(upbeat electronic music plays) >> Hey everyone, welcome back to theCube's coverage of .NEXT 2021 Virtual. I'm John Furrier, hosts of theCube. We have two great guests, Rajiv Mirani, who's the Chief Technology Officer, and Thomas Cornely, SVP of Product Management. Day Two keynote product, the platform, announcements, news. A lot of people, Rajiv, are super excited about the, the platform, uh, moving to a subscription model. Everything's kind of coming into place. How are the customers, uh, seeing this? How they adopted hybrid cloud as a hybrid, hybrid, hybrid, data, data, data? Those are the, those are the, that's the, that's where the puck is right now. You guys are there. How are customers seeing this? >> Mirani: Um, um, great question, John, by the way, great to be back here on theCube again this year. So when we talk to our customers, pretty much, all of them agreed that for them, the ideal state that they want to be in is a hybrid world, right? That they want to essentially be able to run both of those, both on the private data center and the public cloud, and sort of have a common platform, common experience, common, uh, skillset, same people managing, managing workloads across both locations. And unfortunately, most of them don't have that that tooling available today to do so, right. And that's where the platform, the Nutanix platform's come a long way. We've always been great at running in the data center, running every single workload, we continue to make great strides on our core with the increased performance for, for the most demanding, uh, workloads out there. But what we have done in the last couple of years has also extended this platform to run in the public cloud and essentially provide the same capabilities, the same operational behavior across locations. And that's when you're seeing a lot of excitement from our customers because they really want to be in that state, for it to have the common tooling across work locations, as you can imagine, we're getting traction. Customers who want to move workloads to public cloud, they don't want to spend the effort to refactor them. Or for customers who really want to operate in a hybrid mode with things like disaster recovery, cloud bursting, workloads like that. So, you know, I think we've made a great step in that direction. And we look forward to doing more with our customers. >> Furrier: What is the big challenge that you're seeing with this hybrid transition from your customers and how are you solving that specifically? >> Mirani: Yeah. If you look at how public and private operate today, they're very different in the kind of technologies used. And most customers today will have two separate teams, like one for their on-prem workloads, using a certain set of tooling, a second completely different team, managing a completely different set of workloads, but with different technologies. And that's not an ideal state in some senses, that's not true hybrid, right? It's like creating two new silos, if anything. And our vision is that you get to a point where both of these operate in the same manner, you've got the same people managing all of them, the same workloads anyway, but similar performance, similar SaaS. So they're going to literally get to point where applications and data can move back and forth. And that's, that's, that's where I think the real future is for hybrid >> Furrier: I have to ask you a personal question. As the CTO, you've got be excited with the architecture that's evolving with hybrid and multi-cloud, I mean, I mean, it's pretty, pretty exciting from a tech standpoint, what is your reaction to that? >> Mirani: %100 and it's been a long time coming, right? We have been building pieces of this over years. And if you look at all the product announcements, Nutanix has made over the last few years and the acquisitions that made them and so on, there's been a purpose behind them. That's been a purpose to get to this model where we can operate a customer's workloads in a hybrid environment. So really, really happy to see all of that come together. Years and years of work finally finally bearing fruit. >> Furrier: Well, we've had many conversations in the past, but it congratulates a lot more to do with so much more action happening. Thomas, you get the keys to the kingdom, okay, and the product management you've got to prioritize, you've got to put it together. What are the key components of this Nutanix cloud platform? The hybrid cloud, multi-cloud strategy that's in place, because there's a lot of headroom there, but take us through the key components today and then how that translates into hybrid multi-cloud for the future. >> Cornely: Certainly, John, thank you again and great to be here, and kind of, Rajiv, you said really nicely here. If you look at our portfolio at Nutanix, what we have is great technologies. They've been sold as a lot of different products in the past, right. And what we've done last few months is we kind of bring things together, simplify and streamline, and we align everything around a cloud platform, right? And this is really the messaging that we're going after is look, it's not about the price of our solutions, but business outcomes for customers. And so are we focusing on pushing the cloud platform, which we encompasses five key areas for us, which we refer to as cloud infrastructure, no deficiencies running your workloads. Cloud management, which is how you're going to go and actually manage, operate, automate, and get governance. And then services on top that started on all around data, right? So we have unified storage, finding the objects, data services. We have database services. Now we have outset of desktop services, which is for EMC. So all of this, the big change for us is this is something that, you know, you can consume in terms of solutions and consume on premises. As Rajiv discussed, you know, we can take the same platform and deploy it in public cloud regions now, right? So you can now get no seamless hybrid cloud, same operating model. But increasingly what we're doing is taking your solutions and re-targeting issues and problems at workers running native public clouds. So think of this as going, after automating more governance, security, you know, finding objects, database services, wherever you're workload is running. So this is taking this portfolio and reapplying it, and targeting on prem at the edge in hybrid and in christening public cloud in ATV. >> Furrier: That's awesome. I've been watching some of the footage and I was noticing quite a lot of innovation around virtualized, networking, disaster, recovery security, and data services. It's all good. You guys were, and this is in your wheelhouse. I know you guys are doing this for many, many years. I want to dive deeper into that because the theme right now that we've been reporting on, you guys are hitting right here what the keynote is cloud scale is about faster development, right? Cloud native is about speed, it's about not waiting for these old departments, IT or security to get back to them in days or weeks and responding to either policy or some changes, you got to move faster. And data, data is critical in all of this. So we'll start with virtualized networking because networking again is a key part of it. The developers want to go faster. They're shifting left, take us through the virtualization piece of how important that is. >> Mirani: Yeah, that's actually a great question as well. So if you think about it, virtual networking is the first step towards building a real cloud like infrastructure on premises that extends out to include networking as well. So one of the key components of any cloud is automation. Another key component is self service and with the API, is it bigger on virtual networking All of that becomes much simpler, much more possible than having to, you know, qualify it, work with someone there to reconfigure physical networks and slots. We can, we can do that in a self service way, much more automated way. But beyond that, the, the, the notion of watching networks is really powerful because it helps us to now essentially extend networks and, and replicate networks anywhere on the private data center, but in the public cloud as well. So now when customers move their workloads, we'd already made that very simple with our clusters offering. But if you're only peek behind the layers a little bit, it's like, well, yea, but the network's not the same on the side. So now it, now it means that a go re IP, my workloads create new subnets and all of that. So there was a little bit of complication left in that process. So to actual network that goes away also. So essentially you can repeat the same network in both locations. You can literally move your workloads, no redesign of your network acquired and still get that self service and automation capabilities of which cookies so great step forward, it really helps us complete the infrastructure as a service stack. We had great storage capabilities before, we create compute capabilities before, and sort of networking the third leg and all of that. >> Furrier: Talk about the complexity here, because I think a lot of people will look at dev ops movement and say, infrastructure is code when you go to one cloud, it's okay. You can, you can, you know, make things easier. Programmable. When, when you start getting into data center, private data centers, or essentially edges now, cause if it's distributed cloud environment or cloud operations, it's essentially one big cloud operation. So the networks are different. As you said, this is a big deal. Okay. This is sort of make infrastructure as code happen in multiple environments across multiple clouds is not trivial. Could you talk about the main trends and how you guys see this evolving and how you solve that? >> Mirani: Yeah. Well, the beauty here is that we are actually creating the same environment everywhere, right? From, from, from point of view of networking, compute, and storage, but also things like security. So when you move workloads, things with security, posture also moves, which is also super important. It's a really hard problem, and something a lot of CIO's struggle with, but having the same security posture in public and private clouds reporting as well. So with this, with this clusters offering and our on-prem offering competing with the infrastructure service stack, you may not have this capability where your operations really are unified across multicloud hybrid cloud in any way you run. >> Furrier: Okay, so if I have multiple cloud vendors, there are different vendors. You guys are creating a connection unifying those three. Is that right? >> Mirani: Essentially, yes, so we're running the same stack on all of them and abstracting away the differences between the clouds that you can run operations. >> Furrier: And when the benefits, the benefits of the customers are what? What's the main, what's the main benefit there? >> Mirani: Essentially. They don't have to worry about, about where their workloads are running. Then they can pick the best cloud for their workloads. It can seamlessly move them between Cloud. They can move their data over easily, and essentially stop worrying about getting locked into a single, into a single cloud either in a multi-cloud scenario or in a hybrid cloud scenario, right. There many, many companies now were started on a cloud first mandate, but over time realized that they want to move workloads back to on-prem or the other way around. They have traditional workloads that they started on prem and want to move them to public cloud now. And we make that really simple. >> Furrier: Yeah. It's kind of a trick question. I wanted to tee that up for Thomas, because I love that kind of that horizontal scales, what the cloud's all about, but when you factor data into it, this is the sweet spot, because this is where, you know, I think it gets really exciting and complicated too, because, you know, data's got, can get unwieldy pretty quickly. You got state got multiple applications, Thomas, what's your, what can you share the data aspect of this? This is super, super important. >> Absolutely. It's, you know, it's really our core source of differentiation, when you think about it. That's what makes Nutanix special right? In, in the market. When we talk about cloud, right. Actually, if you've been following Nutanix for years, you know, we've been talking a lot about making infrastructure invisible, right? The new way for us to talk about what we're doing, with our vision is, is to make clouds invisible so that in the end, you can focus on your own business, right? So how do you make Cloud invisible? Lots of technology is at the application layer to go and containerize applications, you know, make them portable, modernize them, make them cloud native. That's all fine when you're not talking of state class containers, that the simplest thing to move around. Right. But as we all know, you know, applications end of the day, rely on data and measure the data across all of these different locations. I'm not even going to go seconds. Cause that's almost a given, you're talking about attribution. You can go straight from edge to on-prem to hybrid, to different public cloud regions. You know, how do you go into the key control of that and get consistency of all of this, right? So that's part of it is being aware of where your data is, right? But the other part is that inconsistency of set up data services regardless of where you're running. And so this is something that we look at the cloud platform, where we provide you the cloud infrastructure go and run the applications. But we also built into the cloud platform. You get all of your core data services, whether you have to consume file services, object services, or database services to really support your application. And that will move with your application, that is the key thing here by bringing everything onto the same platform. You now can see all operations, regardless of where you're running the application. The last thing that we're adding, and this is a new offering that we're just launching, which is a service, it's called, delete the dead ends. Which is a solution that gives you visibility and allow you to go and get better governance around all your data, wherever it may live, across on-prem edge and public clouds. That's a big deal again, because to manage it, you first have to make sense of it and get control over it. And that's what data answer's is going to be all about. >> Furrier: You know, one of the things we've we've been reporting on is data is now a competitive advantage, especially when you have workflows involved, um, super important. Um, how do you see customers going to the edge? Because if you have this environment, how does the data equation, Thomas, go to the edge? How do you see that evolving? >> Cornely: So it's yeah. I mean, edge is not one thing. And that's actually the biggest part of the challenge of defining what the edge is depending on the customer that you're working with. But in many cases you get data ingesting or being treated at the edge that you then have to go move to either your private cloud or your public cloud environment to go and basically aggregate it, analyze it and get insights from it. Right? So this is where a lot of our technologies, whether it's, I think the object's offering built in, we'll ask you to go and make the ingest over great distances over the network, right? And then have your common data to actually do an ethics audit over our own object store. Right? Again, announcements, we brought into our storage solutions here, we want to then actually organize it then actually organize it directly onto the objects store solution. Nope. Using things, things like or SG select built into our protocols. So again, make it easy for you to go in ingest anywhere, consolidate your data, and then get value out of it. Using some of the latest announcements on the API forms. >> Furrier: Rajiv databases are still the heart of most applications in the enterprise these days, but databases are not just the data is a lot of different data. Moving around. You have a lot a new data engineering platforms coming in. A lot of customers are scratching their head and, and they want to kind of be, be ready and be ready today. Talk about your view of the database services space and what you guys are doing to help enterprise, operate, manage their databases. >> Mirani: Yeah, it's a super important area, right? I mean, databases are probably the most important workload customers run on premises and pretty close on the public cloud as well. And if you look at it recently, the tooling that's available on premises, fairly traditional, but the clouds, when we integrate innovation, we're going to be looking at things like Amazon's relational database service makes it an order of magnitude simpler for our customers to manage the database. At the same time, also a proliferation of databases and we have the traditional Oracle and SQL server. But if you have open source Mongo, DB, and my SQL, and a lot of post-grads, it's a lot of different kinds of databases that people have to manage. And now it just becomes this cable. I have the spoke tooling for each one of them. So with our Arab product, what we're doing is essentially creating a data management