>>Welcome back everyone to Cube's live coverage, VMware Explorer, 2022 formerly world. I've been saying now I gotta get that out. Dave, I've been sayingm world. It just kind of comes off the tongue when I'm tired, but you know, wall to wall coverage, again, back to back interviews all day two sets. This is a wrap up here with the analyst discussion. Got one more interview after this really getting the analyst's perspective around what we've been hearing and seeing, observing, and reporting on the cube. Again, two sets blue and green. We call them here on the show floor on Moscone west with the sessions upstairs, two floors of, of amazing content sessions, keynote across ed Moscone, north and south SBI here, cloud strategists with the cube. And of course, what event wouldn't be complete without SBE weighing in on the analysis. And, and, and I'm, you know, all kidding aside. I mean that because we've had great interactions around, you know, digging in you, you're like a roving analyst out there. And what's great about what you do is you're social. You're communicating, you're touching everybody out there, but you're also picking up the puzzle pieces. And we, you know, of course we recognize that cuz that's what we do, but you're out, we're on the set you're out on the floor and you know your stuff and, and you know, clouds. So how you, this is your wheelhouse. Great to see you. Good to >>See you. I'm good guys. Thank you. Thank you for having >>Me. So I mean, Dave and I were riffing going back earlier in this event and even before, during our super cloud event, we're reminded of the old OpenStack days. If you remember, Dave OpenStack was supposed to be the open source version of cloud. And that was a great ambition. And the cloud AATI at that time was very into it because it made a lot of sense. And the vision, all the infrastructure was code. Everything was lined up. Everything was religiously was on the table. Beautiful cloud future. Okay. 20 2009, 2010, where was Amazon? Then they just went off like a rocket ship. So cloud ended up becoming AWS in my opinion. Yeah. OpenStax then settled in, did some great things, but also spawns Kubernetes. Okay. So, you know, we've lived through thiss we've seen this movie. We were actually in the trenches on the front lines present at creation for cloud computing. >>Yeah. I was at Rackspace when the open stack was open sourced. I was there in, in the rooms and discussions and all that. I think OpenStack was given to the open source like prematurely. I usually like we left a toddler on the freeway. No, the toddler >>Got behind the wheel. Can't see over the dashboard. >>So we have learned over the years in last two decades, like we have seen the open source rise of open source and we have learned quite a few lessons. And one lesson we learned from there was like, don't let a project go out in the open, tell it mature enough with one vendor. So we did that prematurely with NASA, NASA and Rackspace gave the, the code from two companies to the open source community and then likes of IBM and HPE. No. Now HPE, they kind of hijacked the whole thing and then put a lot of developers on that. And then lot of us sort of second tier startup. >>But, but, but I remember not to interject, but at that time there wasn't a lot of pushback for letting them it wasn't like they infiltrated like a, the vendors always tried to worry about vendors coming in open source, but at that time was pretty people accepted them. And then it got off the rails. Then you remember the great API debate. You >>Called it a hail Mary to against AWS, which is, is what it was, what it was. >>It's true. Yeah. Ended up being right. But the, the battle started happening when you started seeing the network perimeters being discussed, you starting to see some of the, in the trenches really important conversations around how to make essentially cross cloud or super cloud work. And, and again, totally premature it continue. And, and what does that mean today? So, okay. Is VMware too early on their cross cloud? Are they, is multi-cloud ready? >>No >>For, and is it just vaporware? >>No, they're not too early, actually on, on, on, on that side they were premature to put that out there, but this is like very mature company, like in the ops area, you know, we have been using, we VMware stuff since 2000 early 2000. I, I was at commerce one when we started using it and yeah, it was for lab manager, you know, like, you know, put the labs >>Out desktop competition. >>Yeah, yeah. Kind of thing. So it, it matured pretty fast, but now it it's like for all these years they focused on the op site more. Right. And then the challenge now in the DevOps sort of driven culture, which is very hyped, to be honest with you, they have try and find a place for developers to plug in on the left side of the sort of whole systems, life cycle management sort of line, if you will. So I think that's a, that's a struggle for, for VMware. They have to figure that out. And they are like a tap Tansu application platform services. They, they have released a new version of that now. So they're trying to do that, but still they are from the sort of get ups to the, to the right, from that point to the right on the left side. They're lot more tooling to helpers use as we know, but they are very scattered kind of spend and scattered technology on the left side. VMware doesn't know how to tackle that. But I think, I think VMware should focus on the right side from the get ups to the right and then focus there. And then how in the multi-cloud cross cloud. >>Cause my sense is, they're saying, Hey, look, we're not gonna own the developers. I think they know that. And they think they're saying do develop in whatever world you want to develop in will embrace it. And then the ops guys, we, we got you covered, we got the standards, we have the consistency and you're our peeps. You tend then take it, you know, to, to the market. Is that not? I mean, it seems like a viable strategy. I >>Mean, look at if you're VMware Dave and start, you know, this where they are right now, the way they missed the cloud. And they had to reboot that with jazzy and, and, and Raghu to do the databases deal. It's essentially VMware hosted on AWS and clients love it cuz it's clarity. Okay. It's not vCloud air. So, so if you're them right now, you seeing yourself, wow. We could be the connective tissue between all clouds. We said this from day one, when Kubernetes was hitting in the scene, whoever can make this, the interoperability concept of inter clouding and connect clouds so that there could be spanning of applications and data. We didn't say data, but we said, you know, creating that nice environment of multiple clouds. Okay. And again, in concept, that sounds simple, but if you're VMware, you could own that abstraction layer. So do you own it or do you seed the base and let it become a defacto organization? Like a super layer, super pass layer and then participate in it? Or are you the middleware yourself? We heard AJ Patel say that. So, so they could be the middleware for at all. >>Aren't they? The infrastructure super cloud. I mean, that's what they're trying to be. >>Yeah. I think they're trying, trying to do that. It's it's I, I, I have said that many times VMware is bridged to the cloud, right? >>The sorry. Say bridge to >>The cloud. Yeah. Right. For, for enterprises, they have virtualized environments, mostly on VMware stacks. And another thing is I wanna mention touch on that is the number of certified professionals on VMware stack. There it's a huge number it's in tens of thousands. Right? So people who have got these certifications, they want to continue that sort of journey. They wanna leverage that. It's like, it's a Sunco if they don't use that going forward. And that was my question to, to during the press release yesterday, like are there new certifications coming into the, into the limelight? I, I think the VMware, if they're listening to me here somewhere, they will listen. I guess they should introduce a, a cross cloud certification for their stack because they want to be cross cloud or multi-cloud sort of vendor with one sort of single pane. So does actually Cisco and so do many others. But I think VMware is in a good spot. It's their market to lose. I, I, I call it when it comes to the multi-cloud for enterprise, especially for the legacy applications. >>Well, they're