>>Good evening, brilliant humans. My name is Savannah Peterson and very delighted to be streaming to you. Live from the Cube Studios here in Motor City, Michigan. I've got John Furrier on my left. John, this is our last interview of the day. Energy just seems to keep oozing. How >>You doing? Take two, Three days of coverage, the queue love segments. This one's great cuz we have a practitioner who's implementing all the hard core talks to be awesome. Can't wait to get into it. >>Yeah, I'm very excited for this one. If it's not very clear, we are a community focused community is a huge theme here at the show at Cape Con. And our next guests are actually a provider and a customer. Turning it over to you. Lisa and Jake, welcome to the show. >>Thank you so much for having us. >>It's great to be here. It is our pleasure. Lisa, you're with Cockroach. Just in case the audience isn't familiar, give us a quick little sound bite. >>We're a distributed sequel database. Highly scalable, reliable. The database you can't kill, right? We will survive the apocalypse. So very resilient. Our customers, mostly retail, FinTech game meet online gambling. They, they, they need that resiliency, they need that scalability. So the indestructible database is the elevator pitch >>And the success has been very well documented. Valuation obviously is a scorp guard, but huge customers. We were at the Escape 19. Just for the record, the first ever multi-cloud conference hasn't come back baby. Love it. It'll come back soon. >>Yeah, well we did a similar version of it just a month ago and I was, that was before Cockroach. I was a different company there talking a lot about multi-cloud. So, but I'm, I've been a car a couple of years now and I run community, I run developer relations. I'm still also a CNCF ambassador, so I lead community as well. I still run a really large user group in the San Francisco Bay area. So we've just >>Been in >>Community, take through the use case. Jake's story set us up. >>Well I would like Jake to take him through the use case and Cockroach is a part of it, but what they've built is amazing. And also Jake's history is amazing. So you can start Jake, >>Wherever you take >>Your Yeah, sure. I'm Jake, I'm CEO and co-founder of Offset. Oted is the commercial entity behind Spice Dvy and Spice Dvy is a permission service. Cool. So a permission service is something that lets developers and let's platform teams really unlock the full potential of their applications. So a lot of people get stuck on My R back isn't flexible enough. How do I do these fine grain things? How do I do these complex sharing workflows that my product manager thinks is so important? And so our service enables those platform teams and developers to do those kinds of things. >>What's your, what's your infrastructure? What's your setup look like? What, how are you guys looking like on the back end? >>Sure. Yeah. So we're obviously built on top of Kubernetes as well. One of the reasons that we're here. So we use Kubernetes, we use Kubernetes operators to orchestrate everything. And then we use, use Cockroach TV as our production data store, our production backend data store. >>So I'm curious, cause I love when these little matchmakers come together. You said you've now been presenting on a little bit of a road show, which is very exciting. Lisa, how are you and the team surfacing stories like Jakes, >>Well, I mean any, any place we can obviously all the social medias, all the blogs, How >>Are you finding it though? >>How, how did you Oh, like from our customers? Yeah, we have an open source version so people start to use us a long time before we even sometimes know about them. And then they'll come to us and they'll be like, I love Cockroach, and like, tell me about it. Like, tell me what you build and if it's interesting, you know, we'll we'll try to give it some light. And it's always interesting to me what people do with it because it's an interesting technology. I like what they've done with it. I mean the, the fact that it's globally distributed, right? That was like a really important thing to you. Totally. >>Yeah. We're also long term fans of Cockroach, so we actually all work together out of Workbench, which was a co-working space and investor in New York City. So yeah, we go way back. We knew the founders. I, I'm constantly saying like if I could have invested early in cockroach, that would've been the easiest check I could have ever signed. >>Yeah, that's awesome. And then we've been following that too and you guys are now using them, but folks that are out there looking to have the, the same challenges, what are the big challenges on selecting the database? I mean, as you know, the history of Cockroach and you're originating the story, folks out there might not know and they're also gonna choose a database. What's the, what's the big challenge that they can solve that that kind of comes together? What, what would you describe that? >>Sure. So we're, as I said, we're a permission service and per the data that you store in a permission service is incredibly sensitive. You need it to be around, right? You need it to be available. If the permission service goes down, almost everything else goes down because it's all calling into the permission service. Is this user allowed to do this? Are they allowed to do that? And if we can't answer those questions, then our customer is down, right? So when we're looking at a database, we're looking for reliability, we're looking for durability, disaster recovery, and then permission services are one of the only services that you usually don't shard geographically. So if you look at like AWS's iam, that's a global service, even though the individual things that they run are actually sharded by region. So we also needed a globally distributed database with all of those other properties. So that's what led us >>To, this is a huge topic. So man, we've been talking about all week the cloud is essentially distributed database at this point and it's distributed system. So distributed database is a hot topic, totally not really well reported. A lot of people talking about it, but how would you describe this distributed trend that's going on? What are the key reasons that they're driving it? What's making this more important than ever in your mind, in your opinion? >>I mean, for our use case, it was just a hard requirement, right? We had to be able to have this global service. But I think just for general use cases, a distributed database, distributed database has that like shared nothing architecture that allows you to kind of keep it running and horizontally scale it. And as your requirements and as your applications needs change, you can just keep adding on capacity and keep adding on reliability and availability. >>I'd love to get both of your opinion. You've been talking about the, the, the, the phases of customers, the advanced got Kubernetes going crazy distributed, super alpha geek. Then you got the, the people who are building now, then you got the lagers who are coming online. Where do you guys see the market now in terms of, I know the Alphas are all building all the great stuff and you guys had great success with all the top logos and they're all doing hardcore stuff. As the mainstream enterprise comes in, where's their psychology, what's on their mind? What's, you share any insight into your perspective on that? Because we're seeing a lot more of it folks becoming like real cloud players. >>Yeah, I feel like in mainstream enterprise hasn't been lagging as much as people think. You know, certainly there's been pockets in big enterprises that have been looking at this and as distributed sequel, it gives you that scalability that it's absolutely essential for big enterprises. But also it gives you the, the multi-region, you know, the, you have to be globally distributed. And for us, for enterprises, you know, you need your data near where the users are. I know this is hugely important to you as well. So you have to be able to have a multi-region functionality and that's one thing that distributed SQL lets you build and that what we built into our product. And I know that's one of the things you like too. >>Yeah, well we're a brand new product. I mean we only founded the company two years ago, but we're actually getting inbound interest from big enterprises because we solve the kinds of challenges that they have and whether, I mean, most of them already do have a cockroach footprint, but whether they did or didn't, once they need to bring in our product, they're going to be adopting cockroach transitively anyway. >>So, So you're built on top of Cockroach, right? And Spice dv, is that open source or? >>It >>Is, yep. Okay. And explain the role of open source and your business model. Can you take a minute to talk about the relevance of that? >>Yeah, open source is key. My background is, before this I was at Red Hat. Before that we were at CoreOS, so CoreOS acquisition and before that, >>One of the best acquisitions that ever happened for the value. That was a great, great team. Yeah, >>We, we, we had fun and before that we built Qua. So my co-founders and I, we built Quay, which is a, a first private docker registry. So CoreOS and, and all of those things are all open source or deeply open source. So it's just in our dna. We also see it as part of our go-to market motion. So if you are a database, a lot of people won't even consider what you're doing without being open source. Cuz they say, I don't want to take a, I don't want to, I don't want to end up in an Oracle situation >>Again. Yeah, Oracle meaning they go, you get you locked in, get you in a headlock, Increase prices. >>Yeah. Oh yeah, >>Can, can >>I got triggered. >>You need to talk about your PTSD there >>Or what. >>I mean we have 20,000 stars on GitHub because we've been open and transparent from the beginning. >>Yeah. And it >>Well, and both of your projects were started based on Google Papers, >>Right? >>That is true. Yep. And that's actually, so we're based off of the Google Zans of our paper. And as you know, Cockroach is based off of the Google Span paper and in the the Zanzibar paper, they have this globally distributed database that they're built on top of. And so when I said we're gonna go and we're gonna make a company around the Zabar paper, people would go, Well, what are you gonna do for Span? And I was like, Easy cockroach, they've got us covered. >>Yeah, I know the guys and my friends. Yeah. So the question is why didn't you get into the first round of Cockroach? She said don't answer that. >>The question he did answer though was one of those age old arguments in our community about pronunciation. We used to argue about Quay, I always called it Key of course. And the co-founder obviously knows how it's pronounced, you know, it's the et cd argument, it's the co cuddl versus the control versus coo, CTL Quay from the co-founder. That is end of argument. You heard it here first >>And we're keeping it going with Osted. So awesome. A lot of people will say Zeed or, you know, so we, we just like to have a little ambiguity >>In the, you gotta have some semantic arguments, arm wrestling here. I mean, it keeps, it keeps everyone entertained, especially on the over the weekend. What's, what's next? You got obviously Kubernetes in there. Can you explain the relationship between Kubernetes, how you're handling Spice dv? What, what does the Kubernetes piece fit in and where, where is that going to be going? >>Yeah, great question. Our flagship product right now is a dedicated, and in a dedicated, what we're doing is we're spinning up a single tenant Kubernetes cluster. We're installing all of our operator suite, and then we're installing the application and running it in a single tenant fashion for our customers in the same region, in the same data center where they're running their applications to minimize latency. Because of this, as an authorization service, latency gets passed on directly to the end user. So everybody's trying to squeeze the latency down as far as they can. And our strategy is to just run these single tenant stacks for people with the minimal latency that we can and give them a VPC dedicated link very similar to what Cockroach does in their dedicated >>Product. And the distributed architecture makes that possible because it's lighter way, it's not as heavy. Is that one of the reasons? >>Yep. And Kubernetes really gives us sort of like a, a level playing field where we can say, we're going going to take the provider, the cloud providers Kubernetes offering, normalize it, lay down our operators, and then use that as the base for delivering >>Our application. You know, Jake, you made me think of something I wanted to bring up with other guests, but now since you're here, you're an expert, I wanna bring that up, but talk about Super Cloud. We, we coined that term, but it's kind of multi-cloud, is that having workloads on multiple clouds is hard. I mean there are, they are, there are workloads on, on clouds, but the complexity of one clouds, let's take aws, they got availability zones, they got regions, you got now data issues in each one being global, not that easy on one cloud, nevermind all clouds. Can you share your thoughts on how you see that progression? Because when you start getting, as its distributed database, a lot of good things might come up that could fit into solving the complexity of global workloads. Could you share your thoughts on or scoping that problem space of, of geography? Yeah, because you mentioned latency, like that's huge. What are some of the other challenges that other people have with mobile? >>Yeah, absolutely. When you have a service like ours where the data is small, but very critical, you can get a vendor like Cockroach to step in and to fill that gap and to give you that globally distributed database that you can call into and retrieve the data. I think the trickier issues come up when you have larger data, you have huge binary blobs. So back when we were doing Quay, we wanted to be a global service as well, but we had, you know, terabytes, petabytes of data that we were like, how do we get this replicated everywhere and not go broke? Yeah. So I think those are kind of the interesting issues moving forward is what do you do with like those huge data lakes, the huge amount of data, but for the, the smaller bits, like the things that we can keep in a relational database. Yeah, we're, we're happy that that's quickly becoming a solved >>Problem. And by the way, that that data problem also is compounded when the architecture goes to the edge. >>Totally. >>I mean this is a big issue. >>Exactly. Yeah. Edge is something that we're thinking a lot about too. Yeah, we're lucky that right now the applications that are consuming us are in a data center already. But as they start to move to the edge, we're going to have to move to the edge with them. And it's a story that we're gonna have to figure out. >>All right, so you're a customer cockroach, what's the testimonial if I put you on the spot, say, hey, what's it like working with these guys? You know, what, what's the, what's the, you know, the founders, so you know, you give a good description, little biased, but we'll, we'll we'll hold you on it. >>Yeah. Working with Cockroach has been great. We've had a couple things that we've run into along the way and we've gotten great support from our account managers. They've brought in the right technical expertise when we need it. Cuz what we're doing with Cockroach is not you, you couldn't do it on Postgres, right? So it's not just a simple rip and replace for us, we're using all of the features of Cockroach, right? We're doing as of system time queries, we're doing global replication. We're, you know, we're, we're consuming it all. And so we do need help from them sometimes and they've been great. Yeah. >>And that's natural as they grow their service. I mean the world's changing. >>Well I think one of the important points that you mentioned with multi-cloud, we want you to have the choice. You know, you can run it in in clouds, you can run it hybrid, you can run it OnPrem, you can do whatever you want and it's just, it's one application that you can run in these different data centers. And so really it's up to you how do you want to build your infrastructure? >>And one of the things we've been talking about, the super cloud concept that we've been issue getting a lot of contrary, but, but people are leaning into it is that it's the refactoring and taking advantage of the services. Like what you mentioned about cockroach. People are doing that now on cloud going the lift and shift market kind of had it time now it's like hey, I can start taking advantage of these higher level services or capability of someone else's stack and refactoring it. So I think that's a dynamic that I'm seeing a lot more of. And it sounds like it's working out great in this situation. >>I just came from a talk and I asked them, you know, what don't you wanna put in the cloud and what don't you wanna run in Kubernetes or on containers and good Yeah. And the customers that I was on stage with, one of the guys made a joke and he said I would put my dog in a container room. I could, he was like in the category, which is his right, which he is in the category of like, I'll put everything in containers and these are, you know, including like mis critical apps, heritage apps, since they don't wanna see legacy anymore. Heritage apps, these are huge enterprises and they wanna put everything in the cloud. Everything >>You so want your dog that gets stuck on the airplane when it's on the tarmac. >>Oh >>God, that's, she was the, don't take that analogy. Literally don't think about that. Well that's, >>That's let's not containerize. >>There's always supply chain concern. >>It. So I mean going macro and especially given where we are cncf, it's all about open source. Do y'all think that open source builds a better future? >>Yeah and a better past. I mean this is, so much of this software is founded on open source. I, we wouldn't be here really. I've been in open source community for many, many years so I wouldn't say I'm biased. I would say this is how we build software. I came from like in a high school we're all like, oh let's build a really cool application. Oh you know what? I built this cuz I needed it, but maybe somebody else needs it too. And you put it out there and that is the ethos of Silicon Valley, right? That's where we grew up. So I've always had that mindset, you know, and social coding and why I have three people, right? Working on the same thing when one person you could share it's so inefficient. All of that. Yeah. So I think it's great that people work on what they're really good at. You know, we all, now you need some standardization, you need some kind of control around this whole thing. Sometimes some foundations to, you know, herd the cats. Yeah. But it's, it's great. Which is why I'm a c CF ambassador and I spend a lot of time, you know, in my free time talking about open source. Yeah, yeah. >>It's clear how passionate you are about it. Jake, >>This is my second company that we founded now and I don't think either of them could have existed without the base of open source, right? Like when you look at I have this cool idea for an app or a company and I want to go try it out, the last thing I want to do is go and negotiate with a vendor to get like the core data component. Yeah. To even be able to get to the >>Prototypes. NK too, by the way. Yeah. >>Hey >>Nk >>Or hire, you know, a bunch of PhDs to go and build that core component for me. So yeah, I mean nobody can argue that >>It truly is, I gotta say a best time if you're a developer right now, it's awesome to be a developer right now. It's only gonna get better. As we were riff from the last session about productivity, we believe that if you follow the digital transformation to its conclusion, developers and it aren't a department serving the business, they are the business. And that means they're running the show, which means that now their entire workflow is gonna change. It's gonna be have to be leveraging services partnering. So yeah, open source just fills that. So the more code coming up, it's just no doubt in our mind that that's go, that's happening and will accelerate. So yeah, >>You know, no one company is gonna be able to compete with a community. 50,000 users contributing versus you riding it yourself in your garage with >>Your dogs. Well it's people driven too. It's humans not container. It's humans working together. And here you'll see, I won't say horse training, that's a bad term, but like as projects start to get traction, hey, why don't we come together as, as the world starts to settle and the projects have traction, you start to see visibility into use cases, functionality. Some projects might not be, they have to kind of see more kind >>Of, not every feature is gonna be development. Oh. So I mean, you know, this is why you connect with truly brilliant people who can architect and distribute sequel database. Like who thought of that? It's amazing. It's as, as our friend >>You say, Well let me ask you a question before we wrap up, both by time, what is the secret of Kubernetes success? What made Kubernetes specifically successful? Was it timing? Was it the, the unambitious nature of it, the unification of it? Was it, what was the reason why is Kubernetes successful, right? And why nothing else? >>Well, you know what I'm gonna say? So I'm gonna let Dave >>First don't Jake, you go first. >>Oh boy. If we look at what was happening when Kubernetes first came out, it was, Mesosphere was kind of like the, the big player in the space. I think Kubernetes really, it had the backing from the right companies. It had the, you know, it had the credibility, it was sort of loosely based on Borg, but with the story of like, we've fixed everything that was broken in Borg. Yeah. And it's better now. Yeah. So I think it was just kind and, and obviously people were looking for a solution to this problem as they were going through their containerization journey. And I, yeah, I think it was just right >>Place, the timing consensus of hey, if we just let this happen, something good might come together for everybody. That's the way I felt. I >>Think it was right place, right time, right solution. And then it just kind of exploded when we were at Cores. Alex Povi, our ceo, he heard about Kubernetes and he was like, you know, we, we had a thing called Fleet D or we had a tool called Fleet. And he's like, Nope, we're all in on Kubernetes now. And that was an amazing Yeah, >>I remember that interview. >>I, amazing decision. >>Yeah, >>It's clear we can feel the shift. It's something that's come up a lot this week is is the commitment. Everybody's all in. People are ready for their transformation and Kubernetes is definitely gonna be the orchestrator that we're >>Leveraging. Yeah. And it's an amazing community. But it was, we got lucky that the, the foundational technology, I mean, you know, coming out of Google based on Go conferences, based on Go, it's no to coincidence that this sort of nature of, you know, pods horizontally, scalable, it's all fits together. I does make sense. Yeah. I mean, no offense to Python and some of the other technologies that were built in other languages, but Go is an awesome language. It's so, so innovative. Innovative things you could do with it. >>Awesome. Oh definitely. Jake, I'm very curious since we learned on the way and you are a Detroit native? >>I am. Yep. I grew up in the in Warren, which is just a suburb right outside of Detroit. >>So what does it mean to you as a Michigan born bloke to be here, see your entire community invade? >>It is, I grew up coming to the Detroit Auto Show in this very room >>That brought me to Detroit the first time. Love n a I a s. Been there with our friends at Ford just behind us. >>And it's just so interesting to me to see the accumulation, the accumulation of tech coming to Detroit cuz it's really not something that historically has been a huge presence. And I just love it. I love to see the activity out on the streets. I love to see all the restaurants and coffee shops full of people. Just, I might tear up. >>Well, I was wondering if it would give you a little bit of that hometown pride and also the joy of bringing your community together. I mean, this is merging your two probably most core communities. Yeah, >>Yeah. Your >>Youth and your, and your career. It doesn't get more personal than that really. Right. >>It's just been, it's been really exciting to see the energy. >>Well thanks for going on the queue. Thanks for sharing. Appreciate it. Thanks >>For having us. Yeah, thank you both so much. Lisa, you were a joy of ball of energy right when you walked up. Jake, what a compelling story. Really appreciate you sharing it with us. John, thanks for the banter and the fabulous questions. I'm >>Glad I could help out. >>Yeah, you do. A lot more than help out sweetheart. And to all of you watching the Cube today, thank you so much for joining us live from Detroit, the Cube Studios. My name is Savannah Peterson and we'll see you for our event wrap up next.

>>Mm. Okay, we're back. Digging into the infrastructure to make hybrid work possible. High performance, cost effective, scalable and secure. That's what it's all about. So far, we've covered the rapid migration to WiFi 60 technology and the role that switching is going to play. And now we're gonna get into private five g to do that. Let's welcome Masumi here. Who is vice president and general manager of mobile cable and the Iot business at Cisco and Greg Dorey, who is the vice president of product management for the networking experiences group of Cisco. He's responsible for Catalyst access that whole portfolio enterprise five G Cisco DNA spaces, Cisco, Iasi A lot of stuff there. Uh, Greg gentlemen, welcome, >>Dave. Thank you for having us. >>Yeah, our pleasure. So let's start with you on the topic of private five g five g. What do we need to know about that? And more specifically, you know what's unique about Cisco's private five G? >>So, most importantly, delivering private five G in enterprise terms that's super important to look at five p. Many of our peer groups might have got it wrong. We're looking at private five g with the lens of enterprise. What enterprise really needs is five g going to come and displace a lot of existing technology? Or is it going to help augment the technology that enterprise has an excellent Their digitisation is you need. I wanted to start Dave with the basic premise of hybrid work, and what hybrid work really means. Is it only for knowledge worker or is it for all workers? So we strongly believe hybrid work needs to empower all workers. It's not only connecting remote workers but also bringing people things and space together. And I strongly believe the combination of WiFi six n five g for private network is going to accelerate that journey, bringing people things and space together in a very, very cohesive way. Why are our offer is so unique? We are going to create a continent. Enterprises don't have to make a hard choice. They will be using WiFi technology and five G technology hand in hand without creating a disruption on their policy and identity systems. They don't have to rethink. Do I have to go and build a new background is a common background that will support both WiFi as well as five t Most importantly, delivering this enter offer as a service with the ease of consumption is of operation and trusted environment that they can put their mission critical workloads on. >>I like it. So couple takeaways there are inclusive of all workers, not just knowledge workers non disruptive. Everybody loves to hear that. And of course, the as a service model is key. So let me stay with you. I mean, we can't wait for five g, right? It's lightning fast. They've got super low latency, very high bandwidth. So that's what everybody is excited about. The question, though, is is five g gets introduced. You know it's going to power things like Coyote Networks. Is that going to replace WiFi and legacy Wired broadband? >>Absolutely not. So we see private five years, an augmentation to the enterprise on top of WiFi WiFi. As you heard in the previous conversation, WiFi is bringing more capability with WiFi six and WiFi 16 and five G is going to be yet another augmentation. WiFi and fight. The will coexist within enterprise for many years to come. I would like my friend Greg to talk a little bit about this continuum. Greg. >>Yeah, I think it's sort of like I like to say it's an and not an AR because there's enough use cases out there. Richard Pryor Spectrum And you know, spectrum >>is a constraint, so >>you have private five G, your WiFi six and both offer opportunities. So, for example, in an indoor carpet setting where you're basically connecting your phone for basic browsing or connecting your laptop, WiFi is sufficient. But if it's a process automation, uh, factory where you need seven nines of reliability, private five g is a better technology. Similarly outdoor large areas. It's probably private. Five g right like this, you can have easy handoff between public and private, so it's use case driven, and once it's used case driven, it's going to be an are because there's so many next time use cases, whether it's a are we are drones, self driving cars, you name it right, like And so I think these two technologies five g and Y 5 60 is gonna work hand in hand to deliver awesome outcomes for our customers. >>Yeah, and just the data volumes are gonna be incredible. We always talk about the data volumes. You ain't seen nothing yet is what I always say. But the thing is, every new tech that's introduced into the enterprise, you can almost be certain that is going to bring adoption challenges. And not only that also is going to bring changes in the way you do things. And that brings new complexities from an operational standpoint. So my question is, how are you addressing this with the introduction of five g. >>Dave, this is a fantastic question, and this is why we have spent me and Greg have spent tremendous amount of time to create continual. I'll start with the foundation first, back down. So we have been building this enterprise backbone, supporting what Wild Connexion as well as WiFi Connexion. We wanted to make sure that as private five G camps within enterprise, you don't have to rethink and reimagine your background is the common backbone that will support both WiFi WiFi six WiFi 60 as well as private five g. You rest assured that it is the same backbone that we have heard in the previous section on the Cap 90 that will also support a private key access. The second aspect of private five G is as you build any new technology into enterprise. Oftentimes we get into this trap to get to an outcome. We move fast and we create asylum. And then that silo operation creates a barriers to mainstream it. So upfront we have to think about not creating another silent and how we're doing it. Number one is a device that can connecting to WiFi network or a private five G network. You don't have to reimagine or rethink how I'm going to manage. The identity will create continue of the common identity across the WiFi access or five t access in the same environment. The second aspect of that is, how are we going to reach in all our staff are enterprise staff is well trained with WiFi technology and white technology. Now five G comes with tremendous amount of value and benefit, but it also comes with inherent technology complexity, learning problems. This is where our simple to consume simple to operate model of sass comes to play. That we're going to take all those complexity away. It is a cloud deliberate service enterprise don't have to go through this massive learning car. Adopting this technology last but not list on how you're going to manage your capital. Any new technology and enterprise, Oftentimes you need a huge amount of upfront investment to adopt the technology to get to the other side of getting the outcome. So again, our business model of SARS will allow Enterprise to adopt this new technology and pay as you go model to meet with enterprise needs. Finally, I also wanted to pass to break to touch a little bit more on how we are thinking about this common identity across any access in the enterprise. Greg to your >>So we we talk about it in two different ways. One is a lot of enterprises today use our identity and secure management platform. We call it Isis Co ice platform. And so years and years of policy and identities Excess service, radio service they use, uh, etcetera are plugged in already into our eyes. Right. So if you can share that with this private five years as a service, uh, infrastructure that Muslims been building, we think we'll be able to create that bridge because we're not forcing enterprises to create new identities, a new policy. So thats sort of step one to make it easier. Uh, you also talk through something where, in the case of a public five g network, for example, the It's very convenient because you take your phone out of your pocket and it's connected to the network, right? Was this for WiFi? You have to log into an S I D in your hotel or in your home and home. It's automatic, but that's that logging process that creates friction. And that's a problem, because then you can't be seamless. So we initiated what we call us open roaming, right? Like that's, uh, identity federation that we first created between identity owners. Could be carriers could be, um, anything that anyone who owns an identity and they will share with venues. And so if the sharing happens, then that Onboarding can be automatic and once on boarding is automatic, then it's easy to pass off between five and five G. And so that's again another way in which you can lower the adoption barriers because you share across public private G and WiFi networks. So these are two concrete examples of how we thought about lowering the barriers of adoption. As we enter into this heterogeneous >>world, >>I can't wait. Let's let's talk about how this thing scales in the go to market, what are the most likely or maybe preferred or obvious routes to market for private five g Francisco >>so they stay tuned when when they announce more about it. But I can also assure you that exposed to the spectrum is a challenge for many enterprises when it comes to cellular technology. In some countries, there are more spectrum accessible by enterprise. In many countries, that's not the case. So we have talked to very carefully that how do we bring this offer to the market? Partnering with many service providers and mobile operators, where in countries where we don't have direct access to the spectrum, our partnership with mobile operators that you will hear more about as we come to mobile world Congress is going to allow our enterprise to consume this technology even if they don't have the spectrum in places where the enterprise might have direct spectrum access. We'll also bring in our relativist providers to hide the complexity of the new technology on top of our cell services or a cloud deliberate services. This is the augmentation with the partnership with menaces providers and mobile operators that will ease this journey for enterprises are most important. Primitive in this journey is to keep it simple for enterprise. Make it intuitive and trust it from day one. >>Outstanding. Okay. Assume, Greg, Thanks so much. It's great to have you guys. I really appreciate your time. >>Thank you. Thank you. Mm mm.