layer, a database management layer that unifies operations across your databases and across locations, public cloud and private clouds. So all the operations that you need, you do, which are very complicated in, in, in, in with traditional tooling now, provisioning of databases backing up and restoring them providing a true time machine capabilities, so you can pull back transactions. We can copy data management for your data first. All of that has been tested in Era for a wide variety of database engines, your choice of database engine at the back end. And so the new capabilities are adding sort of extend that lead that we have in that space. Right? So, so one of the things we announced at .Next is, is, is, is one-click storage scaling. So one of the common problems with databases is as they grow over time, it's not running out of storage capacity. Now re-provisions to storage for a database, migrate all the data where it's weeks and months of look, right? Well, guess what? With Era, you can do that in one click, it uses the underlying AOS scale-out architecture to provision more storage and it does it have zero downtime. So on the fly, you can resize your databases that speed, you're adding some security capabilities. You're adding some capabilities around resilience. Era continues to be a very exciting product for us. And one of the things, one of the real things that we are really excited about is that it can really unify database operations between private and public. So in the future, we can also offer an aversion of Era, which operates on native public cloud instances and really excited about that. >> Furrier: Yeah. And you guys got that two X performance on scaling up databases and analytics. Now the big part point there, since you brought up security, I got to ask you, how are you guys talking about security? Obviously it's embedded in from the beginning. I know you guys continue to talk about that, but talk about, Rajiv, the security on, on that's on everyone's mind. Okay. It goes evolving. You seeing ransomware are continuing to happen more and more and more, and that's just the tip of the iceberg. What do you guys, how are you guys helping customers stay secure? >> Mirani: Security is something that you always have to think about as a defense in depth when it comes to security, right? There's no one product that, that's going to do everything for you. That said, what we are trying to do is to essentially go with the gamut of detection, prevention, and response with our security, and ransom ware is a great example of that, right. We've partnered with Qualys to essentially be able to do a risk assessment of your workloads, to basically be able to look into your workloads, see whether they have been bashed, whether they have any known vulnerabilities and so on. To try and prevent malware from infecting your workloads in the first place, right? So that's, that's the first line of defense. Now not systems will be perfect. Some, some, some, some malware will probably get in anyway But then you detect it, right. We have a database of all the 4,000 ransomware signatures that you can use to prevent ransomware from, uh, detecting ransom ware if it does infect the system. And if that happens, we can prevent it from doing any damage by putting your fire systems and storage into read-only mode, right. We can also prevent lateral spread of, of your ransomware through micro-segmentation. And finally, if you were, if you were to invade, all those defenses that you were actually able to encrypt data on, on, on a filer, we have immutable snapshots, they can recover from those kinds of attacks. So it's really a defense in depth approach. And in keeping with that, you know, we also have a rich ecosystem of partners while this is one of them, but older networks market sector that we work with closely to make sure that our customers have the best tooling around and the simplest way to manage security of their infrastructure. >> Furrier: Well, I got to say, I'm very impressed guys, by the announcements from the team I've been, we've been following Nutanix in the beginning, as you know, and now it's back in the next phase of the inflection point. I mean, looking at my notebook here from the announcements, the VPC virtual networking, DR Observability, zero trust security, workload governance, performance expanded availability, and AWS elastic DR. Okay, we'll get to that in a second, clusters on Azure preview cloud native ecosystem, cloud control plane. I mean, besides all the buzzword bingo, that's going on there, this is cloud, this is a cloud native story. This is distributed computing. This is virtualization, containers, cloud native, kind of all coming together around data. >> Cornely: What you see here is, I mean, it is clear that it is about modern applications, right? And this is about shifting strategy in terms of focusing on the pieces where we're going to be great at. And a lot of these are around data, giving you data services, data governance, not having giving you an invisible platform that can be running in any cloud. And then partnering, right. And this is just recognizing what's going on in the world, right? People want options, customers and options. When it comes to cloud, they want options to where they're running the reports, what options in terms of, whether it be using to build the modern applications. Right? So our big thing here is providing and being the best platform to go and actually support for Devers to come in and build and run their new and modern applications. That means that for us supporting a broad ecosystem of partners, entrepreneur platform, you know, we announced our partnership with Red Hat a couple of months ago, right? And this is going to be a big deal for us because again, we're bringing two leaders in the industry that are eminently complimentary when it comes to providing you a complete stack to go and build, run, and manage your client's applications. When you do that on premises, utilizing like the preferred ATI environment to do that. Using the Red Hat Open Shift, or, you're doing this open to public cloud and again, making it seamless and easy, to move the applications and their supporting data services around, around them that support them, whether they're running on prem in hybrid winter mechanic. So client activity is a big deal, but when it comes to client activity, the way we look at this, it's all about giving customers choice, choice of that from services and choice of infrastructure service. >> Furrier: Yeah. Let's talk to the red hat folks, Rajiv, it's you know, it's, they're an operating system thinking company. You know, you look at the internet now in the cloud and edge, and on-premise, it's essentially an operating system. you need your backup and recovery needs to disaster recovery. You need to have the HCI, you need to have all of these elements part of the system. It's, it's, it's, it's building on top of the existing Nutanix legacy, then the roots and the ecosystem with new stuff. >> Mirani: Right? I mean, it's, in fact, the Red Hat part is a great example of, you know, the perfect marriage, if you will, right? It's, it's, it's the best in class platform for running the cloud-native workloads and the best in class platform with a service offering in there. So two really great companies coming together. So, so really happy that we could get that done. You know, the, the point here is that cloud native applications still need infrastructure to run off, right? And then that infrastructure, if anything, the demands on that and growing it since it's no longer that hail of, I have some box storage, I have some filers and, you know, just don't excite them, set. People are using things like object stores, they're using databases increasingly. They're using the Kafka and Map Reduce and all kinds of data stores out there. And back haul must be great at supporting all of that. And that's where, as Thomas said, earlier, data services, data storage, those are our strengths. So that's certainly a building from platform to platform. And then from there onwards platform services, great to have right out of the pocket. >> Furrier: People still forget this, you know, still hardware and software working together behind the scenes. The old joke we have here on the cube is server less is running on a bunch of servers. So, you know, this is the way that is going. It's really the innovation. This is the infrastructure as code truly. This is what's what's happened is super exciting. Rajiv, Thomas, thank you guys for coming on. Always great to talk to you guys. Congratulations on an amazing platform. You guys are developing. Looks really strong. People are giving it rave reviews and congratulations on, on, on your keynotes. >> Cornely: Thank you for having us >> Okay. This is theCube's coverage of.next global virtual 2021 cube coverage day two keynote review. I'm John Furrier Furrier with the cube. Thanks for watching.

>>on the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Hello and welcome back to the Cubes Live coverage Cube live here in Palo Alto, California, with the Virtual Cube this year because we can't be there in person. I'm your host, John Fairy year. We're kicking off Day two of the three weeks of reinvent a lot of great leadership sessions to review, obviously still buzzing from the Andy Jassy three. Our keynote, which had so many storylines, is really hard to impact. We're gonna dig that into into into that today with Jerry Chan, who has been a Cube alumni since the beginning of our AWS coverage. Going back to 2013, Jerry was wandering the hallways as a um, in between. You were in between vm ware and V C. And then we saw you there. You've been on the Cube every year at reinvent with us. So special commentary from you. Thanks for coming on. >>Hey, John, Thanks for having me and a belated happy birthday as well. If everyone out there John's birthday was yesterday. So and hardest. Howard's working man in technology he spent his entire birthday doing live coverage of Amazon re events. Happy birthday, buddy. >>Well, I love my work. I love doing this. And reinvent is the biggest event of the year because it really is. It's become a bellwether and eso super excited to have you on. We've had great conversations by looking back at our conversations over the Thanksgiving weekend. Jerry, the stuff we were talking about it was very proposed that Jassy is leaning in with this whole messaging around change and horizontal scalability. He didn't really say that, but he was saying you could disrupt in these industries and still use machine learning. This was some of the early conversations we were having on the Cube. Now fast forward, more mainstream than ever before. So big, big part of the theme there. >>Yeah, it z you Amazon reinvent Amazon evolution to your point, right, because it's both reinventing what countries are using with the cloud. But also what Amazon's done is is they're evolving year after year with their services. So they start a simple infrastructure, you know, s three and e c. Two. And now they're building basically a lot of what Andy said you actually deconstructed crm? Ah, lot of stuff they're doing around the call centers, almost going after Salesforce with kind of a deconstructed CRM services, which is super interesting. But the day you know, Amazon announces all those technologies, not to mention the AI stuff, the seminar stuff you have slack and inquired by Salesforce for $27.7 billion. So ah, lot of stuff going on in the cloud world these days, and it's funny part of it, >>you know, it really is interesting. You look up the slack acquisition by, um, by Salesforce. It's interesting, you know, That kind of takes slack out of the play here. I mean, they were doing really well again. Message board service turns into, um, or collaboration software. They hit the mainstream. They have great revenue. Is that going to really change the landscape of the industry for Salesforce? They've got to acquire it. It opens the door up from, or innovation. And it's funny you mention the contact Center because I was pressing Jassy on my exclusive one on one with him. Like they said, Andy, my my daughter and my sons, they don't use the phone. They're not gonna call. What's this? Is it a call center deal? And he goes, No, it's the It's about the contact. So think about that notion of the contact. It's not about the call center. It's the point of contact. Okay, Linked in is with Microsoft. You got slack and Salesforce Contact driven collaboration. Interesting kind of play for Microsoft to use voice and their data. What's your take on that? >>I think it's, um you know, I have this framework. As you know, I talked my friend systems of engagement over systems intelligence and systems record. Right? And so you could argue voice email slack because we're all different systems of engagement, and they sit on top of system of record like CRM customer support ticketing HR. Something like that. Now what sells first did by buying slack is they now own a system engagement, right? Not on Lee is slack. A system engagement for CRM, but also system engagement for E. R. P Service. Now is how you interact with a bunch of applications. And so if you think about sales for strategy in the space, compete against Marcus Soft or serves now or other large AARP's now they own slack of system engagement, that super powerful way to actually compete against rival SAS companies. Because if you own the layer engagement layer, you can now just intermediate what's in the background. Likewise, the context center its own voice. Email, chat messaging, right? You can just inter mediate this stuff in the back, and so they're trying to own the system engagement. And then, likewise, Facebook just bought that company customer a week ago for a billion dollars, which also Omni Channel support because it is chat messaging voice. It's again the system engagement between End User, which could be a customer or could be employees. >>You know, this really gonna make Cit's enterprise has been so much fun over the past 10 years, I gotta say, in the past five, you know, it's been even more fun, has become or the new fun area, you know, And the impact to enterprise has been interesting because and we're talking about just engaging system of record. This is now the new challenge for the enterprise. So I wanna get your thoughts, Jerry, because how you see the Sea, X O's and CSOs and the architects out there trying to reinvent the enterprise. Jassy saying Look and find the truth. Be on the right side of history here. Certainly he's got himself service interest there, but there is a true band eight with Cove it and with digital acceleration for the enterprise to change. Um, given all these new opportunities Thio, revolutionize or disrupt or radically improve, what's the C. C X's do? What's your take on? How do you see that? >>It's increasingly messy for the CXS, and I don't I don't envy them, right? Because back in the day they kind of controlled all the I t spend and kind of they had a standard of what technologies they use in the company. And then along came Amazon in cloud all of sudden, like your developers and Dio Hey, let me swipe my credit card and I'm gonna access to a bunch of a P I s around computing stories. Likewise. Now they could swipe the credit card and you strike for billing, right? There's a whole bunch of services now, so it becomes incumbent upon CSOs. They need Thio new set of management tools, right? So not only just like, um, security tools they need, they need also observe ability, tools, understanding what services are being used by the customers, when and how. And I would say the following John like CSOs is both a challenge for them. But I think if I was a C X, so I'll be pretty excited because now I have a bunch of other weapons and other bunch of services I could offer. My end users, my developers, my employees, my customers and, you know it's exciting for them is not only could they do different things, but they also changed how their business being done. And so I think both interact with their end users. Be a chat like slack or be a phone like a contact center or instagram for your for your for your kids. It's actually a new challenge if I were sick. So it's it's time to build again, you know, I think Cove it has said it is time to build again. You can build >>to kind of take that phrase from the movie Shawshank Redemption. Get busy building or get busy dying. Kinda rephrase it there. And that's kind of the theme I'm seeing here because covert kind of forced people saying, Look, this things like work at home. Who would have thought 100% people would be working at home? Who would have thought that now the workloads gonna change differently? So it's an opportunity to deconstruct or distant intermediate these services. And I think, you know, in all the trends that I've seen over my career, it's been those inflection points where breaking the monolith or breaking the proprietary piece of it has always been an opportunity for for entrepreneur. So you know, and and for companies, whether you're CEO or startup by decomposing and you can come in and create value E I think to me, snowflake going public on the back of Amazon. Basically, this is interesting. I mean, so you don't have to be. You could kill one feature and nail it and go