not, they have the enterprise they're super cloud enabler, Dave for the, for the enterprise, cuz they're not hyperscaler. Okay. They have all the enterprise customers who come here, we see them, we speak to them. We know them will mingle, but >>They have really good relationships with all the >>Hyperscale. And so those, those guys need a way to the cloud in a way that's cloud operation though. So, so if you say enterprises need their own super cloud, I would say VMware might wanna raise their hands saying we're the vendor to provide that. Yes, totally. And then that's the middleware role. So middleware isn't your classic stack middleware it's middle tissue. So you got, it's not a stack model anymore. It's completely different. >>Maybe, maybe my, my it's >>Not a stack >>Industry. Maybe my industry super cloud is too aspirational, but so let's assume for a second. You're not gonna have everybody doing their own clouds, like Goldman Sachs and, and capital one, even though we're seeing some evidence of that, even in that case, connecting my on-prem to the cloud and modernizing my application stack and, and having some kind of consistency between your on-prem and it's just call it hybrid, like real hybrid, true hybrid. They should dominate that. I mean, who is who, if it's not it's VMware and it's what red hat who else? >>I think red hat wants it too. >>Yeah. Well, red hat and red, hat's doing it with IBM consulting and they gotta be, they have great advantage there for all the banks. Awesome. But what, what about the other 500,000 customers that are >>Out there? If VMware could do what they did with the hypervisor, with virtualization and create the new thing for super cloud, AKA connecting clouds together. That's a, that's a holy grail move right >>There. But what about this PA layer? This Tansu and area which somebody on Twitter, there was a little SNAR come that's V realized just renamed, which is not. I mean, it's, it's from talking to Raghu unless he's just totally BSing us, which I don't think he is. That's not who he is. It's this new federated architecture and it's this, their super PAs layer and, and, and it's purpose built for what they're trying to do across clouds. This is your wheelhouse. What, what do you make of that? >>I think Tansu is a great effort. They have put in lot of other older products under that one umbrella Tansu is not a product actually confuses the heck out of the market. That it's not a product. It's a set of other products put under one umbrella. Now they have created another umbrella term with the newer sort of, >>So really is some yeah. >>Two >>Umbrella on there. So it's what it's pivotal. It's vRealize it's >>Yeah. We realize pivotal and, and, and older stack, actually they have some open source components in there. So, >>So they claim that this ragus claim, it's this new architecture, this new federated architecture graph database, low latency, real time ingestion. Well, >>AJ, AJ that's AJ's department, >>It sounded good. I mean, this is that >>Actually I think the newer, newer stuff, what they announced, that's very promising because it seems like they're building something from scratch. So, >>And it won't be, it won't be hardened for, but, but >>It won't be hardened for, but, >>But those, but they have a track record delivering. I mean, they gotta say that about yeah. >>They're engineering focus company. They have engineering culture. They're their software engineers are top. Not top not, >>Yes. >>What? >>Yeah. It's all relatives. If they, if the VMware stays the way they are. Well, >>Yeah, >>We'll get to that a second. What >>Do you mean? What are you talking >>About? They don't get gutted >>The elephant in the room if they don't get gutted and then, then we'll see it happens there. But right now I love, we love VMware. We've been covering them for 12 years and we've seen the trials, not without their own issues to work on. I mean, everyone needs to work on stuff, but you know, world class, they're very proud of their innovation, but I wanna ask you, what was your observations walking around the floor, talking to people? What was the sense of the messaging? Is it real in their minds? Are they leaning in, are they like enthused? Are they nervous, apprehensive? How would you categorize the attitude of the folks here that you've talked to or observed? >>Yeah. It at the individual product level, like the people are very confident what they're building, what they're delivering, but when it comes to the telling a cohesive story, if you go to all the VMware booth there, like it's hard to find anybody who can tell what, what are all the services under tens and how they are interconnected and what facilities they provide or they can't. They, I mean, most of the people who are there, they can are walking through the economic side of things, like how it will help you save money or, or how the TCR ROI will improve. They are very focused on because of the nature of the company, right. They're very focused on the technology only. So I think that that's the, that's what I learned. And another sort of gripe or negative I have about VMware is that they have their product portfolio is so vast and they are even spreading more thinly. And they're forced to go to the left towards developers because of the sheer force of hyperscalers. On one side on the, on the right side, they are forced to work with hyperscalers to do more like ops related improvements. They didn't mention AI or, or data. >>Yeah. Data storage management. >>That that was weak. That's true. During the, the keynote as well. >>And they didn't mention security and their security story, strong >>Security. I think they mentioned it briefly very briefly, very briefly. But I think their SCO story is good actually, but no is they didn't mention it properly, I guess. >>Yeah. There wasn't prominent in the keynote. It was, you know, and again, I understand why data wasn't P I, they wanted to say about data, >>Didn't make room for the developer story. I think this was very much a theatrical maneuver for Hawk and the employee morale and the ecosystem morale, Dave, then it had to do with the nuts bolt of security. They can come back to get that security. In my opinion, you know, I, I don't think that was as bad of a call as bearing the vSphere, giving more demos, which they did do later. But the keynote I thought was, was well done as targeted for all the negative sentiment around Broadcom and Broadcom had this, the acquisition agreement that they're, they are doing, they agree >>Was well done. I mean, >>You know, if I VMware, I would've done the same thing, look at this is a bright future. We're given that we're look at what we got. If you got this, it's on you. >>And I agree with you, but the, the, again, I don't, I don't see how you can't make security front and center. When it is the number one issue for CIOs, CSOs, CSOs boards or directors, they just, it was a miss. They missed it. Yeah. Okay. And they said, oh, well, there's only so much time, but, and they had to put the application development focus on there. I get that. But >>Another thing is, I think just keynote is just one sort of thing. One moment in this whole sort of continuous period, right. They, I think they need to have that narrative, like messaging done periodically, just like Amazon does, you know, like frequent events tapping into the practitioners on regional basis. They have to do that. Maybe it's a funding issue. Maybe it is some weakness on the, no, >>I think they planning, I talked to, we talked to the CMO and she said, Explorer is gonna be a road show. They're gonna go international with, it's gonna take a global, they're gonna have a lot of wood behind the arrow. They're gonna spend a lot of money on Explorer is what, they're, what we're seeing. And that's a good thing. You got a new brand, you gotta build it. >>You know, I would've done, I would've had, I would've had a shorter keynote on day one and doing, and then I would've done like a security day, day two. I would've dedicated the whole morning, day two keynote to security cuz their stories I think is that strong? >>Yeah. >>Yeah. And I don't know the developers side of things. I think it's hard for VMware to go too much to the left. The spend on the left is very scattered. You know, if you notice the tools, developers change their tools on freaking monthly basis, right? Yeah. Yeah. So it's hard