>> As to the adoption challenges, I wasn't clear on where that should go. I mean, I'm happy to just throw it out there. >> You'll again punch it back to me, right? >> Okay. >> Question comes to me and I'm going to pass the ball to Greg to connect the thread on one backbone is needed. Emphasizing Cat 9K that we just talked about. >> And same thing for the last question. The routes to market? >> Yes. >> Okay. >> Yes. >> Great. So we'll use that program for everything. Perfect. >> Masum, could you... Yeah, right there. So mark your place and try not to move that seat. That's it. Now, come forward just a tad, just a tad. There we go. Yeah. Okay, that's fine. Okay Alex, we're good. >> Okay. So Leonard don't leave after this 'Cause I'm going to do my outro. I'm going to do that as a separate asset, okay? >> You bet. >> Okay, great. So guys just it'll be five, four, three, silent, two, one. And then just follow my lead, okay? All right, Alex, you're ready? Masum and Greg, you're ready? >> Ready. >> Ready. >> Okay, here we go on me. On Dave in five, four, three, (beep). Okay, we're back. Digging into the infrastructure to make hybrid work possible. High performance, cost effective, scalable, and secure. That's what it's all about. And so far, we've covered the rapid migration to Wi-Fi 6E technology, and the role that switching is going to play. And now we're going to get into Private 5G and to do that, let's welcome Masum Mir, who is Vice President, and General Manager of Mobile, Cable and IoT business at Cisco. And Greg Dorai who is the Vice President of Product Management for the networking experiences group at Cisco. He's responsible for Catalyst access, that whole portfolio, Enterprise 5G, Cisco DNA Spaces, Cisco ISE, a lot of stuff there Greg. And gentlemen, welcome. >> Dave thank you for having us. >> Yeah, our pleasure. Masum let's start with you on the topic of Private 5G. What do we need to know about that? And more specifically, what's unique about Cisco's Private 5G? >> So most importantly, delivering Private 5G in enterprise terms, that's super important to look at 5G. Many of our peer groups might have got it wrong. We're looking at Private 5G with the lens of enterprise, what enterprise really needs. Is 5G going to come and displace a lot of existing technology, or is it going to help augment the technology that enterprise. It has an excellent the digitization journey. I wanted to start Dave with the basic premise of hybrid work. And what hybrid work really means. Is it only for knowledge worker, or is it for all workers? So we strongly believe hybrid work needs to empower all workers. It's not only connecting remote workers but also bringing people, things and space together. And we strongly believe the combination of Wi-Fi 6 and 5G for private network is going to accelerate that journey bringing people, things and space together in a very, very cohesive way. Why our offer is so unique? We are going to create a continuum. Enterprises don't have to make a hard choice. They will be using Wi-Fi technology and 5G technology hand in hand without creating a disruption on their policy and identity systems. They don't have to rethink, "Do I have to go and build a new backbone?" Is a common backbone that will support both Wi-Fi as well as 5G. Most importantly, delivering this entire offer as a service with the ease of consumption, ease of operation, and a trusted environment that they can put their mission critical workload on. >> Now, I like it. So a couple takeaways there. I mean, it's inclusive of all workers not just knowledge workers, non disruptive, everybody loves to hear that. And of course, it has service model as key Masum, let me stay with you. I mean, we can't wait for 5G, right? It's lightning fast, it got super low latency, very high bandwidth. So that's what everybody's excited about. The question though is, 5G gets introduced, yeah it's going to power things like IoT networks. Is that going to replace Wi-Fi and legacy wired broadband? >> Absolutely not. So we see Private 5G as an augmentation to the enterprise on top of Wi-Fi. Wi-Fi as you heard in the previous conversation, Wi-Fi is bringing more capability with Wi-Fi 6 and Wi-Fi 6E. And 5G is going to be yet another augmentation. Wi-Fi and 5G will coexist within enterprise for many years to come. I would like my friend, Greg to talk a little bit about this continuum. Greg? >> Yeah, I think it's sort of like, I like to say it's an and not an or. Because there's enough use cases out there which require spectrum. And you know, spectrum is a constraint. So you have Private 5G, your Wi-Fi 6, and both offer opportunities. So for example, in an indoor carpeted setting where you're basically connecting your phone for basic browsing, or connecting your laptop, Wi-Fi is sufficient. But if it's a process automation factory where you need seven nines of reliability, Private 5G is the better technology. Similarly outdoor, large areas, it's probably Private 5G, right? 'Cause you can have easy handoff between public and private. So it's use case driven. And once it's use case driven, it's going to be an or because there's so many next-gen use cases. Whether it's AR VR, drones, you know, self-driving cars you name it, right? And so I think these two technologies, 5G and Wi-Fi 6E is going to work hand in hand to deliver awesome outcomes for our customers. >> Yeah. And just the data volumes are going to be incredible. We always talk about the data volumes. You ain't seen nothing yet is what I always say. But the thing is every new tech that's introduced into the enterprise, you can almost be certain that it's going to bring adoption challenges. And not only that, it also is going to bring changes in the way you do things. And that brings new complexities from an operational standpoint. So my question is, how are you addressing this with the introduction of 5G? >> Dave, this is a fantastic question. And this is why we have spent, me and Greg have spent tremendous amount of time to create continuum. I'll start with the foundation first, backbone. So we have been building this enterprise backbone supported with wired connection as well as Wi-Fi connection. We wanted to make sure that as Private 5G comes within enterprise, you don't have to rethink and reimagine your backbone. It's the common backbone that will support what Wi-Fi, Wi-Fi 6, Wi-Fi 6E, as well as Private 5G. You're rest assured that it is the same backbone that we have heard in the previous section on the Cat 9K that will also support a Private 5G access. The second aspect of Private 5G is as you build any new technology into enterprise often time we get into this trap. To get to an outcome, we move fast and we create a silo. And then that silo operation creates barriers to mainstream it. So upfront, we have to think about not creating another silo. And how we are doing it. Number one, is a device that can connect into Wi-Fi network or a Private 5G network. You don't have to reimagine or rethink how I'm going to manage the identity. We'll create continuum with a common identity across the Wi-Fi access or 5G access in the same environment. The second aspect of that is how are we going to retain all our staff? Our enterprise staff is well trained with Wi-Fi technology and wired technology. Now 5G comes with tremendous amount of value and benefit. But it also comes with inherent technology complexity, learning curve problem. This is where our simple to consume, simple to operate model of SaaS comes to play. That we're going to take all those complexity away. It is a cloud delivered service. So enterprise don't have to go through this massive learning curve adopting this technology. Last but not least, on how we are going to manage your capital. Any new technology and enterprise often time, you need huge amount of upfront investment to adopt the technology to get to the other side of getting the outcome. So again, our business model of SaaS will allow enterprise to adopt this new technology and pay as your grow model to meet with enterprise needs. Finally, I also wanted to pass to Greg to touch a little bit more on how we are thinking about this common identity across any access in the enterprise. Greg, to you. >> So we thought about it in two different ways. One is, a lot of enterprises today use our identity and secure management platform. We call it ISE, Cisco ISE platform. And so, years and years of policy and identities, and which access servers, radio servers they use et cetera, are plugged in already into our ISE, right? So, if you can share that with this Private 5G as a service infrastructure that Masum's been building, we think we'll be able to create that bridge. Because we are not forcing enterprises to create new identities or new policies. So that's sort of step one to make it easier. We also thought through so something where in the case of a public 5G network, for example. It's very convenient because you take your phone out of your pocket and it's connected to the network, right? Versus for wifi, you have to log into an SSID in your hotel, or in your home, and in home, it's automatic. But that's that login process that creates friction. And that's a problem because then you can't be seamless. So we initiated what we call as open roaming, right? Like that's a identity federation that we first created between identity owners. Could be carriers, could be anything, right? Anyone who owns an identity. And they will share with venues. And so if the sharing happens, then that onboarding can be automatic. And once onboarding is automatic, then it's easy to pass off between Wi-Fi and 5G. And so that's again, another way in which you can lower the adoption barriers 'cause you share across public Private 5G and Wi-Fi networks. So these are two concrete examples of how we thought about lowering the barriers of adoption as we enter into this heterogeneous world. >> Nice, I can't wait. Let's talk about how this thing, scales in the go to market. What are the most likely, or maybe preferred, or obvious routes to market for Private 5G from Cisco? >> So Dave stay tuned right when they announce more about it. But I can also assure you that access to this spectrum is a challenge for many enterprises when it comes to cellular technology. In some countries there are more spectrum accessible by enterprise. In many countries, that's not the case. So we have thought through very carefully that how do we bring this offer to the market partnering with many service providers and mobile operators. Where in countries where you don't have direct access to the spectrum, our partnership with mobile operators, that you will hear more about as we come to Mobile World Congress, is going to allow our enterprise to consume this technology. even if they don't have the spectrum. In the places where the enterprise might have spectrum access, we'll also in our manage service providers to hide the complexity of the new technology on top of our SaaS services, or cloud delivered services. This is the augmentation with the partnership with manage service providers and mobile operators that will ease this journey for enterprises. Our most important primitive in this journey is to keep it simple for enterprise, make it intuitive, and trust it from day one. >> Outstanding. Okay, Masum, Greg, thanks so much. It was great to have you guys on. I really appreciate your time. >> Thank you. >> Thank you. >> In a moment, I'll be back with some closing thoughts and an opportunity for you to actually see this technology in action and talk to the experts directly. Keep it right there.

(bright music) >> The challenges of legacy data warehouses and traditional business intelligence systems, they've been well-documented. They're built on rigid infrastructure, and they're managed by really specialized gatekeepers. Data warehouses of the past were, as one financial customer once said to me, like a snake swallowing a basketball, imagine that. The amount of data ingested into a data warehouse has just overwhelmed the system. Every time Intel came out with a new microprocessor, practitioners, they would chase the chip in an effort to try to compress the overly restrictive elapsed time to insights, and this cycle repeated itself for decades. Cloud data warehouses, generally, and Snowflake, specifically, changed all this. Not only were resources virtually infinite, but the ability to separate, compute from storage, it actually turned off the compute when you weren't using it, permanently altered the cost, the performance, the scale and the value equation. But as data makes its way into the cloud and is increasingly democratized as a shared resource across clouds and at the edge, practitioners have to bring Sec DevOps mindsets to securing their cloud data warehouses. Hello, and welcome to this week's Wikibon, "theCUBE Insights," powered by ETR. In this "Breaking Analysis," we take a closer look at the fundamentals of securing Snowflake and to do so, we welcome two guests into the program. Ben Herzberg is an experienced hacker and developer and an expert in several aspects of data security. He's currently working as the Chief Data Scientist at Satori, and he's joined by his colleague, Yoav Cohen, who is a technology visionary, and currently serving as CTO at Satori Cyber. Gentlemen, welcome to "theCUBE," great to see you. >> Great to be here. >> Thanks for having us, Dave. >> Now, these two individuals have co-authored a book on Snowflake Security. It's a comprehensive guide to what you need to know as a data practitioner using Snowflake. So guys, congratulations on the book. It's really detailed, packed with great information, best practices and practical advice and insights all in one place, so really good work. So, before we get into the discussion, I want to share some ETR survey data just to set the context. We're seeing cybersecurity and data, they're colliding in a really important way. And here's some data points that we've shared before from ETR's latest drill down survey. They asked more than 1200 respondents. We're talking CIOs, CSOs and IT professionals, "Which organizational priorities "will be most important in 2022?" And these were the top seven. There were a lot of others, but these were the most important. So, it's no surprise that security is number one, although, as we shared in our predictions post, the magnitude of its relative importance, it does vary by the degree of expertise within the organization. The Delta is maybe not as significant, for example, in large companies, and you can see where analytics and data fit. And we've tied these two domains together and picked up on a term that our two guests have used, in fact, you guys may have even coined it, called DataSecOps, which, to me, is the idea that you bring Agile DevOps practices to data operations and built-in security as part of the full cycle of managing, creating the data, using the data, accessing the data, not a bolt on, but it's fundamental, so guys, what do you make of this data, and what's your point of view on DataSecOps? >> So, definitely aligns with what we're seeing on the ground in the market. In between what you saw there, you had cybersecurity and data warehousing. In the middle you had cloud migration, and that's basically what's pushing companies to invest in both security and data and warehousing, because the cloud changed the game for cybersecurity. The tools that we use before are not the same tools that we need to use now. And also, it unlocks a lot of performance value and capabilities around data warehousing. So, all of that comes together to a big trend in the industry for investment, for replacement, and definitely we're seeing that on the Snowflake platform, which is doing really, really well recently. >> Yeah, well thank you, Yoav. And to that point, I want to share another data point and then dive in, maybe Ben, you can comment. And I want to address, why are we always talking about Snowflake? Of course, it's a hot company. Everybody knows that. You can see it in the company's financials, but the ETR survey data tells a really compelling story about the company. Here's a chart from the most recent ETR January survey. And so, you can see at the, at the top, that blue line, it represents net score or spending momentum, and the darker line at the bottom represents presence or pervasiveness in the survey sample. Just a background, there are 165 Snowflake customers that responded to this past survey. 10% of companies within the Fortune 500 were in the sample, and around 4% of Global 2000 companies participated. Just under 30% of the respondents were C-Suite executives, and about 20% were analysts or engineers or data specialist with around half were VP, director, manager roles that fat middle, with a very broad mix of industries, and there was a bias toward larger companies. Now, back to the chart, that net score for a moment, is that top line, is derived by asking customers, "Are you adopting Snowflake new in 2022?" That's the 27% lime green number. "Will you be spending 6% or more on Snowflake, "relative to 2021?" That's the 57% forest green. "Is your spending flat?" That's the gray. "Is it down by 6% or worse?" That's the other, the pink area. "Are you leaving the platform?" That's the bright red, and that's a zero defection, so there's none there. So you subtract the reds from the greens, and you get net score, which calculates out to 83% in his pet survey. But what's remarkable is that Snowflake has held this elevated score for more than 12 quarterly surveys. It's in the stratosphere among the many thousands and thousands of companies in the ETR survey. Remember, anything above that 40% line is elevated and Snowflake is like glued to the ceiling. So the bottom line shows that the company's market presence continues to grow, that darker line at the bottom, and that green shade shows us that the pace of last quarter is actually accelerating. Snowflake is becoming ubiquitous, and customers are becoming intimately familiar with its platform, and it's scaling like we've never seen before, and it's building a pretty hard to penetrate fortress, we think, and an ecosystem. Ben, I wonder, in your view, what accounts for Snowflake's performance? >> Okay, so I would say that we can spend a full session just about such thing, so I'll try to say what I think. I think, first of all, it does what it says on the box. You get from zero to being able to have a data warehouse easily, you have a very rich support of capability and features that you need for a cloud data warehouse. Your multi-cloud, you're not dependent on one of the big public clouds, and it's fast and scalable, and you don't need to worry yourself with the infrastructure behind. You don't need to, God-forbid, add any indexes or do things like that. You don't need to do that, at least not often, indexes never, but other maintenance. And the innovation rate, they innovate fast. They add a lot of new capabilities, like the move to unstructured data, like a lot of security and governance capabilities, high innovation rate as well. >> Okay, good, and we'll talk about that move. So let's get deeper into the topic now on securing Snowflake. My first question is look, Snowflake, when you talk to practitioners and customers, they get pretty high marks on security, largely because of the simplicity, so why did you feel the need to write a book on the subject? >> So, definitely Snowflake is investing a lot of effort and putting a lot of emphasis on security. However, it's connected to the cloud service, and like any other cloud service, there is a shared responsibility model between Snowflake and its customers when it comes to fully securing their data cloud. So Snowflake can build amazing features, but then customers have to really adopt them, implement them in the best way. One of the things that we've seen by working with Snowflake customers is that we typically interact with data engineers, but then they have to implement security features and security capability. We thought writing a book about the topic would help these customers to understand the features better, benefit from them better and really structure their implementation and decide what's most important to implement at every step of their journey. >> Yeah, and I think that when I was researching this topic, I could find a lot of good information on the web, but I kind of had to hunt and peck for it. It was really sort of dispersed, and you put the information all in one place. You have a nice table of contents, so I can just zip right to where I want to go, so that was quite useful, I thought. What are the very basic fundamentals of securing Snowflake? In other words, I'm interested in, you get this world of flexible, it's globally distributed. You get democratizing data. How do you really make sure that only those folks that should have access, do have access? I mean really, let's talk about that a little bit. >> Oh, I think that, of course there are a lot of different aspects, but I think that I would start with the big blocks. For example, when you get a Snowflake account out of the box, it's open to the world in terms of network. I would start by limiting that. That should be easy for an organization. It's a couple of commands, and you've lowered your risk significantly, both security and compliance. Then, one of the common things that you can get a good improvement in a decrease of your risk is around those indications. For example, do you have applications that are accessing Snowflake using user password? Okay, change that to using a key. Do you have users with username, password? Change that to Okta integration or your IDP integration. So I would start with the big blocks that can remove most of my risk, and then of course, there is a lot to do from getting to the data warehouse and to auditing and monitoring. >> Okay, thank you for that. But, Yoav, how are these fundamentals that we just heard from Ben, how are they different? Isn't this kind of common sense? What's unique about Snowflake? >> So, a couple things, first of all, security, we love to say that it's 80% good security hygiene. You have to make sure that your basics are locked and tightly configured and that brings a lot of value. But two points to consider, first of all, all of these types of controls are pretty static in the sense that once you get in, you get in, and then you have pretty broad access, and we'll talk about authorization concepts and everything, perhaps today, but these are really static gatekeepers around your data. Once you have access, then it's really free for all. When you compare it to other types of environments and what we're seeing in other domains, maybe a move to more dynamic type of controls, elevated access or elevated additional authentication steps before you get elevated access. And what we're thinking is that beyond those static controls, the market is going to move towards implementing more dynamic, more fine-grain control, especially because in Snowflake, but any other data warehouse or large-scale data store, which becomes an aggregation point of data in the company, and we work with really big companies, and they bring in data from multiple jurisdiction from across the world, so they can get an overview of the business and run the business in a much more efficient way, but that really creates a pressure point when it comes to securing that data. >> Okay, Ben, you touched on this a little bit. I want to kind of dig deeper. So, Snowflake takes a layered approach, of course, it's sensible, and the layers, network, which talked about identity, access and encryption. and so, with any cloud, as you guys mentioned, it's a shared responsibility model. So I want to break that down a bit, and let's start with the network. So my responsibility, as a customer, I'm going to be responsible to set up the DNS. How much public internet access am I going to have for other users and apps. So how should practitioners think about their end of the bargain on the network? What do they need to know? >> At the network level, as I mentioned before, a new account is open network-wise, it's open to the world. And one of the first thing I would do would be to set a network policy on the account to limit network access to that account. And of course, in many organizations, you would want to configure that with private link to your cloud environment, but that would be step two. (laughs) First step is simply set the network policy to make sure that it's not open to the public. >> Yeah, and that seems pretty straightforward, but let's talk about identity, 'cause it feels like that's where it starts to get tricky. You got to worry about setting up roles and managing users. You could even configure row and column base access, as I understand it, and I imagine access is where it really gets confusing for a lot of people, especially when you're crossing domain identities. Like for example, isn't a role-based security, let's land on that for a minute, I think you called it hierarchy hell in the book, so what should we think about in regards to identity? >> Well, first of all, it's hierarchy hell, in the book, it says that you can use hierarchy, but you should avoid getting to a hierarchy hell. Basically, we've seen that with several Snowflake customers where the ability to set roles in a hierarchy model, to set a role that inherits privileges from another role, that inherits privileges from other roles and maybe, of course, used in a good way, but it also in some of the cases, it leads to complexities and to access not being deterministic, at least not obvious to the person who gives access, who is usually the data engineer. So, whenever you start having a complex authorization model, whenever I want to give Yoav access to a certain data set, and because things are complex, I also, by mistake, give him access to the salary information of the company, that's when things become tricky. If your roles are messy and complex, then it may lead to data exposure within the organization or outside the organization. >> How do you find Snowflake's integrations? Like if I want to use Okta or I want to use a CyberArk, I mean, how would you grade them on their ability to integrate with popular third party platforms? >> So, I would say pretty high, actually. We haven't encountered many customers who haven't configured any of these... nowadays, really basic security integration, and it really, really helps, setting that good identity management foundation for the platform. So they're investing a lot in that area, and we've been following them for a couple of years now, and it's really, really coming along nicely. >> All right, let's talk about encryption. I mean, that seemed pretty straightforward. Correct me if I'm wrong. I think Snowflake auto rotates the keys every 30 days. It really seems like your responsibility there is monitoring, making sure you're in compliance. You got good log data or access to good log data. Is that right? >> So, this really depends. So, for the average company, I would say, yes. For some of the companies with higher security requirements or compliance requirements or both, sometimes there are issues like companies that do not want to have the data stored in clear text, in Snowflake, even encrypted as in the data warehouse encryption or the account encryption, even if someone accidentally gets access to the table, they want them not to be able to pull the data in clear text, and then it gets slightly more complicated. You have different ways of tackling this, but for the average company or companies who do not have such requirements, then everything in Snowflake is encrypted in transit and addressed, and of course, there are more advanced features for higher requirements. >> Okay, I'm interested in what you guys think of some of the more vulnerable aspects that Snowflake customers should really be aware of. Imagine I'm saying, "Guys, let's run a pen test. "Okay, make sure I have no open chest wounds, "but really try to fool me." What would you attack? Where should I be extra cautious? >> So, I would start with where data resides. And, if you look at the Snowflake architecture, there's a separation between storage and compute, but that also means storage is accessible without going through the compute. That can create opportunities for hackers to go and try and find access where access shouldn't be had. That's where I would focus on. >> I want to ask you about Virtual Private Snowflake. It seems to me, if I have sensitive data, if I don't use Virtual Private Snowflake, I feel like I'm increasing my risk that a security incident at the shared cloud services layer could impact multiple customers, and is this a valid concern? How should we think about reducing that risk, and when should I use that higher level of security? >> So, I think first of all, to the best of my knowledge, I'm not a Snowflake employee, but to the best of my knowledge, Virtual Private Snowflake is used by a minority of the customers, a small minority of the customers. There are other more popular ways within Snowflake, like private link, for example, I would say, to enhance your security and your account segregation. But I wouldn't say that simply because the platform is multi-tenant, it is vulnerable. Of course, in many cases, your security or compliance requirements requires you to eliminate even this risk, but I wouldn't say that there are a lot of other platforms in different areas that are multi-tenant and-- >> And probably better than your on-prem, your average on-prem installation. >> Probably, probably. >> Okay, so I buy that. >> I would say on that, that maybe a shared environment is a higher value target for hackers. So if you're on a shared environment with thousands of other customers, if I'm a hacker, I would go there, 'cause then I get data for thousands of customers instead of try to focus on just one target and getting data for just one company. I think that's the most significant advantage. And obviously, Snowflake are investing a lot in making all of their environments very, very secure, and from our interactions with large Snowflake customers, we know that Snowflake are going above and beyond in making sure these environments are secure. >> Yeah, that's good, that's good news, because if I don't have to spend up, I can put the budget elsewhere. How do you guys think Snowflake's recent moves... They're making a couple of big moves. They've recently added unstructured data. They used to have semi-structured data. They're going after the data science and data lake functionality. Do those kinds of moves, I guess they're two different things, but does that change the way that security pros should think about protecting their Snowflake environment? >> I would say that Snowflake is moving fast with adding new functionality, well fast, but not too fast. They're releasing it in a controlled way. I would say that for new capabilities, of course, in some cases there are new attack vectors or new risks and obviously, securing different types of data may bring new challenges, but the basics, I think, remains the same. The basics of the network, identity authentication, authorization and auditing monitoring. I would say they will be the same and perhaps new features or capability will need to be used. And the largest issue, as data democratization is growing within organizations, and more and more people are using your data cloud, that also needs to be addressed. >> All right, finally, I want to end, I want to talk a little bit about futures. Have you guys talked in your book about multi-cloud as a way to reduce your reliance on a single vendor? And of course, it happens through M and A, and that's cool. We've talked a lot about multi-cloud, and we've been using this term that we coined, called supercloud, and it references an abstraction layer that exists on top of, and floats across, if you will, multiple clouds, and it hides some of that underlying complexity, and we feel like Snowflake is a good example of a company that's moving in that direction, building value on top of all that hyperscale infrastructure. So I wonder how you see Snowflake's moves in that direction would impact the way you think about DataSecOps. >> So definitely, we also see the trend of companies adopting more and more types of cloud and cloud technologies. They're in one cloud today. They want to move to a second one, almost every company that I talk to have, nowadays, a multi-cloud strategy. With respect to Snowflake, they basically have it figured out, because they are an overlay, like a supercloud, super data cloud, that is spread across any cloud, and you can basically pick and choose where you want to put your data for what use cases, and that's really, really helpful, because then you don't have to manage the complexity of multiple solutions for multiple areas of the business. We see this also in other areas where companies are saying, "Hey, I prefer to not use a specific cloud technology "for that purpose, but use a vendor that can cover my needs "across the clouds," definitely on the security side, where they want one throat to choke, so to speak, but they want to control things on a central place. As Ben mentioned before, complexity is the enemy of security and having those multi-cloud operations, from a security perspective, definitely adds complexity, which adds risks, so simplifying that is really, really helpful. >> Hey, thank you for that, and thank you guys for coming on today. Why don't you give us a little bumper sticker on Satori. What do you guys do? Give us the quick commercial. >> So, we help companies secure access to their data on platforms like Snowflake and others. We build really innovative technology that decouples security controls from the actual data layer. So if you think about it, where you can put controls to govern how people access data. You can put it inside the database. You can put it somewhere on the client. We've actually invented a technology that can do that in the middle, so you don't have to coalesce and mix your security concerns with your data. You don't have to go to your clients' users' end-points, laptops and put technology there. We set technology that fits in the middle, that decouples that aspect of your DataSecOps operations, and really helps companies implement those security controls much faster, because it's detached from the rest of their operation. >> Nice thought, leaning into that simplicity trend that you talked about. Okay guys, that's all the time we have today. Really, I want to thank Ben and Yoav for coming on "theCUBE." It was really great to have you. I'd love to welcome you back at some point. >> Thank you, Dave. >> Thank you, it was a pleasure >> All right, remember these episodes, these episodes are all available as podcasts, wherever you listen. All you got to do is search breaking analysis podcasts. Check out ETR's website at ETI.ai. We also publish full report every week on Wikibon.com and SiliconAngle.com. You can get in touch with me. Email me, David.Vellante@SiliconANGLE.com @DVellante or comment on our LinkedIn posts. This is Dave Vellante for "theCUBE Insights," powered by ETR. Have a great week, stay safe, be well, and we'll see you next time. (bright music)