big. >>I think we talked to the past like it's Amazon or Google or Microsoft Gonna win. Everything is winner take all winner take most, and you could argue that it's hard to find oxygen as a start up in a broad platform play. But we think Snowflake and other companies have done and comes like mongo DB, for example, elastic have shown that if you can pick a service or a problem space and either developed like I p. That's super deep or own developer audience. You can actually fight the big guys. The Big Three cloud vendors be Amazon, Google or or market soft in different markets. And I think if you're a startup founder, you should not be afraid of competing with the big cloud vendors because there there are success patterns and how you can win and you know and create a lot of value. So I have found Investor. I'm super excited by that because, you know, I don't think you're gonna find a company takedown Amazon completely because they're just the scale and the network effects is too large. But you can create a lot of value and build Valuable comes like snowflake in and around the Amazon. Google Microsoft Ecosystem. >>Yeah, I want to get your thoughts. You have one portfolio we've covered rock rock set, which does a lot of sequel. Um, one of your investments. Interesting part of the Kino yesterday was Andy Jassy kind of going after Microsoft saying Windows sequel server um, they're targeting that with this new, uh, tool, but, you know, sucks in the database of it is called the Babel Fish for Aurora for post Chris sequel. Um, well, how was your take on that? I mean, obviously Microsoft big. Their enterprise sales tactics are looking like more like Oracle, which he was kind of hinting at and commenting on. But sequel is Lingua Franca for data >>correct. I think we went to, like, kind of a no sequel phase, which was kind of a trendy thing for a while and that no sequel still around, not only sequel like mongo DB Document TV. Kind of that interface still holds true, but your point. The world speaks sequel. All your applications be sequel, right? So if you want backwards, compatibility to your applications speaks equal. If you want your tire installed base of employees that no sequel, we gotta speak sequel. So, Rock said, when the first public conversations about what they're building was on on the key with you and Me and vent hat, the founder. And what Rock said is doing their building real time. Snowflake Thio, Lack of better term. It's a real time sequel database in the cloud that's super elastic, just like Snowflake is. But unlike snowflake, which is a data warehouse mostly for dashboards and analytics. Rock set is like millisecond queries for real time applications, and so think of them is the evolution of where cloud databases air going is not only elastic like snowflake in the cloud like Snowflake. We're talking 10 15 millisecond queries versus one or two second queries, and I think what any Jassy did and Amazon with bowel officials say, Hey, Sequels, Legal frank of the cloud. There's a large installed base of sequel server developers out there and applications, and we're gonna use Babel fish to kind of move those applications from on premise the cloud or from old workload to the new workloads. And, I think, the name of the game. For for cloud vendors across the board, big and small startups thio Google markets, often Amazon is how do you reduce friction like, How do you reduce friction to try a new service to get your data in the cloud to move your data from one place to the next? And so you know, Amazon is trying to reduce friction by using Babel fish, and I think it is a great move by them. >>Yeah, by the way. Not only is it for Aurora Post Chris equal, they're also open sourcing it. So that's gonna be something that is gonna be interesting to play out. Because once they open source it essentially, that's an escape valve for locking. I mean, if you're a Microsoft customer, I mean, it ultimately is. Could be that Gateway drug. It's like it is ultimately like, Hey, if you don't like the licensing, come here. Now there's gonna be some questions on the translations. Um, Vince, um, scuttlebutt about that. But we'll see it's open source. We'll see what goes on. Um great stuff on on rocks that great. Great. Start up next. Next, uh, talk track I wanna get with you is You know, over the years, you know, we've talked about your history. We're gonna vm Where, uh, now being a venture capitalist. Successful, wanted Greylock. You've seen the waves, and I would call it the two ways pre cloud Early days of cloud. And now, with co vid, we're kind of in the, you know, not just born in the cloud Total cloud scale cloud operations. This is kind of what jazz he was going after. E think I tweeted Cloud is eating the world and on premise and the edges. What it's hungry for. It kind of goof on mark injuries since quote a software eating the world. This is where it's going. So it's a whole another chapter coming. You saw the pre cloud you saw Cloud. Now we've got basically global I t everything else >>It's cloud only I would say, You know, we saw pre cloud right the VM ware days and before that he called like, you know, data centers. I would say Amazon lawns of what, 6 4007, the Web services. So the past 14 15 years have been what I've been calling cloud transition, right? And so you had cos technologies that were either doing on migration from on premise and cloud or hybrid on premise off premise. And now you're seeing a generation of technologies and companies. Their cloud only John to your point. And so you could argue that this 15 year transitions were like, you know, Thio use a bad metaphor like amphibians. You're half in the water, half on land, you know, And like, you know, you're not You're not purely cloud. You're not purely on premise, but you can do both ways, and that's great. That's great, because that's a that's a dominant architecture today. But come just like rock set and snowflake, your cloud only right? They're born in the cloud, they're built on the cloud And now we're seeing a generation Startups and technology companies that are cloud only. And so, you know, unlike you have this transitionary evolution of like amphibians, land and sea. Now we have ah, no mammals, whatever that are Onley in the cloud Onley on land. And because of that, you can take advantage of a whole different set of constraints that are their cloud. Only that could build different services that you can't have going backwards. And so I think for 2021 forward, we're going to see a bunch of companies or cloud only, and they're gonna look very, very different than the previous set of companies the past 15 years. And as an investor, as you covering as analysts, is gonna be super interesting to see the difference. And if anything, the cloud only companies will accelerate the move of I t spending the move of mawr developers to the cloud because the cloud only technologies are gonna be so much more compelling than than the amphibians, if you will. >>Yeah, insisting to see your point. And you saw the news announcement had a ton of news, a ton of stage making right calls, kind of the democratization layer. We'll look at some of the insights that Amazon's getting just as the monster that they are in terms of size. The scope of what? Their observation spaces. They're seeing all these workloads. They have the Dev Ops guru. They launched that Dev Ops Guru thing I found interesting. They got data acquisition, right? So when you think about these new the new data paradigm with cloud on Lee, it opens up new things. Um, new patterns. Um, S o. I think I think to me. I think that's to me. I see where this notion of agility moves to a whole nother level, where it's it's not just moving fast, it's new capabilities. So how do you How do you see that happening? Because this is where I think the new generation is gonna come in and be like servers. Lambs. I like you guys actually provisioned E c. Two instances before I was servers on data centers. Now you got ec2. What? Lambda. So you're starting to see smaller compute? Um, new learnings, All these historical data insights feeding into the development process and to the application. >>I think it's interesting. So I think if you really want to take the next evolution, how do you make the cloud programmable for everybody? Right. And I think you mentioned stage maker machine learning data scientists, the sage maker user. The data scientists, for example, does not on provisioned containers and, you know, kodama files and understand communities, right? Like just like the developed today. Don't wanna rack servers like Oh, my God, Jerry, you had Iraq servers and data center and install VM ware. The generation beyond us doesn't want to think about the underlying infrastructure. You wanna think about it? How do you just program my app and program? The cloud writ large. And so I think where you can see going forward is two things. One people who call themselves developers. That definition has expanded the past 10, 15 years. It's on Lee growing, so everyone is gonna be developed right now from your white collar knowledge worker to your hard core infrastructure developer. But the populist developers expanding especially around machine learning and kind of the sage maker audience, for sure. And then what's gonna happen is, ah, law. This audience doesn't want to care about the stuff you just mentioned, John in terms of the online plumbing. So what Amazon Google on Azure will do is make that stuff easy, right? Or a starved could make it easy. And I think that the move towards land and services that moved specifically that don't think about the underlying plumbing. We're gonna make it easy for you. Just program your app and then either a startup, well, abstract away, all the all the underlying, um, infrastructure bits or the big three cloud vendors to say, you know, all this stuff would do in a serverless fashion. So I think serverless as, ah paradigm and have, quite frankly, a battlefront for the Big Three clouds and for startups is probably one in the front lines of the next generation. Whoever owns this kind of program will cloud model programming the Internet program. The cloud will be maybe the next platform the next 10 or 15 years. I still have two up for grabs. >>Yeah, I think that is so insightful. I think that's worth calling out. I think that's gonna be a multi year, um, effort. I mean, look at just how containers now, with ks anywhere and you've got the container Service of control plane built in, you got, you know, real time analytics coming in from rock set. And Amazon. You have pinned Pandora Panorama appliance that does machine learning and computer vision with sensors. I mean, this is just a whole new level of purpose built stuff software powered software operated. So you have this notion of Dev ops going to hand in the glove software and operations? Kind of. How do you operate this stuff? So I think the whole new next question was Okay, this is all great. But Amazon's always had this problem. It's just so hard. Like there's so much good stuff. Like, who do you hired operate it? It is not yet programmable. This has been a big problem for them. Your thoughts on that, >>um e think that the data illusion around Dev ops etcetera is the solution. So also that you're gonna have information from Amazon from startups. They're gonna automate a bunch of the operations. And so, you know, I'm involved to come to Kronos Fear that we talked about the past team kind of uber the Bilson called m three. That's basically next generation data dog. Next generation of visibility platform. They're gonna collect all the data from the applications. And once they have their your data, they're gonna know how to operate and automate scaling up, scaling down and the basic remediation for you. So you're going to see a bunch of tools, take the information from running your application infrastructure and automate exactly how to scale and manager your app. And so AI and machine learning where large John is gonna be, say, make a lot of plumbing go away or maybe not completely, but lets you scale better. So you, as a single system admin are used. A single SRE site reliability engineer can scale and manage a bigger application, and it's all gonna be around automation and and to your point, you said earlier, if you have the data, that's a powerful situations. Once have the data can build models on it and can start building solutions on the data. And so I think What happens is when Bill this program of cloud for for your, you know, broad development population automating all this stuff becomes important. So that's why I say service or this, You know, automation of infrastructure is the next battleground for the cloud because whoever does that for you is gonna be your virtualized back and virtualized data center virtualized SRE. And if whoever owns that, it's gonna be a very, very strategic position. >>Yeah, it's great stuff. This is back to the theme of this notion of virtualization is now gone beyond server virtualization. It's, you know, media virtualization with the Cube. My big joke here with the Q virtual. But it's to your point. It's everything can now be replicated in software and scale the cloud scale. So it's super big opportunity for entrepreneurs and companies. Thio, pivot and differentiate. Uh, the question I have for you next is on that thread Huge edge discussion going on, right. So, you know, I think I said it two years ago or three years ago. The data center is just a edges just a big fat edge. Jassy kind of said that in his keynote Hey, looks at that is just a Nedum point with his from his standpoint. But you have data center. You have re alleges you've got five G with wavelength. This local zone concept, which is, you know, Amazon in these metro areas reminds me the old wireless point of presence kind of vibe. And then you've got just purpose built devices like cameras and factory. So huge industrial innovation, robotics, meet software. I mean, whole huge edge development exploding, Which what's your view of this? And how do you look at that from? Is an investor in industry, >>I think edges both the opportunity for start ups and companies as well as a threat to Amazon, right to the reason why they have outposts and all the stuff the edges if you think about, you know, decentralizing your application and moving into the eggs from my wearable to my home to my car to my my city block edges access Super interesting. And so a couple things. One companies like Cloudflare Fastly company I'm involved with called Kato Networks that does. SAS is secure access service edge write their names and the edges In the category definition sassy is about How do you like get compute to the edge securely for your developers, for your customers, for your workers, for end users and what you know comes like Cloudflare and Kate have done is they built out a network of pops across the world, their their own infrastructure So they're not dependent upon. You know, the big cloud providers, the telco providers, you know, they're partnering with Big Cloud, their parting with the telcos. But they have their own kind of system, our own kind of platform to get to the edge. And so companies like Kato Networks in Cloud Player that have, ah, presence on the edge and their own infrastructure more or less, I think, are gonna be in a strategic position. And so Kate was seen benefits in the past year of Of of Cove it and locked down because more remote access more developers, Um, I think edge is gonna be a super great area development going forward. I think if you're Amazon, you're pushing to the edge aggressively without post. I think you're a developer startup. You know, creating your own infrastructure and riding this edge wave could be a great way to build a moat against a big cloud guy. So I'm super excited. You think edge in this whole idea of your own infrastructure. Like what Kato has done, it is gonna be super useful going forward. And you're going to see more and more companies. Um, spend the money to try to copy kind of, ah, Cloudflare Kato presence around the world. Because once you own your own kind of, um, infrastructure instead of pops and you're less depend upon them a cloud provider, you're you're in a good position because there's the Amazon outage last week and I think like twilio and a bunch of services went down for for a few hours. If you own your own set of pops, your independent that it is actually really, really secure >>if you and if they go down to the it's on you. But that was the kinesis outage that they had, uh, they before Thanksgiving. Um, yeah, that that's a problem. So on this on. So I guess the question for you on that is that Is it better to partner with Amazon or try to get a position on the edge? Have them either by you or computer, create value or coexist? How do you see that that strategy move. Do you coexist? Do you play with them? >>E think you have to co exist? I think that the partner coexist, right? I think like all things you compete with Amazon. Amazon is so broad that will be part of Amazon and you're gonna compete with and that's that's fair game, you know, like so Snowflake competes against red shift, but they also part of Amazon's. They're running Amazon. So I think if you're a startup trying to find the edge, you have to coexist in Amazon because they're so