to sustain that they on the very left side and the, the, the >>It's hard for companies like VMware to your point. And then this came up in super cloud and ins Rayme mentioned that developers drive everything, the patterns, what they like and you know, the old cliche meet them where they are. You know, honestly, this is kind of what AJ says is the right they're doing. And it's the right strategy meeting that develops where they are means give them something that they like. They like self-service they like to try stuff. They like to, they don't like it. They'll throw it away. Look at the success that comes like data, dog companies like that have that kind of offering with freemium and self-service to, to continue the wins versus jamming the tooling down their throat and selling >>Totally self-serve infrastructure for the, in a way, you know, you said they missed cloud, which they did V cloud air. And then they thought of got it. Right. It kind of did the same thing with pivotal. Right. It was almost like they forced to take pivotal, you know, by pivotal, right. For 2 billion or whatever it was. All right. Do something with it. Okay. We're gonna try to do something with it and they try to go out and compete. And now they're saying, Hey, let's just open it up. Whatever they want to use, let 'em use it. So unlike and I said this yesterday, unlike snowflake has to attract developers to build on their unique platform. Okay. I think VMware's taken a different approach saying use whatever you want to use. We're gonna help the ops guys. And that, to me, a new op >>Very sensitive, >>The new ops, the new ops guys. Yes. Yes. >>I think another challenge on the right right. Is on, on the op site is like, if, if you are cloud native, you are a new company. You just, when you're a startup, you are cloud native, right. Then it's hard for VMware to convince them to, Hey, you know, come to us and use this. Right. It's very hard. It is. They're a good play for a while. At least they, they can prolong their life by innovating along the way because of the, the skills gravity, I call it of the developers and operators actually that's their, they, they have a loyal community they have and all that stuff. And by the way, the name change for the show. I think they're trying to get out of that sort of culty kind of nature of the, their communities that they force. The communities actually can force the companies, not to do certain things certain way. And I've seen that happening. And >>Well, I think, I think they're gonna learn and they already walked back their messaging. Not that they said anything overtly, but you know, the Lori, the CMO clarified this significantly, which was, they never said that they wanted to replace VM world. Although the name change implies that. And what they re amplified after the fact is that this is gonna be a continuation of the community. And so, you know, it's nuanced, they're splitting hairs, but that's, to me walking back the, you know, the, the loyalty and, and look at let's face it. Anytime you have a loyal community, you do anything of change. People are gonna be bitching and moaning. Yeah. >>But I mean, knew, worked, explore, >>Work. It wasn't bad at all. It was not a bad look. It wasn't disastrous call. Okay. Not at all. I'm critical of the name change at first, but the graphics are amazing. They did an exceptional job on the branding. They did, did an exceptional job on how they handled the new logo, the new name, the position they, and a lot of people >>Showed >>Up. Yeah. It worked >>A busy busier than all time >>It worked. And I think they, they threaded the needle, given everything they had going on. I thought the event team did an exceptional job here. I mean, just really impressive. So hats up to the event team at, at VMware pulling off now, did they make profit? I don't know. It doesn't matter, you know, again, so much going on with Broadcom, but here being in Moscone west, we see people coming down the stairs here, Dave's sessions, you know, lot of people, a lot of buzz on the content sold out sessions. So again, that's the ecosystem. The people giving the talks, you know, the people in the V brown bag, you know, got the, the V tug. They had their meeting, you know, this week here, >>Actually the, the, the red hat, the, the integration with the red hat is another highlight of, of, they announced that, that you can run that style >>OpenShift >>And red hats, not here, >>Red hat now here, but yeah, but, but, but >>It was more developers, more, you know, >>About time. I would say, why, why did it take so long? That should >>Have happened. All right. Final question. So what's the bottom line. Give us the summary. What's your take, what's your analysis of VMware explore the event, what they did, what it means, what it's gonna mean when the event's over, what's gonna happen. >>I think VMware with the VMware Explorer have bought the time with the messaging. You know, they have promised certain things with newer announcements and now it, it, it is up to them to deliver that in a very sort of fast manner and build more hooks into other sort of platforms. Right? So that is very important. You cannot just be closed system people. Don't like those systems. You have to be part of the ecosystem. And especially when you are sitting on top of the actually four or four or more public clouds, Alibaba cloud was, they were saying that they're the only VMware is only VMware based offering in mainland China on top of the Alibaba. And they, they can go to other ones as well. So I think, especially when they're sitting on top of other cloud providers, they have to build hooks into other platforms. And if they can build a marketplace of their own, that'll be even better. I think they, >>And they've got the ecosystem for it. I mean, you saw it last night. I mean, all the, all the parties were hopping. I mean, there was, there's >>A lot of buzz. I mean, I pressed, I pressed them Dave hard. I had my little, my zingers. I wanted to push the buttons on one question that was targeted towards the answer of, are they gonna try to do much more highly competitive maneuvering, you know, get that position in the middleware. Are they gonna be more aggressive with frontal competitiveness or are they gonna take the, the strategy of open collaborative and every single data point points to collaborative totally hit Culbert. I wanna do out in the open. We're not just not, we're not one company. So I think that's the right play. If they came out and said, we're gonna be this, you know? >>Yeah. The one, the last thing, actually, the, the one last little idea I'm putting out out there since I went to the Dell world, was that there's a economics of creation of software. There's economics of operations of software. And they are very good on the operation economics of operations side of things that when I say economics, it doesn't mean money only. It also means a productivity practitioner, growth. Everything is in there. So I think these vendors who are not hyperscalers, they have to distinguish these two things and realize that they're very good on the right side economics of operations. And, and that will go a long way. Actually. I think they muddy the waters by when DevOps, DevOps, and then it's >>Just, well, I think Dave, we always we've had moments in time over the past 12 years covering VMware's annual conference, formally world now floor, where there were moments of that's pat Gelsinger, spinal speech. Yeah. And I remember he was under a siege of being fired. Yeah. There was a point in time where it was touch and go, and then everything kind of came together. That was a moment. I think we're at a moment in time here with VMware Dave, where we're gonna see what Broadcom does, because I think what hop 10 and Broadcom saw this week was an EBI, a number on the table that they know they can probably get or squeeze. And then they saw a future value and net present value of future state that you could, you gotta roll back and do the analysis saying, okay, how much is it worth all this new stuff worth? Is that gonna contribute to the EBITDA number that they want on the number? So this is gonna be a very interesting test because VMware did it, an exceptional job of laying out that they got some jewels in the oven. You >>Think about how resilient this company has been. I mean, em, you know, EMC picked them up for a song. It was 640 million or whatever it was, you know, about the public. And then you, another epic moment you'll recall. This was when Joe Tuchi was like the mafia Don up on stage. And Michael Dell was there, John Chambers with all the ecosystem CEOs and there was Tucci. And then of course, Michael Dell ends up owning this whole thing, right? I mean, when John Chambers should have owned the whole thing, I mean, it's just, it's been incredible. And then Dell uses VMware as a piggy bank to restructure its balance sheet, to pay off the EMC debt and then sells the thing for $60 billion. And now it's like, okay, we're finally free of all this stuff. Okay. Now Broadcom's gonna buy you. And, >>And if Michael Dell keeps all in stock, he'll be the largest shareholder of Broadcom and own it off. >>Well, and that's probably, you know, that's a good question is, is it's gonna, it probably a very tax efficient transaction. If he takes all stock and then he can, you know, own against it. I mean, that's, that's, >>That's what a history we're gonna leave it there. Start be great to have you Dave great analysis. Okay. We'll be back with more coverage here. Day two, winding down after the short break.