>> From theCUBE Studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE and ETR, this is Breaking Analysis with Dave Vellante. >> The pandemic has changed the way we think about and predict the future. As we enter the third year of a global pandemic, we see the significant impact that it's had on technology strategy, spending patterns, and company fortunes Much has changed. And while many of these changes were forced reactions to a new abnormal, the trends that we've seen over the past 24 months have become more entrenched, and point to the way that's coming ahead in the technology business. Hello and welcome to this week's Wikibon CUBE Insights powered by ETR. In this Breaking Analysis, we welcome our partner and colleague and business friend, Erik Porter Bradley, as we deliver what's becoming an annual tradition for Erik and me, our predictions for Enterprise Technology in 2022 and beyond Erik, welcome. Thanks for taking some time out. >> Thank you, Dave. Luckily we did pretty well last year, so we were able to do this again. So hopefully we can keep that momentum going. >> Yeah, you know, I want to mention that, you know, we get a lot of inbound predictions from companies and PR firms that help shape our thinking. But one of the main objectives that we have is we try to make predictions that can be measured. That's why we use a lot of data. Now not all will necessarily fit that parameter, but if you've seen the grading of our 2021 predictions that Erik and I did, you'll see we do a pretty good job of trying to put forth prognostications that can be declared correct or not, you know, as black and white as possible. Now let's get right into it. Our first prediction, we're going to go run into spending, something that ETR surveys for quarterly. And we've reported extensively on this. We're calling for tech spending to increase somewhere around 8% in 2022, we can see there on the slide, Erik, we predicted spending last year would increase by 4% IDC. Last check was came in at five and a half percent. Gardner was somewhat higher, but in general, you know, not too bad, but looking ahead, we're seeing an acceleration from the ETR September surveys, as you can see in the yellow versus the blue bar in this chart, many of the SMBs that were hard hit by the pandemic are picking up spending again. And the ETR data is showing acceleration above the mean for industries like energy, utilities, retail, and services, and also, notably, in the Forbes largest 225 private companies. These are companies like Mars or Koch industries. They're predicting well above average spending for 2022. So Erik, please weigh in here. >> Yeah, a lot to bring up on this one, I'm going to be quick. So 1200 respondents on this, over a third of which were at the C-suite level. So really good data that we brought in, the usual bucket of, you know, fortune 500, global 2000 make up the meat of that median, but it's 8.3% and rising with momentum as we see. What's really interesting right now is that energy and utilities. This is usually like, you know, an orphan stock dividend type of play. You don't see them at the highest point of tech spending. And the reason why right now is really because this state of tech infrastructure in our energy infrastructure needs help. And it's obvious, remember the Florida municipality break reach last year? When they took over the water systems or they had the ability to? And this is a real issue, you know, there's bad nation state actors out there, and I'm no alarmist, but the energy and utility has to spend this money to keep up. It's really important. And then you also hit on the retail consumer. Obviously what's happened, the work from home shift created a shop from home shift, and the trends that are happening right now in retail. If you don't spend and keep up, you're not going to be around much longer. So I think the really two interesting things here to call out are energy utilities, usually a laggard in IT spend and it's leading, and also retail consumer, a lot of changes happening. >> Yeah. Great stuff. I mean, I recall when we entered the pandemic, really ETR was the first to emphasize the impact that work from home was going to have, so I really put a lot of weight on this data. Okay. Our next prediction is we're going to get into security, it's one of our favorite topics. And that is that the number one priority that needs to be addressed by organizations in 2022 is security and you can see, in this slide, the degree to which security is top of mind, relative to some other pretty important areas like cloud, productivity, data, and automation, and some others. Now people may say, "Oh, this is obvious." But I'm going to add some context here, Erik, and then bring you in. First, organizations, they don't have unlimited budgets. And there are a lot of competing priorities for dollars, especially with the digital transformation mandate. And depending on the size of the company, this data will vary. For example, while security is still number one at the largest public companies, and those are of course of the biggest spenders, it's not nearly as pronounced as it is on average, or in, for example, mid-sized companies and government agencies. And this is because midsized companies or smaller companies, they don't have the resources that larger companies do. Larger companies have done a better job of securing their infrastructure. So these mid-size firms are playing catch up and the data suggests cyber is even a bigger priority there, gaps that they have to fill, you know, going forward. And that's why we think there's going to be more demand for MSSPs, managed security service providers. And we may even see some IPO action there. And then of course, Erik, you and I have talked about events like the SolarWinds Hack, there's more ransomware attacks, other vulnerabilities. Just recently, like Log4j in December. All of this has heightened concerns. Now I want to talk a little bit more about how we measure this, you know, relatively, okay, it's an obvious prediction, but let's stick our necks out a little bit. And so in addition to the rise of managed security services, we're calling for M&A and/or IPOs, we've specified some names here on this chart, and we're also pointing to the digital supply chain as an area of emphasis. Again, Log4j really shone that under a light. And this is going to help the likes of Auth0, which is now Okta, SailPoint, which is called out on this chart, and some others. We're calling some winners in end point security. Erik, you're going to talk about sort of that lifecycle, that transformation that we're seeing, that migration to new endpoint technologies that are going to benefit from this reset refresh cycle. So Erik, weigh in here, let's talk about some of the elements of this prediction and some of the names on that chart. >> Yeah, certainly. I'm going to start right with Log4j top of mind. And the reason why is because we're seeing a real paradigm shift here where things are no longer being attacked at the network layer, they're being attacked at the application layer, and in the application stack itself. And that is a huge shift left. And that's taking in DevSecOps now as a real priority in 2022. That's a real paradigm shift over the last 20 years. That's not where attacks used to come from. And this is going to have a lot of changes. You called out a bunch of names in there that are, they're either going to work. I would add to that list Wiz. I would add Orca Security. Two names in our emerging technology study, in addition to the ones you added that are involved in cloud security and container security. These names are either going to get gobbled up. So the traditional legacy names are going to have to start writing checks and, you know, legacy is not fair, but they're in the data center, right? They're, on-prem, they're not cloud native. So these are the names that money is going to be flowing to. So they're either going to get gobbled up, or we're going to see some IPO's. And on the other thing I want to talk about too, is what you mentioned. We have CrowdStrike on that list, We have SentinalOne on the list. Everyone knows them. Our data was so strong on Tanium that we actually went positive for the first time just today, just this morning, where that was released. The trifecta of these are so important because of what you mentioned, under resourcing. We can't have security just tell us when something happens, it has to automate, and it has to respond. So in this next generation of EDR and XDR, an automated response has to happen because people are under-resourced, salaries are really high, there's a skill shortage out there. Security has to become responsive. It can't just monitor anymore. >> Yeah. Great. And we should call out too. So we named some names, Snyk, Aqua, Arctic Wolf, Lacework, Netskope, Illumio. These are all sort of IPO, or possibly even M&A candidates. All right. Our next prediction goes right to the way we work. Again, something that ETR has been on for awhile. We're calling for a major rethink in remote work for 2022. We had predicted last year that by the end of 2021, there'd be a larger return to the office with the norm being around a third of workers permanently remote. And of course the variants changed that equation and, you know, gave more time for people to think about this idea of hybrid work and that's really come in to focus. So we're predicting that is going to overtake fully remote as the dominant work model with only about a third of the workers back in the office full-time. And Erik, we expect a somewhat lower percentage to be fully remote. It's now sort of dipped under 30%, at around 29%, but it's still significantly higher than the historical average of around 15 to 16%. So still a major change, but this idea of hybrid and getting hybrid right, has really come into focus. Hasn't it? >> Yeah. It's here to stay. There's no doubt about it. We started this in March of 2020, as soon as the virus hit. This is the 10th iteration of the survey. No one, no one ever thought we'd see a number where only 34% of people were going to be in office permanently. That's a permanent number. They're expecting only a third of the workers to ever come back fully in office. And against that, there's 63% that are saying their permanent workforce is going to be either fully remote or hybrid. And this, I can't really explain how big of a paradigm shift this is. Since the start of the industrial revolution, people leave their house and go to work. Now they're saying that's not going to happen. The economic impact here is so broad, on so many different areas And, you know, the reason is like, why not? Right? The productivity increase is real. We're seeing the productivity increase. Enterprises are spending on collaboration tools, productivity tools, We're seeing an increased perception in productivity of their workforce. And the CFOs can cut down an expense item. I just don't see a reason why this would end, you know, I think it's going to continue. And I also want to point out these results, as high as they are, were before the Omicron wave hit us. I can only imagine what these results would have been if we had sent the survey out just two or three weeks later. >> Yeah. That's a great point. Okay. Next prediction, we're going to look at the supply chain, specifically in how it's affecting some of the hardware spending and cloud strategies in the future. So in this chart, ETRS buyers, have you experienced problems procuring hardware as a result of supply chain issues? And, you know, despite the fact that some companies are, you know, I would call out Dell, for example, doing really well in terms of delivering, you can see that in the numbers, it's pretty clear, there's been an impact. And that's not not an across the board, you know, thing where vendors are able to deliver, especially acute in PCs, but also pronounced in networking, also in firewall servers and storage. And what's interesting is how companies are responding and reacting. So first, you know, I'm going to call the laptop and PC demand staying well above pre-COVID norms. It had peaked in 2012. Pre-pandemic it kept dropping and dropping and dropping, in terms of, you know, unit volume, where the market was contracting. And we think can continue to grow this year in double digits in 2022. But what's interesting, Erik, is when you survey customers, is despite the difficulty they're having in procuring network hardware, there's as much of a migration away from existing networks to the cloud. You could probably comment on that. Their networks are more fossilized, but when it comes to firewalls and servers and storage, there's a much higher propensity to move to the cloud. 30% of customers that ETR surveyed will replace security appliances with cloud services and 41% and 34% respectively will move to cloud compute and storage in 2022. So cloud's relentless march on traditional on-prem models continues. Erik, what do you make of this data? Please weigh in on this prediction. >> As if we needed another reason to go to the cloud. Right here, here it is yet again. So this was added to the survey by client demand. They were asking about the procurement difficulties, the supply chain issues, and how it was impacting our community. So this is the first time we ran it. And it really was interesting to see, you know, the move there. And storage particularly I found interesting because it correlated with a huge jump that we saw on one of our vendor names, which was Rubrik, had the highest net score that it's ever had. So clearly we're seeing some correlation with some of these names that are there, you know, really well positioned to take storage, to take data into the cloud. So again, you didn't need another reason to, you know, hasten this digital transformation, but here we are, we have it yet again, and I don't see it slowing down anytime soon. >> You know, that's a really good point. I mean, it's not necessarily bad news for the... I mean, obviously you wish that it had no change, would be great, but things, you know, always going to change. So we'll talk about this a little bit later when we get into the Supercloud conversation, but this is an opportunity for people who embrace the cloud. So we'll come back to that. And I want to hang on cloud a bit and share some recent projections that we've made. The next prediction is the big four cloud players are going to surpass 167 billion, an IaaS and PaaS revenue in 2022. We track this. Observers of this program know that we try to create an apples to apples comparison between AWS, Azure, GCP and Alibaba in IaaS and PaaS. So we're calling for 38% revenue growth in 2022, which is astounding for such a massive market. You know, AWS is probably not going to hit a hundred billion dollar run rate, but they're going to be close this year. And we're going to get there by 2023, you know they're going to surpass that. Azure continues to close the gap. Now they're about two thirds of the size of AWS and Google, we think is going to surpass Alibaba and take the number three spot. Erik, anything you'd like to add here? >> Yeah, first of all, just on a sector level, we saw our sector, new survey net score on cloud jumped another 10%. It was already really high at 48. Went up to 53. This train is not slowing down anytime soon. And we even added an edge compute type of player, like CloudFlare into our cloud bucket this year. And it debuted with a net score of almost 60. So this is really an area that's expanding, not just the big three, but everywhere. We even saw Oracle and IBM jump up. So even they're having success, taking some of their on-prem customers and then selling them to their cloud services. This is a massive opportunity and it's not changing anytime soon, it's going to continue. >> And I think the operative word there is opportunity. So, you know, the next prediction is something that we've been having fun with and that's this Supercloud becomes a thing. Now, the reason I say we've been having fun is we put this concept of Supercloud out and it's become a bit of a controversy. First, you know, what the heck's the Supercloud right? It's sort of a buzz-wordy term, but there really is, we believe, a thing here. We think there needs to be a rethinking or at least an evolution of the term multi-cloud. And what we mean is that in our view, you know, multicloud from a vendor perspective was really cloud compatibility. It wasn't marketed that way, but that's what it was. Either a vendor would containerize its legacy stack, shove it into the cloud, or a company, you know, they'd do the work, they'd build a cloud native service on one of the big clouds and they did do it for AWS, and then Azure, and then Google. But there really wasn't much, if any, leverage across clouds. Now from a buyer perspective, we've always said multicloud was a symptom of multi-vendor, meaning I got different workloads, running in different clouds, or I bought a company and they run on Azure, and I do a lot of work on AWS, but generally it wasn't necessarily a prescribed strategy to build value on top of hyperscale infrastructure. There certainly was somewhat of a, you know, reducing lock-in and hedging the risk. But we're talking about something more here. We're talking about building value on top of the hyperscale gift of hundreds of billions of dollars in CapEx. So in addition, we're not just talking about transforming IT, which is what the last 10 years of cloud have been like. And, you know, doing work in the cloud because it's cheaper or simpler or more agile, all of those things. So that's beginning to change. And this chart shows some of the technology vendors that are leaning toward this Supercloud vision, in our view, building on top of the hyperscalers that are highlighted in red. Now, Jerry Chan at Greylock, they wrote a piece called Castles in the Cloud. It got our thinking going, and he and the team at Greylock, they're building out a database of all the cloud services and all the sub-markets in cloud. And that got us thinking that there's a higher level of abstraction coalescing in the market, where there's tight integration of services across clouds, but the underlying complexity is hidden, and there's an identical experience across clouds, and even, in my dreams, on-prem for some platforms, so what's new or new-ish and evolving are things like location independence, you've got to include the edge on that, metadata services to optimize locality of reference and data source awareness, governance, privacy, you know, application independent and dependent, actually, recovery across clouds. So we're seeing this evolve. And in our view, the two biggest things that are new are the technology is evolving, where you're seeing services truly integrate cross-cloud. And the other big change is digital transformation, where there's this new innovation curve developing, and it's not just about making your IT better. It's about SaaS-ifying and automating your entire company workflows. So Supercloud, it's not just a vendor thing to us. It's the evolution of, you know, the, the Marc Andreessen quote, "Every company will be a SaaS company." Every company will deliver capabilities that can be consumed as cloud services. So Erik, the chart shows spending momentum on the y-axis and net score, or presence in the ETR data center, or market share on the x-axis. We've talked about snowflake as the poster child for this concept where the vision is you're in their cloud and sharing data in that safe place. Maybe you could make some comments, you know, what do you think of this Supercloud concept and this change that we're sensing in the market? >> Well, I think you did a great job describing the concept. So maybe I'll support it a little bit on the vendor level and then kind of give examples of the ones that are doing it. You stole the lead there with Snowflake, right? There is no better example than what we've seen with what Snowflake can do. Cross-portability in the cloud, the ability to be able to be, you know, completely agnostic, but then build those services on top. They're better than anything they could offer. And it's not just there. I mean, you mentioned edge compute, that's a whole nother layer where this is coming in. And CloudFlare, the momentum there is out of control. I mean, this is a company that started off just doing CDN and trying to compete with Okta Mite. And now they're giving you a full soup to nuts with security and actual edge compute layer, but it's a fantastic company. What they're doing, it's another great example of what you're seeing here. I'm going to call out HashiCorp as well. They're more of an infrastructure services, a little bit more of an open-source freemium model, but what they're doing as well is completely cloud agnostic. It's dynamic. It doesn't care if you're in a container, it doesn't matter where you are. They recently IPO'd and they're down 25%, but their data looks so good across both of our emerging technology and TISA survey. It's certainly another name that's playing on this. And another one that we mentioned as well is Rubrik. If you need storage, compute, and in the cloud layer and you need to be agnostic to it, they're another one that's really playing in this space. So I think it's a great concept you're bringing up. I think it's one that's here to stay and there's certainly a lot of vendors that fit into what you're describing. >> Excellent. Thank you. All right, let's shift to data. The next prediction, it might be a little tough to measure. Before I said we're trying to be a little black and white here, but it relates to Data Mesh, which is, the ideas behind that term were created by Zhamak Dehghani of ThoughtWorks. And we see Data Mesh is really gaining momentum in 2022, but it's largely going to be, we think, confined to a more narrow scope. Now, the impetus for change in data architecture in many companies really stems from the fact that their Hadoop infrastructure really didn't solve their data problems and they struggle to get more value out of their data investments. Data Mesh prescribes a shift to a decentralized architecture in domain ownership of data and a shift to data product thinking, beyond data for analytics, but data products and services that can be monetized. Now this a very powerful in our view, but they're difficult for organizations to get their heads around and further decentralization creates the need for a self-service platform and federated data governance that can be automated. And not a lot of standards around this. So it's going to take some time. At our power panel a couple of weeks ago on data management, Tony Baer predicted a backlash on Data Mesh. And I don't think it's going to be so much of a backlash, but rather the adoption will be more limited. Most implementations we think are going to use a starting point of AWS and they'll enable domains to access and control their own data lakes. And while that is a very small slice of the Data Mesh vision, I think it's going to be a starting point. And the last thing I'll say is, this is going to take a decade to evolve, but I think it's the right direction. And whether it's a data lake or a data warehouse or a data hub or an S3 bucket, these are really, the concept is, they'll eventually just become nodes on the data mesh that are discoverable and access is governed. And so the idea is that the stranglehold that the data pipeline and process and hyper-specialized roles that they have on data agility is going to evolve. And decentralized architectures and the democratization of data will eventually become a norm for a lot of different use cases. And Erik, I wonder if you'd add anything to this. >> Yeah. There's a lot to add there. The first thing that jumped out to me was that that mention of the word backlash you said, and you said it's not really a backlash, but what it could be is these are new words trying to solve an old problem. And I do think sometimes the industry will notice that right away and maybe that'll be a little pushback. And the problems are what you already mentioned, right? We're trying to get to an area where we can have more assets in our data site, more deliverable, and more usable and relevant to the business. And you mentioned that as self-service with governance laid on top. And that's really what we're trying to get to. Now, there's a lot of ways you can get there. Data fabric is really the technical aspect and data mesh is really more about the people, the process, and the governance, but the two of those need to meet, in order to make that happen. And as far as tools, you know, there's even cataloging names like Informatica that play in this, right? Istio plays in this, Snowflake plays in this. So there's a lot of different tools that will support it. But I think you're right in calling out AWS, right? They have AWS Lake, they have AWS Glue. They have so much that's trying to drive this. But I think the really important thing to keep here is what you said. It's going to be a decade long journey. And by the way, we're on the shoulders of giants a decade ago that have even gotten us to this point to talk about these new words because this has been an ongoing type of issue, but ultimately, no matter which vendors you use, this is going to come down to your data governance plan and the data literacy in your business. This is really about workflows and people as much as it is tools. So, you know, the new term of data mesh is wonderful, but you still have to have the people and the governance and the processes in place to get there. >> Great, thank you for that, Erik. Some great points. All right, for the next prediction, we're going to shine the spotlight on two of our favorite topics, Snowflake and Databricks, and the prediction here is that, of course, Databricks is going to IPO this year, as expected. Everybody sort of expects that. And while, but the prediction really is, well, while these two companies are facing off already in the market, they're also going to compete with each other for M&A, especially as Databricks, you know, after the IPO, you're going to have, you know, more prominence and a war chest. So first, these companies, they're both looking pretty good, the same XY graph with spending velocity and presence and market share on the horizontal axis. And both Snowflake and Databricks are well above that magic 40% red dotted line, the elevated line, to us. And for context, we've included a few other firms. So you can see kind of what a good position these two companies are really in, especially, I mean, Snowflake, wow, it just keeps moving to the right on this horizontal picture, but maintaining the next net score in the Y axis. Amazing. So, but here's the thing, Databricks is using the term Lakehouse implying that it has the best of data lakes and data warehouses. And Snowflake has the vision of the data cloud and data sharing. And Snowflake, they've nailed analytics, and now they're moving into data science in the domain of Databricks. Databricks, on the other hand, has nailed data science and is moving into the domain of Snowflake, in the data warehouse and analytics space. But to really make this seamless, there has to be a semantic layer between these two worlds and they're either going to build it or buy it or both. And there are other areas like data clean rooms and privacy and data prep and governance and machine learning tooling and AI, all that stuff. So the prediction is they'll not only compete in the market, but they'll step up and in their competition for M&A, especially after the Databricks IPO. We've listed some target names here, like Atscale, you know, Iguazio, Infosum, Habu, Immuta, and I'm sure there are many, many others. Erik, you care to comment? >> Yeah. I remember a year ago when we were talking Snowflake when they first came out and you, and I said, "I'm shocked if they don't use this war chest of money" "and start going after more" "because we know Slootman, we have so much respect for him." "We've seen his playbook." And I'm actually a little bit surprised that here we are, at 12 months later, and he hasn't spent that money yet. So I think this prediction's just spot on. To talk a little bit about the data side, Snowflake is in rarefied air. It's all by itself. It is the number one net score in our entire TISA universe. It is absolutely incredible. There's almost no negative intentions. Global 2000 organizations are increasing their spend on it. We maintain our positive outlook. It's really just, you know, stands alone. Databricks, however, also has one of the highest overall net sentiments in the entire universe, not just its area. And this is the first time we're coming up positive on this name as well. It looks like it's not slowing down. Really interesting comment you made though that we normally hear from our end-user commentary in our panels and our interviews. Databricks is really more used for the data science side. The MLAI is where it's best positioned in our survey. So it might still have some catching up to do to really have that caliber of usability that you know Snowflake is seeing right now. That's snowflake having its own marketplace. There's just a lot more to Snowflake right now than there is Databricks. But I do think you're right. These two massive vendors are sort of heading towards a collision course, and it'll be very interesting to see how they deploy their cash. I think Snowflake, with their incredible management and leadership, probably will make the first move. >> Well, I think you're right on that. And by the way, I'll just add, you know, Databricks has basically said, hey, it's going to be easier for us to come from data lakes into data warehouse. I'm not sure I buy that. I think, again, that semantic layer is a missing ingredient. So it's going to be really interesting to see how this plays out. And to your point, you know, Snowflake's got the war chest, they got the momentum, they've got the public presence now since November, 2020. And so, you know, they're probably going to start making some aggressive moves. Anyway, next prediction is something, Erik, that you and I have talked about many, many times, and that is observability. I know it's one of your favorite topics. And we see this world screaming for more consolidation it's going all in on cloud native. These legacy stacks, they're fighting to stay relevant, but the direction is pretty clear. And the same XY graph lays out the players in the field, with some of the new entrants that we've also highlighted, like Observe and Honeycomb and ChaosSearch that we've talked about. Erik, we put a big red target around Splunk because everyone wants their gold. So please give us your thoughts. >> Oh man, I feel like I've been saying negative things about Splunk for too long. I've got a bad rap on this name. The Splunk shareholders come after me all the time. Listen, it really comes down to this. They're a fantastic company that was designed to do logging and monitoring and had some great tool sets around what you could do with it. But they were designed for the data center. They were designed for prem. The world we're in now is so dynamic. Everything I hear from our end user community is that all net new workloads will be going to cloud native players. It's that simple. So Splunk has entrenched. It's going to continue doing what it's doing and it does it really, really well. But if you're doing something new, the new workloads are going to be in a dynamic environment and that's going to go to the cloud native players. And in our data, it is extremely clear that that means Datadog and Elastic. They are by far number one and two in net score, increase rates, adoption rates. It's not even close. Even New Relic actually is starting to, you know, entrench itself really well. We saw New Relic's adoption's going up, which is super important because they went to that freemium model, you know, to try to get their little bit of an entrenched customer base and that's working as well. And then you made a great list here, of all the new entrants, but it goes beyond this. There's so many more. In our emerging technology survey, we're seeing Century, Catchpoint, Securonix, Lucid Works. There are so many options in this space. And let's not forget, the biggest data that we're seeing is with Grafana. And Grafana labs as yet to turn on their enterprise. Elastic did it, why can't Grafana labs do it? They have an enterprise stack. So when you look at how crowded this space is, there has to be consolidation. I recently hosted a panel and every single guy on that panel said, "Please give me a consolidation." Because they're the end users trying to actually deploy these and it's getting a little bit confusing. >> Great. Thank you for that. Okay. Last prediction. Erik, might be a little out of your wheelhouse, but you know, you might have some thoughts on it. And that's a hybrid events become the new digital model and a new category in 2022. You got these pure play digital or virtual events. They're going to take a back seat to in-person hybrids. The virtual experience will eventually give way to metaverse experiences and that's going to take some time, but the physical hybrid is going to drive it. And metaverse is ultimately going to define the virtual experience because the virtual experience today is not great. Nobody likes virtual. And hybrid is going to become the business model. Today's pure virtual experience has to evolve, you know, theCUBE first delivered hybrid mid last decade, but nobody really wanted it. We did Mobile World Congress last summer in Barcelona in an amazing hybrid model, which we're showing in some of the pictures here. Alex, if you don't mind bringing that back up. And every physical event that we're we're doing now has a hybrid and virtual component, including the pre-records. You can see in our studios, you see that the green screen. I don't know. Erik, what do you think about, you know, the Zoom fatigue and all this. I know you host regular events with your round tables, but what are your thoughts? >> Well, first of all, I think you and your company here have just done an amazing job on this. So that's really your expertise. I spent 20 years of my career hosting intimate wall street idea dinners. So I'm better at navigating a wine list than I am navigating a conference floor. But I will say that, you know, the trend just goes along with what we saw. If 35% are going to be fully remote. If 70% are going to be hybrid, then our events are going to be as well. I used to host round table dinners on, you know, one or two nights a week. Now those have gone virtual. They're now panels. They're now one-on-one interviews. You know, we do chats. We do submitted questions. We do what we can, but there's no reason that this is going to change anytime soon. I think you're spot on here. >> Yeah. Great. All right. So there you have it, Erik and I, Listen, we always love the feedback. Love to know what you think. Thank you, Erik, for your partnership, your collaboration, and love doing these predictions with you. >> Yeah. I always enjoy them too. And I'm actually happy. Last year you made us do a baker's dozen, so thanks for keeping it to 10 this year. >> (laughs) We've got a lot to say. I know, you know, we cut out. We didn't do much on crypto. We didn't really talk about SaaS. I mean, I got some thoughts there. We didn't really do much on containers and AI. >> You want to keep going? I've got another 10 for you. >> RPA...All right, we'll have you back and then let's do that. All right. All right. Don't forget, these episodes are all available as podcasts, wherever you listen, all you can do is search Breaking Analysis podcast. Check out ETR's website at etr.plus, they've got a new website out. It's the best data in the industry, and we publish a full report every week on wikibon.com and siliconangle.com. You can always reach out on email, David.Vellante@siliconangle.com I'm @DVellante on Twitter. Comment on our LinkedIn posts. This is Dave Vellante for the Cube Insights powered by ETR. Have a great week, stay safe, be well. And we'll see you next time. (mellow music)

(bright music) >> Hello, and welcome to this CUBE conversation. I'm John Furrier, your host of theCUBE, here in Palo Alto, California. It's a hybrid world, we're still doing remote in news. Of course, events are coming back in person, but more importantly conversations continue. We've got two great guests here, John Siegal, SVP ISG Marketing at Dell Technologies, and Dave McGraw, office of the CTO at VMware. Gentlemen, great to see you moving forward. Dell Technologies and VMware great partnership. Thanks for coming on. >> Great to be back. >> Yeah, hi, John, thanks for having us. >> You know, the world's coming back to kind of real life, Omnicon virus is out there, but people say it's not going to be as bad as we think, but it looks like events are happening. But more importantly, the cloud native, cloud operations is definitely forcing lots of great new things happening, new innovations on-premises and at the Edge. A lot of new things happening in Dell and VMware, both have been working together for a long time now. VMware a separate company, we'll get to that in a second, but let's get to the partnership. What's new, what's changed with the relationship? >> Yeah, so I mean, just to kick that off and certainly Dave can chime in, but I think in a word, you know, John, nothing changes in terms of my customer's perspective. I mean, in many ways our joint relationship has never been stronger. We've put a ton of investment in both joint engineering innovation, Joint Go To Market over the last several years. And we're really been making what was our vision a couple of years ago a reality, and we only expect that to continue. And I think much of the reason we expect that to continue is because we have a shared vision of this distributed multi-cloud, you know, cloud native, modern app environment that customers want to drive. >> Yeah, and John, I would add that we've been building platforms together for the last five years, a great example is VxRail. You know, it's a market-leading technology that we've co-engineered together. And now it's a platform that we're actually building out use cases on top of whether it's multi-cloud solutions, whether it's private and hybrid cloud or including Tansu for developer environments. You know, we're using the investments we made and then we're layering in and building more value into those investments together. And we put agreements in place by the way that, you know, multi-year agreements around commercial arrangements and partnering together as well as our technology collaboration together. So we feel really confident about the future and that's what we're communicating to our customer base. >> Yeah, indeed just go ahead sorry, John. >> No, good. >> I was going to say just to build on that, as he said, I really, when I say not much changes, I mean, VMware has always been an open ecosystem partner, right? With its OEM vendors out there. And I think the difference here is Dell has made a strategic choice and a decision to make a significant investment in joint innovation, joint engineering, joint testing for VMware environments. And so I think a lot of this comes down to the commitment and focus that we've already made. You mentioned VxRail, which is a fantastic example where we at Dell, we've invested our own IP. You know, HCI systems software, that's sort of the secret ingredient that the secret sauce that delivers that single click, you know, automated lifecycle management experience. And we're investing lots of dollars in test labs just to ensure that customers always have that, you know, that seamless experience. >> You know, one of the benefits of doing theCUBE for 11 years now, it's just been that long, both EMC World and Dell World back in the day was our first events we went to. We've watched you guys together over the years. One of the things that strikes to be consistently the same is this focus of end to end, but also modularity, but also interoperability and kind of componentizing kind of the solution, not to oversimplify it, but this is kind of the big discussion right now as cloud scale, horizontal scale is with cloud resources are being put into the development stream where modern applications now are clear using only cloud native operations. That doesn't mean it's just cloud. I mean, it's cloud everywhere, but it's distributed computing. So this is kind of the original vision if you go back even five years or more. You guys have been working on this. This is kind of an important inflection point because now it's well known that the modern application is going to have to be programmable under the hood. Meaning everything's going to be scaling and rise of superclouds or new Edge technologies, which is coming fast. This is the new normal. This is not something that we were talking about mainstream five years ago, but you guys have been working on this kind of simplicity solutions-based approach. What's your reaction? >> That's right, John, I'll tell you, you might remember at VMworld a couple of years ago we announced Project Monterey. And now this was really a redefining architecture for not only data center, core data centers, but also for cloud and Edge environments. And so it's leveraging technology, you know, data processing units also known as smart NICs. You know, we're essentially redefining what that infrastructure looks like, making it more efficient, more performance, depending on the use case. So we've been partnering very closely with Dell to develop that technology and it's going to really transform what you see at the Edge and what you also see in core data centers going forward. >> Yeah, and there's so many of those. I mean, I think it seems Monterey is a great example of one that we continue to invest in. I think there's also NBME over TCP is another, if you will key ingredient to how customer is going to essentially get the performance they need out of the infrastructure going forward. And so we were proud to be a partner there, at most recent VMware where we announced, you know, the ability to essentially automate the integration of MBME over TCP with Dell EMC system integrated with vSphere. And that's a great example as well, right? I think there's countless. >> John: Yeah. >> And I'll tell you, we are so excited to see what Dell has done in the storage business with PowerStore X, where they've integrated vSphere ESXi into a storage array. And, you know, that creates all kinds of opportunities going forward for better integration and really for plug and play of, you know, the storage technology into cloud infrastructure. >> What's interesting about what you guys talking about is remember the old DevOps moving infrastructure as code. Okay, that became DevSecOps. That's big part of Tansu and security. Now it's all about devs, right? So now devs have all that built in and now the operations are the big conversation because one of the things we pointed out in the theCUBE recently is that, you know, VMware has owned the IT operations world, in our opinion for a long, long time. Dell has owned the enterprise for a very long time in terms of infrastructure in front solutions. The operational efficiency of cloud hybrid is really