big. Big cloud, right, The Big three cloud Amazon, Google, Azure. They're not going anywhere. So if you're a startup founder, you definitely coexist. Leverage the good things of cloud. But then you gotta invest in your own edge. Both both figure early what? Your edge and literally the edge. Right. And I think you know you complement your edge presence be it the home, the car, the city block, the zip code with, you know, using Amazon strategically because Amazon is gonna help you get two different countries, different regions. You know you can't build a company without touching Amazon in some form of fashion these days. But if you're a star found or doing strategically, how use Amazon and picking how you differentiate is gonna be key. And if the differentiation might be small, John. But it could be super valuable, right? So maybe only 10 or 15%. But that could be ah Holton of value that you're building on top of it. >>Yeah, and there's a little bit of growth hack to with Amazon if you you know how it works. If you compete directly against the core building blocks like a C two has three, you're gonna get killed, right? They're gonna kill you if the the white space is interest. In the old days in Microsoft, you had a white space. They give it to you or they would roll you over and level you out. Amazon. If you're a customer and you're in a white space and do better than them, they're cool with that. They're like, basically like, Hey, if you could innovate on behalf of the customer, they let you do that as long as you have a big bill. Yeah. Snowflakes paying a lot of money to Amazon. Sure, but they also are doing a good job. So again, Amazon has been very clear on that. If you do a better job than us for, the customer will do it. But if they want Amazon Red Shift, they want Amazon Onley. They can choose that eso kind of the playbook. >>I think it is absolutely right, John is it sets from any jassy and that the Amazon culture of the customer comes first, right? And so whatever is best for the customer that's like their their mission statement. So whatever they do, they do for the customer. And if you build value for the customer and you're on top of Amazon, they'll be happy. You might compete with some Amazon services, which, no, the GM of that business may not be happy, but overall. Net Net. Amazon's getting a share of those dollars that you're that you're charging the customer getting a share of the value you're creating. They're happy, right? Because you know what? The line rising tide floats all the boats. So the Mork cloud usage is gonna only benefit the Big Three cloud providers Amazon, particularly because they're the biggest of the three. But more and more dollars go the cloud. If you're helping move more. Absolute cloud helping build more solutions in the cloud. Amazon is gonna be happy because they know that regardless of what you're doing, you will get a fraction of those dollars. Now, the key for a startup founder and what I'm looking for is how do we get mawr than you know? A sliver of the dollars. How to get a bigger slice of the pie, if you will. So I think edge and surveillance or two areas I'm thinking about because I think there are two areas where you can actually invest, own some I p owned some surface area and capture more of the value, um, to use a startup founder and, you know, are built last t to Amazon. >>Yeah. Great. Great thesis. Jerry has always been great. You've been with the Cube since the beginning on our first reinvented 2013. Um, and so we're now on our eighth year. Great to see your success. Great investment. You make your world class investor to great firm Greylock. Um great to have you on from your perspective. Final take on this year. What's your view of Jackie's keynote? Just in general, What's the vibe. What's the quick, um, soundbite >>from you? First, I'm so impressed and you can do you feel like a three Archy? No more or less by himself. Right then, that is, that is, um, that's a one man show, and I'm All of that is I don't think I could pull that off. Number one. Number two It's, um, the ability to for for Amazon to execute at so many different levels of stack from semiconductors. Right there, there there ai chips to high level services around healthcare solutions and legit solutions. It's amazing. So I would say both. I'm impressed by Amazon's ability. Thio go so broad up and down the stack. But also, I think the theme from From From Andy Jassy is like It's just acceleration. It's, you know now that we will have things unique to the cloud, and that could be just a I chips unique to the cloud or the services that are cloud only you're going to see a tipping point. We saw acceleration in the past 15 years, John. He called like this cloud transition. But you know, I think you know, we're talking about 2021 beyond you'll see a tipping point where now you can only get certain things in the cloud. Right? And that could be the underlying inference. Instances are training instances, the Amazons giving. So all of a sudden you as a founder or developer, says, Look, I guess so much more in the cloud there's there's no reason for me to do this hybrid thing. You know, Khyber is not gonna go away on Prem is not going away. But for sure. We're going to see, uh, increasing celebration off cloud only services. Um, our edge only services or things. They're only on functions that serve like serverless. That'll be defined the next 10 years of compute. And so that for you and I was gonna be a space and watch >>Jerry Chen always pleasure. Great insight. Great to have you on the Cube again. Great to see you. Thanks for coming on. >>Congrats to you guys in the Cube. Seven years growing. It's amazing to see all the content put on. So you think it isn't? Just Last point is you see the growth of the curve growth curves of the cloud. I'd be curious Johnson, The growth curve of the cube content You know, I would say you guys are also going exponential as well. So super impressed with what you guys have dealt. Congratulations. >>Thank you so much. Cute. Virtual. We've been virtualized. Virtualization is coming here, or Cubans were not in person this year because of the pandemic. But we'll be hybrid soon as events come back. I'm John for a year. Host for AWS reinvent coverage with the Cube. Thanks for watching. Stay tuned for more coverage all day. Next three weeks. Stay with us from around the globe. It's the Cube with digital coverage of aws reinvent 2020 sponsored by Intel >>and AWS. Welcome back here to our coverage here on the Cube of AWS.

from the cube studios in palo alto in boston bringing you data-driven insights from the cube and etr this is breaking analysis with dave vellante while cloud computing is generally seen as a bright spot in tech spending the sector is not immune from the effects of covid19 look it's better to be cloud than not cloud no question but recent survey data shows that the v-shaped recovery in the stock market looks much more like a square root sign for it spending in 2020 and even the cloud is going to be negatively impacted albeit much less so than many other sectors hello everyone and welcome to this week's wikibon cube insights powered by etr i'm dave vellante and in this breaking analysis we want to update you on our latest data and thinking around the cloud computing market with an emphasis on infrastructure as a service we'll also update our latest quarterly estimates of the big three show you our typical trailing 12-month view of revenue let's start with the macro picture the reality is that the latest etr survey of nearly 1200 respondents shows that the vast majority of companies is the covet is hitting i.t budgets notably 59 of respondents have frozen hiring that's up from 26 in the last survey which was taken in march and april at the height of the u.s lockdown 24 percent have laid off employees that's up from four percent 41 percent froze new i.t deployments that's nearly double the percentage from the last survey now on the plus side there are some shops 23 percent that are accelerating i t deployments and that's up significantly from last quarter now as we've reported that's coming from the work from home and coveted tailwind segments and cloud computing is obviously one of those but these spending shifts are not enough to offset the overall outlook for 2020 and likely that's going to continue into 2021. because the big cloud players especially aws and azure are so large they're exposed to industries that have been hard hit by the pandemic as such we see pockets of spending deceleration even at these companies now the other piece of data that has our attention is the hybrid and multi-cloud market it's beginning to show some spending momentum this is particularly notable within vmware and red hat accounts and we've even seen a bit of momentum for oracle that we'll talk about in a moment now before we dig into the numbers let's hear the sentiment from some of the customers what we're showing here are some of the verbatim comments from etr customers one of the things i love about this survey is it includes quantitative and qualitative data that i can sort by industry so i've just pulled up a few examples that underscore some of the broad-based pain that companies are facing education minimum 15 cut across the organization engine energy and utilities we cut projects 10 15 across the board financials we've been asked to cut 20 out of our budget government hiring freeze larger constraints on spending health care and farmer much more scrutiny from upper management industrials materials and manufacturing slowing down is not all projects can be done remotely i.t telco head count and projects on hold and pushed into 2021 retail consumer budget cuts we lost three months of cash flow services and consulting all discretionary projects are frozen now these comments predominantly come from large companies that are big spenders now in fairness there are plenty of positives in the anecdotes but i have to say in squinting through the hundreds and hundreds of comments this pretty much sums up the sentiment now this is especially true in the all-important u.s market where we heard in cisco's earnings call this week the theme is uncertainty related to the pandemic and this is hitting i.t budgets now cloud spending remains at elevated levels but there's definitely pressure what we're showing here is the net score for the big three cloud players microsoft amazon and google in the three surveys of 2020 net scores etr's measure of spending momentum in each quarter etr asks buyers are you spending more or less on a particular platform and net score essentially subtracts the lesses from the mores it's a bit more complicated that but but that is really the essence and you can see the deceleration in all three big cloud platforms now it's important to point out that these are at elevated levels and they represent strength but there's clear pressure and headwinds on spending even in the cloud no sector is immune now there are pockets like video conferencing and security that are winning but even in these sectors it's bifurcated it's often a story of a firm that is well positioned to gain share like say a zoom or we've talked a lot about an octa or a crowdstrike or z scale or a sail point that we've highlighted in previous breaking analysis segments now this slide shows data from the etr survey the pies compare the spring survey to the summer asking buyers will covert impact your i.t budgets in 2020. in the latest covent survey 78 say yes now that's up from 63 percent see the bar chart below that answers your next obvious question which is how will your budget be impacted and can you see the distribution of the growth yes there it is you could see the decline 22 percent say no change but the red bars that decline are much bigger than the green bars and that's why we continue to forecast i.t spending declines of five to eight percent in 2020. we think this is even going to spill into the first half of 2020 who knows we'll see if it goes beyond now let's put the cloud in context despite my dire outlook we have to remember that it's all relative this chart shows you know one of our favorite views it plots net score or spending momentum on the vertical axis against the market share on the horizontal axis market share is a measure of pervasiveness in the survey and calculates the penetration of the sector as a percent of the overall survey so what this view tells us is the degree of spending momentum on the vertical axis cloud is elevated relative to other sectors that we're showing here and it shows the penetration of cloud in the data set on the horizontal axis so cloud shows spending momentum and high penetration relative to other priorities in i.t note there are dozens of other sectors but we've cherry picked a few here for context to wit other than containers ai and rpa cloud is outpacing all sectors shown for the net score and only analytics bi and big data is more pervasive so cloud very strong no doubt cloud is the place to be but the pandemic has created spending friction even in cloud and what we showed earlier the decline of the the net scores for the big three now again we're still holding here at elevated levels what this chart shows is the sectors of infrastructure as a service that show increasing next net scores relative to the last survey and you can see there are only five areas that show positive increase in net score this is out of dozens and dozens reading the bars left to right you see vmware cloud on aws with a very impressive net score of 66 percent that's up 700 basis points since the last survey next you see red hat open shift with a 44 net score that's up 600 basis points and then vmware cloud which comprises vmware cloud foundation and other hybrid and multi-cloud services from vmware it shows a net score of 42 which is up 400 basis points now after that is red hat openstack yes openstack with a 40 net score up 1200 basis points since the last survey red hat sells and supports its openstack distro now prior to the ibm acquisition red hat would frequently cite openstack as a growth business on its earnings calls and this data confirms that there's actually some momentum there as an example red hat is selling into the telco sector to service providers that want to stand up a private cloud why well the big cloud players may not have a local presence and there may be a data sovereignty requirement in that country you know that's just one example and then finally on the chart we have oracle now for sure there's some sas in there and you know oracle's net score is really not inspiring at 12 percent but it's up from the last survey so these are the only five areas showing net score expansion from the last survey we're talk which talks to the impacts of covid that we discussed earlier now let's take a look at a more granular set of data that cloud services and how they stack up what we show here are the top ten cloud services measured by net score or spending momentum this is for the july survey of respondents the first point is these are solid net scores so while i'm a bit of a davey downer today these are very strong relative to most other parts of the technology stack most companies would kill to have this type of momentum you see azure functions and azure platform they lead the pack but look at vmware cloud on aws we've seen this popping up showing strong in recent surveys and it's gaining presence and momentum in the data set then there's aws lambda you know functions or serverless this remains strong as you can see it does google functions and there's aws that's the aws overall and even though it's a bit off in net score terms from previous quarters as we'll talk about in a moment this is a 40 billion dollar business with net scores that remain elevated remember the net scores they can't grow to the moon they're going to fluctuate and the larger the base the harder it is to maintain high net score so this is very very impressive for aws google cloud platform is next and you know frankly i'd like to see stronger net scores from google gcp is around an eighth of the size of aws yet aws still maintains a notably higher net score in each survey google continues to struggle with selling into the enterprise now look at the last three in the chart you know cloud purists like aws might say that these hybrid or multi-cloud services aren't in a real cloud you know but to me this is a customer survey if the customer says their cloud i'm gonna go with that now forgetting about the semantics here the point is we've been talking about hybrid and multi-cloud for a while and we see vmware and red hat with openshift two companies that we've predicted are in a strong position to compete for hybrid and multi and they're showing up on customers spending radar i should also mention that microsoft is also a leader if not the leader in hybrid multi-cloud because it has a massive public cloud presence and numerous relevant services particularly in the hybrid space but they don't show up necessarily as discrete services in the etr taxonomy but they are in the numbers for sure probably just peanut butter spread over a number of categories now let's put this into context here's our old friend the xy graph it's one of our favorites this time we show specific named vendors in cloud on the x and the y axis axis is net score