's massive. Containers are everywhere. In fact there's a strong affinity to cloud and containers. So a lot of our large AWS customers love containers. They've been dabbling with containers for quite some time. They're moving more and more workloads to be containerized and on Kubernetes, Dockers, et cetera. From a securities standpoint that introduces a lot of challenges, right. They're short lived life cycles of docker containers make it very hard for us in security to assess or discover them. They're part of the whole immutable infrastructure phenomenon, so you can't patch it in production, right. Infrastructure is code. You have to tear down the container, fix the image and then redeploy. So from our perspective, we think you have to secure containers by focusing on the container image. Specifically as developers are spinning up new code, compiling new builds, creating new container images, is it running quality assurance checks? Security has to be a critical part of that quality assurance process. As you're doing integration tests, unit testing, API testing, security has to be a critical test looking for vulnerabilities and malwares is part of that process. >> But the rate of change in those images is pretty high. I mean, the rate of deployments is super high, but like you said a lot of them have short life spans, they're up or they're down. So, have people baked that in to their process? I mean, obviously, I hope they are. Or how are you helping them to make sure that security is a really key piece to that image. Because once that image goes out it has access to all kinds of things. >> So, the new news with containers, and then by focusing on the image it forces security teams to talk to their development peers. In order to secure DevOps and secure containers, security has to be embedded into continuous integration, into continuous delivery cycles or systems. And if you're focusing on development, you have a much greater chance of making sure that vulnerable container images are not escaping into the wild. And you guys should get a hold of those vulnerable images and make sure they adhere to policies before they're released into production. So that's the new news. >> Well, it's funny because you reference the DevOps. 'Cause DevOps has now been around for a while and clearly is the way the code gets deployed in a very rapid iteration. So they're some significant lessons from the DevOps security angle that you're now using then on the container side. Yeah, well first thing with secure DevOps and Devops in general, is that you have to get the developers and security teams to talk. You have to have a shared understanding of what makes each other tick. What are the goals, what are the responsibilities, priorities, understand each other and it turns out there's actually a lot of shared understanding and mutual benefit between infosec and application developments. When security is focused on solving for vulnerabilities and looking for security issues, that's improving code quality. That's removing some of the software defects from the development code and developers love that. They love producing high quality code. On the flip side, security teams can learn a lot about agile development. DevOps principles. Bringing DevOps into the security discipline, and help security teams start to leverage automation and continuous testing, continuous delivery, and make them much more scalable and productive in their organizations. So there's a lot of mutual of understanding there. >> Right. So I'd imagine there's a lot of, kind of similarities between classic waterfall and the moat, versus now kind of the DevOps and the continuous and ongoing constant process. >> That's exactly right. >> Yeah. So we're here at the AWS Marketplace. So you guys are selling through the marketplace, how has that been for the company? How has the experience been working with the AWS marketplace team? >> Oh, it's been great. I mean, Amazon is a great partner to work with. Tenable.io which is our cloud based vulnerability management solution is built on Amazon. We have a great relationship with Amazon engineers. Now for the marketplace, we've been selling Nessus for quite some time through the marketplace. So if you're a Nessus subscriber, if you're a tenable.io or securities center or tenable.sc subscriber, you get access to unlimited Nessus scanners and you can provision them very easily through the marketplace. It's super easy. Just recently, we now unveiled tenable.io through the marketplace and so far it's been a great success. Now customers who prefer to buy through Amazon marketplace AWS marketplace, can do so with a couple of clicks and be provisioned and get up and running with tenable.io. It's super easy, you can learn about the product. Kick the tires with a free evaluation, and really provision the product very simply. >> Yeah, I would imagine the touch from your guys side goes down significantly when they're just coming right through the marketplace. >> Exactly. That's the idea. Make it super easy for customers to invest in tenable.io and get a great experience in doing it. >> What about your own sales guys though. Is there a little channel conflict? They're like hey come one, I want to sell hat thing, we don't want to go through Amazon. >> Not at all. Our mantra is we want our customer to purchase through the channel they're comfortable with. And if they want to purchase through the AWS marketplace we have a channel for them, if they want to go through our three chair model we have obviously a great experience there as well. >> And clearly Amazon brings a lot of customer eyeballs to the table. >> They're a great partner. >> So, just before we wrap, you guys came out with the vulnerability intelligence report. I wonder if you can share some of the highlights of the things. You guys are obviously keeping track of this, you talked about benchmarking against your peers. And I know there's also a lot of sharing of information within security companies, to kind of know what the bad guys are and some of the patterns and best practices. So, I'm wondering if you can share some of the current trends. What are you seeing? How's the landscape changing? >> Well first of all, we have phenomenal tenable research team. They're phenomenal in terms of the data science, in terms of the vulnerability intelligence. We have a wealth of data in our hands from various deployments and so there's a lot of great number crunching and analysis we can generate from that. What we discovered in the vulnerability and intelligence report, is that security teams are just bombarded with vulnerabilities, literally, bombarded. Last year in 2017 we saw over 15,000 CVE's and unique vulnerabilities hitting the marketplace or hitting the industry. And by the end of this year we're expected to be between 18,000 and 19,000 vulnerabilities. So the trend is just going up, up, up. I think what makes matters worse though, is that when you start looking at those 19,000 vulnerabilities, over 60% of those vulnerabilities are classified as either high risk or critical. >> 65%? >> Around 60%. >> Of the, what was the numerator? 18,000? >> Of those 18,000 to 19,000 vulnerabilities, are classified as high risk or critical risk. So, that's a lot of fire drills that security teams need to chase. And so, what we're trying to achieve is helping our customers, helping the market at large understand what are the true risks out there, not the theoretical risks. What are the actual cyber risks. Meaning what are the vulnerabilities that could be easily exploitable, that have exploit kits already developed. We have our data science team looking at the characteristics of vulnerabilities and which ones would be leveraged by the bad guys and which ones would not be. And we significantly boil that number down so that organizations can focus on only 5% of the number of vulnerabilities that they otherwise would be chasing without changing their overall security risk to the organization. So, prioritization is super, super critical for those organizations. >> Nathan I think we all that separating the signal from the noise. (laughs) >> Jeff, well thanks for having me. >> Nathan, thank you very much, it's great to see you and have a great show. >> Thanks. You too. >> All right, I'm Jeff he's Nathan, you're watching theCUBE. We are at the AWS marketplace and service catalog experience at the Aria, at the quad. Come on by. We're serving free food and drink. See you next time. (lively music)
SUMMARY :
From the Aria Resort in Las Vegas, It is the place to be the week after Thanksgiving. Jeff, great to be here. Yeah, have the energy the opened the doors the people are I don't know if it's the food or the drinks All of the above. and then how do we compare with our peers? and now obviously the huge groundswell They're part of the whole I mean, the rate of deployments is super high, but like you So, the new news with containers, and clearly is the way the code gets deployed and the continuous and ongoing constant process. how has that been for the company? and really provision the product very simply. the marketplace. That's the idea. we don't want to go through Amazon. And if they want to purchase through the AWS marketplace to the table. and some of the patterns and best practices. And by the end of this year we're expected to What are the actual cyber risks. the noise. and have a great show. You too. We are at the AWS marketplace and service catalog experience
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