kind of what's the gateway to multi-cloud. This has been a big part of IT transformation. Can you guys share how you guys were working together to make that flexibility to transform from the old IT to the new IT? And what are some of the things that you're seeing with your customers that can give them a map of how to do this? >> Yeah, so I would say, you know, one area in particular that we're really coming together is around APEX, right? From an as a service perspective. I think what APEX is really doing is really unifying much of what you just described. It's taking as a service, it's taking multi-cloud, it's taking cloud native development if you will, and modern app development. And we together partner to ensure that's a consistent experience for customers. And we have a number of new APEX cloud services that keep that in mind and that are built on joint innovations, like frankly, VxRail at the bottom of that as they've said earlier. So for customers are looking to get, you know, item managing infrastructure altogether, which we, you know, we're seeing more and more now, we recently announced the APEX Cloud Services With VMware Cloud you know, which is again, a joint solution that'll be available soon. And it's one that is managed by Dell, but, you know, it gives customers that simplicity and scale of the public cloud, but certainly that control and security and performance, if you will, that they prefer to have in the private club. >> Yeah, and I think because, you know, the APEX Cloud Service is designed with the VMware Cloud, you have a capability that drives consistency and portability of workloads for customers. So they don't have to re-skill and retrain to be able to manage the environment. They also are not locked in to any particular solution. They have this ability to move workloads depending on what their needs are; economically, performance, you know, logistics requirements, and they can react accordingly as they digitize their business going forward. >> It's interesting, you guys are talking about this demand in a way, addressing this demand for as a service, which is, you know, it can be one cloud or multiple clouds, but it's really more of an abstraction layer of what you deploy to essentially create that connective tissue between what's existing, what's new and how to make it all work together to again, satisfy the developer 'cause the new apps are coming, right? They want more data is coming into them. So this has been, is this the as a service focus, is that what's happening? >> Yes, absolutely, yeah. The, as a service focus is, you know, at the end of the day is how are we going to really simplify this. We've been on this journey now for at least a year and much more to go. And VMware has been a key partner here, you know, on that journey. So a number of cloud services. We've had APEX Hybrid Cloud, APEX Private Cloud, you know, out there for some time. In fact, that's where we're getting a lot of the traction right now, and this new offering that's going to come out soon that we just mentioned with VMware cloud is just going to build on that. >> And VMware is a super cloud, isn't it Dave? Because you guys would be considered by our new definition of Supercloud because you can sit on Amazon. You also have other clouds too, so your customers can operate on any cloud. >> Our view is that, you know, from a multi-cloud future for customers to be able to be on-premises with a, you know, APEX service, to be able to be operating in a Colo, to be able to operate in one of many different hyperscalers, you know, providing that consistency and flexibility is going to be key. And I think also you mentioned Tansu earlier, John. You know, being able to have the customer have choice around whether they're operating with VMs and containers is really key as well. So, you know, what Dell has done with APEX is they set up again, another platform that we can just provide our SASE offerings to very simply and easily and deliver that value to customers in a consistent fashion going forward here. >> You know, I just love the term Supercloud. Actually, I called it subclass, but Dave Vellante called them Superclouds. But the idea is that you can have all the super power in the cloud capabilities, but it's also distributed clouds, right? Where you have Edge, you've got the Core and the notion of a cloud isn't like one place in which there's distributed computing. This is what the world now realizes. Again, we've talked about in theCUBE many times. So let's discuss this whole Core to Edge dynamic because if everything's cloudified, if you will, or cloud operations, you've got devs and ops kind of working together with security, all that good stuff. Now you have almost a seamless environment where code can run anywhere, data should traverse anywhere, but the idea of an Edge changes dramatically and certainly with 5G. So can you guys tie that Edge computing story together how Dell and VMware are addressing this massive growth at the Edge? >> Yeah, I would say, you know, first and foremost, we are seeing a major shift. As you mentioned today, the data being generated at the Edge it's, I think Michael Dell has actually gone on record talking about the next frontier, right? So it's especially happening because we're seeing all these smart monitoring capabilities, IOT, right? At almost any end point now from retail, traffic lights, manufacturing floors, you name it. I think anywhere where data is being acted upon to generate critical insights, right? That's considered an Edge now and we're expecting to see, as ITC has already gone out there on record as saying 50% of the new infrastructure out there will be deployed at the Edge in the next couple of years, so. And it's a different world, right? I mean, I think in terms of what's needed and what the challenges are, there's certainly a lack of specialized technical resources, typically at the Edge, there's typically a scaling issue. How do you manage all those distributed endpoints and do so successfully? And how do you ensure you lay any concerns around security as well? So, you know, once again, we've had a very collaborative approach when it comes to working on challenges like Edge, and, you know, we, again, common theme here, but the VxRail, which is a leading, you know, joint ACI off in the market is the foundation of many of our Edge offerings out there in the market today. The new satellite nodes that we just announced just a few months ago, extends VxRail's, you know, value proposition to the Edge, using a single node deployment. And it's really perfect for customers that don't have that local technical resource expertise or specialized resources. And it still has cyber resilience built right in. >> And John, just to follow up on that real quick, before Dave chimes in. On the Edge, compute has been a huge issue. And I've talked with you guys about this too. You guys have the compute, you have the integrated systems now, any update there on what VxRail is doing different or other Edge power (John laughs) PowerEdge sounds familiar? We need some more power at the Edge. So what's new there? >> Well, you know, first of all, we had new PowerEdge platforms of course, come out in this past year, and, you know, there's, we're building on that. I mean, the latest VxRail is of course, leveraged that power of PowerEdge. Yeah, lots of a good naming arrogance, right? PowerEdge. >> John: I love that. And, but, you know, it's, you know, it's at the heart of much of what we're doing. We're taking a lot of our capabilities that have been IP, like streaming data platform, which enables streaming, video and real-time analytics and running that on a VxRail or PowerEdge platform. You know, we're doing the same thing, you know, with, in the manufacturing side. We're working with partners that have IOT Edge platforms, you know, and running those on VxRail and PowerEdge. So we are taking very much the idea here that, yes, you're right with our rich resources of infrastructure, both with PowerEdge and VxRail, you know, building on that. But working with partners like VMware and others to collapse an integrated solution for the Edge. And so we're seeing really good uptake so far. >> Dave, what's your take on the Dell Edge with VMware, because automation is big theme, not moving data across an internet that's obviously huge. And you got to have that operational stability there. >> Absolutely, and, you know, to your point, being able to do the processing at the Edge and move results around versus moving massive amounts of data around is really key to the future going forward. And, you know, we've taken an approach with Dell where we're working with customers, we're having detailed conversations, really using a "Tiger Team Approach" around the use cases; manufacturing and retail being two of the real key focuses, healthcare another one where we're understanding customer requirements, it's both today and where they want to go. And, you know, so it's about distributed computing, certainly at the Edge. Dell is coming out with some great new platforms that we're integrating our software with. At the same time, we have technology in STWIN and SASE that become part of that solution as well, with VeloCloud. And we're developing a global network of points of presence that really will help support distributed application environments and Edge-native Application environments working with Dell going forward. >> That's great stuff. The next ending question is what's next. I want to just tee that up by bringing up what you kind of made me think of there, Dave, and this is key supply chain on both hardware and software talking about security. So when you say those things you're talking about in terms of functionality, the question is security, right? Both hardware and software supply chain with open source, with automation. I mean, this is a big discussion. What do you guys react to that about what's next.. >> Yeah, I can tell you from a central engineering perspective, you know, we're looking at security compliance and privacy every day, we're working closely with Dell. In fact, we're in the middle of meetings today in this area. And, you know, I look at a few key areas of investment that we're making collectively together. One is in the area of end to end encryption of data. For virtualized environments or containerized environments, being able to have end-to-end encryption and manage a very efficient way, the keys and maintain the data compression and deduplication capabilities for customers, you know, efficiency and cost purposes while being very secure. The second area we're working closely on is in Zero Trust. You know, being able to develop Zero Trust infrastructure across Edge, to Core, to Colo, to Cloud and making sure that, you know, we have reference designs available to customers with procedures, policies, best practices, to be able to drive Zero Trust environments. >> John what you're (indistinct) is huge and you guys have, literally could be the keys to the kingdom pun intended. You guys are doing a lot of great security at the Edge too, whether the traffic stays with the Edge or goes across the network. >> That's all right, I'm as curious, like you said, it's been a joint focus and initiative across much of our portfolio for quite a while now. And I think, you know, you asked what's next and I think, you know, sky's the limit right now. I mean, we've got the shared vision, right? I think at the end of the day, you know, we've shared a number of joint initiatives that are ongoing right now with Project Monterrey. Obviously our integration with Tansu and a number of solutions we have there, work around APEX, et cetera. I think we have complimentary capabilities. You mentioned, you know, areas like supply chain, areas like security, you know, and I think these are all things that we both do well together. And the thing I will say that I think is probably the most key to us sustaining this great execution together is our collaborative cultures. I think, you know, there's something to be said for what we built, you know, all these last several years, you know, around these collaborative cultures, working together on joint roadmaps and focusing on really end of the day solving our customer's biggest challenges, whatever those may be, you know? And so at the end of the day behind us, we have the greatest supply chains, you know, services, support, and innovation engines. But I think, you know, I think that the passion, our groups working together I think is going to be key to us going forward. >> Well, great stuff moving forward together with Dell Technologies and VMware. David, thanks for coming on. John, great to see you. Thanks for sharing insight. Great CUBE conversation talking encryption, we've spoken about Edge and supply chain as well. Great stuff, great conversation. Thanks for coming on. >> Thank you >> Thank you so much, John. >> Okay, this is theCUBE conversation. I'm John Furrier, with theCUBE. You're watching CUBE coverage. Thank you so much for watching. (bright music)

(bright upbeat music) >> Welcome back to theCube's coverage of AWS re:Invent 2021. This is "theCube". We go out to the events. We extract the signal from the noise. We're here at a live event, hybrid event, two sets. We had two remote studios prior to the event, over 100 interviews. Really excited to have George Elissaios here. He's the director of product management for EC2 Edge, really interesting topic at AWS. George, great to see you. Thanks for coming on. >> Yeah, great to be here. Thanks for having me. >> So, everybody's talking about Edge, IoT, EC2. What's the scope of your portfolio, your responsibility? >> Yeah, well, our vision here at AWS is to really bring the power of the AWS platform wherever customers need it. AWS wherever our customers want it is our long-term vision. And we have a bunch of products in this space that help us do that and help us enable our customers whatever their use case is. So we have things like Wavelength. I know we talked about Wavelength before here in "theCube", where we bring full AWS service at the edge of the 5G network, so with 5G edge computing in partnership with telcos worldwide, our partnership with Verizon in the US has been flourishing. We're up to, I think, 15 or more Wavelength zones right now in many of the major cities in the US, but also in Japan and Korea, and in Europe with Vodafone. So that's one of the portfolio kind of offerings. And that helps you as a customer of AWS if you want to have the best latency to mobile devices, whether they are sensors, or mobile phones, or what have you. But we're also feeling out that Edge portfolio with local zones. Earlier today in Werner's keynote, we announced that we're going to launch another 30 local zones in 20 new countries, everywhere from South America, Africa, Asia, Australia, and Europe, obviously. So a lot of expansion there. Very excited about that. And that is kind of a similar offering, but it basically brings you closer to customers in metropolitan areas over the internet. >> So, Wavelength's a big feature. George, I want to get just to touch on it because I think latency comes up a lot in Edge conversations, low latency issues, whether it's cars, factories. You guys gave a demo yesterday to the press corps in the press room, I was there, where you had someone in San Francisco from the Opera and someone in person here in Vegas, and you had 13 milliseconds going back and forth demoing, real time- >> Collaboration. >> The benefit of low latency in remote. It wasn't next door. It was San Francisco. This is kind of the purpose of what Edge is about. Can you explain what that means, that demo, why it was important, and what you were trying to show, and how does it mean for the Edge? >> So there is multiple use cases. One of them is human collaboration, right? Like, we spent the last two years of our lives over conferences and kind of like the teleconferences, and trying to talk over each other and unmute ourselves desperately. But existing solutions kind of work, generally, for most of the things that we do, but when it comes to music collaboration where milliseconds matter, it's a lot harder with existing solutions to get artists to collaborate when they're hundreds of miles away. Last night, we saw a really inspiring demo, I think, of how two top tier musicians, one located in San Francisco and one located in Vegas, can collaborate in opera, which is one of the most precise art forms in the music world. There are no beats in opera to kind of synchronize, so you really need to play off each other, right? So we provided a latency between them of less than 30 milliseconds, which translates, if you're thinking about audio or if you're thinking about the speed of sound, that's like being in the same stage. And that was very inspiring. But there's also a lot of use cases that are machine to machine communications, where even lower latencies matter, and we can think of latencies down to one millisecond, like single digit milliseconds when it comes to, for example, vehicles or robots, and things like that. So we're, with our products, we're enabling customers to drive down that latency, but also the jitter, which is the variation of latency. Especially in human communications, that is almost more important than latency itself. Your mind can adapt to latency, and you can start predicting what's going to happen, but if I'm keep changing that for you, that becomes even harder. >> Well, this is what I want to get to because you got outcomes and applications like this opera example. That's an application, I guess. So working backwards from the application, that's one thing, but now people are really starting to trying to figure out, "What is the Edge?" So I have to ask you, what is AWS's Edge? Is it Outpost, Wavelength? What do people buy to make the Edge work? >> Well, for us, is providing a breadth of services that our customers can either use holistically or combine multiple of those. So a really good example, for example, is DISH Wireless. I'm sure you know we're building with DISH the first in the world mobile network, 5G mobile network fully on cloud, right? So these combines Outposts and combines local zones in order to distribute the 5G network across nationwide. And different parts of their applications live in different edges, right? The local zone, the Outputs, and the region itself. So we have our customers... You know, I talked about how local zones is going to be, you know, in total, 45 cities in the world, right? We're already in 15 in the U.S. We're going to do another 30. But customers might still come, and say, "Oh, why are you not," you know, "in "in Costa Rica?" Well, we'll have Outposts in Costa Rica. So you could build your own offering there, or you could build on top of Outputs while you distribute the rest of your workload in existing AWS offering. So to answer your question, John, there is no single answer. I think that it is per use case and per workload that customers are going to combine or choose which one of- >> Okay, so let's go through local zones. Explain what a local zone is real quick. I know we covered it a bit last year with the virtual event, but local zones are now part of the nomenclature of the AWS language. >> Yes. >> And we know what a region is, right? So regions are regions. What's a local zone? >> When your region's saying new availability zones, and then we're just (chuckles)- >> You got availability zones. Now you got local zones. Take us through the topology, if you will, of how to think about this. >> Right, so a local zone is a fully-managed AWS infrastructure deployment. So it's owned and managed and operated by AWS. And because of that, it offers you the same elasticity, and security, and all of the goodies of the cloud, but it's positioned closer to your end customers or to your own deployment. So it's positioned in the local urban, metropolitan or industrial center closer to you. So if you think about the U.S., for example, we have a few regions, like, in the East Coast and in the West Coast, but now, we're basically extending these regions, and we're bringing more and more services to 15 cities. So if you are in Miami, there is a local zone there. If you are in LA, there is two locals zones actually in LA. That enables customers to run two different types of workloads. One is these distributed clouds or distributed Edge kind of workload that we've been hearing more and more about. Think of gaming, for example, right? Like, we have customers that are, like Supercell, that need to be closer to the gamers, wherever they are. So they're going to be using a bunch of local zones to deploy. And also, we have these hyper-local use cases, where we're talking, for example, about Netflix that are enabling in LA their creative artists to connect locally and get like as low as single millisecond latencies. So local zone is like an availability zone, but it's closer to you. It offers the same scalability, the same elasticity, the same security and the same services as the AWS cloud. And it connects back to the regions to offer you the full breadth of the platform. >> So just to clarify, so the Edge strategy essentially is to bring the cloud, AWS, the primitives, the APIs, to where the customers are in instances where they either can't move or won't move their resources into the cloud, or there's no connectivity? >> Right, we have a bunch of use cases where customers either need to be there because of regulation or because of some data gravity, so data is being generated in a specific place and you need to locally process it, or we'll have customers in this distributed use case. But I think that you're pointing out a very important thing, which is a common factor across all of these offerings. It's it is the cloud. It's not like a copycat of the cloud. It's the same API. It's the same services that you already know and use, et cetera. So extending the cloud rather than copying it around is our vision, and getting those customers who, well, connectivity obviously needs to be there. We were offering AWS Private 5G. We talked about it yesterday. >> Now, a premise that we've had is that a lot of Edge use cases will be driven by AI inferencing. And so... First of all, is that a reasonable premise, that's growing, we think, very quickly, and it has huge potential. What does the compute, if that's the correct premise, what does the compute look like for that type of workload? >> That is a great premise, and that's why we think that the model that we're offering is so powerful, because you have the Edge and the cloud fully cooperating and being connected together. You know, the Edge is a resource that's more limited than the full cloud in the AWS region. So when you're doing inferencing, what you really want to do is you want to train your models back up in the region where you get more scalability and the best prices. You know, you have the full scale of AWS. But for the latency-sensitive parts of your applications, you want to push those to the Edge. So when you're doing the actual inferencing, not the training of the models- >> Real time. Yeah. >> Real time, you push that to the Edge, whether that's if your connectivity is 5G, you can push that into a Wavelength zone. If your connectivity is wired, you can push it into a local zone. If you really need it to be in your data center, you can push it in your Outposts. So you see how our kind of like building out for all of those use cases. >> But in those instances, I'm interested in what the compute looks like, 'cause I presume it's got to be low power, low cost, super high performance. I mean, all of those things that are good for data-driven workloads. >> Right, the power, if we think here, is the same compute that you know and love in the cloud. So the same EC2 instance types, the EBS volumes, the S3 for storage, or RDS for your databases and EMR clusters. You can use the same service. And the compute is the same powerful all the way down from the hardware up to the service. >> And is the promise to customers that eventually those... It's not all of those services, right? I mean, you go to Outposts today, it continues to grow. >> Continuing to grow, yeah. Right, so but conceptually, as many services you could possibly push to the Edge, you intend to do so? >> We are pushing services according to customer requests, but also there is a nuance here. The nuance is that you push down the services that are truly latency-sensitive. You don't need to push everything down to the Edge when you're talking about latency- >> Like, what's an example of what you wouldn't push down? >> So management tools, right? So when you're doing monitoring and management, yeah, you don't need these to be at the Edge. You can do that, and you can scale that. Or, you know, batch processing, it doesn't have to be at the Edge because it's, by definition, not online, not like a latency service. So we're keeping those, like AWS Batch, for example, that's in the region because, you know, that's where customers really use it. But things like EC2, EBS, EMR, we're pushing those to the Edge because those are more- >> We got two minutes left. I want to get the Outposts kind of update. I remember when Outposts launched. It was really a seminal moment for re:Invent. Hybrid. "Oh, Andy Jassy said hybrid." Yeah. "I'll never say hybrid." But now hybrid's kind of translated into all cloud operations. Now you got local zones. A lot's changed from Amazon Web Services standpoint since Outposts launched. Local zones, things are happening. 5G, DISH. Now what's the status of Outposts? Are you guys happy with it? What has it morphed into? Is it still the same game? What is Outposts today, vis-a-vis what people may think it is or isn't? >> Yeah, we've been focusing in what we're talking about, building out a number of services that customers request, but also being in more and more places. So I think we're in more than 60, now, countries with Outposts. We've seen very good adoption. We've seen very good feedback. You know, half of my EBCs have been on Outposts, but this year, I think that one of the most exciting announcements were the Outposts servers. So the smaller form factors that enable an additional use cases, like for example, retail or even building your 5G networks. You know, one of our partners, Mavenir, is moving their 5G core, so the smarts of the network that does all the routing, on Outposts servers, and we can distribute those all over the place. So, we're keeping on the innovation. We're keeping on the expansion. And we've been getting very good customer feedback- >> So all steam ahead, full steam ahead? >> Full steam ahead plus 10%. (John laughs) >> All right, guys. Thank you so much, George. Really appreciate it. We're seeing the cloud expand. The definition is growing, kind of like the universe, John. Dave Vellante for John John Furrier. You're watching "theCube" at AWS re:Invent, the leader in high tech coverage globally. We'll be right back.

(innovative music) >> Welcome back to theCUBE's continuous coverage of AWS re:Invent 2021. My name is Dave Vellante, and we are running one of the industry's most important and largest hybrid tech events of the year. Hybrid as in physical, not a lot of that going on this year. But we're here with the AWS ecosystem, AWS, and special thanks to AMD for supporting this year's editorial coverage of the event. We've got two live sets, two remote studios, more than a hundred guests on the program. We're going really deep, as we enter the next decade of Cloud innovation. We're super excited to be joined by Danny Allan, who's the Chief Technology Officer at Veeam, and James Kirschner who's the Engineering Director for Amazon S3. Guys, great to see you. >> Great to see you as well, Dave. >> Thanks for having me. >> So let's kick things off. Veeam and AWS, you guys have been partnering for a long time. Danny, where's the focus at this point in time? What are customers telling you they want you to solve for? And then maybe James, you can weigh in on the problems that customers are facing, and the opportunities that they see ahead. But Danny, why don't you start us off? >> Sure. So we hear from our customers a lot that they certainly want the solutions that Veeam is bringing to market, in terms of data protection. But one of the things that we're hearing is they want to move to Cloud. And so there's a number of capabilities that they're asking us for help with. Things like S3, things like EC2, and RDS. And so over the last, I'll say four or five years, we've been doing more and more together with AWS in, I'll say, two big categories. One is, how do we help them send their data to the Cloud? And we've done that in a very significant way. We support obviously tiering data into S3, but not just S3. We support S3, and S3 Glacier, and S3 Glacier Deep Archive. And more importantly than ever, we do it with immutability because customers are asking for security. So a big category of what we're working on is making sure that we can store data and we can do it securely. Second big category that we get asked about is "Help us to protect the Cloud-Native Workloads." So they have workloads running in EC2 and RDS, and EFS, and EKS, and all these different services knowing Cloud-Native Data Protection. So we're very focused on solving those problems for our customers. >> You know, James, it's interesting. I was out at the 15th anniversary of S3 in Seattle, in September. I was talking to Mai-Lan. Remember we used to talk about gigabytes and terabytes, but things have changed quite dramatically, haven't they? What's your take on this topic? >> Well, they sure have. We've seen the exponential growth data worldwide and that's made managing backups more difficult than ever before. We're seeing traditional methods like tape libraries and secondary sites fall behind, and many organizations are moving more and more of their workloads to the Cloud. They're extending backup targets to the Cloud as well. AWS offers the most storage services, data transfer methods and networking options with unmatched durability, security and affordability. And customers who are moving their Veeam Backups to AWS, they get all those benefits with a cost-effective offsite storage platform. Providing physical separation from on-premises primary data with pay-as-you-go economics, no upfront fees or capital investments, and near zero overhead to manage. AWS and APM partners like Veeam are helping to build secure, efficient, cost-effective backup, and restore solutions using the products you know and trust with the scale and reliability of the AWS Cloud. >> So thank you for that. Danny, I remember I was way back in the old days, it was a VeeamON physical event. And I remember kicking around and seeing this company called Kasten. And I was really interested in like, "You protect the containers, aren't they ephemeral?" And we started to sort of chit-chat about how that's going to change and what their vision was. Well, back in 2020, you purchased Kasten, you formed the Veeam KBU- the Kubernetes Business Unit. What was the rationale behind that acquisition? And then James, I'm going to get you to talk a little bit about modern apps. But Danny, start with the rationale behind the Kasten acquisition. >> Well, one of the things that we certainly believe is that the next generation of infrastructure is going to be based on containers, and there's a whole number of reasons for that. Things like scalability and portability. And there's a number of significant value-adds. So back in October of last year in 2020, as you mentioned, we acquired Kasten. And since that time we've been working through Kasten and from Veeam to add more capabilities and services around AWS. For example, we supported the Bottlerocket launch they just did and actually EKS anywhere. And so we're very focused on making sure that our customers can protect their data no matter whether it's a Kubernetes cluster, or whether it's on-premises in a data center, or if it's running up in the Cloud in EC2. We give this consistent data management experience and including, of course, the next generation of infrastructure that we believe will be based on containers. >> Yeah. You know, James, I've always noted to our audience that, "Hey AWS, they provide rich set of primitives and API's that ISV's like Veeam can take advantage of it." But I wonder if you could talk about your perspective, maybe what you're seeing in the ecosystem, maybe comment on what Veeam's doing. Specifically containers, app modernization in the Cloud, the evolution of S3 to support all these trends. >> Yeah. Well, it's been great to see Veeam expands for more and more AWS services to help joint customers protect their data. Especially since Veeam stores their data in Amazon S3 storage classes. And over the last 15 years, S3 has helped companies around the world optimize their work, so I'd be happy to share some insights into that with you today. When you think about S3 well, you can find virtually every use case across all industries running on S3. That ranges from backup, to (indistinct) data, to machine learning models, the list goes on and on. And one of the reasons is because S3 provides industry leading scalability, availability, durability, security, and performance. Those are characteristics customers want. To give you some examples, S3 stores exabytes the data across millions of hard drives, trillions of objects around the world and regularly peaks at millions of requests per second. S3 can process in a single region over 60 terabytes a second. So in summary, it's a very powerful storage offering. >> Yeah, indeed. So you guys always talking about, you know, working backwards, the customer centricity. I think frankly that AWS sort of change the culture of the entire industry. So, let's talk about customers. Danny do you have an example of a joint customer? Maybe how you're partnering with AWS to try to address some of the challenges in data protection. What are customers is seeing today? >> Well, we're certainly seeing that migration towards the Cloud as James alluded today. And actually, if we're talking about Kubernetes, actually there's a customer that I know of right now, Leidos. They're a fortune 500 Information Technology Company. They deal in the engineering and technology services space, and focus on highly regulated industry. Things like defense and intelligence in the civil space. And healthcare in these very regulated industries. Anyway, they decided to make a big investment in continuous integration, continuous development. There's a segment of the industry called portable DevSecOps, and they wanted to build infrastructure as code that they could deploy services, not in days or weeks or months, but they literally wanted to deploy their services in hours. And so they came to us, and with Kasten K10 actually around Kubernetes, they created a service that could enable them to do that. So they could be fully compliant, and they could deliver the services in, like I say, hours, not days or months. And they did that all while delivering the same security that they need in a cost-effective way. So it's been a great partnership, and that's just one example. We see these all the time, customers who want to combine the power of Kubernetes with the scale of the Cloud from AWS, with the data protection that comes from Veeam. >> Yes, so James, you know at AWS you don't get dinner if you don't have a customer example. So maybe you could share one with us. >> Yeah. We do love working backwards from customers and Danny, I loved hearing that story. One customer leveraging Veeam and AWS is Maritz. Maritz provides business performance solutions that connect people to results, ensuring brands deliver on their customer promises and drive growth. Recently Maritz moved over a thousand VM's and petabytes of data into AWS, using Veeam. Veeam Backup for AWS enables Maritz to protect their Amazon EC2 instances with the backup of the data in the Amazon S3 for highly available, cost-effective, long-term storage. >> You know, one of the hallmarks of Cloud is strong ecosystem. I see a lot of companies doing sort of their own version of Cloud. I always ask "What's the partner ecosystem look like?" Because that is a fundamental requirement, in my view anyway, and attribute. And so, a big part of that, Danny, is channel partners. And you have a 100 percent channel model. And I wonder if we could talk about your strategy in that regard. Why is it important to be all channel? How to consulting partners fit into the strategy? And then James, I'm going to ask you what's the fit with the AWS ecosystem. But Danny, let's start with you. >> Sure, so one of the things that we've learned, we're 15 years old as well, actually. I think we're about two months older, or younger I should say than AWS. I think their birthday was in August, ours was in October. But over that 15 years, we've learned that our customers enjoy the services, and support, and expertise that comes from the channel. And so we've always been a 100 percent channel company. And so one of the things that we've done with AWS is to make sure that our customers can purchase both how and when they want through the AWS marketplace. They have a program called Consulting Partners Private Agreements, or CPPO, I think is what it's known as. And that allows our customers to consume through the channel, but with the terms and bill that they associate with AWS. And so it's a new route-to-market for us, but we continue to partner with AWS in the channel programs as well. >> Yeah. The marketplace is really impressive. James, I wonder if you could maybe add in a little bit. >> Yeah. I think Danny said it well, AWS marketplace is a sales channel for ISV's and consulting partners. It lets them sell their solutions to AWS customers. And we focus on making it really easy for customers to find, buy, deploy, and manage software solutions, including software as a service in just a matter of minutes. >> Danny, you mentioned you're 15 years old. The first time I mean, the name Veeam. The brilliance of tying it to virtualization and VMware. I was at a VMUG when I first met you guys and saw your ascendancy tied to virtualization. And now you're obviously leaning heavily into the Cloud. You and I have talked a lot about the difference between just wrapping your stack in a container and hosting it in the Cloud versus actually taking advantage of Cloud-Native Services to drive further innovation. So my question to you is, where does Veeam fit on that spectrum, and specifically what Cloud-Native Services are you leveraging on AWS? And maybe what have been some outcomes of those efforts, if in fact that's what you're doing? And then James, I have a follow-up for you. >> Sure. So the, the outcomes clearly are just more success, more scale, more security. All the things that James is alluding to, that's true for Veeam it's true for our customers. And so if you look at the Cloud-Native capabilities that we protect today, certainly it began with EC2. So we run things in the Cloud in EC2, and we wanted to protect that. But we've gone well beyond that today, we protect RDS, we protect EFS- Elastic File Services. We talked about EKS- Elastic Kubernetes Services, ECS. So there's a number of these different services that we protect, and we're going to continue to expand on that. But the interesting thing is in all of these, Dave, when we do data protection, we're sending it to S3, and we're doing all of that management, and tiering, and security that our customers know and love and expect from Veeam. And so you'll continue to see these types of capabilities coming from Veeam as we go forward. >> Thank you for that. So James, as we know S3- very first service offered in 2006 on the AWS' Cloud. As I said, theCUBE was out in Seattle, September. It was a great, you know, a little semi-hybrid event. But so over the decade and a half, you really expanded the offerings quite dramatically. Including a number of, you got on-premise services things, like Outposts. You got other services with "Wintery" names. How have you seen partners take advantage of those services? Is there anything you can highlight maybe that Veeam is doing that's notable? What can you share? >> Yeah, I think you're right to call out that growth. We have a very broad and rich set of features and services, and we keep growing that. Almost every day there's a new release coming out, so it can be hard to keep up with. And Veeam has really been listening and innovating to support our joint customers. Like Danny called out a number of the ways in which they've expanded their support. Within Amazon S3, I want to call out their support for our infrequent access, infrequent access One-Zone, Glacier, and Glacier Deep Archive Storage Classes. And they also support other AWS storage services like AWS Outposts, AWS Storage Gateway, AWS Snowball Edge, and the Cold-themed storage offerings. So absolutely a broad set of support there. >> Yeah. There's those, winter is coming. Okay, great guys, we're going to leave it there. Danny, James, thanks so much for coming to theCUBE. Really good to see you guys. >> Good to see you as well, thank you. >> All right >> Thanks for having us. >> You're very welcome. You're watching theCUBE's coverage of 2021 AWS re:Invent, keep it right there for more action on theCUBE, your leader in hybrid tech event coverage, right back. (uplifting music)