or spending velocity and the x axis is market share or pervasiveness so as usual we see aws and azure separating from the pac this is such a huge market it's really not a winner takes all space you know maybe not even a winner takes most and as you can see in the players that we've highlighted in the hybrid multi-zone you got you know google's kind of on that bubble but any player here with a net score above 40 percent in the green as you can see in the upper right hand corner is doing well red hat vmware cloud google and and look at vmware cloud on aws this service is getting a lot of traction and it better given the effort that both companies have put behind this aws has created a special bare metal instance to run this service on its cloud vmware talks about aws as its preferred partner this has been a winner for both companies aws gets access to a half a million vmware customers and vmware gets a really solid cloud play look where this goes in the future it's going to be interesting to watch when this service was announced several years ago it didn't take long for aws to also announce its vmware migration services but for now it's a win-win for the companies and a win for the customers now for context we've included both oracle and ibm cloud services and you can see where they stand relative to the rest they're not setting the world on fire but hey as i've said many times they at least are in the cloud game and importantly both companies are in a good position to migrate their customers mission critical workloads to their own respective clouds all right i want to wrap by looking at the big three performance this quarter as has been our custom we like to share our estimates of how the big three u.s cloud players stack up from a revenue standpoint this chart shows our is and pas revenue estimates for aws azure and google cloud platform the data shows 2018 19 2019 growth and the first two quarters of 2020 with a trailing 12-month view and here are the key points now as always remember aws reports clean numbers the others we have to squint through 10ks and 10qs and triangulate with survey data to come up with the reasonable apples to apple's estimate in comparison first point aws is now 40 billion wow combined the big three now account for nearly 70 billion dollars in is and pass revenue you know that's more than a sizable chunk of the data center business which is not all this hasn't been necessarily incremental growth to the it market there's been a share shift going on in other words that share shift is going from on-prem into the cloud now the third point is growth is strong but not surprisingly the bigger you get the slower the growth rate rate in 2018 aws revenue was 2.7 times greater than that of microsoft for the first time however aws revenue has dropped below 2x that of microsoft said another way microsoft's is revenue is now about 57 of aws's revenue google's growth rate at its size appears to be lagging where aws and azure's growth was at earlier points in their respective journeys for example when aws put up nearly 8 billion in 2015 in revenue it grew over 70 percent that year azure as you can see at 16 billion in 2019 grew at 65 percent now google grew 72 last quarter and 59 this quarter so you know it's no slouch but it's size with its but it's at its size with its resources we'd like to see google pick up the pace and you may have to wait until post covid but despite the coveted headwinds in the overall it market there's no question that this is a cloud world and we just happen to live in it [Music]

>> fly from San Francisco. It's the Cube covering Google Cloud. Next nineteen, right Tio by Google Cloud and its ecosystem partners. >> Welcome back to Google Cloud next twenty nineteen Everybody, you're watching The Cube. The leader in live tech coverage. My name is Dave Volonte, and I'm here with my co host Stew Minutemen. John Ferrier is also here. Three days of wall to wall coverage of Google's Big Cloud Show customer event this day to a Shook Ramu is here is the vice president of Cloud and Customer Active Fio Boston based Great to see you again. Thanks for coming on to be here. So big show Active fio Category creator. Yeah, right. Yeah, drying it out. Battling in a very competitive space. Absolutely. Doing very well. Give us the update on what's going on with your company. So first >> to follow your super excited to be here Google next, right with one of the strategic partners for Google been working well in all departments. He had a great announcement. Today we announced active field goal for Global Bazaar SAS offering on it's dedicated to the Google platform. We want tohave the activity of experience be that much more better and easier for people running data sets anywhere, particularly in Google. So and Google has been one of our premier partners over the last, I would say three years or so we've gone from strength to strength, so very happy to be here and super excited to be launching this offering. You >> guys started active, Theo. It was clear you saw market beyond just back up beyond just insurance. You started to develop you populist copy data management. That term, everybody uses that today you sort of focused on other areas Dev offs, analytics and things of that nature. How is that gone? How is it resonated with customers? Where you getting the most traction today? >> So great question. I mean, it's gone really well, right? We've kind of been the leader, like you said, setting up the category and basically changing the way that it has looked at and being managed right data now, as a commodity is no longer a commodity. But it's an asset and we're kind of enabling companies to leverage that as it in many different ways on a cloud is here. Everybody wants to go to the cloud. Every customer we talked to every prospect we touch. Want to leverage Cloud And Google is coming in with a lot of strength, a lot of capabilities. So what we're building in terms of data transformation the data aware application of where technologies we have is a resonating very well. The devil of space we talked about, you know, is is the tip of the spear. For us, accounts are over seventy percent of our business, you know, And the last I checked, over sixty to seventy percent of our customers are leveraging cloud in some form. I'd be for Del Ops, cloud bursting D r and all of those categories and, you know, having a very strong enterprise. DNA makes his deal with scale very easily take complex applications and make it look simple. And that's been our strength for the past nine years. So we continue to in a way that strengthen work with Google to make the platform even more stronger. >> When, when I think back of those early days you said enterprise architect her it was like, Okay, let me understand that architecture, the building blocks, you know, the software i p that you have, but it's been quite a different discussion I've been having with your your team the last couple of years. Because, as you say, cloud is front and center and not surprising. To hear the devil is a big piece of help. Help us update kind of that journey. And, you know, a full SAS offering today. How you got from kind of the origin to the company, too, You know, a sass offering. Sure, >> right. I mean, we always knew we had a phenomenal product, right? And a phenomenal customers. We have a number of fourteen thousand two thousand customers with us. And you know what we realized is the adoption off. You know, to understand how cloud works and understand how customers can easily manage to cloud, the experience becomes much more important on. So the SAS offering is more about how do you experience the same great active Your technology with the push button is of use. So we enable the implementation installation ingestion of data in a minute. So by the time you're done with the whole process, you're already starting to love respect If your technology in the closet, your choice. An active field goal for Google. Particularly targets ASAP. Hana Sequel and other complex workload. So these workloads are traditionally been in a very infrastructure heavy, very people heavy in terms of managing. And what we've done is to radically transform how you manage those worthless. A lot of organizations and the conversations I've had over the last twenty four hours has been Hana this and Hannah that How do I make on a simple I've heard active you is the way to go for managing a safety. Hannah, how do you guys tackle it? And this is very interesting conversations with a lot of thought leaders who help us not only build a better product at all, it'll be improve the experience that they take it from there. So that's how I I would see the transformation for the company. >> Why? Why is active field make Hana simple? What is it specifically about? You guys >> don't differentiate. You think the great question. So Hana in general has been a very complicated, hard to install, hard to hard to hard to manage application. So what active you brings in is native application technology, right? So we don't go after infrastructure. We don't go after just storage. But we look at the application of the hole. So when you talk application down, we learn the application. We figure out how it works, how it works best, and how does the best way to capture it and present data back, which is what it's all about. And when you start from there, it's a hard problem to tackle, so it takes a little bit of time for us to tackle that problem. But when the solution comes out, it works one way across all platforms. So we've had customers moving data from on crime to the cloud, and they don't see a difference. They used to go left. Now they go right. But as part of the application to thin works, it works the same way a developer, using Hannah is using Hannah the same way yesterday that he was today. Because even though the databases moved from on creme of the club, so that transformation requires the level of abstraction and understanding the application that we have automated and building your engine >> okay, The hard question for data protection data managed folks today is how are you attacking SAS? Most companies that we asked that question, too, is that his roadmap roadmap Maybe that case for you too. But what is your strategy with regard to sass? Because something triggered me when you talked about the application yet and I know Ash knows background systems view application view has always been his expertise, your company's expertise. How eyes that opportunity for you guys. Is it one that you're actually actively pursuing? If so explain. If not, why not? Is it on the road map? >> So it's certainly an opportunity of pursuing and, you know, working with a number of sass vendors to figure out again a sense of, you know, where is the critical data mass? SAS is a number of components toe and essence off. Any particular application is you know, where is the workload? What is the state machine and how do you manage it? That's the key element. And once you tackle that, the fast application is like any other applications. So we have, you know, people working with us to build custom connectors for, like, office three, sixty five and other other elements of sass products. So as time of walls, you'LL see us, we'LL start working. We'Ll have announcements for the Cloud sequel and other Google platform of the service offerings. Amazon Rd s Those offerings are coming, and we will be basically building the platform. And once the platform comes just like active you has done, we will tackle the SAS applications. One >> of the first technical challenge. It's Roma business challenges. >> It's a business challenge. And you know, for us we have to focus on where the customers want to go, where the enterprise customers wanna go. And Stass at this point is, I would say, emerging to be a place where Enterprise wants to adopt it out of scale that they want adopted. So we're certainly focusing on that. >> And I think there's a perception to stew that, well, the SAS vendor there in the cloud, they got my data protected so good. >> Yeah, well, we know that's not the case that they need to worry about that. >> And I said, I said protected and that's not fair to you guys because >> I was a little, >> much wider scale. >> So But, you know, we were talking about ASAP, and we've watched some of these, you know, big tough application, and they're moving to the clouds. There's a lot of choices out there. You've announcement specifically about Google. What can you tell us about why customers are choosing Google? And if you have any stories about joint Google customers that you have love, >> I would say, Let's start off. You know, I would thank Google because it's one of the key partners for us. You've done over many, many million dollars last year, and we want to double the number of this year right on. It's been all the way from companies that have fifteen to twenty PM's two companies that have twenty thousand, so it spans the gamut. You know, from an infrastructure perspective, Google is the best of the brief. Nobody knows infrastructure computer memory better than Google. Nobody knows networking better than Google. Nobody knows security better than moving. So these are the choices. Why Enterprises? Now we're saying OK, Google is a choice. And as I see on the field flow today, last year was, I have a project. Maybe gold this year is how do I do ABC with gold So the conversations have shifted off. Should I do Google? Worse is how do I do ABC with Google and then you marry active use technology, which is infrastructure agnostic we don't care their application runs. And with that mantra you marry that Google infrastructure. It creates a very powerful combination for enterprises to adopt. >> So just as the follow ups that when we talk to customers here, multi cloud is the reality. So how does that play into your story? And where do you see that fit? >> We were always built multi cloud. So right from day one active use platform architecture Everything has been infrastructure diagnostic. So when you build something for Veum, where or Amazon it works as is in group. And with the latest capabilities on Claude Mobility that be announced a few months ago, you Khun move data seamlessly between different cloud platforms. In fact, I've just chosen in active field Iran be its de facto data protection platforms on all my old life. So you could hear. I know activity also being supporter Nolly Cloud s so that we'll be the only floor platform that is the golden standard to protect complex works lords like a safety nets. >> You mentioned you have a team in in Hyderabad. What? What are they working on? Is it sort of part of the broader development team? Your cloud Focus, Google Focus. What's >> the team in Hyderabad is very much integrated to our engineering team out of Boston. So, you know, they're basically equivalent. We all work together collaboratively. The talent in Hyderabad is now building a lot off our cloud technologies. And the spell is the emerging Technologies s. So we've been able to staff up a very strong team instead of very strong partner. Seems to kind of help us argument what we have here. So leave. Leaders here are basically leveraging. The resource is in Hyderabad kind of accelerate the development because, like, you know, there's never started to work. >> Okay, so you're following the sun and that and that and that the talent pool in that part of India has really exploded. You've seen that big companies hold all the club providers All the all the new ride share companies for their war for talent. Isn't there exactly good? So talk road map a little bit. What could we expect going forward, You know, show us a little leg, if you would. >> So you can see a lot more announcements around activity ago for Google will be enhancing the experience around, you know, adapting and ingesting ASAP and sequel, etcetera. You'LL be looking at a lot of our SAS integration offerings that are coming out. You talk about obviously sixty five Cloud Sequel Amazon RD s Things like that. We'LL have a migration sweet to talk about. How do you How do you ingest and manage communities? Containers? Because that's becoming a commonplace today, Right? How do you How do you tackle complex container in nine minutes? Micro Services. That's a maybe a focus for us and continue to, you know, build and integrate further into the application ecosystem. Because these applications not getting simpler ASAP is continuing to build more complex applications. How do you tackle that? The words road map and keep up with it. That's going to be what we going to be focusing on. >> So active Diogo. We talked about that a little bit. That's announcement here. That's that's your hard news. Yes, it's went to chipping, and once it available >> to go, it's a sass offering, so there's nothing to ship you know so well. Actual SAS pricing model. It's an actual SAS pricing model, fast offering one click purchase. Was it busy installed? So yes, >> Stewie's laughing because so many sass is, aren't a cloud pricing >> three years but only grow up? Can still nod. >> It's not an entity for reporting. It's not an entity that just gives you a bunch of glamour screens. It is actually taking your Hannah workloads and giving it to you for data protection, backup, disaster recovery. So it is. It is true active feel, the time