(modern music) >> Welcome back, everyone to theCUBE's live coverage here in San Francisco for VMware Explore, formerly VMworld. theCUBE's been here 12 years today, we've been watching the evolution of the user conference. It's been quite a journey to see and, you know, virtualization just explode. We got two great guests here, we're going to break it all down. Ash McCarty, director of Multicloud Product Management Dell Technologies, no stranger to the VMworld, now VMware Explore, and Josh Prewitt, Chief Product Officer at Rackspace Technology. Great to see you guys, thanks for coming on. >> Absolutely. >> Yeah, thanks so much, thanks for having us. >> So, you know, the theme this year is multicloud, but it's really all about vSphere 8's out, you got VxRail, you got containers, you got the magic going on around cloud native, which it really points to the future state of where this is going, which is agile enterprises, infrastructure as code, high performance under the hood, I mean, all the things that you guys have been doing for many, many years and decades and business, but now with VMware putting it all together, it feels like, this year, it's like you got visibility into the value proposition, people have clear line of sight into where the performances are from the hardware software and now Cloud, it's kind of coming together, feels like it's coming together. Let's talk about that and the relationship between you guys, Rackspace and Dell and VMware. >> Perfect. That sounds great. Well, thanks so much for having us. You know, I'll sort of kick that off. We've got a huge lifelong partnership and relationship with Dell and VMware and the technologies that these guys create that we're able to put in front of our customers are really what allows us to go drive those business outcomes. So, yeah, happy to dive into it. >> Yeah, and I think to add to that, we understand that customers have a tremendously complex challenge ahead of them on managing their infrastructure. That's why with VxRail, we have intelligent infrastructure. We want it to simplify the outcomes for customers no matter if they're managing VMware or if they're managing the actual hardware infrastructure underneath it. >> Yeah, one of the things that we always talk about, you know, you read about it on the blogs and the news and the startup world, is "Oh, product-market fit," and, well, it kind of applies here, if you think about what's going on on the product side with the Edge emerging, hybrid cloud on pace with private cloud, and obviously, cloud native is great too if you have native applications in there, but now, putting it all together, you're hearing things like the telco cloud, I hear buzzwords like that, I hear supercloud, which we promoting, which you see in companies becoming cloud themselves, with the CapEx being handled by either public cloud or optimized on premise or hosted hardware. I mean, this is now, this is not all about everything's going to the cloud, this is now cloud operations on premise and in hosting hardware, so I'd love to get your perspective on that because you guys are huge hosting, you've got huge experience there, modernizing all the time. What does the modern era look like for the customer? >> Yeah, yeah, so, I mean, I think it's very clear to everybody that it's a multicloud world, right? I think the main question is, are you multicloud as a strategy, or are you multicloud as a situation? Because everybody's multicloud. That ship has sailed, right? >> Yeah, exactly. >> And so, when I look at the capabilities that we have with the partnership with Dell and the VxRail technologies, you know, life-cycle management that you have to go and perform across your fleet can be extremely difficult, and whenever you take something like the VxRail and you add, you know, you have the hardware and you have the software all fully integrated there, it makes it much easier to do life-cycle management, so for a company like Rackspace, where we have tens of thousands of nodes that we're managing for customers across 29 global data centers, and we're all over the place, the ability to have that strength with Dell's hardware, the VMware platform improve life-cycle management makes it so much easier for us to manage our fleet and be able to deliver those outcomes even faster for customers. >> So assuming that VxRail isn't a virtual railroad that delivers data to Rackspace data centers, if it's not that, what is it, Ash? Give us a little premier on what VxRail is. >> Well, VxRail is the first and only jointly engineered HCI system with VMware, so everything we do with VMware is better. >> So hyperconverged infrastructure. >> Hyperconverged infrastructure. >> What we used to call a server because all the bits are in the box, right? >> All the storage is computed in there. >> Everything's in there. Right. >> Simplifies management. And we built in with the VxRail HCI system software, which is really our secret sauce, we built in to actually add those automation capabilities with VMware, so it allows you to scale out very quickly, scale up very quickly. And one of our big capabilities is our life-cycle management, which is full stack, meaning it life-cycles the entire vSphere stack as well as the hardware infrastructure underneath as one continuously validated state, meaning that customers can focus more on their business outcomes and driving their business forward versus spending time managing their infrastructure. >> And when you talk about customers, it's also the value proposition that's flowing through Rackspace because Rackspace, when you install these systems, how long does it take to spin up to have a VM available for use when you install one of these systems? >> Oh, so you can have the system up and running very quickly. So we automate all the day one deployment, so you can have the system up and running in your labs, in your data centers in 45 minutes, and you can have VMs up in provision very shortly after that. >> So what do you do with that kind of agility? >> Oh my gosh, so we've actually taken that, and we've taken the VxRail platform and we've created what we call Rackspace Services for VMware Cloud, and this is our platform that is based on VxRail, it's based on vCloud Director from VMware, and by having the VxRail is already RackStacked, ready to go for our customers, we're able to sign a customer up today, and then, within a matter of minutes, give them access to a vCloud Director portal where they can go in and spin up a new VM anytime they want, but then, it also integrates into all of those cloud management platforms and tools, right? It integrates into your Terraform, so you've got, you know, your full CI/CD pipeline, and so you have that full end-to-end capability. If you want to go click around on a portal, you can using vCloud Director and using vSphere and all that great stuff. If you want to automate it, you can do that too. And we do it all in the backs of that VxRail hyperconverged infrastructure. >> Talk about the DPU dynamic. We're hearing a lot about DPUs. VxRail, you guys have some HCI-like vibe there with DPUs. How is that impacting performance, can you guys see? 