(energetic music) >> Hello, welcome to the CUBE's coverage of Boomi's Out of This World event. I'm John Furrier, host of theCUBE. We've got two great guests here, Chris McNabb, CEO of Boomi, and Ed Macosky, SVP and Head of Products, talking about hyper automation and the future of connectivity. Gentlemen, thank you for coming on theCUBE, great to see you. >> John, it is great to see you again as well. Looking forward to the next in-person one. >> I miss the in-person events, you guys have had great events and a lot of action happening. Love the big news of going out on your own direction, big financing, change of control, all that good stuff happening, industries growing. Chris, this is a big move. You know, the industry is changing. Can you give us some context to, you know, what's going on in automation and connectivity, because iPaaS, which you guys have pioneered, have been a big part of Cloud and CloudScale, and now we're seeing next-generation things happening. Data, automation, edge, modern application development, all happening. Set some context, what's going on? >> Yeah John, listen, it's a great time to be in our space at this point in time. Our customers, at the end of the day, are looking to create what we announced at last year's thing, called Integrated Experiences, which is the combination of user engagement, more awesome connectivity, and making sure high quality data goes through that experience, and providing 21st century experiences. And we're right at the heart of that work. Our platform really drives all the services that are needed there. But what our customers really need and what we're here to focus on today, that this world is to make sure that we have the world's best cut connectivity capabilities, and process automation engagement of constituents to really do what they want to do, where they want to do it. >> So a lot of big moves happening, what's the story? Take us through the story. I mean, you guys have a transaction with big sum financing, setting up this intelligence connectivity and automation approach. Take us through the story, what happened? >> Yeah. So, you know, the lead business was sold outside of Dell and that deal closed. We are now owned by two top tier private equity firms, FP and TPG. That sale is completed and now we are ready to unleash the Boomi business on this market. I think it's a great, it's a great transaction for Dell, and it's a great transaction for FP, PTG but most specifically, it's really a world-class transaction for the Boomi business, the Boomi customer base, as well as the Boomi employee. So I really looked at this as a win-win-win and sets us up for really going after this one. >> Yeah, and there's a huge wave coming and you're seeing like the, the big wave coming. It's just like, no need to debate it. It's here. It's cloud 2.0, whatever you want to call it, it's scale. IT has completely figured out, that not only is replatforming the cloud, but you got to be in the cloud refactoring. This is driving the innovation. And, this is really I see where you guys are leading. So share with me what is hyper automation? What is that actually mean? >> So what hyper automation really is, is intelligent connectivity automation. So our customers have been doing this. It's very specifically related to taking workflows, taking automation within the business. That's been around for a long time anyway, but adding AI and ML to it. So, as you continue to automate your business, you're getting more and more steam, and you get more and more productivity out of the (mumbles) organization or productivity from the (mumbles). >> So Chris, tell us more about this hyper automation, because you guys have a large install base. Take us through some of the numbers of the customer base, and where the dots are connecting as they look at the new IT landscape as it transforms. >> Yeah. John, great question. You know, when I talk to, you know as many of our 18,000 customers worldwide as I can get to, you know, what they are saying very clearly is their IT news feed is getting more complicated, more distributed, more siloed, and it has more data. And as you work through that problem, what they're trying to accomplish, is they're trying to engage their constituents in a 21st century web, however they want, whether it be mobile web, portals, chat bots, old fashioned telephones. And in doing that, that complicated area is extraordinarily difficult. So that's the pervasive problem that Boomi is purpose-built to help solve. And our customers start out sometimes with just great connectivity. Hyper automation is where the real value comes in. That's where your constituents see a complete difference in how I inter-operate with (mumbles). >> So, first of all, I love the word hyper automation because it reminds me of hyper scale, which, you know, look at the Amazons and the cloud players. You know, that kind of game has kind of evolved. I mean, the old joke is what inning are we in, right? And, and I, to use a baseball metaphor, I think it's a doubleheader and game one is won by the cloud. Right? So, Amazon wins game one, game two is all about data. You guys, this is core to Boomi and I want to get your thoughts on this because data is the competitive advantage. But if you look at the pandemic and the stories that we're reporting on, and this reinvent specifically, that'll be a big story. The refactoring in the cloud is a big strategic effort, not just replatforming, refactoring in the cloud. So this is really where you guys are, I think, skating where the puck is. Am I getting it right, can you just share that vision? >> Yeah, John. From a vision perspective, I think the pandemic has really accelerated people's expectations. You know what we need to be more nimble, more flexible. And because they had a fair amount in the Cloud they have to understand what is the next tier, what is the next generation offerings that we put together tie together and connect. That is not only connecting systems, apps, databases, and clouds. You're connecting people, processes and devices. So we're going to have a great story here and out of this world about how we connect bio centric vest to a video system who a network monitoring hub to protect the officer's safety in Amsterdam in real-time. We can deploy officers to location all automatic. All decisions are automatic, all locations, cameras (mumbles) all automatically. And that's only possible, when we think about next generation technology that Boomi provides. Next generation capabilities by the other providers in that solution. >> Ed, before we get to the product announcements for the even, we'll get your reaction to that. I see in the cloud you can refactor, you got data, you got latency issues. These are all kind of go away when you start thinking about integrating it altogether. What's your reaction to refactoring as the next step? >> Yeah. So my regular, I mean, exactly what Chris said, but as our customers are moving to the cloud, they're not choosing any more, just one cloud. It is a multi-cloud it's multidimensional (mumbles), you got multi-cloud, you got hybrid cloud, you have edge devices, et cetera. And our technology just naturally puts this in the space to do that. And based on what we see with our customers, we actually have, we've connected over 189,000 different devices, application points, data endpoints, et cetera to people. And we're seeing that growth of 44% year on year. So, we're seeing that explosion in helping customers, and we just want to accelerate that, and help them react to these changes as quickly as they possibly can. And a lot of it doesn't require, you know, massive upload project technology. We've been lucky enough to be visionaries that with our deployment technology, being able to embrace this new environment that's coming up or we're right at the forefront of this (mumbles). >> Yeah. I love the intelligence saying, I love hyper automation. Okay, let's get into the product announcements of Out of This World event. What are some of the announcements, and share with us the key highlights. >> Yeah. So first and foremost, we've announced a vision in our tactic. So I talked about the 189,000 applications that we did data endpoints, et cetera, that our customers are picking today. And they're moving very, very rapidly with that and it's no longer about name, connections, and having these fixed auxiliary that connects to applications you need to be able to react intelligently, pick the next endpoint and connect very quickly and bring that into your ecosystem. So we've got this vision towards the connectivity service that we're working on that will basically normalize that connectivity across all of the applications that are plugging into Boomi's iPaaS ecosystem and allow customers to get up and running very quickly. So I'm really excited about that. The other thing we announced is Boomi event streams. So in order to complete this, we can't just, we've been on this EDA journey Event-Driven Architecture for the last couple of years, and embracing an open ecosystem. But we found that in order to go faster for our customers, it's very, very important that we bring this into Boomi's iPaaS platform. Our partnerships in this area are still very important for us. But there is an avenue that our customers are demanding that, "hey, bring us into your platform." And we need to move faster with this, and our new Boomi event streams will allow them to do that. We also recently just announced the Boomi Discover Catalog. So this is the, this is an ongoing vision us. We're, building up into a marketplace where customers and partners can all participate, whether it's inside of a customer's ecosystem or partners, or Boomi, et cetera, offering these quick onboarding solutions for their customers. So we will learn intelligently as people have these solutions to help customers onboard, and build, and connect to these systems faster. So that's kind of how they all come together for us In a hyper automation scenario the last thing too, is we are working on RPA as a last mile connectivity that's where we start RPAs today, you know, gone are going to be the days of having RPA at a desktop perspective where you have to have someone manually run that. Although its RPA our runtime technology extends the desktops anyway. So we are going to bring RPA technology into the IPaaS platform as we move forward here so that our customers can enjoy the benefits of that as well. >> That's real quick. It was going to ask about the fence stream. I love this RPA angle. Tell me more about how that impacts is that's that's what I think, pretty big what's the impact of when you bring robotic processes on our RPA into iPaaS, what's the, what's the impact of the customer? >> The impact of the customer is that we believe that customers can really enjoy true cloud when it comes to RPA technology today, most of the RPA technologies, like I said, are deployed at a desktop and they are, they are manually run by some folks. It helps speed up the business user and adds some value there. But our technology will surely bring it to the cloud and allow that connectivity of what an arm robotic process automation solution will be doing and can tap into the iPaaS ecosystem and extend and connect that data up into the cloud or even other operating systems that the customer (mumbles). >> Okay. So on the event streams that you did, you guys announced, obviously it's the best part of the embedded event driven architecture, You guys have been part of. What is, why is it important for customers? Can you just take a minute to explain why event streams and why event driven approaches are important. >> Because customers need access to the data real time. So, so there's two reasons why it's very important to the customers one is Event Driven Architectures are on the rise, in order to truly scale up an environment. If you're talking tens of millions of transactions, you need to have an Event Driven Architecture in place in order to manage that state. So you don't have any message loss or any of those types of things. So it's important that we continue to invest as we continue to scale on our customers and they scale up their environments with us. The other reason it is very important for us to bring it into our ecosystem, within our platform is that our customers enjoy the luxury of having an integrated experience themselves as they're building, you know, intelligent connectivity and automation solutions within our platform. So to ask a customer, to go work with a third party technology versus enjoying it in an integrated experience itself is why we want to bring it in and have them get their (mumbles) much faster. >> I really think you guys are onto something because it's a partnership world. Ecosystems are now everywhere. There's ecosystems, because everything's a platform now that's evolving from tools to platforms and it's not a one platform rules the world. This is the benefit of how the clouds emerging, almost a whole nother set of cloud capabilities. I love this vision and you start to see that, and you guys did talk about this thing called conductivity marketplace. And what is that? Is that a, is that a place where people are sharing instead of partnershipping? I know there's a lot of partners are connected with each other and they want to have it all automated. How does this all play in? Can you just quickly explain that? >> Yeah, so in the last year we launched and we actually launched open source community around connectors and that sort of thing we invested pretty heavily in RSDK. We see quite a big uptake in the ecosystem of them building specific connectors, as well as solution. And our partners were very excited about partnering with us and (mumbles) to markets and those sorts of things that they can offer solutions to their customers on a marketplace. So, so we are reacting to the popular demand that we have from our partners and customers where they say, Hey, we'd love to participate in this marketplace. We'd love to be able to work with you and publish solutions that we're delivering more customers. So, so we're, we're fulfilling that mission on behalf of our customers and partners. >> You know, Chris, when you look at the cloud native ecosystem at the high level, you're seeing opensource driving a big part of it, large enterprises, large customers are moving to that next level of modern application development. They're partnering, right? They're going to out, outsource and partner some, some edge components, maybe bring someone else over here, have a supplier everything's confide now in the cloud, AKA dev ops meets, you know, business logic. So this seems to be validated. How do you see this evolving? How does this iPaaS kind of environment just become the environment? I mean, it seems to me that that's what's happening. What's your reaction to the, to that trend? >> I think as iPaaS evolves we've extended the breadth of our iPaaS dramatically. We're not an integration platform. We're, we take the broadest definition of the word integration I guess I'll say it that way. You'll be integrating people. Connecting people is just as important as connecting cloud applications So, you know, that that's part one in terms of the vision of what it is two is going to be the importance of speed and productivity. It's critically important that people can figure out how to reconnect because endpoints are exploding. You have to connect these extraordinarily quickly infractions of the amount of time that it ever took and coding, code is just not the way that that works. You have to have it abstracted and you have to make it simpler, low-code, no-code environments, configuration based environments, make it simpler for more people outside of IT to actually use the solutions. So that's where these platforms become much more pervasive than the enterprise, solve a much bigger problem, and they solve it at speeds. So, you know, the vision for this is just to continue to accelerate that, you know, when we got started here, things used to take months and months, you know, it came down to weeks, it came down to days, it's in to hours. We're looking at seconds to define connectivity in an easy button, those get connected and get working. That's our vision for intelligent connectivity. >> Okay, so we're talking about hyper automation in the future context. That's the segment here? What is a feature conductivity? Take me through that. How does that evolve? I can see marketplace. I can see an ecosystem. I see people connecting with partners and applications and data. What is the future of connectivity? >> The vision, right? For connectivity, and they talk about our connectivity as a service, but you know, you have to think about it as connectivity instead of connectors, like an NBO, a thing that talks to it, and what we look at is like, you should be able to point to an endpoint, pick a cloud app, any cloud application.  You have an API. I should be able to automatically programmatically and dynamically, anytime I want go interrogate that, browse it in the button and I've established connectivity, and the amount of take, in the amount of time it's taken me to explain it, you should almost be able to work through it and be connected to that and talking to that endpoint, we're going to bring that kind of connectivity, that dynamic generated, automatic connectivity, in to our platform, and that's the vision >> And people connect to user from a product standpoint and this should be literally plug and play, so to speak, old, old term, but really seamlessly, automated play, automate and play kind of just connect. >> Yes, absolutely. And what Chris was talking, I was thinking about a customer to be named, but one of the, during one of the interviews coming up at Out of this World, the customer was describing to us today, already the capabilities that we have, where he is, a CTO was able to get an integration up and running before this team was able to write the requirements for the integration. So, so those are the types of things we're looking to continue add to, to add to. And we're also, you know, not asking our customers to make a choice. You can scale up and scale down. It's very important for our customers to realize whether the problem's really big or really small our platforms there to get it done fast and in a secure way. >> I see a lot of people integrating in the cloud with each other and themselves other apps, seeing huge benefits while still working on premise across multiple environments. So this kind of new operating models evolving, some people call it refactoring, whatever term you want to use. It's a change of, of a value creation, creates new value. So as you guys go out, Chris, take us through your vision on next steps. Okay. You're, you're going to be independent. You got the financing behind you. Dell got a nice deal. You guys are going forward. What's next for boomi? >> Well, listen John, we, we, you know, we couldn't be more excited having the opportunity to truly unleash, you know, this business out on the market and you know, our employees are super excited. Our customers are going to benefit. Our customers are going to get a lot more product innovation every single day, we are ready to put out 11 releases a year. There's literally a hundred different features we put in that product. We're looking to double down on that and really accelerate our path towards those things what we were talking about today. Engagement with our customers gets to get much better, you know, doubling down on customer success. People support people, PSL in the field gets us engaging our customers in so many different ways. There's so much more folks that when we partner with our customers, we care about their overall success, and this investment really gives us so many avenues now to double down on and making sure that their journey with us and their journey towards their success as a business and how we can help them. Some of them, we help them get there. >> You guys got a lot of trajectory and experience and knowledge in this industry I think. It's really kind of a great position to be in. And as you guys take on this next wave, Chris McNabb, CEO Boomi, Ed Macosky, SVP, head of projects, thanks for coming on the cube, and this is the cube coverage of Boomi's Out of This World. I'm John Furrier, your host. Thanks for watching. (upbeat music)

>>Hello everyone. Thank you, add appreciating the studio. We're here at the cube here in cloud city telco DRS Cloud city. I'm Jeffrey Day Volonte. We're here for the next three days. Wall to wall live coverage. It's a physical event with a virtual program. It's hybrid. We're here with Daniel Royston, the Ceo of telco D. R. And the acting Ceo Toby, which is announced today. Great >>to see you. It's awesome to see you guys. >>Awesome to see how you doing, how you >>Feeling? I'm feeling congratulations. Right. 101 days ago, I didn't even think this doesn't exist. Right. And we got in contact with you guys and we said we knew there was always going to be a big virtual component and we invited you guys and here we are together. It's insane. >>Well we did the preview videos, but we're kind of walking through and document in the early stages. It all came together beautifully spectacular For the folks watching behind us is the most spectacular build out clouds. It's an ecosystem open concept. It feels like the Apple store meets paradise. Of course. We got the cube here in the set and we got the studio with all the command and control of adam there. So I gotta ask you with the connected keynotes going on right now. The connected world. Yeah. It's connected. We all know that everyone knows that what's, what's different now real quick before we get into the program, what's going on? >>Yeah. I think a big part of my messages and advocating it's more than just the network, Right? And I think telcos forever have relied on. That's all it is. That's what it's about. And I'm like, nope, you guys got to start focusing on your subscribers, right? And so the over the top players keep coming in and siphoning away their revenue and it's time for them to start focusing on us, right and making experience great. And I think that's what this is all about. >>So we're gonna get the news but I want to toss it to Katie. The roving reporter is going to give it a detail on how it all came together. So Katie take it away. >>Mhm We're here in Barcelona and so excited to be back in this beautiful city over at the convention center. The team is working hard putting the finishing touches to tell Cody are amazing cloud city booth at MwC Barcelona 2021. I'm sure you know the story of how this all came together as one of the biggest vendors Erickson pulled out of M. W. C. With just over 100 days until the start of the event. When this happened last year, it kicked off a tidal wave of departures and MwC was called off this year. We all wondered if MWC was going to be cancelled again and that's when Daniel Royston Ceo of Telco D. R. And Tito G swooped in and took over the booth all 6000 square meters of it. The plan turn the booth into cloud city, the epicenter of public cloud innovation at MWC crews have been working around the clock. Over 100 and 50 people have been on this construction site for over three weeks with covid testing every day to prevent outbreaks during the build and in 100 days, it's become just that Cloud city has over 30 vendors presenting over 70 demos with 24 private meeting areas. Cloud City Live is a virtual showcase and live broadcast studio featuring 50 guests from cloud Thought leaders around the world. They have telepresence robots for a more personalized experience and the Cloud city quest game with a chance to win more than $100,000 to gain access to live streams of our nightly concerts with rosario flores and rock legend Jon bon Jovi. And don't forget to visit cloud city dot telco D R dot com to join in on the fun Daniel Royston and Nacho Gomez, founder and Ceo of one of the key vendors in the construction of the booth gave us a behind the scenes tour of the booth. >>Nacho. We did it. Yeah, we did. It can't even touch because of Covid. Yeah, but look what we did. But right, 100 days ago I called and I said I'm taking over the Ericsson booth. What did you think? I know you were crazy but just a little bit crazy, realized that you were mortgages than I thought. So at the very, at the very beginning I thought, yeah, she's crazy. But then I couldn't sleep that night. But the next uh then I realized that it was a very good it's a great idea. Yeah super smart. So yeah we're gonna show everyone toward the booth. Yeah let's go. Let's go. Okay So how do we build such an amazing, beautiful building now? So this is we've made building inside a book. So it was very hard to find a glassful of facade. The roof is around 24 tones. Yeah so it's crazy crazy but we made it work and it's totally amazing. Yeah. Do you want to go to tragedy life? Do let's go. Okay so here we are Cloud city live. I know we're producing a whole live streaming tv show. We always knew because of covid that not everyone will be able to come to Mwc as we wanted to make sure that people can learn about the public cloud. So over here we have the keynote stage, we're gonna have awesome speakers talking all throughout M. W. C. People from AWS Microsoft, google vendors companies. So really really great content. And then over there we have the cube interviewing people again 15 minute segments, live streaming but also available on demand. And you can find all of this content on cloud city. Tell Cody are calm and it's available for anyone to you. Well, a lot of content. And what about the roberts? I never get them out. Come on. We remember 100 days ago we were locked down. So we came up with the idea of having robots for the people who cannot attend in person. I know right. We always knew that there was gonna be a big virtual component to MWC this year. So we bought 100 telepresence robots. It's a great way to have a more personal experience inside the boot. Just sign up for one on cloud city dot telco D r dot com and you can control it yourself. Right? So today we have Nikki with us, who's dialing in from the Philippines in Manila? Hello, Nicky. Hi there, how are you? I were great. Can you show us a twirl all gaining on us? Super cool. Yeah, it is. What an experience. So Nikki robots are not the only cool thing we have in cloud city. We also have super awesome concert. We have rosario flores on monday. Who's a latin grammy award winner. We have Jon bon Jovi, Jon bon Jovi on Tuesday, can't be changing telephone that a little bit of rock n roll and that's Tuesday. And on Wednesday we have DJ official, it's going to be a super party. Now if you play our cloud city quest on cloud city telco D R dot com you can participate in a live streaming concert and so I know a lot of people out there have been a lockdown. Haven't been able to be going to concerts. Things from austin texas, which is the live music capital of the world, How to have music. It would be so exciting is gonna be great. I'm getting hungry. Why don't we go to the restaurant? Let's go eat. Let's go. Yeah, Here is our awesome restaurant. I know it's called Cloud nine. Right? It's a place to come and sit down and relax now. Barcelona is known for its great food and I'm a foodie. So we had to have a restaurant. Should we go check out my secret bar? Let's go. Mhm. Yeah, here >>thanks to a R. And thank you Nacho if you're watching this at home, I'm so sorry you can't join us in person. However, let's not forget this is a hybrid event meaning we're bringing all the public cloud action right to you wherever in the world you might be. This includes the Pact cloud city live program. We've partnered with the cube Silicon angle Media's live streaming video studio to make sure that all of the keynotes, panel discussions, demos, case studies interviews and way more are available on demand so you can watch them whenever and wherever you want or you can live stream and enjoy all things cloud city as and when they happen. So for those of you not able to join us in, Barcelona, be sure to log in to cloud city live and catch all the action and don't miss the awesome concert Tuesday night with Jon bon Jovi available for free. If you participate in our cloud city quest game, I'll be here throughout MWc bringing you reports and updates. Stay >>tuned. Yeah. >>Mhm. Okay, we're back here on the cube on the floor at mobile world congress in cloud city telco DRS clouds. They were here with D. R. Of telco, D R. Danielle Rice and great to see you back, we're back. So the keynotes going on connected world, the big news here, I'll see the open shift that's happening is going open. Open ran, it's been a big thing. Open ran alliance. You're starting to see the industry come together around this clear mandate that applications are gonna be cloud native and the public cloud is just coming in like a big wave and people are gonna be driftwood or they'll be surfing the wave. Yeah, this is what's happening. >>Yeah, I think public cloud is an unstoppable megatrend. It's hit every other industry regulated industries like banking, right? Top secret industries like government. They all use the public cloud tells us the last, you know, standing old school industry and it's coming and I don't think we could have had an MWc without talking about open man. That's the other major shift. And so we're bringing both of those ideas here together in cloud city. So >>the big theme is telco transformation. Maybe we could start with the basics like paint a picture of what the telco infrastructure looks like, particularly the data center stuff because they all have big data centers >>because that's >>those are the candidates to go into the cloud explained to the audience. >>Well, do you have a time machine? I think if any of us were in tech in the late 90s and early 2000s, that's what telcos like today. Right. So for people outside of the industry don't know right there mostly still managing their own data centers, they're just sort of adopting virtualization. Some of the more advanced telcos are mostly virtualized public cloud. Is this idea that like this advanced thought and so yeah, I mean things are on premise, things are in silom, things don't use a P. I. S there all integrated with custom code. And so the transformation, we can all see it because we've lived it in other industries. And I'm bringing that to telco and say come along for the ride. It totally works and it's gonna be amazing. >>So it's hardened purpose built infrastructure. Okay. That ultimately parts of that need to go to the public cloud. Right. What parts do you see going first? >>I think all of it. Really. Yeah. And I think when you look at like dish in the W. S. Which was an announcement that came out about two months ago. Right. I mean dish was doing all these are FPs. Everyone knew about it. They were looking for a cloud native software and no one knew what they were. They knew a big part was open man. But their coupling open ran with AWS and deploying their parts of their network onto the public cloud and the whole industry is like wait we thought this was years away, right? Or number two, you're crazy. And I'm saying this is what I've been talking about guys. This is exactly what you can do, leverage the Capex over. Let's see. I think Amazon did $100 billion 2020 right, leverage that Capex for yourself. Get that infinite scalability right? It's going to, well we >>have, we have a saying here in the queue, we just made this up called D. R. That's your initial tucker. The digital revolution and the three Rs reset re platform and re factor. I think the observation we're seeing is that you're coming in with the narrative what everyone's kind of like they're waking up because they have to reset and then re platform with the cloud. But the opportunity is gonna be the re factoring, You're seeing the public cloud, do that already with the Enterprise Enterprises. Already re factoring has done that. Already done that now. Telcos the last area to be innovated by the cloud. >>Yeah, I think there's old school big, we're kind of on a hollowed ground here in the Ericsson booth that I took over, right? They bailed and I kind of made fun of them. I was like, they don't have anything to say, right, They're not going to go to the show. I'm like, this is this is a revolution that's happening in telco and I don't think the big guys are really interested in rewriting their software that frankly makes them billions and billions of dollars of revenue. And I'm like to use the public cloud. All of the software needs to be rewritten needs to be re factored and you've got to start training your teams on how to use it. They don't have any capability. The telcos, in terms of those skills hire the right people, retrain your teams, move your applications, rewrite them. And I think that's what we're talking, this is not a short journey, this is a 10 year journey. So >>let's fast forward to the future a little bit because when I look around cloud city, I see ecosystem everywhere. So as you well know, the telcos have generally done a poor job of attacking adjacent seas. So my question is can they go beyond should they go beyond connectivity or is that going to be the role of the ecosystem? >>Yeah, I think it's time that the telco starts to focus on their subscriber, right? It's been really easy for them to rely on the oligopoly of the network, Right? The network, we live in the United States, we see the 18 T Verizon T mobile five G network, five G network. Like what about us? Right. And it's really easy for the over the top players right, that come in and they're always, telcos are always complaining about being coming dumb pipes and I'm like, you don't focus on the customer, we would rather buy from an Apple and amazon if they provided a mobile service because the customer experience will be better. Right? They need to start focusing on us. They have great businesses but they want to make them better. They need to start focusing on the subscriber, so >>it's a partnership with the ecosystem then for them to go beyond just straight connectivity because you're right, those are the brands that we want to do business >>with. You know, there was a great survey, Peter Atherton who will be talking as a speaker I think um I can't remember when he's talking but he was talking about how there was a survey done, where would you rather get your mobile service from? And it had a couple of big names in telco and then of course the obvious, you know, consumer brands, the ones that we all know and it was like overwhelmingly would rather buy from an amazon or an apple. And I'm like, this is like if you guys don't change, right, if telco doesn't change they keep rolling out 60 and blah blah blah. It's about the network and I don't start making about the subscriber right? Those revenues are going to continue to erode and they just sit there and complain about the O. T. T. Players. Like it's time to fight back. Yeah, I own the subscriber >>relationship. It's a digital revolution and I think This event really encapsulates in my mind this hybrid world here because it's physical events back. It's been since 2019 winter that this event actually happened. >>Well no it was even longer than, well I guess winter it was February of 19, right? And so like you look at ericsson and some of the big names that dropped out of the show, the time they come back, three years will have passed three years, right? This is how you feel your sales funnel is how you connect with your customers right? Tokyo is a very global, you know experience and so you gotta, you gotta get in front of people and you got to talk a >>lot of change to its happened, look at just what public clouds done in 2.5 years. You imagine three years being just >>gone, right? And I think a lot of people back to edition A. W. S. I think the industry was a little bit surprised by that announcement. So I've been telling executives if you were surprised by that, if you think that's, you know, if you don't know how that's gonna work, you need to come to cloud cities, you start meeting all the vendors are here. We have over 30 vendors, 70 demos, right? People who are pushing the technology forward, you need to learn what's going on here. We have several dish vendors here. Come learn about open rand, come learn about public cloud. So >>we're tight on time today, but we're going to have you back and we want to get into the tech, Get it to open, ran a little bit, get into what 5G and beyond and how we're going to take advantage of that and monetize it and what that all means. >>And also we want to hear what's going on the hallways. I know you got a lot of your key noting, you're gonna be a lot of events, the yacht. You've got a lot of briefings, >>yep. Yeah, I've already had two meetings this morning. I shot a video. Um, I met with one of the world's largest groups and I met with a tiny little super app company. Right? So running the gamut, doing everything reporter >>now, we could be like our roaming >>reporter. You know, I love, I love talking to execs and telco getting their perspective on what is public cloud and where are they going, what are they thinking about? And you talked to people who really, really get it and you get people who are just nascent and everywhere in between and I love mwc it's going great. >>Daniel Rose and you are a digital revolution telco DDR. There's amazing. Davis has been fantastic. Again for the folks watching, this is a hybrid events, there's an online component and we're reaching out with our remote interviews to get people brought in and we're shipping this content out to the masses all over the world. It's gonna be really amazing cube coverages here. It's gonna be rocking you guys are doing great. I just want to give you a compliment that you guys just did an amazing job. And of course we've got adam in the studio with the team. So adam, I'm gonna pass it off back to you in the studio