test addictive you and a price product now being off for this test. So >> and how are you going to market with that product? >> So we have a number of vendors, this fellow's Kugel partners here. I get work with them to tow and to kind of generate the man and awareness. So this has been in works for over six months now, So it's not something that came out of the blue, and we've been working with Google in formulating the roadmap. For us, it is >> the active ecosystem looking like these days. How is that evolving? >> It's it's it's It's, um I would say, you know, the customers are the front and center of our ecosystem. We've always built a company with customers first mentality, and they drive a lot of our innovation because They give us a lot of requirements. They reach us in different angle. So they've helped us push the cloud road map. They've helped us push to the point where they want faster adoption. Is that adoption? And that's kind of where we're going, how the ecosystem is now still around enterprises. But the enterprise is tryingto innovate themselves because now data is that will be available. Eso abject with large financial institutions. GDP are so these are all the requirements and they're throwing at us. Okay, you can manage data. How do you air gap it? How do you work with object storage? How do you work with different kinds of technologies? They wanna work with us. And, you know, we've always stepped up to the plate saying, Sure, if it's a new piece of technology that we feel is viable and has the road map will jump at it and solve the problem with you. And that's always been the way of you the partner and growing the company >> you mentioned Air Gap. Some we haven't talked about this week is ransom. Where we talk about most most conferences. It's it's one of those unpleasant things that's a tailwind for companies like >> bank. Right. And we have an offering on ransomware rights. If you look at cyber resiliency, we're the only product in town Where and if you're hit by Ransomware, you can instantly the cover and say, Oh, my ransom or hit me on the seventeenth January, anything after that is gone. But at least I can get to seventy the January and sought my business up. Otherwise, everything else every other product out that this will take weeks or months to figure it out. So, you know, that's another type of a solution that came up. Not there, not there. Not happy about handsome. Where? But that does happen. So we have a solution for the problem. >> Thanks so much for coming in the cubes. Have you >> happy to be here? >> So we'LL see you back in Boston. All right, All right. Thanks. Thanks for watching everybody, This is the cube Will be here tomorrow Day three Student A mandate Volante and John Furrier Google Next Cloud Big Cloud Show We'LL See you tomorrow. Thanks for watching

(dramatic music) >> Live from San Francisco. It's theCUBE, covering IBM Think 2019. Brought to you by IBM. >> Welcome back to theCUBE. We are live at IBM Think 2019. I'm Lisa Martin with Dave Vellante. We're in San Francisco this year at the newly rejuved Moscone Center. Welcoming to theCUBE for the first time, Jozef de Vries, Director of IBM Cloud Databases. Jozef, it's great to have you on the program. >> Thank you very much, great to be here, great to be here. >> So as we were talking before we went live, this is, I was asking what you're excited about for this year's IBM Think. >> Yeah. >> Only the second annual IBM Think. >> Right. >> This big merger of a number of shows. >> Sure, you're right. >> Day minus one, team minus one, >> Yeah. >> everything really kicks off tomorrow. Talk to us about some of the things that you're working on. You've been at IBM for a long time. >> Mmm hmm. >> But cloud managed databases, let's talk value there for the customers. >> Yeah, definitely. Cloud managed databases really, at its core, it's about simplifying adoption of cloud provided services and reducing the capital expense that comes along with developing applications. Fundamentally what we're trying to do is abstract the overhead that is associated with running your own systems. Whether it's the infrastructure management, whether it's the network management, whether it's the configuration and deployment of you databases. Our collection of services really is about streamlining time to value of accessing and building against your databases. So we are really focused on is allowing the developer to focus on their business critical applications, their objectives, and really what they're paid for. They're paid to build applications, not paid to maintain systems. When we talk about the CIO office, the CTO office, they are looking at cost, they're looking at ways to reduce overall expenditures. And what we're able to provide with cloud managed databases is the ability not to have to staff an IT team, not to have to maintain and pay for infrastructure, not have to procure licenses, what have you, everything that goes into standing up the managing those systems yourself, we provide that and we provide the consumption based methods. So you basically pay for what you use, and we have various ways in which you can interact with your databases and the charges that are associated with that. But it really is again about alleviating all of that overhead and that expense that is associated with running systems yourself. >> 15 years ago, you're back to, before you started with IBM, >> Yeah. >> There was obviously IBM DB2, Oracle, SQL Server, >> SQL Server. >> I guess MySQL is around >> Mm hmm. >> back then, LabStack was building out the internet. But databases are pretty boring >> Yeah. >> back then. And then all of a sudden, it exploded. >> Right. >> And the NoSQL movement happened in a huge way. >> Mm hmm. >> Coincided with the big data movement. What happened? >> Yeah, I think as we saw the space of this technology evolve, and a variety of different kind of use cases cropping up. The development community kind of respond to that. And really what we try to do with our portfolio is provide that variety of database technology solutions. To me, not any number of different use cases. And we like to think about it broken down into two categories. Your primary data stores. This is where your applications are writing and reading the data that has been stored. And then particularly to your point, this is where we call the auxiliary data services, for example. These are your in memory caches, your message brokers, your search index, what have you. There is a plethora of different database technologies out there today that plug into any number of different use cases and application developers are attempting to fill. And more often than not, they're using more than one database at a time. And really what we're trying to do at IBM with our cloud managed database offering is provide a variety of those data services and database technologies to meet a variety of those use cases, whether they're mixing and matching, or different kind of applications workloads or what have you. We'd like to provide our customers with the choices that are out there today in the community at large. >> So many choices. >> Yeah. >> Am I hearing that its kind of horses for courses? I mean, you get things like, even niches like Cumulo with fine grain security. >> Yeah. >> Or Couchbase, obviously. >> Mm hmm. This one scales. And then this one is easy to use. You take Mongo, for text, really easy to use >> Yeah exactly. >> Sort of different specialized use cases. How do you squint through, and how does IBM match the right characteristics with the right technology? >> It's really, it's two-pronged. It's about understanding the user base. Understanding and listening to your customers. And really internalizing what are the use cases that they are looking to fulfill? It's also being in tune with the database technology in the market today. It's understanding where there are trends. Understanding where there are new use cases cropping up. And it's about building a deep enough engineering operations team where we can quickly spin up these new offerings. And again provide that technology to our end customers. And it's about working with our customers as well. And understanding the use cases and then sometimes making recommendations on what database technology or combination of databases would be best suited for their objectives. >> I'm curious. One of the things that you mentioned in terms of what the developer's day-to-day job should be, is this almost IBM's approach to aligning with the developer role and enabling it in new ways? >> It is really about, I think, having sympathy in delivering on solutions in regards that is simply for the pains that they had otherwise endured 10, 15 years ago. When the notion of cloud managed anything really wasn't a thing yet. Or was just starting to emerge. IBM in houses runs their own systems for years and years obviously and the folks on my team, they have come from other companies, they know that the pain, what pain is involved in trying to run services. So like I said it's a little bit out of sympathy, it's a bit out of knowing what your users need in a cloud managed service. Whether again it's security, or availability, or redundancy, you name it. It's about coming around to the other side of the table and I sat where you once sat. And we know what you need out of your data services. So trusting us to provide that for you. >> How are the requirements different? Things like recovery and resiliency. Do I need asset compliance in this new world? May be you could. >> Yeah. It's funny, that's a good question in that we don't necessarily deal so much with database specific requirements. Again as I mention we try to provide a variety of different database technologies. And by and large the users are going to know what they need, what combinations that they will need. And we'll work with them if they're navigating their way through it. Really what we see more the requirements these days are around the management characteristics. As you cited, are they highly available? Are they backed up? What's your disaster recovery policy? What security policies do you have in place? what compliance, so on and so forth. It's really about presenting the overall package of that managed solution. Not so much, whether the database is going to be high available verses consistent replication or what have you. I mean that's in there, and it's part of what we engage with our customers about, but also what we'd like to put a lot of emphasis is on providing those recognized database technologies so that there is a community behind and there's opportunity for the users to understand what it is that they need beyond just what we can sell them. It's really about selling the value proposition of again, the management characteristics of the services. >> So who do you see as the competition? Obviously the other big, the two big cloud providers, AWS and Azure. >> Yep. >> You're competing with them. >> Definitely. >> Quality of offerings. May be talk about how you fit. >> And Google's another one. Or Oracle is another emerging one. Even Alibaba is catching up quite a bit. It really feels like a neck-to-neck race in our day after day. The way we try to approach our portfolio is focusing on deep, broad and secure. Deep being that there're a core set of database technologies. We're building the database itself. Db2, Cloudant which is based off of Couchbase. Excuse me, CouchDB. And then broad. Again as I've been mentioning, having a variety of different database technologies. And they're secure across the board. Whether it's secure in how we run the systems, secure on how we certify them through external compliance certifications. Or secure in how we integrate with security based tooling that our users can take advantage of. Regarding our competitors, it really is one week it may be a new big data at scale type of database technology. Another day it may be, or another week it might be deeper integrations into the platform. It might be new open source database technologies. It might be a new proprietary database technology. But we're, it's a constant, like I say, race to who got the most robust portfolio. >> Developers are like teenagers. They're fickle. >> Yeah, that too, that too. We got to be quick in order to respond to those demands. >> In this age of hybrid multi-cloud, where the average company has five plus private cloud, public cloud, through inertia, through acquisition, et cetera. Where's IBM's advantage there as companies are, I think we heard a stat the other day, Dave, that in 2018, 80% of the companies migrated data and apps from public cloud. In terms of this reality that companies live in this multi-cloud, where is IBM's advantage there? And where does your approach to cloud managed services really differentiate IBM's capabilities? >> Really there's, for the last couple of years, a tremendous amount of investment on building on the Kubernetes open source platform. And even in particular to our cloud managed database services, we have been developing and have been recently releasing a number of different databases that run on a platform that we've developed against Kubernetes. It's a platform that allows us to orchestrate deployments, deletions of databases, backups, high availability, platform level integrations, all, a number of different things. What that has allowed us to do when concerning a hybrid type of strategy is it makes our platform more portable. So Kubernetes is something that can run on the cloud. It can run in a private cloud. It can run on premise. And this platform we're developing is something that can be deployed, which we do today for private, public cloud consumption, which can also be packaged up and deploy into a private cloud type environment. And ultimately it's portable and it's leveraging of that Kubernetes technology itself. So we're not hamstringing ourselves to purely public cloud type services, or only private cloud type services. We want to have something that is abstracted enough that again it can move around to these different kind of environments. >> How important is open source and how important is it for you to commit to the different open source projects? There are so many, >> Yeah. >> And you have limited resources. So how do you manage that? >> Open source is really critical both in what we're building and what we're also offering. As we've talked about our users out there, they know what they often want or sometimes we nudge them to the right or to the left, but generally speaking it's around all the open source technologies and whatever may be trending for that current month is often times what we're getting requested for. It could be a Postgres. It could be a RabbitMQ. It could be ElasticSearch. What have you. And really we put a lot of emphasis on embracing the open source community, providing those database technologies to our customers. And then it allows our customers to benefit from the community at large too. We don't become again the sole provider of education and information about that technology. We're able to expose the whole community to our customers and they're able to take advantage of that. >> I hear a lot of complaints sometimes, particularly from folks that might list themselves in a marketplace for one cloud or another, that they feel like the primary cloud vendor might be nudging the customer into their proprietary database. What's IBM's position on that? Is that fair? Is that overblown? >> We obviously have proprietary tech, particularly the Db2. And that's something we're continue investing in. It's what we view as one of our strategic top priority database technologies. We are very active developers in the Couch community as well. I wouldn't consider that proprietary, but again back to the point of-- >> CouchDB. You're as the steward of CouchDB. >> Exactly. >> Right. >> Right, exactly. But again, firm believers in open source. We want to give those opportunities to our customers to avoid those vendor lock-in type situations. We actually have quite a lot of interests from our EU customer base. And by and large EU policies are around anti-trust and what have you. They tend to gravitate towards open source technology because they know it's again portable. They can be used in Postgres by IBM one month and if they no longer are satisfied with that, they can take their Postgres workloads and move them into another cloud provider. Ideally they're coming from the other cloud providers onto IBM. >> Well I should be actually more specific, in fairness, Dynamo's often cited. I supposed Google's Spanner although that's sort of a more of a niche, >> Mm hmm. >> specialized database. If I understand it correctly, Db2, that's a hard core transaction >> Sure. >> system. You're not going to confused that with, I don't think, anyway CouchDB. Although, who knows? May be there are some use cases there. But it sounds like you're not nudging them to your proprietary, certainly Db2 is proprietary. CouchDB is one of many options that you offer. >> Certainly Db2 is one of our core products for our database portfolio. And we do want to push our customers to Db2 where-- >> If it makes sense. >> Exactly, where it makes sense. And where there's demand for it. If it doesn't make sense so there's not demand we will offer up any number of the other databases that we also offer. >> Excellent, here's our last question.As >> Sure. >> As IBM Think the 2nd annual kicks off really tomorrow. For this developer audience that you were talking about a lot in our conversation, what are some of the exciting things that they're going to you? Any sort of obviously not breaking news, but >> Mmm hmm. >> Where would you advise the developer community, who's attending IBM Think to go to learn more about cloud managed databases? And how they can really become far more efficient to do their jobs better. >> Sure. Databases are hard, plain and simple. They are particularly hard to run, and developers who are not necessarily database admins, they're not database operators, that they want to focus on building the applications, are going to want to find solutions that alleviate that overhead of running those systems themselves. So to your question we've got sessions all throughout the week where we're talking about our Cloudant offerings and the future of where we're going with that. We've got a couple of different sessions around our IBM cloud database portfolio. This is a lot of the open source database technology we're running. We have demos in the solution center and Db2's strided all around the conference as well. So there's lots of different sessions focused on talking the value proposition of IBM's cloud managed database portfolio across the board. >> A lot of opportunities for learning. Well, Jozef de Vries, Thank you so much for joining Dave and me on theCube this afternoon. >> Thank you very much, it was great. And for Dave Vallente, I am Lisa Martin. You're watching theCube, live from IBM Think 2019. Day 1 stick around. We'll be right back with our next guest. (upbeat music)

