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

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