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by Silicon angle. Hello. We wanna welcome back to the Cuban cloud where we're talking to CEOs, C. E. O s, chief technology officers and investors. On the future of Cloud with me is Dave Humphrey, who is the managing director and co head of Private Equity North America at Bain Capital. They've welcome to the Cube. First time, I think. >>First time. Yeah, David, thanks very much for having so >>let's get right into it. As an investor, how are you thinking about the evolution of cloud? When you look back at the last decade, you know it's not gonna be the same, uh, in this coming decade, you know, Thio ironic 2020 is has thrown us into, you know, the accelerated digital transformation and cloud. But how do you look at the evolution of cloud from an investment perspective? What's your thesis? >>That's a great question, David. You know, for us, we're focused on investing in technology and really across the economy. And I'd say the cloud is the overarching trends and dynamic in the technology markets. And really, for two reasons, one is a major shift. Of course, that's going on. But the second and frankly, even more interesting one to us is all the growth that the cloud is creating in the technology marketplace. You know the ship. It has been well covered. But five years ago in 2015, by our analysis, two thirds of all computing workloads were done on premises and Onley. Five years later, that's that's flipped. So two thirds of all computing workloads now done done in the cloud. And, of course, that shift. There's a lot of ramifications as an investor. But even more interesting dust is the growth in technology and the usage of technology that the cloud is creating. So over that same period of time, the total number of computing workloads run has increased by 2.6 times just a five year period time, which is really a a dramatic thing. And it makes sense when you think about all the new software applications that could be created, all the data that could be used by new users and new segments, and the real time inside that could be gleaned from that is that growth that really were focused on investing behind a Z. Investors in technology. You >>know, it's interesting you just took share those numbers and you hear a lot of numbers. I I actually think you you know, you your even being conservative. You know, Ginny Rometty used to talk about 80% of workloads or are still on Prem. Andy Jassy it reinvent said that 96% of spending is still on premises. So that was kind of an interesting stat. And I guess the other thing that I would, I would note is it's not just a share shift. It is. It's not just, you know, the cloud eating away it on Prem. We've clearly seen that, but there's also incremental opportunity as well. If you look at snowflake, for example, and adding value on top of, you know across multiple clouds and creating new markets, so there's there's that, you know, double that 12 punch of stealing share from on Prem but also incremental growth, which is probably accelerated as a result of this, you know, compressed digital transformation. So when you look at the Big Three cloud players, I mean roughly speaking, they probably account for $80 billion in total revenue which I guess is a small portion of the overall I t. Market. So it has a a long way to go. But But what's the best way to get good returns from an investment standpoint without getting clobbered by their tendency to sometimes coop some of the best ideas and put them on their primary services? >>Yeah, absolutely. Well, you know, for us, uh, it really comes back to the same fundamental principles we look for in any investment, which is finding a business that solves a really important problem for its customers and does so in a way that's really advantaged vs competition can and do something that other competitors just can't do, whether those be the hyper scale is that you're describing or, you know, other specialized and focused competitors, and then finding a way that we can partner with those companies to help them to accelerate their growth. So surely the growth of the likes of AWS and Microsoft and Google, as you're describing, has been a profound competitive shift, along with the cloud shift that we've all talked about. And those companies, of course, can offer and do things that you past purveyors of computing couldn't. But fundamentally, they're selling and infrastructure layer, and there is room for all sorts of new competitors and new applications that can do something better than anybody else can. So any company that we're looking at, we're asking ourselves the question. Why are they the best ones to do what they're doing? How could they solve the most problem for their customers and do that in a way that's that's Brazilian and we see lots of those opportunities, >>and I wanna I wanna pick your brain about the Nutanix investment. But before we get there, I wonder if you could just talk about Bain Capital in their their history of investment in both cloud and infrastructure software and and how do those investments? How would they performed? And how do they inform your current thesis? >>Yeah, absolutely. So being Capital was started in in the mid eighties, 1984 actually has a spin out of being a company consulting, and the basic premise was that if we're good at advising and supporting businesses, we should partner with them and invest behind them, and if they do well, we'll do well. And, as I said, focusing on these businesses but do something really valuable for their customers in a riel advantaged way, with some discontinuous growth opportunity that's led us to grow a lot. You know, we started out actually in the venture business and grew into the private equity business. But now we invest across all life stages of companies and all over the world. So we're $105 billion in assets that we managed across 10 lines of business on were truly global. So I think we have about 470 investment professionals and 210 of those at this point are located outside the U. S. One of the really interesting things for us in investing in technology broadly and in infrastructure in the cloud more specifically is that we're able to do that all over the world. And we're able to do that across all the different life stages of companies. We have a thriving venture capital business that really we've been in since the origins of being capital has invested across countless cloud and security and infrastructure businesses taken successful companies public like like solar wind sold companies to strategic and grown businesses. You know, in really thriving ways we have a, um, growth mid market growth technology business that we launched last year. Called their Technology Opportunities Fund. They've made a really interesting cloud based investment in a company called the Cloud Gurus Cloud Guru Excuse me? That trains the next generation of I t professionals to be successful in the club on then, of course, in our private equity business, you know where I spend my time. We are highly focused on technology sector and the the impacts of the cloud in that sector. Broadly, we've invested in many infrastructure businesses, scale businesses like BMC software and Rockets software security businesses like blue coat systems and semantic. And of course, for those big businesses they've got both on premises solutions. They've got cloud solutions, and often we're focused on helping them continue to grow and innovate and take their solutions to the cloud. And then, uh, that's taking us to our most recent investment in Nutanix that we're very excited about it. We think it's truly a growth business in a large market that has an opportunity to capitalize on these trends we're talking about. >>I wonder if you could comment on some of the changes that have occurred. You guys have been in the private equity business for a long time. And if you look at what you know, kind of the early days of private equity, it was all you know, even, uh, suck as much cash out of the company is possible. You know, whatever's left over will figure out what to do with it. It it seems like you know, investors have realized Wow, we can actually, if we put a little investment in and do some engineering and some go to market, we can actually get better multiples. And so you've got the kind of rule of 30 35 40 where he made a plus. Growth is kind of the metric. How do you think about that? And look at that evolution. >>Yeah, you know, it's interesting because in many ways, being capital was started as the antithesis to what to what you're describing. So we started again, as as with a strategic lens and a focus on growth and a focus on if we got the long term and the lasting impact of our business is right, that the returns would would follow. And you're right that the market has evolved in that way. I mean, I think some of the some of the dynamics that we've seen has been certainly growth of the private equity business. It's It's become a much larger piece of the, you know, the capital markets than it was certainly 10 years ago in 20 years ago. Also, with that growth comes the globalization, that business all over the world and the specialization. So you certainly see technology focused firms and technology focused funds in a way that you didn't see, uh, 10 years ago, or certainly 20 years ago actually being capital. Interestingly enough, we had a technology focused fund in 1989 called called Being Information Partners. So we've been focused on the sector for a very long time. But you certainly see ah, lot more technology investors, uh, than than you did you know 10 or 20 years ago? >>How are you thinking about valuations? Thes days? I mean, that is good. It's good to be in tech. It's even better to be in the cloud. You know, Service officer, software Cloud. You know if if if you're looking at, you know some of the companies, especially the work from home pivot. But a lot of that appears to be. You know, many people believe it's going to be permanent. How are you feeling about the both public market and private market valuations in that dynamic? >>Yeah, well, you know, it's it's amazing, right? I don't think any of us in March, when the covert crisis was just emerging, would have anticipated that that come November, the markets, and certainly the technology markets would be even more robust and stronger than than they were say in January February. But I think it's a testament to the resilience of the technology on that just how intricate and intertwined technology has become with our daily lives and and how much companies depend on its use. And frankly, it's been the cove environments that an accelerant for many of the ways in which we depend on technology. So witnessed this interview, of course, through through the through the cloud, and you're seeing the way that we operate our business day to day the way cos they're accessing their data and information. It's only further accelerated the need for technology and the importance of that technology to how how businesses operate. So I think you're seeing that reflected in the market values out there. But, you know, frost work. We're focused on businesses that still have that catalytic opportunity ahead that can more than compensate for for the price of entry. >>So let's talk about this massive investment. You guys made a Nutanix 750 million, I guess, is a small piece of your 105 billion, but still a massive investment. How did that opportunity come to you? What was your thinking? You know, behind that that investment and what are you looking for in terms of the go forward plan and growth plan for 2021 really importantly, beyond. >>Yeah, absolutely. Well, we're thrilled to be partnered with and invested in Nutanix. We think is a terrific company. And, you know, our most recent technology investment and private equity business. It really came about through a proactive efforts that we had in in the spring. Um, you know, we've got a team focused on the technology sector, focused across infrastructure and applications, and, uh, internet and digital media businesses and financial technology. And, uh, you know, through those efforts, we were looking for businesses. Um, that we felt had faced some dislocation and their market values associated with the Koven environment that we're facing but that we thought were really attractive. Business is well positioned, had leading solutions and had substantial and discontinuous growth opportunities. And as we looked through that effort, we really felt that Nutanix stood out just as a core leader and in fact, really the innovator and the inventor of the market in which it competes with a substantial market share in position solving a really important problem for its customers with a big growth opportunity ahead. But, um, the stock price had had come down because the business has been undergoing ah transition, and we didn't think that that was fully understood by by the market. And so way saw an opportunity Thio partner with Nutanix to invest money into the business to help to fund its transition and its growth. Yeah, and Thio to be partners along for all the value the business will will continue to create. We think it's a terrific company, and we're excited to be to be invested >>Well, you and I have talked about this that transition, you know, from a traditional, you know, license model to one That's Anania recurring revenue model, which many companies have gone through. You know, Adobe certainly has done it. Tableau successfully did it. Splunk is kind of in the middle of that transition right now and maybe not well understood. You've got companies like like Data Dog that and snowflake again to doing consumption based pricing. So there's a lot of confusion in the marketplace, and I wonder if you could talk about that transition and why it It was attractive to you to actually, you know, place that bet now? >>Yeah, absolutely. And as you say, a number of companies at this point have been through various forms of this shift, from from selling their technology upfront to selling it over time on, we find that the model of selling the technology over time eyes one that could be powerful. It could be aligning for customers as well as for, uh, vendor of the software solutions. And in Nutanix in particular again, we saw all the ingredients that we think make this an opportunity for for the business again, market leading technology that customers love. That is solving really important problem. The technology, because Nutanix had been grown and bootstrapped under the leadership of, uh, you know of zeros when it was built and founded, had been selling its software together with an appliance, you know, often in a, um, upfront sale Andi has been undergoing under their own initiative transition from selling that software with an appliance to a software based model to one that s'more rattle over time. And, you know, we thought that there was the opportunity to continue that to continue that transition and by doing that, to be able to offer mawr growth and mawr innovation that we could bring to our customers Thio continue to fund the shift. So something that frankly was well underway before we invested. Um, you know, as a za business makes this transition from collecting upfront Thio, you know, thio more evenly. Over time, you know, we saw a potentially use for our capital to help to fund that growth. And we're just focused on being a good partner toe help the company keep investing in abating, as as it contains to do that. >>I was talking to somebody other day, David. I told him I was interviewing you, and I was mentioning the Nutanix investment. I said, I'm definitely gonna cover that as part of this. You know, Cuban Cloud program. And they said Hit Nutanix. That's not cloud. I'm like, Wait a minute, What's cloud? So we heard Andy Jassy reinvent talking a lot about hybrid Antonio Neary, right after HP made its earnings last earnings announcement he came on on, said that well, we heard the big Cloud player talk about hybrid, and so the definition is changing. But so how are you looking at the market? Uh, certainly. There's this hyper converged infrastructure, but there's also this software play. There's this cloud play. Help us squint through how you see that >>absolutely so Nutanix, as you alluded to, pioneered the market for hyper converged infrastructure for bringing computing storage networking together. Uh, you know, often in private cloud environments in a way that was really powerful for for customers. Make, of course, continue to be the leaders in that marketplace. But they've continued to innovate and invest in ways that can solve problems for customers and related problems across the hybrid cloud. So combining both the public cloud with, you know, with that private cloud and across multiple public clouds with things like clusters and lots of innovation that business is doing in partnership with the likes of, um, Amazon and Microsoft and others. And so, yeah, we think that New Chance has a powerful role to play in that hyper cloud world in a multi cloud world. And we're excited toe back on them. >>Well, I think to what maybe people don't understand is that not only is Nutanix, you know, compatible with AWS and compatible with azure and G C. P. But it's actually kind of create a nabs traction layer across those those clouds. Now there's two sides of that debate. Some some will say, Well, that that that has Leighton see issues or yes, it reduces complexity. But at the same time, it doesn't give you that fine grained access. That's kind of the A W s narrative customers, you know, want simplicity. And we're seeing, you know, the uptake across clouds. I have a multipart question for you, Dave. So obviously being very strong and strategy I'm curious is toe how how much you get involved in the operational details. I mean, obviously 750 million u got a state there, but what are the 2 to 2 or three major strategic considerations for not just even just Nutanix but cloud and software infrastructure companies. And and how much focus do you put on the operational and one of the priorities There? >>Absolutely. Well, you know, we pride ourselves in being good partners to our businesses and in helping them to grow, not just with our capital, which I think is, of course, important, but also, you know, with our sweat equity and our and our human capital in our partnership that we could do that in lots of ways is fundamentally about, um, you know, supporting our businesses, however, is needed to help them thio grow. We've been investing in the technology sector, as I described for over over 30 years. And so we've built up a set of capabilities around things like helping toe partner with the sales force of our company is helping them toe, you know, think about the you know, the ways in which they they allocate their, uh their research and development and their in their innovation raised in which they, you know, continue Thio do acquisitions toe. You know, further that pipeline, we support our businesses in lots of ways, but you know we're not engineers were not. Developers, of course, were looking for businesses that are fundamentally great. They've got great technology. They solve problems for customers in a way, you know, that we could never replicate. That's what's the amazing but a business like Nutanix and just over a 10 year period of time, it literally has customer satisfaction levels that we haven't seen from any other. Infrastructures offer company that we've had the, you know, the pleasure of diligence ing over the last several years. So what we're focused on is how can we take those great products and offerings that Nutanix has and continue to support them through the further growth and expansion in areas like, um, you know, the further salesforce investment Thio expand into these new areas like clusters that we were talking about and thinking about, you know, things that they could do toe further expand the strategic hold. Um, And so, you know, we have, ah, large team of being capital. A zai mentioned 260 investment professionals in a private equity business alone. About a third of those are just available to our companies to help support them. Uh, you know, with various initiatives and efforts after after we invest. And we'll certainly, of course, make all of those available to new taxes. Well, somebody >>was asking me the other day, You know, what's hyper converged infrastructure? How did that come about? I was explaining what, Back in the day you had. You buy some servers and some storage and you have a network and you sort of have different teams and you put applicant, You figure out all out and put the applications on top, you know, test it, make sure it all works. And then and then the guys at V. C and VM Ware and Cisco and the M. C. They got together and said, Okay, we're gonna bolt together a bunch of different components and, you know, pre tested. Here you go. Here's a Here's a skew. And then what Nutanix did was actually really transformational and saying, Okay, look, we do this through software on DSO. And now that was what, Late, late two thousands. Now we're sort of entering this new era, this next generation of cloud cross clouds. So I wonder how you think about, you know, based on what you were just talking about the whole notion of M and A versus organic. There's a lot of organic development that needs to be done. But perhaps you could you could buy in or in organically through emanate toe, actually get there faster. How do you think about that balance? >>Look, I I think that that was an articulate, by the way explanation of I think that the origins of hyper converged infrastructure. So I enjoyed that very much. But, you know, I think that with any of our businesses and with Nutanix, we're of course, looking at where we trying to get to in several years and one of the best ways to support the business to get there, you know? Of course, they'll, um you know, primarily that will be through or continued organic investment in the company and all the innovation in the product. Um, that they've been doing will the company contemplate acquisitions toe further achieve the development goals and the objectives for solving pain points for customers to get, you know, to the strategic places they're trying to get to, of course. But you know, it all is a part of the package of of What's it a good fit company and its growth object. >>I mean, with the size of your portfolio, I mean your full stack investor, I would say, Is there any part of the so called tech stack that you won't touch that you would actually, you know, not not walk, but run away from, >>uh well, you know, I wouldn't say that we're running away from, you know, anything but the questions that we're asking ourselves. Our is the technology that we're investing in durable, ISAT advantaged and does have a growing role in the world. And, you know, if if we think that those things are true are absolutely, um, thrilled toe invest behind those things. You know, if if there are things that we feel like you, that's that's not the case, um, you know, then then we would tend toe to shy away from those investments. We've certainly found opportunities and businesses that people perceived as one. But you know, we believe to be another >>Well, so let me ask you specifically about about Nutanix. I mean, clearly, they achieved escape velocity. One of the few companies actually from last decade. It was Nutanix pure, not a whole lot of others. That actually, you know, were ableto maintain independence as a as a public company. What do you see is their durability. Uh, they're they're they're in their moat. If you if you will. >>Yeah, absolutely. Well, clearly, we think that it's a very durable and very advantage business. You know, that's that's the investment. Look, we think that Nutanix has been able to offer the best hyper converged infrastructure product on the market bar None. Um, one that has got the best ease of use Eyes is the most nimble and flexible for for customers. And you just see that, you know, recently and customer feedback And also that plays across very heterogeneous architectures in a way that, you know, it's really, really powerful because of that. You know, we think that their best position to be able to leverage that technology as they have been, uh, to continue to play across both public and private hybrid cloud environments. And so we're excited toe to back them and and that journey it really starts from solving and acute customer pain point, you know, better than anybody else can. And, you know, we're looking to to back them toe continue to expand that vision. >>Yeah, well, I've talked to a lot of Nutanix customers over the years, and that is the fundamental value. Proposition is it's really simple, very high, you know, customer satisfaction. So that makes a lot of sense. Well, Dave, thanks very much for coming on the Cube and participating in the Cuban cloud. Really? Appreciate your perspectives. Wish you best of luck. And hopefully we could do this again in the future. Maybe face to face >>now, face to face, maybe something even know. Dave, I really appreciate it's been a pleasure and good luck with with the rest of your interviews. >>All right. Thank you. We keep it right. Everybody from or Cuban Cloud, this is Dave Volonte. We'll be right back.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020. Special coverage sponsored by AWS Global Partner Network Welcome to the Cubes. Live coverage of AWS reinvent 2020. I'm Lisa Martin. I've got two guests joining me. Next. Chris Gru's director of Business development, AWS Marketplace Service catalog and Control Tower at AWS. Chris, welcome. >>Thank you. Welcome. Good to see you. >>Likewise. And Matthew Polly is an alumni of the Cube. He is back VP of worldwide business development alliances and channels at Crowdstrike Matthew, Welcome toe. Welcome back. >>Great to be here. Lisa, Thanks for having me. >>And I see you're in your garage, your f one car in the background. Very jealous. So we're gonna be talking a little bit about not f one today, but about what's going on. Some of the the news that's coming from the partner Keynote. So, Chris, let's start with you. What's going on? The AWS marketplace news and also give our audience a real good understanding of what the marketplace is. >>Yeah, sure. So So AWS marketplace is actually an eight year old service within the AWS family, and and our charter is really providing a fine by deploy and manage experience for third party software. And so what our organization does. We work with my issues like Crowdstrike, and we really try to get them to package up their software in that same consumption format that other customers are buying AWS services. It's already the best service already. Those customers are used to buying services like Red Shift, and that's three and a consumption format, and they want to be able to buy third party software in that same manner. And so that's really been our charter since we were launched eight years ago. We've had a lot of great mo mentum since our launch. We now have over 8000 listings available in the catalog, and we have over 1.5 million subscriptions going through the catalog. One of things that we announced earlier today is that we are up to 300,000 active customers. That's actually up from 260,000, which is our previous numbers. So we continue to see really good momentum in terms of adoption, from both our eyes, community publishing listings and then from our customers that are actually buying out of the catalog. We work on all types of formats of software, so we provide machine images in an Amazon machine image format. But we also published and make available SAS products, container products and algorithms and models to run in things like our sage maker environment. And then, as of this morning in the Global Partner Summit, we announced the ability to sell professional services through eight of this marketplace as well. >>So lots of expansion, lots of growth. I'd love to get Chris your take on this expansion into offering professional services. What does that mean? And how have your 300,000 plus customers been influential in that? >>Yeah. And so what we've seen is marketplaces evolved is the transaction sizes have actually gone up dramatically. A couple years ago we launched a feature called Private Offers, which allows eyes views to do a negotiated subscription, submit that to an AWS customer and that they accept that goes right on their bill. We've seen very good adoption that we've got thousands of private offers now going through the system and what we found when the transaction sizes started to grow. Both our eyes V s that we're using the platform, as well as the consulting partners that are partners with US through Amazon Partner Network. They typically attached services to those transactions So pure and eyes V you might wanna package on something like an installation service training services. Or it could just be a bespoke statement of work that goes along with your technology and then on the consulting partner side. Resellers want to attach those same type of services to the software that they re sell, and up until this morning we weren't able to do that. And so it provided a lot of friction to our customers or buyers because what they had to do is they actually had to bottom line those transactions, or they had to do those transactions outside of marketplace. And And that wasn't a good experience for either RSV community or restore community or customers. So now, with this launch, we could actually allow customers to buy those services from those Eyes v partners and those resellers. By virtue of doing that to marketplace and basically how it works. It's similar to our private offer experience. They just submit a private offer to that customer. They could upload a statement of work. And if that customer accept, it goes directly on their AWS bill and they did. This marketplace takes care of all the collection, and the building that goes goes along with that transaction. And so we're really excited about this. We had over 100 launch partners that we're ready to go as of this morning, and we think this is gonna be a great feature, is gonna get a lot of adoption. Crowdstrike, which is a company that Matthews with is one of our launch partners for that feature. And so we just think this is gonna be a game changer for us on a number of levels. It's really gonna open up the type of transactions that we can now do to market place. >>Well, you mentioned Ah, good f word frictionless. That's something that every business really aims to do to make that experience just as seamless as possible. So Matthew talk to us about crowdstrike being part of its professional services, launched the opportunities that that opens up for the marketplace, customers and your customers? >>Sure. So just a quick background on crowdstrike were an endpoint protection cybersecurity company that has historically been protecting laptops desktops on premise, uh, devices from from breaches, basically identifying indications of attack or indications of compromise that that may surface on those end points. We do that by having agents run on those devices and point back to our massive body of data that runs in the cloud A W s. In fact, and so collecting tons and tons of data petabytes upon petabytes of data, literally trillions of events per week were able to easily identify and apply machine learning and artificial intelligence, Um, to that corpus of data to be able to identify when there is adversary activity on those devices. Now we've gone through a bit of a digital transformation ourselves, and we're looking at now. Not only, or we have launched products here recently, that not only protect those on premise devices like the desktops, laptops and on premise servers, but also protect workloads that are running in the cloud E C. Two instances, or RDS instances. What have you in in AWS? Or we've also launched what crowdstrike calls are Falcon Horizon product, which is a cloud security posture management product to be able to give people visibility into configurations that may create risk for their cloud environments. And we've been leveraging marketplace for about two years now. Um, it's been a fantastic opportunity for us to really leverage that frictionless sales motion that Chris talked about reducing sale cycles for us and for our channel partners. We have a number of our channel partners that leverage the CPP Oh capability within within the AWS marketplace toe actually transact business with their customers. It's been a It's been a fantastic, um you know, mechanism for for crowdstrike, for our partners and for our customers. Um, you know, we've been part of the enterprise contract scenarios where we don't have to go through that process of negotiating an end user license contract. We've signed up for the enterprise contract. Many of our customers have signed up for that enterprise contracts with reduces the legal iterations to get a transaction done. So that's been fantastic. And what we're doing now with the you know, the professional services offering is we're standing up a few of our professional services, Um, you know, offerings on the AWS marketplace so that our customers and our channel partners can actually transact business through the AWS marketplace toe, acquire those particular professional services offerings. And the one that I think is most interesting is a kind of cloud security assessment where our professional services team will go in and actually evaluate our their configurations. Are there unmanaged, um, you know, accounts running in AWS or what have you that could represent a security risk and make recommendations about how to improve the overall security posture of that cloud environment, leveraging something like crowd strikes Falcon Horizon, as I mentioned earlier, or our cloud workload protection offering. So it >>really >>is about streamlining the procurement, offering them. You know, the ability to thio, offering customers the ability to acquire through the AWS marketplace, whether that's the crowdstrike product or the Crowdstrike service offerings. >>So, Matthew, I imagine given this year that we're all not sitting together face to face in Las Vegas. The events of this year have also brought a lot of challenges from a security perspective. We've seen Ransomware going up dramatically, but also in this massive pitot to work working remotely. I can imagine your customers big opportunity for Crowdstrike to help them when endpoints just scattered. So in terms of that, as well as the impact with what you're doing with AWS marketplace seems like a great opportunity to provide your customers with faster access to ensuring that they can guarantee the security off their all of their data, which is business critical. >>Yeah, 100%. So the kind of global pandemic and work from anywhere has driven demand for crowd strikes capabilities in two ways. Number one people leaving the office and going home. There's a proliferation of physical devices, laptops for people to actually work from home, which obviously need to be protected. And a lot of times these were people that were working from home for the first time. You know, no longer within the protection of the, you know, the corporate network. Maybe they're using a VPN or what have you? But they needed the added protection of an endpoint protection capability like crowd strikes. And the second is a lot of this digital transformation has been accelerated. We've had a few customers tell us they had a three year plan for for their their digital transformation, and a lot of that is moving on. Premise service involves moving on premise servers to the cloud, and they've had to accelerate that two months or even even weeks in cases. And that's driving. You know, huge demand for understanding how to ensure there maintaining the proper security posture for those cloud environments. So speed is key right now, making sure that you're protected and transacting those those you know, those those sale cycles quickly leveraging native US marketplace all is accelerating. >>Yes, speaking of that acceleration and we've talked about that a lot. Matthew. This acceleration of digital transformation years now crammed into months. Chris, let's wrap with you in light of that acceleration, how has that affected positively? The AWS marketplace Bringing in professional services, allowing your customers to have much more available to them, to transact directly and and in a frictionless way, when speed is so critical? >>Yeah, I mean what it really leads to. It just gives us more selection, right? So if you take a step back and you think about the you know, the infamous Amazon fire, well, one of the key components of what makes a fine we'll go a selection. And there was a lot of solutions that we had. We just couldn't sell through marketplace without having some kind of services attach. While there's a lot of products that you could just point, click and go. There are a lot of technology. Do you need to? Some have some kind of hand holding And so, you know, by virtue launching services, this actually opens up the amateur in terms of selection that we could bring into the catalog. One of things that we've been focused on as a late is bringing in business applications as an example. And a lot of times a business application might need services to go on, actually wrap around that solution cell and, you know, be part of that implementation. And so that's the other great thing about this is it's going to give us more selection, and that's just gonna let our customers buy more and more products out of this market place. But do that in this very easy format, where it literally just lets them put these transactions directly on the AWS bill. So we think it's gonna be a great you know, not only for movie deals faster but also providing more solutions to our customers and just giving a better selection experience of AWS customer >>and being able to do that all remotely, which is these days is table stakes. Chris. Matthew, Thank you so much for joining me today. Talking about what's new with the Amazon marketplace. What you guys are doing with professional services and crowdstrike. We appreciate your time. >>Yep. Thank you. Thanks. Lisa. Yep. >>From my guests. I'm Lisa Martin. You're watching the cubes. Live coverage of aws reinvent 2020.