>> Live, from Las Vegas, it's theCUBE. Covering AWS re:Invent, 2018. Brought to you by Amazon Web Services, Intel, and, their ecosystem partners. >> Welcome back everyone, live here in Las Vegas, for AWS, Amazon Web Services, re:Invent, 2018. I'm John Furrier with Dave Vellante. Dave, our sixth year covering this event. We've been to all the re:Invents, except for the original one, watched the progress of cloud computing. And it's a lot of new things happening, more compute, more power. We're here with our special guest, RaeJeanne Skillern, who's also known as RJ inside Intel. Vice-President of Data Center Group and the General Manager of the Cloud Service Provider Platform Group at Intel. Good to see you again. >> Nice to see you again. >> The headline on silkenangle dot com right now, "In a blockbuster move, "Amazon jumps into data center with both feet". Which really validates kind of some of the commentary we've been seeing in the queue for many, many years. And our analysts and you guys are involved in the Data Center. Data Center's still going to be a big part of computing. It's not going away. That's your business. >> Yes. >> And the cloud service provider, which is also growing. So, take a minute. >> It is growing, I've been personally covering the public cloud at Intel for a decade. And, when I started I'm not sure I had any concept how big this was going to be. And the one thing that I'm positive about, is we're just still at the beginning. Because every use case you see, all the development, all the IOT, all the business transformation, we're just starting, right. This is a good place to be, but there's more coming. And, if I look at just 2018, I'm a little competitive at work, but we were to proud to announce earlier this year, the end of the summer, that the cloud is now 43% of the Data Center Group's revenue. So, coming from when I started, 10% or something like that little, now to be the number one contributor. And, we, in the first half of the year, had a 43% a year revenue growth. This industry is booming. And I wish I could say it was my hard doing, but I mean, if you come to an event like this, you know why it's growing. >> And the cham is increasing in the total market availability with the cloud, is requiring more and more horsepower. >> Yes. >> You've got IOT Edge, you've got the Data Center, you got the cloud, and software is being written, specifically to take advantage of something. So, huge market opportunity, still. >> Yes. >> What are some of the innovations? Take us through a little bit of your mindset on how you guys are attacking this growth, surface area of the market, starting to see specialized things, general purpose, compute is not going away, storage, networking, still very important. You've got FTGAs out there. I mean, amazing amount of opportunities, with innovations. >> You know, you hit so much of it, and I really agree with some of the comments you made. It started off for us, with silicon technology. But, what a lot of people don't know is, we have core computes, network, storage, FPGAs, purpose built accelerators, and we can create custom aesics for any one of our customers. We also have a unique ability to not only just customize, uniquely, but you talked about the many different use cases from Edge to Data Center, it's because every workload demands a different set of technology capability. If you want true optimization at the TCO, per TCO level. And so that's why it's so important for us to work with customers like Amazon, not just to customize one SKU, but many SKUs. We are, and I was surprised at this number, out of our latest Xeon processor, the Intel Xeon scalable processors, there's actually 54 instances, on just that one CPU generation alone, and 51 of those, are from a custom CPU, that were tailored for unique workloads and instance types. So, that's part of it, but you also talked about the software. And, that's another thing, I think people think Intel's the hardware company. OK, we make hardware, we're a huge software company, thousands of engineers. And, what I love about my job, is I built a team and call them the Cloud Ninjas, but they're software and hardware engineers, that go onsite with customers. They, whether it's performance tuning and optimization, or we are co-creating cloud services. New cloud services, with our customers, that innovation, up and down the stack, that's where real innovation can happen. Two heads together, not just one. (laughs) >> So the cloud is now the number one consumer of your technologies. >> Yes. >> There are a lot of misconceptions early on about the cloud. Everybody thought, okay, the cloud is going to be just one big cloud. It's actually quite diverse. It's global in scale, it's a services business, which has always been sort of fragmented and global, despite Amazon's dominance in infrastructure service. The Data Center itself, the players are kind of consolidating, which is kind of interesting. So, how has cloud affected the way in which you guys look at the market, go to market, everybody else thought everything was going to be standard off the shelf components, in the early days of cloud. >> No. >> Now you're driving towards customization. >> No. >> So what's happening there, what are the big ideas. >> I think we've learned a lot along the way, you're right. One of the things, I mean, these cloud service providers are pushing me off the road map. They want more than we can deliver, so that's where we bring so much at hand to do about it. But, I'd say while a lot of big players are getting bigger, the market is still really in a healthy way diversified. The Super Seven, as we call them, the world's largest, they're growing fast, about 35% around the world. The next wave around the world are growing almost as fast, about 25, 27%. Consumer SAS, has been, Twitters, and Facebooks, and Ubers, right, has been a large part of the cloud. It's now 50/50 with business. And they're both growing at the same categories going forwards, so you're going to see the diversity. Not just big players, but also small. Not just consumers, but business services. And then that's spanning a lot of global growth, and a lot of, if you see the wall of logos in any Amazon presentation, it's because they have partners all over the world. >> RaeJeanne, I want to get your perspective. I talked about this a couple years ago on theCUBE, about the power law of distribution of cloud providers, the top of the head is the big guys, then kind of narrows down. But then I was predicting a cloud service provider market was going to expand and I want to get your thoughts cause that's kind of happening now, you're kind of saying. But I want to get specific on this. You got core cloud, Amazon's of the world. Then you've got hybrid cloud, kind of Data Center. Then you've got the business cloud, business SAS. >> Business SAS. >> Sales force, Twitter, you mentioned those guys. >> Uh huh. >> They run clouds. Enterprises are now going to be cloudified, with commonality. >> Multi-cloud road. >> This is changing the nature of the business. Do you see it that way, talk about this business cloud, it's not competing with core cloud, it's just an expansionary. >> It's so interesting because there is certainly some competition or cannibalization within the cloud. But what I tend to see is, whichever part of this, because you'll hear a Business SAS company, some of it's running in the cloud, some of it's running on their own premises. They're doing that for a reason and both are growing. And then you talk about infrastructure service, but what really happens, especially we another rise moves their business into the cloud, there is just some part of it, just moved A to B, but what we're finding is about 30% of it is TAM expansive, because there are things when you move to an Amazon, or you move to another cloud service provider, take a mature SAS provider, they're just things that they can do that you never would have been able to do in your own IT shop. So, that's driving TAM expansion on top of it. That's also creating a lot of new market entry points, for new businesses to come in and innovate around. Security offerings, verticalized offerings, geo-based specialized offerings. So, yes, there's some friendly competition, but even when I ask somebody who would say, they might be the little challenger to a big infrastructure service player, they say but you know what, we actually get so much business by working with them too, it's hard for me to say, are they competition or a partner, right. That's the industry we live in. >> Co-creation, you mentioned that earlier, a big part of it. >> And the other big TAM expander is you've got the data, you've got AI, machine learning. >> Yes. >> You've got the cloud for scale and then you've got Edge. >> Yeah. >> These are not, it's not a zero sum game, where you're moving stuff from the Data Center into the cloud, these are all incremental. >> New. All new. >> So what are you seeing there? >> Yeah, I'm really excited about the Edge. For me, it kind of feels like that next, uncharted frontier, everybody's investing, everybody's doing amazing things. We're getting the 5G out, we're getting better technologies, we're learning how to store data, and move it faster, quicker, and cheaper. We're getting set up, but the use cases are just yet to be really fully defined. And I'll be honest, when I look at my market modeling, over the next five to 10 years, I always put a little disclaimer, this does not comprehend what's going to happen when billions of devices come online, when we activate. So I think when people say, it's a cloud, it's been going so fast it's going to just slow down. Why? Because innovation's not stopping. >> I think you hit the nail on a point we try to clarify on theCUBE here, is that a lot of people are misunderstanding what a cloud is, and about cloud service providers. As it grows, it's a rising tide floats all boats, so everyone tries to squint through, they're winning and a market share there. It's a different game changing, so that's a great point. I want to, as we get ready to end this segment here, give you a chance to talk about the relationship with Intel. You guys, again, cloud service provider is growing. Big part of your business. But you guys have been working with Amazon, for a long time, talk about the relationship between Intel and AWS. >> Yeah it is, it's a privilege, to be able to. The folks at a company like Amazon, and specifically the ones at Amazon I work with, they have the ability, obviously, to track some of the most amazing talent in the industry. And these people move fast. And, they have a lot of choice. You can either be there with them, ahead of them, and do the customization and differentiate them, and give them what they need. Or, they're going to leave you in the dust. So, I'd like to say we have a great partnership, because they've given us the honor over 12 years. We have so many, from the Data Center, to the Edge, the car, the racer car, deep lines. So many things we're doing together, Stage Maker, Machine and Deep Learning. But it's a, if we slow down, even for a bit, we're going to get left behind. So my job is to just keep running and trying to get ahead of them. And every time I think I get there, they come and poof. But, we're working together. It's a great, challenging partnership. But one that I can guarantee there's better innovation, from Intel, coming out of it, because of getting the opportunity to work with Amazon. >> And you guys are contributing to them too. It's a good win, win scenario. >> I believe so. They've said some really nice things about us, so, about our processing technologies. Our products, seven generations of our products, we're in every availability zone, every instance frame. We've got a great position. >> Well, congratulations on the business performance, I love the Cloud Service Provider expansion, love the Data Center focus, that's really relevant. And acknowledging by Amazon, that's good news to see. And, just stuff. Thank you guys for your partnership with theCUBE. >> Yeah, thank you. >> Here at theCUBE, Intel Cube. Intel is a big sponsor of theCUBE, we really appreciate that. I'm John with Dave Vallante. Stay with us for more AWS coverage re:Invent, our sixth year in a row, covering all the action. All the value being created. Stay tuned for more after this short break. (techno music)

(techy music playing) >> Hey, welcome back, everybody. Jeff Frick here at the CUBE, we're in our Palo Alto Studios for a CUBE Conversation. You know, it's kind of when we get a break, we're not at a show. It's a little bit quieter, a little calmer situation so we can have a little bit different kinds of conversations and we're excited to have our next guest and talk about a really important piece of this whole cloud thing, which is not only do you need to turn things on, but you need to also turn them off and that's what gets people in trouble, I think, on the cost comparison. We're joined by Krishna Subramanian, she is the co-founder and COO of Komprise, welcome. >> Thank you, thanks for having me on the show. >> Absolutely, so just real briefly for people that aren't familiar, just give them kind of the overview of Komprise. >> Komprise is the only solution that provides analytics and data management in a single package and the reason we started the company is because customers told us that they're literally drowning in data these days. As data for print continues to grow, a lot of it is in unstructured data and data, you know, what's unique about it is that you never just keep one copy of data because if your data is lost, like if your child's first year birthday picture is lost you wouldn't like that, right? >> Jeff: Do not bring that kind of stuff up in an interview. (laughs) We don't want to talk about lost photographs or broken RAID boxes, that's another conversation, but yes, you do not want to lose those pictures. >> So, you keep multiple copies. >> Right, right. >> And that's what businesses do. They usually keep a DR copy, a few backup copies of their data, so if you have 100 terabytes of data you probably have three to four copies of it, that's 400 terabytes and if 70% of that data hasn't been touched in over six months 280 of your 400 terabytes is being actively managed for no reason. >> Jeff: Right, right. >> And Komprise analyzes and finds all that data for you and shows you how much you can save by managing it at lower cost, then it actually moves and archives and reduces the cost of managing that data so you can save 70% or more on your storage. >> Right, so there's a couple components to that that you talked about. So, break it down a little bit more. One is how actively is the data managed, how hot is the data, you know, what type of storage the data is based on, its importance, its relevance and how often you're accessing it. So, one of the big problems, if I heard you right, is you guys figure out what stuff is being managed that way, as active, high value, sitting on flash, paying lots of money, that doesn't need to be. >> That's exactly right, we find that all the cold data on your current storage... We show you how much more you're spending to manage that data than you need to. >> So, how do you do that in an environment where, you know, that data is obviously connected to applications, that data might be in my data center, it could be Amazon or could be at GCP, how do you do that without interfering with my active applications on that data, because even though some of it might be ready for cold storage there might be some of it, obviously, that isn't. So, how do you manage that without