'Cause we're hearing a lot of buzz around the VxRail and the VMware DPUs really making things much faster. >> I mean, it's the thing we talk about most with customers now is their challenges with scaling their infrastructure, and VxRail is going to be the first and only jointly engineered system that will have vSphere 8 with DPUs functionality and will have the full life-cycle management, and what this really empowers customers to do is, as they're growing their environments that they're scaling out their workloads in the data center, they need a way to scale to that next generation of networking and network security, and that's what DPUs allow you to do. They give you that offload and that high performance capability. >> Talk about the... I'd love to get your guys' perspective, while we're just riffing on this real quick sidebar for a second, if VxRail has these capabilities which you guys are promoting it does and some of the things go on in the modern era, the next gen apps are going to look a lot different. We're kind of calling it supercloud, if you will, for lack of a better description. Yeah, multicloud is a state, I agree. It's a situation and a state, but supercloud is really the functionality of what cloud does. So what do you guys see as, maybe it's tea leaves reading now or dots connecting, what are some of those next gen apps? I mean the Edge is there with, "Oh, the Edge is going to explode," and I can see the Edge having new kinds of apps that we've never seen before, whether it's on premise building lights and however they work or IoT changing. What do you guys see as the next gen app/apps coming out that's not looking the same as now, or how are apps today changing for next gen? 'Cause you get more performance at the Edge, you get more action, you get more co-locations in GEOS, so it's clear multicloud multi-presence is happening too, right? So what are you guys seeing? What's this... >> Yeah, I would say two areas that resonate most with customers is customers transitioning to their cloud native journey, so beginning it and using things like Tanzu for Kubernetes Operations, which we fully support and have a white paper out there list for customers, another area is really in the AIML space, so we've been partnering with both VMware and Nvidia to simplify how customers deploy new AIML infrastructure. I mean, it's challenging, complex, a lot of customers are wanting to dive in because it really enables them to better operate and operate on insights and analytics they get from running their business. >> Josh? >> And, you know, I think it really comes down to, whether you want to call it Edge or IoT or, you know, smart things, whatever, right? It all comes down to how we are expected, now, to capture all of the data to create a better user experience, and that's what we're seeing the modern applications being built around, right, is how do you leverage all of the data that's now at your fingertips, whether it's from wearables, machine vision, whatever it may be, and drive that improved user experience. And so that's the apps that we're seeing now, right? You know, of course, you still have all your business apps, all your ERP capabilities that need to exist and all of that great stuff, but at the same time, I also expect that, whenever, you know, now, whenever I'm walking into a store and their machine vision picks me up and they're pinging my phone and pushing me push notifications, I expect to have a better user experience. >> And do a database search on you too, by the way. >> Yeah, exactly, right? >> No search warrants out for 'em, you know, you're good. >> That's exactly it, so, you know, you kind of expect that better user experience and that's where I'm seeing a lot of the new app development. >> Yeah, it's fun, as these cases are intoxicating to think about all the weird coolness around it. The thing that I want to get your thoughts on is, we were just talking on the analyst session earlier in theCUBE, if DevOps is here and won, which we believe it has and infrastructure as code is happening, the cloud native discussion, shifting left CI/CD pipeline, that's DevOps in my mind, that's like cloud native developers, that's like traditional IT in my mind, so that's all part of the coding. DataOps and Security Ops seem to be the most robust areas of conversations where that's the new Ops, right? So, I mean, I made the term up, but new Ops, in terms of the focus, what are you making more efficient? What are you optimizing for? What's your guys reaction to that? Because all the conversations that we talk about is data, security, and then the rest seems to be cool, all good on the developer's side. Yeah, shift left events happening up there, Kubernetes containers, but all the action on the Ops side seems to be data and security. >> Yeah. >> What's your reaction to that? Is that right? >> So personally, I do think that it's right. I think that, you know with great power comes great responsibility, right? And so the clouds have brought that to us, all of your infrastructure as code has brought that to us. We have that great power now, right? But then you start to see, kind of, the pipeline attacks that are starting to become more and more popular. And so how you secure something that is as complex as, you know, a cloud native development pipeline is really hard, it's really challenging, so I do think that it warrants the attention. Then on the data side, I think that that matters because when I talked about those examples of a better user experience, I don't want my better user experience tomorrow, I don't want it 20 minutes from now. I want that real time capability, and so with that comes massive requirements from a compute and hardware perspective, massive requirements from a software perspective, and from, you know, what folks are now calling DataOps perspective >> Data addressability, having the data available to be delivered in real time. >> You know, there there's been a lot of talk, here at the conference, about the disaggregation of, you know, the brainularism, if we're going to make up words, you know, the horsepower that's involved, CPU, DPU, GPU. I'll make up another word. We're familiar with the thermometers used during COVID to measure temperature. Pretend that I've invented a device called a Care-o-meter and I'm pointing at various people's foreheads, who needs to care about DPUs and GPUs and CPUs? You know, John was referencing the idea of security at the Edge, data. Well, wow, we've got GPUs that can do things. Who needs to care about that? Obviously, we care about it. You care about it. You care about it. You're building this stuff, you're deploying this stuff, but at what level in the customer stack do they need to care about it? Are you going in, is RackSpace engaging customers and saying, "Look, here's the value proposition: we understand your mission to be this. We believe we can achieve your mission." How far down in the organization do you go before you get to someone where you have to have the DPU conversation? 'Cause we didn't even define DPU yet here, which is always offensive to me. >> I think I defined it actually. >> Did you define DPU? Good. Thank you John. >> Yeah, yeah. >> But so who should care? Who should really care about that? >> Oh, that's such a complex question, right? Because everybody, Rackspace included >> But a good one. But a good question. >> Oh, it's a great question. >> Thank you. >> Great question. (laughing) >> Everybody, Rackspace included, is talking about selling business outcomes, right? And ultimately, that is what matters. It is what matters, is selling those business outcomes to the customer. And so of course we're dealing with our business buyers who are just looking for, "Hey, improve my KPIs, make this run faster, better, stronger, all of that great stuff," but ultimately you get down to an IT staff, and to the IT staff, these things matter because the IT staff, they all have budgets that they have to hit. The realities start to hit them and they can't just go and spend whatever they want, you know, trying to hit the KPIs of the marketing department or the finance department, right? And so you have your business buyers that do care significantly about buying their outcomes, and so we're having, you know, the business outcomes conversations with them and then, oftentimes, they will come back to us and say, "Okay, but now we need you to talk to this person over in our IT organization. We need you to talk