>> We're here at the Data Cloud Summit 2020, tracking the rise of the data cloud. And we're talking about the ecosystem powering the next generation of innovation in cloud, you know, for decades, the technology industry has been powered by great products. Well, the cloud introduced a new type of platform that transcended point products and the next generation of cloud platforms is unlocking data-centric ecosystems where access to data is at the core of innovation, tapping the resources of many versus the capabilities of one. Casey McGee is here. He's the vice president of global ISV sales at Microsoft, and he's joined by Colleen Kapase, who is the VP of partnerships and global alliances at Snowflake. Folks, welcome to theCUBE. It's great to see you. >> Thanks Dave, good to see you. Thank you. >> Thanks for having us here. >> You're very welcome. So, Casey, let me start with you please. You know, Microsoft's got a long heritage, of course, working with partners, you're renowned in that regard, built a unbelievable ecosystem, the envy of many in the industry. So if you think about as enterprises, they're speeding up their cloud adoption, what are you seeing as the role and the importance of ecosystem, the ISV ecosystem specifically, in helping make customers' outcomes successful? >> Yeah, let me start by saying we have a 45 year history of partnership, so from our very beginning as a company, we invested to build these partnerships. And so let me start by saying from day one, we looked at a diverse ecosystem as one of the most important strategies for us, both to bring innovation to customers and also to drive growth. And so we're looking to build that environment even today. So 45 years later, focused on how do we zero in on the business outcomes that matter most to customers, usually identified by the industry that they're serving. So really building an ecosystem that helps us serve both the customers and the business outcomes they're looking to drive. And so we're building that ecosystem of ISVs on the Microsoft cloud and focused on bringing that innovation as a platform provider through those companies. >> So Casey, let's stay on that for a moment, if we can. I mean, you work with a lot of ISVs and you got a big portfolio of your own solutions. Now, sometimes they overlap with the ISV offerings of your partners. How do you balance the focus on first party solutions and third-party ISV partner solutions? >> Yeah, first and foremost, we're a platform company. So our whole intent is to bring value to that partner ecosystem. Well, sometimes that means we may have offers in market that may compliment one another. Our focus is really on serving the customer. So anytime we see that, we're looking at what is the most desired outcome for our customer, driving innovation into that specific business requirement. So for us, it's always focusing on the customer, and really zeroing in on making sure that we're solving their business problems. Sometimes we do that together with partners like Snowflake. Sometimes that means we do that on our own, but the key for us is really deeply understanding what's important to the customer and then bringing the best of the Microsoft and Snowflake scenarios to bear. >> You know, Casey, I appreciate that. A lot times people say "Dave, don't ask me that question. It's kind of uncomfortable." So Colleen, I want to bring you into the discussion. How does Snowflake view this dynamic, where you're simultaneously partnering and competing sometimes with some of the big cloud companies on the planet? >> Yeah, Dave, I think it's a great question, and really in this era of innovation, so many large companies like Microsoft are so diverse in their product set, it's almost impossible for them to not have some overlap with most of their ecosystem. But I think Casey said it really well, as long as we stay laser focused on the customer, and there are a lot of very happy Snowflake customers and happy Azure customers, we really win together. And I think we're finding ways in which we're working better and better together, from a technology standpoint, and from a field standpoint. And customers want to see us come together and bring best of breed solutions. So I think we're doing a lot better, and I'm looking forward to our future, too. >> So Casey, Snowflake, you know, they're really growing, they've got a pretty large footprint on Azure. You're talking hundreds of customers here that are active on that platform. I wonder if you could talk about the product integration points that you kind of completed initially, and then kind of what's on the horizon that you see as particularly important for your joint customers? >> You have to say, so one of the things that I love about this partnership is that, well, we start with what the customer wants. We bring that back into the engineering-level relationship that we have between the two companies. And so that's produced some pretty incredibly rich functionality together. So let me start by saying, you know, we've got eight Azure regions today with nine coming on soon. And so we have a geographic diversity that is important for many of our customers. We've also got a series of engineering-level integrations that we've already built. So that's functionality for Azure Private Link, as well as integration between Power BI, Azure Data Factory, and Azure Data Lake, all of this back again to serve the business outcomes that are required for our customers. So it's this level of integration that I think really speaks to the power of the partnership. So we are intently focused on the democratization of data. So we know that Snowflake is the premier partner to help us do that. So getting that right is key to enabling high concurrency use cases with large numbers of businesses, users coming together, and getting the performance they expect. >> Yeah, I appreciate that Casey, because a lot of times I'll, you know, I'll look at the press release. Sometimes we laugh, we call them Barney deals. You know, "I love you. You love me." But I listen for the word engineering and integration. Those are sort of important triggers. Colleen, or Casey too, but I want to start with Colleen. I mean, anything you would add to that, are there things that you guys have worked on together that you're particularly proud of, or maybe that have pushed the envelope and enabled new capabilities for customers where they've given you great feedback? Any examples you can share? >> Great question. And we're definitely focusing on making sure stability is a core value for both of us, so that what we offer, that our customers can trust, is going to work well and be dependable, so that's a key focus for us. We're also looking at how can we advance into the future, what can we do around machine learning, it's an area that's really exciting for a lot of the CXO-level leadership at our customers, so we're certainly focused on that. And also looking at Power BI and the visualization of how do we bring these solutions together as well. I'd also say at the same time, we're trying to make the buying experience frictionless for our customers, so we're also leveraging and innovating with Azure's Marketplace, so that our customers can easily acquire Snowflake together with Azure. And even that is being helpful for our customers. Casey, what are your thoughts, too? >> Yeah, let me add to that. I think the work that we've done with Power BI is pretty, pretty powerful. I mean, ultimately, we've got customers out there that are looking to better visualize the data, better inform decisions that they're making. So as much as AI and ML and the inherent power of the data that's being stored within Snowflake is important in and of itself, Power BI really unlocks that and helps drive better decisions, better visualization, and help drive to decision outcomes that are important to the customer. So I love the work that we're doing on Power BI and Snowflake. >> Yeah, and you guys both mentioned, you know, machine learning. I mean, they really are an ecosystem of tools. And the thing to me about Azure, it's all about optionality. You mentioned earlier, Casey, you guys are a platform. So, you know, customer A may want to use Power BI. Another customer might want to use another visualization tool, fine, from a platform perspective, you really don't care, do you? So I wonder Colleen, if we could, and again, maybe Casey can chime in afterwards. You guys, obviously everybody these days, but you in particular, you're focused on customer outcomes. That's the sort of starting point, and Snowflake for sure has built pretty significant experience working with large enterprises and working alongside of Microsoft to get other partners. In your experience, what are customers really looking for out of the two joint companies when they engage with Snowflake and Microsoft, so that one plus one is, you know, much bigger than two. Maybe Colleen, you could start. >> Yeah, I definitely think that what our customers are looking for is both trust and seamlessness. They just want the technology to work. The beauty of Snowflake is our ease of use. So many customers have questions about their business, more so now in this pandemic world than ever before. So the seamlessness, the ease of use, the frictionless, all of these things really matter to our joint customers, and seeing our teams come together, too, in the field, to show here's how Snowflake and Azure are better together, in your local area, and having examples of customers where we've had win-wins, which I'd say Casey, we're getting more and more of those every day, frankly, so it's pretty exciting times. And having our sales teams work as a partnership, even though we compete, we know where we play well together, and I see us doing that over and over again, more and more, around the world, too, which is really important as Snowflake pushes forward, beyond the North America geographies into stronger and stronger in the global regions, where frankly, Microsoft's had a long, storied history at. That's very exciting, especially in Europe and Asia. >> Casey, anything you'd add to that? >> Yeah. Colleen, it's well said. I think ultimately, what customers are looking for is that when our two companies come together, we bring new innovation, new ideas, new ways to solve old problems. And so I think what I love about this partnership is ultimately when we come together, whether it's engineering teams coming together to build new product, whether it's our sales and marketing teams out in front of the customers, across that spectrum, I think customers are looking for us to help bring new ideas. And I love the fact that we've engineered this partnership to do just that. And ultimately we're focused on how do we come together and build something new and different. And I think we can solve some of the most challenging problems with the power of the data and the innovation that we're bringing to the table. >> I mean, you know, Casey, I mean, everybody's really quite in awe and amazed at Microsoft's transformation, and really openness and willingness to really, change and lean into some of the big waves. I wonder if you could talk about your multi-platform strategy and what problems that you're solving in conjunction with Snowflake. >> Yeah, let me start by saying, you know, I think as much as we appreciate that feedback on the progress that we've been striving for, I mean, we're still learning every day, looking for new opportunities to learn from customers, from partners, and so a lot of what you see on the outside is the result of a really focused culture, really focusing on what's important to our customers, focusing on how do we build diversity and inclusion to everything we do, whether that's within Microsoft, with our partners, our customers, and ultimately, how do we show up as one Microsoft, I call one Microsoft kind of the partner's gift. It's ultimately how do our companies show up together? So I think if you look multi-platform, we have the same concept, right? We have the Microsoft cloud that we're offering out in the marketplace. The Microsoft cloud consists of what we're serving up as far as the platform, consists of what we're serving up for data and AI, modern workplace and business applications. And so this multi-cloud strategy for us is really focused on how do we bring innovation across each of the solution areas that matter most to customers. And so I see really the power of the Snowflake partnership playing in there. >> Awesome. Colleen, are there any examples you can share where, maybe this partnership has unlocked the customer opportunity or unique value? >> Yeah, I can't speak about the customer-specific, but what I can do and say is, Casey and I play very corporate roles in terms of we're thinking about the long-term partnership, we're driving the strategy. But hey, look, we'll get called in, we're working a deal right now, it's almost close of the quarter for us, we're literally working on an opportunity right now, how can we win together, how can we be competitive, the customers, the CIO has asked us to come together, to work on that solution. Very large, well-known brand. And we're able to get up to the very senior levels of our companies very quickly to make decisions on what do we need to do to be better and stronger together. And that's really what a partnership is about, you can do the long-term plans and the strategics and you can have great products, but when your executives can pick up the phone and call each other to work on a particular deal, for a particular customer's need, I think that's where the power of the partnership really comes together, and that's where we're at. And that's been a growth opportunity for us this year, is, wasn't necessarily where we were at, and I really have to thank Casey for that. He's done a ton, getting us the right glue between our executives, making sure the relationships are there, and making sure the trust is there, so when our customers need us to come together, that dialogue and that shared diction of putting customers first is there between both companies. So thank you, Casey. >> Oh, thanks, Colleen, the feeling's mutual. >> Well, I think this is key because as I said up front, we've gone from sort of very product-focused to platform-focused. And now we're tapping the power of the ecosystem. That's not always easy to get all the parts moving together, but we live in this API economy. You could say "Hey, I'm a company, everything's going to be homogeneous. Everything is going to be my stack." And maybe that's one way to solve the problem, but really that's not how customers want to solve the problem. Casey, I'll give you the last word. >> Yeah, let me just end by saying, you know, first off the cultures between our two companies couldn't be more well aligned. So I think ultimately when you ask yourself the question, "What do we do to best show up in front of our customers?" It is, focus on their business outcomes, focus on the things that matter most to them. And this partnership will show up well. And I think ultimately our greatest opportunity is to tap into that need, to that interest. And I couldn't be happier about the partnership and the fact that we are so well aligned. So thank you for that. >> Well guys, thanks very much for coming on theCUBE and unpacking some of the really critical aspects of the ecosystem. It was really a pleasure having you. >> Thank you so much for having us. >> Okay, and thank you for watching. Keep it right there. We've got more great content coming your way at the Data Cloud Summit.

>>from around the globe. It's the Cube with digital coverage of Dell Technologies. World digital experience brought to you by Dell Technologies. Hey, Welcome back, everybody. Jeffrey here with the Cube. Welcome back to our ongoing coverage of Dell Technology. World 2020. The digital experience, Uh, not in person like nothing this year, 2020. But the digital experience allows to do a lot of things that you couldn't do in person. And we're excited to have our next guest. He is Deepak Prasad, the director of product management for Dell Technologies. Cloud deep. Uh, great to see you. >>Hello, Jeff. Nice to meet you as well. >>You too. So let's let's back up, like, 10,000 square feet, cause you know, Cloud came in with a big giant rage. I guess it's been a while now with AWS and Public Cloud. And people are putting their depth tests on there. And, you know, we've seen this explosion of public cloud, and then we have hybrid cloud and multi cloud. And then, you know, basically people figured out that not everything can go to a public cloud. A lot of stuff. Shouldn't some stuffs gonna stay in data centers? for all different reasons, >>but >>basically it's horses for courses. So we're a little ways into this. How are you guys, Adele, really thinking about Cloud and helping your customers think about what cloud is beyond, you know, kind of the hype. >>Well, that's a great question, Jeff. At Dell, we think of Cloud really as an operating model and as an operating experience rather than a destination. So it's interesting that you bring up Public Cloud and Private Cloud, but we take a step back and think of what does that experience really represent? So if you think off, uh, you know what defines that cloud operating model? It's, ah, democratization of technology. Access off resource is through a p. I s through self service portals ability to pay as you go in a very simplified commerce experience and the agility of cloud. You know, the promise off instant availability of infinite scalability. Now, if if you look at you know the landscape around this until now, that has only been delivered in a consistent way by public cloud vendors, which leads people to believe that really cloud is the destination, not an operating model. But we think that we are capable of bringing those experiences those tenets off the cloud operating model to the on premises experience and really taking location out of the conversation. So this really allows our customers to focus mawr on their workloads than visions. They want to drive, and then they can fit there, uh, requirements their application requirements to the location where those resource is our regardless of having toe worry about it. This is public or private. They will get the same operating experience. They will get the same scalability, the same simplified commerce, the same access Thio resource is >>right. Well, let's talk about some of some of those things because, as you said, there's a lot of behaviors that are involved in cloud and cloud operating. You know, one of the behaviors that I think gave the public cloud an early leg up was just simply provisioning, right? Simply, if somebody needs some capacity, they need some horsepower to get interesting. It would be tested in the early days. No, they didn't have to provision. They didn't have to put in an order with I t and wait for so long to get a box assigned to them or purchased or whatever, right? They just swipe the credit card and went, How have you kind of help People have that kind of ease of use ease of, uh, he's of spin up piece of creation on what the right verb is because I think that's a really core piece of what enabled early cloud adoption. >>No, absolutely, you're spot on. And that was a big part of it that if somebody needed resource is instead of waiting for weeks and months, they could go on and and sign up for those resource and get almost instantaneous access. And we believe that what we're doing in this area is really transforming the business. Today. We can deliver resource is to customers in their data center in 14 days and really are aggressively looking to cut that down further. So what this really means is not just shipping Resource is in 14 days, but actually delivering a cloud experience in the customer's data center or of cola location, whatever, you know, location of their choice in 14 days and making that available to the customers, not just through the traditional procurement process. But we're actually very proud to announce the cloud Council, the Dell Technologies Cloud Council, through which customers can, in a self service way, order those ordered those resource is and have it show up and be operational in their environment in 14 days. So we're really bringing that speed of cloud to the on premise experience, >>right? So how how does it actually work? Do you pre? Do you pre ship some amount of capacity beyond what you believe is currently needed just to kind of forward que you will, if you will capacity. How does it work from from both the implementation strategy in terms of the actual compute and storage capacity, as well as on kind of the purchasing peace? Because those air to kind of very >>different work flows? No, that's a That's a great question. So for us, our strength are really in supply chain management that allows us to build capabilities across the world in areas from where we can ship the customers almost on the on demand basis. So as soon as we get in order that the customer needs a probably probably cloud deployment in a certain location, were able to mobilize those resource is from those locations and have it instance she hated in customers environ. So it's really built a strength off over the years off optimizing supply chain, if you will, and just bring taking that to the next level off. >>Okay, so we don't, >>uh environment we said. Yeah, >>no problem. I was gonna say the another great characteristics of cloud right is is spinning up, which we hear about all the time versus spinning down and write. The easiest example is always use. If you're running, you know, some promotion. If your pizza hut you're running a promotion for the Super Bowl, obviously, right? Your demand for that thing is gonna be huge. You want to spin up to be able to take advantage of all the people cash in their coupon, and then when the Super Bowls over, >>you >>want to spend those resource is down because you're not going to necessarily need that capacity. How do you guys accomplish that type of flexibility in your solution? >>So in our subscription model, we have different ways to address customer environment. So we allow customers to start very small and then and then grow the subscription as the requirements growth and the key thing of our subscription, which is really unique, is the ability to quote Terminate. So, for example, if if a customer started off on the three year subscription with the, uh resource is for, say, 100 virtual machines and somewhere along the way they needed to add resource is for 50 more virtual machines, so they will pay for the 150 virtual machines. But that extra 50 virtual machines does not create an orphan or a child subscription. At the end of three years, everything terminates together, so it really gives them flexibility with, you know, ability to start small and not have to worry about vendor lock in. And now we started off with sort of a reserved instance type off subscription model. But we're definitely bringing usage based models as well, which allows more, even more flexibility with respect to speeding up and speeding down. Right. >>And then what are some of the real specific reasons that people go for this type of solution versus a public cloud where some of the rial inherent advantages of doing this within my own infrastructure, my own data center, my own, you know, kind of virtual four walls, if you will. >>Yeah, you know, we strongly believe that the decision should really be guided by workload requirements. There's certain workloads that work really well in on premises environment. For example, you could take virtual desktop environments V. D. I. That works really well from a performance standpoint in In on premise, environment versus a public cloud environment. Similarly, there are other workloads were not public cloud deniers that that are best suited for public cloud. But it's really it should be something that's that comes from understanding your application. Understanding the leighton see requirements, understanding the data requirements for those applications. You know, what are your egress? Uh, issues. Or, you know, uh, the profile off the workload that you're trying to implement That should really be the driving force in where the workload this place >>and then, uh, tell us a little bit about the partnership with VM Ware because that's a huge asset that you have, you know, now you know, basically side by side and you can leverage the technology as well as a lot of the assets that are envy. And where how does that change? The way you guys have taken the Dell Cloud platform to market >>it really is a a differentiating factor for us. From a technology standpoint, it allows us to bring the best of both worlds best off off the hardware infrastructure as well as the best off the cloud. Stack the cloud software infrastructure together in one cohesive and and well developed package. So, uh, the Dell Technologies Cloud Platform from a technology standpoint is implemented with our VX rail appliances, which is a hyper converge infrastructure as well as VM ware clad foundation from a software standpoint. Now the code developed and jointly engineered capabilities allow for unique, unique feature off. Remember Cloud Foundation, where it can do lifecycle management off the entire stack, both the hardware and the software from a single interface. So it understands Vieques rails and understands the different form where levels and the X, where manager software versions etcetera. And then it would automatically select what is the best and well tested and supported software bundle that could be deployed without causing, you know, typical issues with version mismatches and trying to chase down different hardware compatibility, matrices, etcetera. All of those are eliminated, so it's a integrated lifecycle management experience. That's great. E. I'm sorry I have >>a little bit, a little bit of a lot of here, so I I apologize. >>I >>was just gonna say you've been at this for a while. Your product, you know, product management. So you're really thinking about speeds and feeds and you're thinking about roadmap and futures? I wonder if you can share your perspective on this evolution from kind of this race of to pure public cloud to this. This big discussion I think we had packed Elson. You're talking about a hybrid cloud back at being where 2013. So then, you know kind of this hybrid cloud and multi cloud and really kind of this maturation of this space as we as we've progressed for Ah, while now probably 10 years. >>Yeah. Yeah. And, uh, majority of our customers live in a multi cloud world. They have resource is that they consumed from one or more multi hyper sorry, uh, public cloud vendors and they have one or more on premise vendors as well, For their resource is and managing that complex environment across multiple providers with different skill set different tools, different sls. While it sounds really interesting to, you know, have workload drive your your deployment and place the workloads where they're best suited. It does prevent. It does present a challenge off managing a complex and and getting even more complex by the day, multi cloud environment. And that's where we think we have an advantage. Uh, based on some of the work that we're doing with the Dell Technologies Cloud console to bring a true multi cloud experience to our customers. Not one of the benefits of not being a, you know, a public cloud provider is that we are agnostic toe. All public cloud providers were fully accepting that certain workloads need to live in those environments. And through our cloud council, we will make it easy for customers to manage not only their on premises, assets and on premises. Cloud resource is, but also cloud resource is that reside in multiple public cloud vendors? >>That's good. Yeah, because it helps, right, because they've got stuff everywhere. It's like that, you know, there is no del technology, right? There's a lot of there's a lot of people that work there. There's a lot of project. There's a lot of, you know, kind of pieces to that puzzle. I wonder too. If you could share your perspective on kind of application modernization, right, That's always another big, you know, kind of topic. You should You should you take those old legacy APS. And could you should you try to rebuild them in, um, or cloud native way using containers and and all this flexibility and deploy them or, you know, which one. Should you just leave alone right there, running fine. They've been running fine for a while. They've got some basic core functionality that may be do or don't need toe to kind of modernize if you will. And maybe those resources should be spent on building in a new applications and new kind of areas of competitive differentiation. When you're working with their clients, how do you tell them to think about at modernization? >>Yeah, we looked at it from a business requirement standpoint. Off how what end goals. A customer trying to achieve through that application. And in some cases, you know, on you cover the spectrum, right there. Some cases modernization just means swapping out the hardware and putting it, putting that application on a more modern, more powerful hardware. At the other end, it z you know, going toe assassin model off, you know, everything available through through a cloud application. And in between those two extremities, there's, you know, virtualization that is re factoring this continual ization and micro services based implementation. But it comes down to understanding why that application is meant to deliver for who and what business requirements and business objectives that fulfills. That's how we use as a guiding principle on how to position application modernization to customers. >>All right, that's super helpful, because I'm sure that's a big topic. And, you know, there's probably certain APS that you just should not. You just shouldn't touch. You should probably just even Malone. They're running just fine. Let them do their thing. All >>right, fine. I'm sorry. No. Is this interesting? I was a conversation with the customer just earlier today where they have a portion off their infrastructure of some applications that they absolutely wanted to leave alone and and just change out the underlying hardware. But there are other applications where they really want to adopt, continue ization and re factor those out, rewrite those applications so that they can have more scalability and more flexibility around that. So it really is is determined by the needs. Yeah. >>Um so last question, del Tech world this year was a digital experience, like all the other shows that we've seen here in 2020 just But it's a huge event, right? A big, big show, and we're excited to be back to cover it again. But I'm curious if there's some special announcements within such a big show. Sometimes things get lost a little bit here in there, but any special announcements You want to make sure that get highlighted that people may have missed within this kind of see if content over the last several days >>22 major things that that I'm very excited to share with you One is Dell Technologies Cloud platform. We actually discussing and talking about Dell Technologies cloud platform in the concept off instant capacity blocks. So in the past, we talked about it with respect to notes. Uh, you know, adult technology cloud platform. You can have, you know, so many notes in it to power your your on premises. Cloud resource is but really have changed the conversation and look into how cloud customers air consuming those resource is and we really want to drive focus to that and introduced the concept of instance Capacity blocks instances are think of it as a workload profile, you know, CPU and memory put together and then, uh, in different combinations in a pre defined way to address different workload needs. So this really changes the conversation for our customers that they don't have to worry about designing or or speaking out the hardware platforms, but really understand how many resource is they need, how many, how much you know, processing power, how much memory, how much stories they need and they define their requirements was in those terms, and we will deliver those instance capacity blocks to them in their data centers. So behind the scenes is built by best in class. Uh, you know, hardware from Vieques rails and best in class software from being where, but it's really delivered in terms off instant capacity blocks. The second interesting thing that I wanna share with you and I profession a few times is Dell Technologies Cloud console. We're building this single pane of glass to manage our customers entire journey from on premises to multi cloud hybrid cloud with consistency off. How you can discover services how you can order services and how you can grow your the manager footprint. So those are a couple things from adult technology standpoint that we're really excited to share with people. >>Well, congratulations. I know you've been busting your tail for for quite a while on these types of projects, and it's nice to be able to finally release him out to the world. >>Well, it's just my pleasure. Alright. Thank you very much. >>Well, thank you for stopping by again. Congratulations. And will continue the ongoing coverage of Dell Technology World 2020. The digital experience. I'm Jeff Frick. He's to Park Prasad. You're watching the Cube. See you next time. Thanks for watching.