impacting my operations? >> That's a great question, because really, you know, data management is like a good housekeeper. You should never know that the housekeeper is there, they should never get in the way of what you're doing, but they keep your house clean, right? And that's kind of what Komprise does for your data, and how do we do that? Well, we do that by being adaptive. So, Komprise connects to your storage just through open protocols. So, we don't make any changes to your environment and our software automatically slows itself down and runs in the background to not interfere with anything active on your storage. So, we are like a good partner to your storage. You don't even know we're there, we're invisible to all the active work and yet we're giving all these important analytics and when we move the data, all the data looks like it's still there, so it's fully transparent. >> Okay, you touched on a couple things. So, one is how do you sit there without impacting it? I think you said you partner with all the big data, or excuse me, all the big storage providers. >> Krishna: Yes. >> You partner with all the three big cloud providers, just won an award at re:Invent, congratulations. >> Krishna: Thank you. >> So, how do you do that, where does your software sit, does it sit in the data center or does it sit at Amazon and how does it interact with other management tools that I might already have in place? >> That's a great question, so Komprise runs as a hybrid cloud service, and essentially there is a console that's running in the cloud, but the actual analysis and data movement is done by virtual machines that are running at the customer's site and you literally just point our virtual machine at any storage you have and we work through standard protocols, through NFS, SMB CIFS, and REST S3, so whether you have NetApp storage or EMC storage or Windows File Servers or Hitachi NAS or you're putting data on Amazon or Azure or Google or an object storage, it doesn't actually matter. Komprise works with all those environments because we are working through open standards, and because we're adaptive we're automatically running in the background, so it's working through open standards and it's non-intrusive. >> Okay, and then if you designate that some percentage of this storage does not need to be in the high, expensive environment, you actually go to the next step and you actually help manage it and move it, so how does that impact my other kind of data management procedures? >> Yes, so it's a great question. So, most of the time you would probably have some DR copy and some backups running on your hot storage, on your flash storage, say, and you don't want to change that and you don't want users to point anywhere else, so what Komprise does is it takes the cold data from all that storage and when it moves that data it's fully transparent. The moved data looks like it's still there on that storage, it's just that the footprint is reduced now, so for 100MB file you just have a one kilobyte link on that storage, and we don't use any stub files, we don't put any agents on the storage, so we don't make any changes to your active environment. It's fully transparent, users and applications think all the data is still there, but the data is now sitting in something lower cost and it's dynamically managed through open standards, just like you and I are talking now and I don't need a translator between us because we both understand English. >> Jeff: Right. >> But maybe if I were speaking Japanese you might need a translator, right? >> Jeff: I would, yeah. (laughs) Yes. >> Krishna: That was just a guess, I didn't know. So, that's kind of how we do it, we work through the open standards and in the past solutions were... We didn't do that, they would have a proprietary protocol and that's why they could only work with some storage and not all, and they would get in the way of all the access. >> But do I want it to look like it looked before if in fact it's ready to be retired into cold storage or Glacier or whatever, because I would imagine there's a reason and I don't know that I necessarily want the app to have access. I would imagine my access and availability of stuff that's in cold storage is very different kind of profile than the hot stuff. >> It depends, you know, sometimes some data you may want to truly archive and never be able to see it live. Like, maybe you're putting it in Glacier, and you can control how the data looks, but sometimes you don't want to interrupt what the applications are doing. You want to just go to a lower cost of storage, like an object storage on-premise. >> Right. >> But you still want the data accessible because you don't want a vague user and application behavior. >> Jeff: Right, right. >> Yeah. >> Okay, so give us a little bit more information on the company. So, you've been around for three years. We talked a little bit before we turned the cameras on, you know, kind of how many people do you have, how many customers, how many rounds of funding have you guys raised? >> Komprise is growing rapidly. We have about 60 people, we have a headquarters in Campbell, California, we also have offices in Bangalore, India. We just hired a new VP of worldwide sales and we're putting field sales teams in different regions, we have over 60 customers worldwide. Our customer base is growing rapidly. Just this last quarter we added about four times the number of customers, and we're seeing customers all the way from general mix and healthcare to big insurance and financial services companies, anywhere where there's data, you know. Universities, all the major research universities are our customers and government institutions, you know, state and local governments, et cetera. So, these are all good markets for us. >> Right, and you said it's a services, like a SAS model, so you charge based on how much data that's under management. >> Yeah, we charge for all the data that's under management and it's a fraction of what you pay to store the data, so our cost is like less than half a penny a gig a month. >> Right, it's pretty interesting, you know, we just got back from AWS re:Invent as well, over 40,000 people, it's bananas. But this whole kind of rent versus buy conversation is really interesting to me, and again, I always go back to Netflix. If anybody uses a massive amount of storage and a massive amount of network and computing where they own like, I don't know, 50% of the Friday night internet traffic, right, in the States is Netflix and they're still on Amazon. I think what's really interesting is that if you... The flexibility of the cloud to be able to turn things on really easily is important, but I think what people often forget is it's also you need to turn it off and so much activity around better managing your investment and the resources at Amazon to use what you need when you need it, but don't pay for what you don't need when you don't, and that seems to be, you know, something that you guys are right in line with and consistent with. >> Yeah, I think that's actually a good way to put it. Yeah, don't pay for data when you don't need to, right? You can still have it but you don't need to pay for it. >> Right, well Krishna, thanks for taking a few minutes out of your day to stop by and give us the story on Komprise. >> Yeah, thank you very much, thanks for having me. >> All right, pleasure, she's Krishna, I'm Jeff, you're watching the CUBE. We're at Palo Alto Studios, CUBE Conversation, we'll see you next time, thanks for watching. (techy music playing)

>> Is about what our youth is, and who we are today as a country, as a universe. >> Narrator: Congratulations, Reggie Jackson. You are Cube alumni. (gentle music) Live from Silicon Valley it's The Cube covering Google Cloud Next '17. (upbeat music) >> Hi, welcome back to The Cube's coverage of Google Next 2017 happening in San Francisco. We're shooting live from our 4,500 square foot here in Palo Alto in the heart of SiliconANGLE. Happy to welcome back to the program, I guess we haven't had him for a little while, but one that we know quite well, Ron Bianchini who's the CEO of Avere. Thanks for joining us. >> Thanks for having me. >> All right, so Ron, for our audience, why don't you give us the update? What's happening with Avere the company itself, and what brings you guys, which I think of you, no offense, you guys are infrastructure company I think of on there. How does cloud fit into the whole discussion you guys are having, and your customers? >> That's great, great segue. So, we started out as an infrastructure company and really what Avere learned to do, our whole IP, actually let me start this way. We started in 2008. Think about where the world was in 2008. People were trying to figure out how to get flash into the data center. And what we did is we came up with a storage system, a NAS server, that knew about two types of storage. It knew that there was very high performance nearby precious flash storage, but that big bulk storage, much cheaper, 1/10 the price disk was a high latency away. And we're able to take that solution, and we started out in the data center, we went after very high performance applications, but showed how you could do it at very low cost. >> It's great, nine years later, I mean, storage is infinite and free, right? >> That's right. The good news for us is the world is very much in the same place. The cost delta between flash and disk has stayed at 10 to one. Both have gotten a lot less expensive, but that difference between the two has stayed. It turns out a solution that knows how to use local high performance flash and store big bulk data at high latency away is an ideal solution for the cloud. And really what we're helping customers now is we're helping customers that are in the data center, in the Enterprise data center, we're helping them adopt cloud. And it works two ways. We support the gateway model where you can keep your compute on-prem and put your big bulk storage in the cloud, and we enable that model without seeing any delta, any change in performance or availability. But we also do the opposite of that, we enable customers to put their compute out in the cloud, and now the big bulk capacity could either stay in the cloud or could be on-prem. So really, I think about us as an enterprise data center play, just like you said, but now we're helping customers take baby steps and slowly adopt the cloud. >> All right, so terms I heard from Google this week, they talked about building the planetary scale computer. They talked about Google Spanner which gives us global, the time synchronization across the globe, the things that those of us with storage backgrounds, it's like, boy these are big, heavy challenges. >> Ron: Big words, right. >> Talking about some of the things, just physics that we try to figure all that. So, how do you guys fit into that? I mean, doesn't GFS, Google File System, solve all these issues for us? >> Right, great. So, one thing to understand is that enterprise storage uses a very different consistency model than Google Storage. So, there's a theorem called the CAP principle, C-A-P. It's consistency, availability, and partition tolerance. And basically what the CAP principle says is, of those three parameters, pick two, because it's impossible to build a storage system that does all three. And really, GFS is all about availability and partition tolerance, because they have big, scalable solutions. What it doesn't give you is exact consistency, and that's what NAS solutions do. NAS solutions are really the high consistency, still partition tolerant because you have big distributed scale systems, but you don't get that high availability piece. And it turns out, in the enterprise there are times when you need high availability storage, that's what you get from Google's file system, but then there are also times you need high consistency storage, that's what you get from an Avere solution. Imagine a bank account where you deposited a million dollars, and then you withdraw a million dollars from two locations, maybe 10 seconds apart. If you don't have a high consistency model, it might be possible to withdraw money from both places. That's what NAS guarantees. >> Ron, I want to get your viewpoint, I'm sure you talk to a lot of your customers. What's their mindset of cloud today, and what are the kinds of conversations that you're having with people stop by your booth at Moscone West. >> I think you said it right, Google is proposing big, scalable, huge features that the customers are trying to get access to, but moving everything from the data center into the cloud all at once to get them is a big, scary step. And so really what we enable people to do is to take baby steps. If you want to move a little bit of your capacity to the clouds, or petabytes of storage in the clouds, like one of our Genomics customers does, you could do that. Your compute and a lot of where they start in storage stays on-prem, but now they're leveraging the cloud for big, scalable capacity. Then we have other customers that want access to the compute and the performance of the scaling you can get. We allow them to get access to that as well. >> Any commentary on, I think about just the trend itself. There's no doubt how big cloud is and how fast it's growing. When we look on the data side Diane Green threw out a number that only 5% of the world's data sits in the public cloud, and that's going to shift. We know that there's a lot of compute-heavy workloads that really started out in those environments, or are leveraging that. So, there's a lot of kind of reasons why we haven't had the data there. We are starting to see some rapid acceleration. What do you see happening in the environment? >> I think that's right. I think the 5% number just gives us a window into how big this cloud movement is, how much is still left to be accomplished. We talk about cloud, cloud, cloud, as if it's already happened, but we're only at the cusp of what's possible. And that's really what we see as this next big phase of the cloud is ingest, is cloud adoption, it's migrating applications and storage into the cloud. >> Yeah, you said what, the future's already here, just unevenly distributed. >> That's right. It hasn't quite made it yet. >> You guys are headquartered in Pittsburgh. >> We are. >> I'm out of Boston. I always joke every time I come out here, it's like okay, I'm going to go spend a week in the Valley and in San Francisco, then I'm going to go back to the real world where I'm not seeing autonomous vehicles in front of me. You guys have some cool autonomous cars driving around Pittsburgh these days? >> Ron: We absolutely do. >> And not everybody is fully cloud-native, serverless and everything else like that. What are you seeing in the marketplace, what's interesting you these days? >> There's no doubt that in the future world all data, all applications, everything will be in the cloud unless there's a very important reason to have it nearby. We think with our Genomics customers, it has to start where the patients are. It has to start on-prem, and then it gets migrated to the cloud. But there's no doubt in the future all compute, especially the big, scalable things that we hear Google talk about will be there. The next five, seven years is all about how we get there from here. >> All right, and Ron, as people look at your company what should we be expecting kind of throughout the rest of this year as we look at you growing your future? >> It's all about making it easier to adopt the cloud. You're going to see higher levels of integration with our cloud partners, Google in particular. We do a lot of work with Google. You're going to see big steps as we move forward and make that integration better. >> You're working with the other cloud players, yes this is a Google show, but we want to talk about the environment. Lots of companies I talk to are like, "Look, yes Google's a player," but I talk to plenty of companies that, "Look, 3/4 of my customers are all on Amazon," and that's where a lot of the market is today. So, what's the breadth of the offering that you have to that? >> It is. We support all the three big cloud players, we support Amazon, Microsoft, and Google. What I will say is the Google team is very much focused on the enterprise, just like Avere is. And that actually helps us a lot. It's really helping us knock down customers and really helping get customers moved into the cloud. >> All right, Ron, I'll give you the final word. Takeaways for the week, anything else you want to share before we wrap. >> You know, it's exactly what you said. The cloud is coming, now it's just a matter of how we get there and watching the big momentum shift. >> I think Eric Schmidt said last year we were like kind of meet you were we are. This year it's, come on. It's, now's the time, we need to go. I think we understand how big cloud is going to be, it's one of the generational shifts that we're all going to be watching, and we're in the thick of it. So, thank you, Ron, for joining us, and we'll be back with lots more coverage here. We've got call-ins and people at the show itself doing dial-ins, pulling people in. Really broad community at this event, so stay tuned for lots more coverage, and you're watching The Cube. (upbeat music) (upbeat music)