with our CIO, with our VP of infrastructure," whatever that may be, where we really get down to the nuts and bolts and we talk about how, you know, we can stretch the hardware coming from Dell, we can stretch the software coming from VMware, and we can deliver a higher caliber experience, a lower TCO, by taking advantage of some of the new technologies coming out. >> Yeah, so there's a reason why I ask that awesome question, and it's because I can imagine a scenario where, and this speaks to RackSpace's position in the market today and moving forward and what your history has been, people want to know, "Well, why should I work with Rackspace instead of some mega-hyper-monster-cloud?" If part of the answer is: well, it's because, for very specific application environments, like healthcare we talked about earlier, that might be a conversation where you're actually bringing in Dell to have a conversation about how you are specifically optimizing hardware and software to achieve things that otherwise can't be achieved with t-shirt sizes of servers in a hyperscale cloud. I mean, is that part of the Rackspace value proposition moving forward, that you can do things like that with partners like Dell that the other folks aren't going to focus on? >> Absolutely, it is, right? And a lot of the power of Rackspace is that, you know, we're the best-in-class pure play cloud solutions provider, and we can talk to you about your AWS, your Azure, your GCP, all of that great stuff, but we can also talk to you about private cloud solutions that are built on the backs of Dell Technologies, and in this multicloud world, you don't have that one size fits all for every single application. There are some things that run great in a hyperscale provider, and we can help you get there, but just exactly like you said, there are these verticals where you have applications that don't necessarily run all that well or they're not modernized, they haven't been refactored to be able to take advantage of cloud native services. And if all you're going to do is run that on bare metal in VMs, a hosted private cloud is, by far, the best way to do that, right? And Rackspace provides that hosted private cloud on the backs of Dell technology, on the backs of VMware technology, and we can go deliver those custom bespoke solutions to customers. >> So the infrastructure and the hardware still matters, Ash, yes? >> Absolutely, and I think he just highlighted, while what he does with his customers and what's important to his internal organization is being to deliver faster outcomes, better outcomes, give those customers, to meet those KPIs of those customers consuming their infrastructure at Rackspace, so I think, really, what the DPU and the underlying infrastructure enables is all that full stack integration to allow them to quickly scale to the demands of those customers and what they need in their infrastructure. >> Guys, while we got you here, what do you think about this year's VMware Explore, a lot of anticipation around how many people are going to show up and, you know, all kinds of things around the new name and Broadcom. Big attendance here, I mean, I was very surprised about the size of the attendance and the show floor, the ecosystem, this train is not stopping. I mean, this is VMware's third act, no matter what the contextual situation is. What's your observation of the show? Do you agree, or is there anything that you could want to share about for folks who didn't make it, what they missed? >> Yeah, I mean it really highlights, I mean, you've seen the breadth of the show, I know people that aren't here that aren't able to see it are really missing the excitement. So there's a lot of great announcements around multicloud, around all the announcements, around the vSphere 8 with the DPUs, the vSAN Express Storage architecture, ton of new exciting technologies that are really empowering how customers, you know, the future of how customers are going to consume their workloads in their data centers. >> Josh, they're not short on products and stuff. A lot of moving parts. vSphere 8, a bunch of new stuff. And the cloud native stuff's looking pretty good too, off the tee. >> You know, it does feel like a focus on the core, though, in a way. So I don't think there's been a lot of peripheral noise at the show. Sometimes it's, you know, "And we got this, and this, and this, and this." It's vSphere 8, vSAN 8, cloud software, you know, really hammering it home and refining it. >> But you don't think of it as a little bit of a circus act. I mean the general keynote was theatrical, I thought, I mean, I thought they did a good job on that. I think vSphere 8 was buried a little bit, I thought they could have... They checked the box at the beginning. >> That's true, that's true. >> I mean, they mentioned it, but we didn't see the demos. You know? Demos are usually great. But that's my only criticism. >> Well, that's why we supplemented it with the VxRail announcements, right? With our big announcements around vSphere 8 and with the DPUs as well as the vSAN Express Storage architecture being integrated into VxRail, so I think, you know, it's always that ongoing partnership and, you know, doing what's best for our customers, showing them the next generation and how they consume that technology. >> Yeah, you guys got good props on VxRail. We had a great chat about it yesterday. Rackspace, you guys doing good? Quick update on what's happening with you guys. Give a quick plug. What's going on at Rackspace? What's hot? What's going on? Give a quick plug for what the services are and the products you got going on there. >> Yeah, absolutely. So we are that end-to-end cloud provider, right? And so we've got really exciting offers in market, helping customers take advantage of all the hyperscale providers, and then giving them that private cloud experience. We've got everything from single-tenant running in our data centers on the backs of vSphere, vCloud Director, and VxRails, all the way through to, like, multi-tenant burstable capability that runs within our own data centers as well. It's a really exciting time for technology, a really exciting time for Rackspace. >> Congratulations, we've been following your journey for a long time. Dell, you guys do continue to do a great job and end-to-end phenomenal work. The telco thing's a huge opportunity, we didn't even go there. But Ash, thanks. Josh, thanks for coming on. Appreciate it. >> Yeah, thanks so much. Thanks for having us. >> Thank you very much. >> Okay, thanks for watching theCUBE. We're live, day two of three days of wall-to-wall coverage. Two sets here in Moscone West on the ground level, in the lobby, checking out all the action. Stay with us for more coverage after this short break. (modern music)

(upbeat music) >> Good afternoon, everyone. Welcome back to the CUBE's day one coverage of VMware Explorer 22, live from San Francisco. I'm Lisa Martin. Dave Nicholson is back with me. Welcome back to the set. We're pleased to welcome William Bell as our next guest. The executive vice president of products at Phoenix NAP. William, welcome to the CUBE. Welcome back to the CUBE. >> Thank you, thank you so much. Happy to be here. >> Talk to us a little, and the audience a little bit about Phoenix NAP. What is it that you guys do? Your history, mission, value prop, all that good stuff. >> Absolutely, yeah. So we're global infrastructures as a service company, foundationally, we are trying to build pure play infrastructure as a service, so that customers that want to adopt cloud infrastructure but maybe don't want to adopt platform as a service and really just, you know, program themselves to a specific API can have that cloud adoption without that vendor lock in of a specific platform service. And we're doing this in 17 regions around the globe today. Yeah, so it's just flexible, easy. That's where we're at. >> I like flexible and easy. >> Flexible and easy. >> You guys started back in Phoenix. Hence the name. Talk to us a little bit about the evolution of the company in the last decade. >> Yeah, 100%. We built a data center in Phoenix expecting that we could build the centralized network access point of Phoenix, Arizona. And I am super proud to say that we've done that. 41 carriers, all three hyperscalers in the building today, getting ready to expand. However, that's not the whole story, right. And what a lot