>> Announcer: From around the globe, it's theCUBE! With digital coverage of AnsibleFest 2020. Brought to you by Red Hat. >> Hello, everyone. Welcome back to theCUBE's coverage of AnsibleFest 2020. I'm your host with theCUBE John Furrier. And we've got two great guests. A CUBE alumni, Robyn Bergeron, senior manager, Ansible community team. Welcome back, she's with Ansible and Red Hat. Good to see you. And Matt Jones, chief architect for the Ansible Automation Platform. Again, both with Red Hat, Ansible was acquired by Red Hat. Robyn used to work for Red Hat, then went to Ansible. Ansible got bought by Red Hat. Robyn, great to see you, Matt, great to see you. >> Yep, thanks for having me back again. It's good to see you. >> We're not in person. It's the virtual event. Thanks for coming on remotely to our CUBE virtual, really appreciate it. I want to talk about the, and I brought that Red Hat kind of journey Robyn. We talked about it last year, but it really is an important point. The roots of Ansible and kind of where it's come from and what it's turned into and where it is today, is an interesting journey because the mission is still the same. I would like to get your perspectives because you know, Red Hat was acquired by IBM, Ansible's under Red Hat, all part of one big happy family. A lot's going on around the platform, Matt, you're the chief architect, Robyn you're on the community team. Collections, collections, collections, is the message, content, content, content, community, a lot going on. So take a minute, both of you explain the Ansible roots, where it is today, and the mission. >> Right, so beginning of Ansible was really, there was a small team of folks and they'd actually been through an iteration before that didn't use SSH called Funk, but you know, it was, let's make a piece of software that is open source that allows people to automate other things. And we knew at the time that, you know, based on a piece of research that we had seen out of Harvard that having a piece of software be architected in a modular fashion wasn't just great for the software, but it was also great for developing pathways and connections for the community to actually contribute stuff. If you have a car, this is always my analogy. If you have a car, you don't have to know how the engine works in order to swap out the windshield wipers or embed new windshield wipers, things like that. The nice thing about modular architectures is that it doesn't just mean that things can plug in. It means you can actually separate them into different spots to enable them to be plugged in. And that's sort of where we are today with collections, right? We've always had this sense of modules, but everything except for a couple of points in time, all of the modules, the ways that you connect Ansible to the vast array of technologies that you can use it with. All of those have always been in the full Ansible repository. Now we've separated out most of, you know, nearly everything that is not absolutely essential to having in a, you know, a very minimal Ansible installation, broken them out into separate repositories, that are usually grouped by function, right? So there's probably like a VMware something and a cloud something, and a IBM, z/OS something, things like that, right? Each in their own individual groups. So now, not only can contributors find what they want to contribute to in much smaller spots that are not a sea of 5,000 plus folks doing work. But now you can also choose to use your Ansible collections, update them, run them independently of just the singular release of Ansible, where you got everything, all the batteries included in one spot. >> Matt, this brings up the point about she's bringing in more advanced functionality, she's talking about collections. This has been kind of the Ansible formula from the beginning in its startup days, ease of use, easy, fast automation. Talk about the, you know, back in 2013 it was a startup. Now it's part of Red Hat. The game is still the same. Can you just share kind of what's the current guiding principles around Ansible this year? Because lots going on, like I said, faster, bigger, a lot going on, share your perspective. You've been there. >> Yeah, you know, what we're working on now is we're taking this great tool that has changed the way that automation works for a lot of people and we want to make it faster and bigger and better. We want it to scale better. We want it to automate more and be easier to automate, automate all the things that people want to do. And so we're really focusing on that scalability and flexibility. Robyn talked about content and collections, right? And what we want to enable is people to bring the content collections, the collections, the roles, the models, and use them in the way that they feel works best for them, leaving aside some of the things that they maybe aren't quite as interested in and put it together in a way that scales for them and scales for a global automation, automation everywhere. >> Yeah, I want to dig into the collections later, Robyn, for sure. And Matt, so let's, we'll put that on pause for a minute. I want to get into the event, the virtual event. Obviously we're not face to face, this year's virtual. You guys are both keynoting. Matt, we'll start with you. If you can each give 60 seconds, kind of a rundown of your keynote talk, give us the quick summary this year on the keynotes, Matt, we'll start with you. >> Yeah. That's, 60 seconds is- >> If you need a minute and a half, we'll give you 90 seconds, Robyn, that's going to be tough. Matt, we'll start with you. >> I'll try. So this year, and I mentioned the focus on scalability and flexibility, we on the product and on the platform, on the Ansible Automation Platform, the goal here is to bring content and flexibility of that content into the platform for you. We focused a lot on how you execute, how you run automation, how you manage your automation, and so bringing that content management automation into the system for you. It's really important to us. But what we're also noticing is that we, people are managing automation at a much larger scale. So we are updating the Ansible Tower, Ansible AWX, the automation platform, we're updating it to be more flexible in how it runs content, and where it can run content. We're making it so that execution of automation doesn't just have to happen in your data center, in one data center, we recognize that automation occurs globally, and we want to expand that automation execution capability to be able to run globally and all report back into your central business. We're also expanding over the next six months, a year, how well Ansible integrates with OpenShift and Kubernetes. This is a huge focus for us. We want that experience for automation to feel the same, whether you're automating at the edge, in devices and virtual machines and data centers, as well as clusters and Kubernetes clusters anywhere in the world. >> That's awesome. That's why I brought that up earlier. I wanted to get that out there because it's worth calling out that the Ansible mission from the beginning was similar scope, easy to do and simplify, but now it's larger scale. Again, it's everywhere, harder to do, hence complexity being extracted away. So thank you for sharing. We'll dig into that in a second. Okay, Robyn, 60 seconds or more, if you need it, your keynote this year at AnsibleFest, give us the quick rundown. >> All right. Well, I think we probably know at this point, one of the main themes this year is called automate to connect and, you know, the purpose of the community keynote is really to highlight the achievements of the community. So, you know, we are talking about, well, we are talking about collections, you know, going through some of the very broad highlights of that, and also how that has contributed, or, not contributed, how that is included as part of the recent release of Ansible 2.10, which was really the first release where we've got it very easy for people to actually start using collections and getting familiar with what that brings to them. A good portion of the keynote is also just about innovation, right? Like how we do things in open source and why we do things in certain ways in open source to accelerate us. And how that compares with the Red Hat, traditional product model, which is, we kind of, we do a lot of innovation upstream. We move quickly so that if something is maybe not the right idea, we can move on. And then in our products, that's sort of the thing that we give to our customers that is tried, tested and true. All of that kind of jazz. We also talk about, or I guess I also talk about the, all of our initiatives that we're doing around diversity and inclusiveness, including some of the code changes that we've made for better, more inclusive language in our projects and our downstream products, our diversity and inclusion working group that we have in the community land, which is, you know, just looking to embrace more and more people. It's a lot about connectivity, right? To one of Matt's points about all the things that we're trying to achieve and how it's similar to the original principles, the third one was, it's always, we need to have it to be easy to contribute to. It doesn't necessarily just mean in our community, right? Like we see in all of these workplaces, which is one of the reasons why we brought in Automation Hub, that folks inside large organizations, companies, government, whatever it is, are using Ansible and there's more and more, and, you know, there's one person, they tell their friend, they tell another friend, and next thing you know, it's the whole department. And then you find people in other departments and then you've got a ton of people doing stuff. And we all know that you can do a bunch of stuff by yourself, but you can accomplish a lot more together. And so, making it easy to contribute inside your organization is not much different than being able to contribute inside the community. So this is just a further recognition, I think, of what we see as just a natural extension of open source. >> I think the community angle is super important 'cause you have the community in terms of people contributing, but you also have multiple vendors now, multiple clouds, multiple integrations, the stakeholders of collaboration have increased. It was just like, "Oh, here's the upstream and et cetera, we're done, and have meetings, do all that stuff." And Matt, that brings me to my next question. Can you talk about some of the recent releases that have changed the content experience for the Ansible users in the upstream and within the automation platform? >> Well, so last year we released collections, and we've really been moving towards that over the 2.9, 2.10 timeframe. And now I think you're starting to see sort of the realization of that, right? This year we've released Automation Hub on cloud.redhat.com so that we can concentrate that vendor and partner content that Red Hat supports and certifies. In AnsibleFest you'll hear us talk about Private Automation Hub. This is bringing that content experience to the customer, to the user of this content, sort of helping you curate and manage that content yourself, like Robyn said, like we want to build communities around the content that you've developed. That's the whole reason that we've done this with collections is we don't want to bind it to Ansible core releases. We don't want to block content releases, all of this great functionality that the community is building. This is what collections mean. You should be free to use the collections that you want when you want it, regardless of when Ansible core itself has released. >> Can you just take a minute real quick and just explain what is collections, for folks out there who are rich? 'Cause that's the big theme here, collections, collections, collections. That's what I'm hearing resonate throughout the virtual hallways, if you will. Twitter and beyond. >> That's a good question. Like what is a collection itself? So we've talked a lot in the past about reusable content for Ansible. We talk a lot about roles and modules and we sort of put those off to the side a little bit and say, "These are your reusable components." You can put 'em anywhere you want. You can put 'em in source control, distribute them through email, it doesn't matter. And then your playbooks, that's what you write. And that's your sort of blessed content. Collections are really about taking the modules and roles and plugins, the things that make automation possible, and bundling those up together in groups of content, groups of modules and roles, or standing by themselves so that you can decide how that's distributed and how you consume that, right? Like you might have the Azure, VMware or Red Hat satellite collection that you're using. And you're happy with that. But you want a new version of Ansible. You're not bound to using one and the same. You can stick with the content that matters to you, the roles, the modules, the plugins that work for you. And you decide when to update those and you know, what the actual modules and plugins you're using are. >> So I got to ask the content question, you know, I'm a content producer. We do videos as content, blog posts content. When you talk about content, it's code, clarify that role for us because you got, you're enabling developers with content and helping them find experts. This is a concept. Robyn, talk about this. And Matt, you can weigh in, too, define what does content mean? It means different things. (indistinct) again, content could be. >> It is one of those words, it's right up there with developers, you know, so many different things that that can mean, especially- >> Explain content and the importance of the semantics of that. Explain it, it's important that people understand the semantics of the word "content" with respect to what's going on with Ansible. >> Yeah, and Matt and I actually had a conversation about the murkiness of this word, I believe that was yesterday. So what I think about our content, you know, and I try to put myself in the mind, my first job was a CIS admin. So I try to put myself in the mind of someone who might be using this content that I'm about to attempt to explain. Like Matt just explained, we've always had these modules, which were included in Ansible. People have pieces of code that show very basic things, right? If I get one of the AWS modules, it would, I am able to do things like "I would like to create a new user." So you might make a role that actually describes the steps in Ansible, that you would have to create a new user that is able to access AWS services at your company. There may be a number of administrators who want to use that piece of stuff, that piece of code over and over and over again, because hopefully most companies are getting bigger and not smaller, right? They want to have more people accessing all sorts of pieces of technology. So making some of these chunks accessible to lots of folks is really important, right? Because what good is automation, if, sure we've taken care of half of it, but if you still have to come up with your own bits of code from scratch every time you want to invoke it, you're still not really leveraging the full power of collaboration. So when we talk about content, to me, it really is things that are constantly reusable, that are accessible, that you tie together with modules that you're getting from collections. And I think it's that bundle, you can keep those pits of reusable content in the collections or keep them separate. But, you know, it's stuff that is baked for you, or that maybe somebody inside your organization bakes, but they only have to bake it once. They don't have to bake it in 25 silos over and over and over again. >> Matt, the reason why we're talking about this is interesting, 'cause you know what this points out, in my opinion, it's my opinion. This points out that we're talking about content as a word means that you guys were on the cutting edge of new paradigms, which is content, it's essentially code, but it's addressable, community it's being shared. Someone wrote the code and it's a whole 'nother level of thinking. This is kind of a platform automation. I get it. So give us your thoughts because this is a critical component because the origination of the content, the code, I mean, I love it. Content is, I've always said content, our content should be code. It's all data, but this is interesting. This is the cutting edge concept. Could you explain what it means from your perspective? >> This is about building communities around that content, right? Like it's that sharing that didn't exist before, like Robyn mentioned, like, you know, you shouldn't have to build the same thing a dozen times or 100 times, you should be able to leverage the capabilities of experts and people who understand that section of automation the best, like I might be an expert in one field or Robyn's an expert in another field, we're automating in the same space. We should be able to bring our own expertise and resources together. And so this is what that content is. Like, I'm an expert in one, you're an expert in another, let's bring them together as part of our automation community and share them so that we can use them iterate on them and build on them and just constantly make them better. >> And the concepts are consumption, there's consumption of the content. There's the collaboration of the content. There's the sharing, all this, and there's reputation, there's expertise. I mean, it's a multi sided marketplace here, isn't it? >> Yeah. I read a article, I don't know, a year or two ago that said, we've always evolved in the technology industry around, if you have access to this, first it was the mainframes. Then it was, whatever, personal computers, the cloud, now it's containers, all of this, but, once everybody buys that mainframe or once everybody levels up their skills to whatever the next thing is that you can just buy, there's not much left that actually can help you to differentiate from your competitors, other than your ability to actually leverage all of those tools. And if you can actually have better collaboration, I think than other folks, then that is one of those points that actually will get you ahead in your digital transformation curve. >> I've been harping on this for a while. I think that cloud native finally has gone, when I say "mainstream" I mean like on everyone's mind, you look at the container uptake, you're looking at containers. We had IDC on, five to 10% of the enterprises are containerizing. That's huge growth opportunity. The IPO of, say, Snowflake's on Amazon. I mean, how does this happen? That's a company that's went public, It's the most valuable IPO in the history of IPOs on Wall Street. And it's built on Amazon, it has its own cloud. So it's like, I mean, this points to the new value that's being created on top of these new cloud native architectures. So I really think you guys are onto something big here. And I think you're starting to see this, new notions of how things are being rethought and reimagined. So let's keep it, while I've got you guys here real quick, Ansible 2.1 community release. Tell us more about the updates there. >> Oh, 2.10, because, yeah. Oh, that's fine. I know I too have had, I'm like, "Why do we do that?" But it's semantic versioning. So I am more accustomed to this now, it's a slightly different world from when I worked on Fedora. You know, I think the big highlight there is really collections. I mean, it's collections, collections, collections. That is all the work that we did, it's under the hood, over the hood, and really, how we went from being all in one repo to breaking things out. It's a big line for, we're advancing both the tool and also advancing the community's ability to actually collaborate together. And, you know, as folks start to actually use it, it's a big change for them potentially in how they can actually work together in their organizations using Ansible. One of the big things we did focus on was ensuring that their ease of use, that their experience did not change. So if they have existing Ansible stuff that they're running, playbooks, mod roles, et cetera, they should be able to use 2.10 and not see any discernible change. That's all the under the hood. That was a lot of surgery, wasn't it, Matt? Serious amounts of work. >> So Matt, 2.10, does that impact the release piece of it for the developers and the customers out there? What does it change? >> It's a good point. Like at least for the longer term, this means that we can focus on the Ansible core experience. And this is the part that we didn't touch on much before now with the collections pieces that now when we're fixing bugs, when we're iterating and making Ansible as an engine of automation better, we can do that without negatively impacting the automation that people actually use. We could focus on the core experience of actually automating itself. >> Execution environments, let's talk about that. What are they, are they being used in the community today? What do you guys react to that? >> We're actually, we're sort of in the middle of building this right now. Like one of the things that we've struggled with is when you, you need to automate, you need this content that we've talked about before. But beyond that, you have the system that sits underneath the version of Linux, the kernel that you're using, going even further, you need Python dependencies, you need library dependencies. These are hard and complicated things, like in the Ansible Tower space, we have virtual environments, which lets you install those things right alongside the Ansible Tower control plane. This can cause a lot of problems. So execution environments, they take those dependencies, the unit that is the environment that you need to run your automation in, and we're going to containerize it. You were just talking about this from the containerization perspective, right? We're going to build more easily isolated, easy to use distinct units of environments that will let you run your automation. This is great. This lets you, the person who's building the content for your organization, he can develop it and test it and send it through the CI process all the way up through production, it's the exact same environment. You could feel confident that the automation that you're running against the libraries and the models, the version of Ansible that you're using, is the same when you're developing the content as when you're running it in production for your business, for your users, for your customers. >> And that's the Nirvana. This is really where you talk about pushing it to new limits. Real quick, just to kind of end it out here for Ansible 2020, AnsibleFest 2020. Obviously we're now virtual, people aren't there in person, which is really an intimate event. Last year was awesome. Had theCUBE set right there, great event, people were intimate. What's going on for what you guys have for people that obviously we got the videos and got the media content. What's the main theme, Robyn and Matt, and what's going on for resources that might be available for folks who want to learn more, what's going on in the community, can you just take a minute each to talk about some of the exciting things that are going on at the event that they should pay attention to, and obviously, it's asynchronous so they can go anywhere anytime they want, it's the internet. Where can they go to hang out? Is there a hang space? Just give the quick two second commercial, Robyn, we'll start with you. >> All right. Well of course you can catch the keynotes early in the morning. I look forward to everybody's super exciting, highly polite comments. 'Cause I hear there's a couple people coming to this event, at least a few. I know within the event platform itself, there are chat rooms for each track. I myself will be probably hanging out in some of the diversity and inclusion spaces, honestly, and I, this is part of my keynote. You know, one of the great things about AnsibleFest is for me, and I was at the original AnsibleFest that had like 20 people in Boston in 2013. And it happened directly across the street from Red Hat Summit, which is why I was able to just ditch my job and go across the street to my future job, so to speak. We were... Well, I just lost my whole train of thought and ruined everything. Jeez. >> We got that you're going to be in the chat rooms for the diversity and community piece, off platform, is there a Slack? Is there like a site? Anything else? 'Cause you know, when the event's over, they're going to come back and consume on demand, but also the community, is there a Discord? I mean, all kinds of stuff's going on, popping up with these virtual spaces. >> One thing I should highlight is we do have the Ansible Contributor Summit that goes on the day before AnsibleFest and the day after AnsibleFest. Now, normally this is a pretty intimate event with the large outreach that we've gotten with this Fest, which is much bigger than the original one, much, much, much bigger, we've, and signing up for the contributor summit is part of the registration process for AnsibleFest. So we've actually geared our first day of that event to be towards new or aspiring contributors rather than the traditional format that we've had, which is where we have a lot of engineers, and can you remember sit down physically or in a virtual room and really talk about all of the things going on under the hood, which is, you know, can be intimidating for new people. Like "I just wanted to learn about how to contribute, not how to do surgery." So the first day is really geared towards making everything accessible to new people because turns out there's a lot of new people who are very excited about Ansible and we want to make sure that we're giving them the content that they need. >> Think about architects. I mean, SREs are jumping in, Matt, you talked about large scale. You're the chief architect, new blood's coming in. But give us an update on your perspective, what people should pay attention to at the event, after the event, communities they could be involved in, certainly people want to tap into you are an expert and find out what's going on. What's your comment? >> Yeah, you know, we have a whole new session track this year on architects, specifically for SREs and automation architects. We really want to highlight that. We want to give that sort of empowerment to the personas of people who, you know, maybe you're not a developer, maybe you're not, operations or a VP of your company. You're looking at the architecture of automation, how you can make our automation better for you and your organization. Everybody's suffered a lot and struggled with the COVID-19. We're no different, right? We want to show how automation can empower you, empower your organization and your company, just like we've struggled also. And we're excited about the things that we want to deliver in the next six months to a year. We want you to hear about those. We want you to hear about content and collections. We want you to hear about scalability, execution environments, we're really excited about what we're doing. You know, use the tools that we've provided in the AnsibleFest event experience to communicate with us, to talk to us. You can always find us on IRC via email, GitHub. We want people to continue to engage with us, our community, our open source community, to engage with us in the same ways that they have. And now we just want to share the things that we're working on, so that we can all collaborate on it and automate better. >> I'm really glad you said that. I mean, again, people are impacted by COVID-19. I got, it sounds like all channels are open. I got to say of all the communities that are having to work from home and are impacted by digital, developers probably are less impacted. They got more time to gain, they don't have to travel, they could hang out, they're used to some of these tools. So I think I guess the strategy is turn on all the channels and engage in new ways. And that seems to be the message, right? >> Yeah, exactly. >> Alright, Robyn Bergeron, great to see you again, Matt Jones, great to chat with you, chief architect for Ansible Automation Platform and of course, Robyn senior manager for the community team. Thanks so much for joining me today. I appreciate it. >> Thank you so much. >> Okay. It's theCUBE's coverage. I'm John Furrier, your host. We're here in the studio in Palo Alto. We're virtual. This is theCUBE virtual with AnsibleFest virtual. We're not face to face. Thank you for watching. (calm music)

>> Announcer: From around the globe, it's theCUBE. Covering Google Cloud Next on Air '20. >> Hi, I'm Stu Miniman. And this is theCUBE's coverage of Google Cloud Next On Air. One of the weeks that they had for the show is to dig deep into infrastructure, of course, one of the foundational pieces when we talk about cloud, so happy to welcome to the program, I've got two of the general managers for both compute and networking. First of all, welcome back one of our cube alumni, June Yang, who's the vice president of compute and also welcoming Shailesh Shukla who's the vice president and general manager of networking both with Google Cloud. Thank you both so much for joining us. >> Great to be here. >> Great to be here, thanks for inviting us Stu. >> So June, if I can start with, you know, one of the themes I heard in the keynote that you gave during the infrastructure week was talking about, we talked about meeting customers where they are, how do I get, you know, all of my applications that I have, obviously some of them are building new applications. Some of them I'm doing SaaS, but many of them, I have to say, how do I get it from where I am to where I want to be and then start taking advantage of cloud and modernization and new capabilities. So if you could, you know, what's new when it comes to migration from a Google Cloud standpoint and, you know, give us a little bit insight as to what you're hearing from your customers. >> Yeah, definitely happy to do so. I think for many of our customers, migration is really the first step, right? A lot of the applications on premise today so the goal is really how do I move from on prem to the cloud? So to that extend, I think we have announced a number of capabilities. And one of the programs that are very exciting that we have just launched is called RAMP program which stands for Google Cloud Rapid Assessment and Migration Program. So it's really kind of bundling a holistic approach of you know, kind of programs tooling and you know, as well as incentives altogether to really help customer with that kind of a journey, right? And then also on the product side, we have introduced a number of new capabilities to really ease that transition for customer to move from on premise to the cloud as well. One of the things we just announced is Google Cloud VMware Engine. And this is really, you know, we built as a native service inside Google as a (indistinct) to allow customer to run their VMware as a service on top of Google infrastructure. So customers can easily take their, you know, what's running on premise, that's running VMware today and move it to cloud was really no change whatsoever and really lift and shift. And your other point is really about a modernization, right? Cause most of our customers coming in today, it's not just about I'm running this as a way it is. It's also, how do I extract value out of this kind of capability? So we build this as a service so that customer can easily start using services like BigQuery to be able to extract data and insights out of this and to be able to give them additional advantages and to create new services and things like that. And for other customers who might want to be able to, you know, leverage our AI, ML capability, that's at their fingertips as well. So it's just really trying to make that process super easy. Another kind of class of workloads we see is really around SAP, right? That's our bread and butter for many enterprises. So customers are moving those out into the clouds and we've seen many examples really kind of really, allow customers to take the data that's sitting in SAP HANA and be able to extract more value out of those. Home Depot is a great example of those and where they're able to leverage the inquiry to take, you know, their stockouts and some of the inventory management and really to the next level, and really giving a customer a much better experience at the end of the day. So those are kind of just a few things that we're doing on that side to really make you a customer easy to lift and shift and then be able to modernize along the way. >> Well yeah, June, if I would like to dig in a little bit on the VMware piece that you talked about. I've been talking of VM-ware a bit lately, talking to some of their customers leveraging the VMware cloud offerings and that modernization is so important because the traditional way you think about virtualization was I stick something in a VM and I leave it there and of course customers, I want to be able to take advantage of the innovation and changes in the cloud. So it seems like things like your analytics and AI would be a natural fit for VMware customers to then get access to those services that you're offering. >> Yeah, absolutely. I think we have lots of customers, that's kind of want to differentiators that customers are looking for, right? I can buy my VMware in a variety of places, but I want to be able to take it to the next level. How do I use data as my differentiator? You know, one of the core missions as part of the Google mission is really how do we help customers to digitally transform and reimagine their business was a data power innovation, and that's kind of one key piece we know we want to focus on, and this is part of the reason why we built this as really a native service inside of Google Cloud so that you're going through the same council using, you know, accessing VMware engine, accessing BigQuery, accessing networking, firewalls, and so forth, all really seamlessly. And so it makes it really easy to be able to extend and modernize. >> All right, well, June one of the other things, anytime we come to the Cloud event is we know that there's going to be updates in some of the primary offerings. So when it comes to compute and storage, know there's a number of announcements there, probably more than we'll be able to cover in this, but give us some of the highlights. >> Yeah, let me give some highlights I mean, at the core of this is a really Google Compute Engine, and we're very excited we've introduced a number of new, what we call VM families, right? Essentially different UBM instances, that's catered towards different use cases and different kinds of workloads. So for example, we launched the N2D VM, so this is a set of VMs on EMD technology and really kind of provide excellent price performance benefit for customers and who can choose to go down that particular path. We're also just really introduced our A2 VM family. This is based on GPU accelerator optimized to VM. So we're the first ones in the market to introduce NVIDIA Ampere A 100. So for lots of customers who were really introduced, we're interesting, you know, use GPU to do their ML and AI type of analysis. This is a big help because it's got a better performance compared to the previous generation so they can run their models faster and turn it around and turn insights. >> Wonderful. Shailesh, of course we want to hear about the networking components to, you know, Google, very well known you know, everybody leverages Google's network and global reach so how about the update from your network side? >> Absolutely. Stu, let me give you a set of updates that we have announced at next conference. So first of all as you know, many customers choose Google Cloud for the scale, the reach, the performance and the elasticity that we provide and ultimately results in better user experience or customer experience. And the backbone of all of this capability is our private global backbone network, right? Which all of our cloud customers benefit from. The networking is extremely important to advance our customers digital journeys, the ones that June talked about, migration and modernization, as well as security, right? So to that end, we made several announcements. Let's talk about some of them. First we announced a new subsea cable called the Grace Hopper which will actually run between the U.S. on one side and UK on the other and Spain on another leg. And it's equipped with about 16 fiber pairs that will get completed in 2022. And it will allow for significant new capacity between the U.S. and Europe, right? Second Google Cloud CDN, it's one of our most popular and fast-growing service offerings. It now offers the capability to serve content from on prem, as well as other clouds especially for hybrid and multicloud deployments. This provides a tremendous amount of flexibility in where the content can be placed and overall content and application delivery. Third we have announced the expansion of our partnership with Cisco and it's we have announced this notion of Cisco SD-WAN Cloud Hub with Google Cloud. It's one of the first in the industry to actually create an automated end to end solution that intelligently and securely, you know, connects or bridges enterprise networks to any workload across multiple clouds and to other locations. Four, we announced a new capabilities in the network intelligence center. It's a platform that provides customers with unmatched visibility into their networks, along with proactive kind of network verification, security recommendations, and so on. There were two specific modules there, around firewall insights and performance dashboard that we announced in addition to the three that already existed. And finally, we have a range of really powerful announcements in the security front, as you know, security is one of our top priorities and our infrastructure and products are designed, built and operated with an end to end security framework and end to end security as a core design principle. Let me give you a few highlights. First, as part of making it easy for firewall management for our customers to manage firewall across multiple organizations, we announced hierarchical firewall. Second, in order to enable, you know, better security capability, we announced the notion of packet metering, right? So which is something that we announced earlier in the year, but it's now GA and allows customers to collect and inspect network traffic across multiple machine types without any overhead, right? Third is, in actually in our compute and security teams, we announced the capability to what we call as confidential VMs, which offer the ability to encrypt data while being processed. We have always had the capability to encrypt data at rest and while in motion, now we are the first in the industry to announce the ability to encrypt data even while it is being processed. So we are really, you know, pleased to offer that as part of our confidential computing portfolio. We also announced the ability to do a managed service around our cloud armor security portfolio for DDoS web application and bot detection, that's called Cloud Armor Managed Protection. And finally we also announced the capability called Private Service Connect that allows customers to connect effortlessly to other Google Cloud services or to third party SaaS applications while keeping their traffic secure and private over the, in kind of the broader internet. So we were really pleased to announce in number of, you know, very critical kind of announcements, products and capabilities and partnerships such as Cisco in order to further the modernization and migration for our customers. >> Yeah, one note I will make for our audience, you know, check the details on the website. I know some of the security features are now in data, many of the other things it's now general availability. Shailesh, follow up question I have for you is when I look in 2020, the internet patterns of traffic have changed drastically. You saw a very rapid shift, everyone had needed to work from home, there's been a lot of stresses and strains on the network, when I hear things like your CDN or your SD-WAN partnership with Cisco, I have to think that there's, you know, an impact on that. What are you seeing? What are you hearing from your customers? How are you helping them work through these rapid changes to be able to respond and still give people the, you know, the performance and reliability of traffic where they need it, when they need? >> Right, absolutely. This is a, you know, very important question and a very important topic, right? And when we saw the impact of COVID, you know, as you know Google's mission is to be, continue to be helpful to our customers, we actually invested and continue to invest in building out our CDN capability, our interconnect, the capacity in our network infrastructure, and so on, in order to provide better, for example distance learning, video conferencing, e-commerce, financial services and so on and we are proud to say that we were able to support a very significant expansion in the overall traffic, you know, on a global basis, right? In Google Clouds and Google's network without a hitch. So we are really proud to be able to say that. In addition there are other areas where we have been looking to help our customers. For example, high performance computing is a very interesting capability that many customers are using for things such as COVID research, right? So a good example is Northeastern University in Boston that has been using, you know, a sort of thousands of kind of preemptable virtual machines on Google Cloud to power very large scale and a data driven model and simulations to figure out how the travel restrictions and social distancing will actually impact the spread of the virus. That's an example of the way that we are trying to be helpful as part of the the broader global situation. >> Great. June, I have to imagine generally from infrastructure there've been a number of other impacts that Google Cloud has been helping your customers, any other examples that you'd like to share? >> Yeah, absolutely. I mean, if you look at the COVID impact, it impact different industries quite differently. We've seen certain industries that just really, their demand skyrocketed overnight. For example you know, I take one of our internal customer, Google, you know, Google Meet, which is Google's video conferencing service, we just announced that we saw a 30X increase over the last few months since COVID has started. And this is all running on Google infrastructure. And we've seen similar kind of a pattern for a number of our customers on the media entertainment area, and certainly video conferencing and so forth. And we've been able to scale to beat these key customer's demand and to make sure that they have the agility they need to meet the demand from their customers and so we're definitely very proud to be part of the, you know, part of this effort to kind of enable folks to be able to work from home, to be able to study from home and so on and so forth. You know, for some customers, you know, the whole business continuity is really a big deal for them, you know, where's the whole work from home a mandate. So for example, one of our customers Telus International, it's a Canadian telecommunication company, because of COVID they had to, you know, be able to transition tens and thousands of employees to work on the whole model immediately. And they were able to work with Google Cloud and our partner, itopia, who is specializing in virtual desktop and application. So overnight, literally in 24 hours, we're able to deploy a fully configured virtual desktop environments from Google Cloud and allow their employees to come back to service. So that's just one example, there's hundreds and thousands more of those examples, and it's been very heartening to be part of this, you know, Google to be helpful to our customer. >> Great. Well, I want to let both of you just have the final word when you're talking to customers here in 2020, how should they be thinking of Google Cloud? How do you make sure that you're helping them in differentiating from some of the other solutions and the environment? May be June if we could start with you. >> Sure, so at Google Cloud, our goal is to make it easy for anyone you know, whether you're big big enterprises or small startups, to be able to build your applications, to be able to innovate and harness the power of data to extract additional information, insights, and to be able to scale your business. As an infrastructure provider, we want to deliver the best infrastructure to run all customers application and on a global basis, reliably and securely. Definitely getting more and more complicated and you know, as we kind of spread our capacity to different locations, it gets more complicated from a logistics and a perspective as well so we want to help to do the heavy lifting around the infrastructure, so that from a customer, they can simply consume our infrastructure as a service and be able to focus on their businesses and not worry about the infrastructure side. So, you know, that's our goal, we'll do the plumbing work and we'll allow customers innovate on top of that. >> Right. You know, June you said that very well, right? Distributed infrastructure is a key part of our strategy to help our customers. In addition, we also provide the platform capability. So essentially a digital transformation platform that manages data at scale to help, you know, develop and modernize the applications, right? And finally we layer on top of that, a suite of industry specific solutions that deliver kind of these digital capabilities across each of the key verticals, such as financial services or telecommunications or media and entertainment, retail, healthcare, et cetera. So that's how combining together infrastructure platform and solutions we are able to help customers in their modernization journeys. >> All right, June and Shailesh, thank you so much for sharing the updates, congratulations to your teams on the progress, and absolutely look forward to hearing more in the future. >> Great, thank you Stu. >> Thank you Stu. >> All right, and stay tuned for more coverage of Google Cloud Next On Air '20. I'm Stu Miniman, thank you for watching theCUBE. (Upbeat music)