of people don't know is we founded an infrastructure as a service company, it's called Secured Servers no longer exists, but we founded that company the same time and we built it up kind of sidecar to Phoenix NAP and then we merged all of those together to form this kind of global infrastructure platform that customers can consume. >> Talk to us about the relationship with VMware. Obviously, here we are at VMware Explore. There's about seven... We're hearing 7,000 to 10,000 people here. People are ready to be back to hear from VMware and it's partner ecosystem. >> Yeah, I mean, I think that we have this huge history with VMware that maybe a lot of people don't know. We were one of the first six, the SPPs in 2011 at the end of the original kind of data center, whatever, vCloud data center infrastructure thing that they did. And so early on, there was only 10 of us, 11 of us. And most of those names don't exist anymore. We're talking, Terramark, Blue Lock, some of these guys. Good companies, but they've been bought or whatnot. And here's plucky Phoenix NAP, still, you know, offering great VMware cloud services for customers around the globe. >> What are some of the big trends that you're seeing in the market today where customers are in this multi-cloud world? You know this... I love the theme of this event. The center of the multi-cloud universe. Customers are in that by default. How do you help them navigate that and really unlock the value of it? >> Yeah, I think for us, it's about helping customers understand what applications belong where. We're very, very big believers both in the right home. But if you drill down on that right home for right applicator or right application, right home, it's more about the infrastructure choices that you're making for that application leads to just super exciting optimizations, right. If you, as an example, have a large media streaming business and you park it in a public called hyperscaler and you just eat those egress fees, like it's a big deal. Right? And there are other ways to do that, right. If you need a... If your application needs to scale from zero cores to 15,000 cores for an hour, you know, there are hyperscalers for that, right. And people need to learn how to make that choice. Right app, right home, right infrastructure. And that's kind of what we help them do. >> It's interesting that you mentioned the concept of being a pure play in infrastructure as a service. >> Yeah. >> At some point in the past, people would have argued that infrastructure as a service only exists because SaaS isn't good enough yet. In other words, if there's a good enough SaaS application then you don't want IaaS because who wants to mess around with IaaS, infrastructures as a service. Do you have customers who look at what they're developing as so much a core of what their value proposition is that they want to own it? I mean, is that a driving factor? >> I would challenge to say that we're seeing almost every enterprise become a SaaS company. And when that transition happens, SaaS companies actually care a lot about the cost basis, efficiency, uptime of their application. And ultimately, while they don't want to be in the data center business anymore, it doesn't mean that they want to pay someone else to do things that they feel wholly competent in doing. And we're seeing this exciting transition of open source technologies, open source platforms becoming good enough that they don't actually have to manage a lot of things. They can do it in software and the hardware's kind of abstracted. But that actually, I would say is a boon for infrastructure as a service, as an independent thing. It's been minimized over the years, right. People talk about hyperscalers as being cloud infrastructure companies and they're not. They're cloud platform companies, right. And the infrastructure is high quality. It is easy to access and scale, right, but it's ultimately, if you're just using one of those hyperscalers for that infrastructure, building VMs and doing a bunch of things yourself, you're not getting the value out of that hyperscaler. And ultimately that infrastructure's very expensive if you look at it that way. >> So it's interesting because if you look at what infrastructure consists of, which is hardware and software-- >> Yeah. >> People who said, eh, IaaS as is just a bridge to a bright SaaS future, people also will make the argument that the hardware doesn't matter anymore. I imagine that you are doing a lot of optimization with both hardware and stuff like the VMware cloud stack that you deploy as a VCPP partner. >> Absolutely, yeah. >> So to talk about that. >> Absolutely. >> I mean, you agree. I mean, if I were to just pose a question to you, does hardware still matter? Does infrastructure still matter? >> Way more than people think. >> Well, there you go. So what are you doing in that arena, specifically with VCPP? >> Yeah, absolutely. And so I think a good example of that, right, so last VMworld in person, 2019, we showcased a piece of technology that we had been working with Intel on for about two years at the time which was Intel persistent memory DC, persistent memory. Right? And we launched the first VMware cloud offering to have Intel DC persistent memory onboard. So that customers with the VMs that needed that technology could leverage it with the integrations in vSphere 6.7 and ultimately in seven more, right. Now I do think that was maybe a swing and a miss technology potentially but we're going to see it come back. And that specialized infrastructure deployment is a big part of our business, right. Helping people identify, you know, this application, if you'd have this accelerator, this piece of infrastructure, this quality of network can be better, faster, cheaper, right. That kind of mentality of optimization matters a lot. And VMware plays a critical role in that because it still gives the customer the operational excellence that they need without having to do everything themselves, right. And our customers rely on that a lot from VMware to get that whole story, operationally efficient, easy to manage, automated. All those things make a lot of difference to our VMware customers. >> Speaking of customers, what are you hearing, if anything, from customers, VMware customers that are your joint customers about the Broadcom acquisition? Are they excited about it? Are they concerned about it? And how do you talk about that? >> Yeah, I mean, I think that everyone that's in the infrastructure business is doing business with Broadcom, all right. And we've had so many businesses that we've been engaged with that have ultimately been a acquiree. I can say that this one feels different only in the size of the acquisition. VMware carries so much weight. VMware's brand exceeds Broadcom's brand, in my opinion. And I think ultimately, I don't know anything that's not public, right-- >> Well, they rebranded. By the way, on the point of brand, they rebranded their software business, VMware. >> Yeah. I mean, that's what I was going to say. That was the word on the street. I don't know if there's beneficial. Is that a-- >> Well, that's been-- >> But that's the word, right? >> That's what they've said. Well, but when a Avago acquired Broadcom they said, "we'll call ourselves Broadcom." >> Absolutely. Why wouldn't you? >> So yeah. So I imagine that what's been reported is likely-- >> Likely. Yeah, I 100% agree. I think that makes a ton of sense and we can start to see even more great intellectual property in software. That's where, you know, all of these businesses, CA, Symantec, VMware and all of the acquisitions that VMware has made, it's a great software intellectual property platform and they're going to be able to get so much more value out of the leadership team that VMware has here, is going to make a world of difference to the Broadcom software team. Yeah, so I'm very excited, you know. >> It's a lot of announcements this morning, a lot of technical product announcements. What did you hear in that excites you about the evolution of VMware as well as the partnership and the value in it for your customers? >> You know, one of our fastest growing parts of our business is this metal as a service infrastructure business and doing very, very... Using very specific technologies to do very interesting things, makes a big difference in our world and for our customers. So anything that's like smartNICs, disaggregated hypervisor, accelerators as a first class citizen in VMware, all that stuff makes the Phoenix NAP story better. So I'm super excited about that, right. Yeah. >> Well, it's interesting because VCPP is not a term that people who are not insiders know of. What they know is that there are services available in hyperscale cloud providers where you can deploy VMware. Well, you know, VMware cloud stack. Well, you can deploy those VMware cloud stacks with you. >> Absolutely. >> In exactly the same manner. However, to your point, all of this talk about disaggregation of CPU, GPU, DPU, I would argue with it, you're in a better position to deploy that in an agile way than a hyperscale cloud provider would be and foremost, I'm not trying to-- >> No, yeah. >> I'm not angling for a job in your PR department. >> Come on in. >> But the idea that when you start talking about something like metal as a service, as an adjunct or adjacent to a standard deployment of a VMware cloud, it makes a lot of sense. >> Yeah. >> Because there are people who can't do everything within the confines of what the STDC-- >> Yes. >> Consists of. >> Absolutely. >> So, I mean... Am I on the right track? >> No, you are 100% hitting it. I think that that point you made about agility to deliver new technology, right, is a key moment in our kind of delivery every single year, right. As a new chip comes out, Intel chip or Accelerator or something like that, we are likely going to be first to market by six months potentially and possibly ever. Persistent memory never launched in public cloud in any capacity but we have customers running on it today that is providing extreme value for their business, right. When, you know, the discreet GPUs coming from the just announced Flex series GPU from Intel, you're likely not going to see them in public cloud hyperscalers quickly, right. Over time, absolutely. We'll have them day one. Isolate came out, you could get it in our metal as a service platform the morning it launched on demand, right. Those types of agility points, they're not... Because they're hyperscale by nature. If they can't hyperscale it, they're not doing it, right. And I think that that is a very key point. Now, as it comes in towards VMware, we're driving this intersection of building that VCF or VMware cloud foundation which is going to be a key point of the VMware ecosystem. As you see this transition to core based licensing and some of the other things that have been talked about, VMware cloud foundation is going to be the stack that they expect their customers to adopt and deliver. And the fact that we can automate that, deliver it instantaneously in a couple of hours to hardware that you don't need to own, into networks you don't need to manage, but yet you are still in charge, keys to the kingdom, ready to go, just like you're doing it in your own data center, that's the message that we're driving for. >> Can you share a customer example that you think really just shines a big flashlight on the value that you guys are delivering? >> We definitely, you know, we had the pleasure of working with Make-A-Wish foundation for the last seven years. And ultimately, you know, we feel very compelled that every time we help them do something unique, different or what not, save money, that money's going into helping some child that's in need, right. And so we've done so many things together. VMware has stepped up as the plate over the years, done so many things with them. We've sponsored stuff. We've done grants, we've done all kinds of things. The other thing I would say is we are helping the City of Hope and Translational Genomics Research Institute on sequencing single cell RNA so that they can fight COVID, so that they can build cure, well, not cures but build therapies for colon cancer and things like that. And so I think that, you know, this is a driving light for us internally is helping people through efficiency and change. And that's what we're looking for. We're looking for more stories like that. We're looking... If you have a need, we're looking for people to come to us and say, "this is my problem. This is what this looks like. Let us see if we can find a solution that's a little bit different, a little bit out of the box and doesn't have to change your business dramatically." Yeah. >> And who are you talking to within customers? Is this a C level conversation? >> Yeah, I mean, I would say that we would love it to be... I think most companies would love to have that, you know, CFO conversation with every single customer. I would say VPs of engineering, increasingly, especially as we become more API centric, those guys are driving a lot of those purchasing decisions. Five years ago, I would've said director of IT, like director of IT. Now today, it's like VP of engineering, usually software oriented folks looking to deliver some type of application on top of a piece of hardware or in a cloud, right. And those guys are, you know, I guess, that's even another point, VMware's doing so much work on the API side that they don't get any credit for. Terraform, Ansible, all these integrations, VMware doing so much in this area and they just don't get any credit for it ever, right. It's just like, VMware's the dinosaur and they're just not, right. But that's the thing that people think of today because of the hype of the hyperscaler. I think that's... Yeah. >> When you're in customer conversations, maybe with prospects, are you seeing more customers that have gone all in on a hyperscaler and are having issues and coming to you guys saying help, this is getting way too expensive? >> Yeah, I think it's the unexpected growth problem or even the expected growth problem where they just thought it would be okay, but they've suffered some type of competitive pressure that they've had to optimize for and they just didn't really expect it. And so, I think that increasingly we are finding organizations that quickly adopted public cloud. If they did a full digital transformation of their business and then transformation of their applications, a lot of them now feel very locked in because every application is just reliant on x hyperscaler forever, or they didn't transform anything and they just migrated and parked it. And the bills that are coming in are just like, whoa like, how is that possible? We are typically never recommending get out of the public cloud. We are just... It's not... If I say the right home for the right application, it's by default saying that there are right applications for hyperscalers. Parking your VMware environment that you just migrated to a hyperscaler, not the right application. You know, I would love you to be with me but if you want to do that, at least go to VMC on AWS or go to OCVS or GCVE or any of those. If that's going to go with a Google or an Amazon and that's just the mandate and you're going to move your applications, don't just move them into native. Move them into a VMware solution and then if you still want to make that journey, that full transformation, go ahead and make it. I would still argue that that's not the most efficient way but, you know, if you're going to do anything, don't just dump it all into cloud, the native hyperscaler stuff. >> Good advice. >> So what do typical implementations look like with you guys when you're moving on premises environments into going back to the VCPP, STDC model? >> Absolutely. Do you have people moving and then transforming and re-platforming? What does that look like? What's the typical-- >> Yeah. I mean, I do not believe that anybody has fully made up their mind if exactly where they want to be. I'm only going to be in this cloud. It's an in the close story, right. And so even when we get customers, you know, we firmly believe that the right place to just pick up and migrate is to a VCPP cloud. Better cost effectiveness, typically better technology, you know service, right. Better service, right. We've been part of VMware for 12 years. We love the technology behind VMC's, now AWS is fantastic, but it's still just infrastructure without any help at all right, right. They're going to be there to support their technology but they're not going to help you with the other stuff. We can do some of those things. And if it's not us, it's another VCPP provider that has that expertise that you might need. So yes, we help you quickly, easily migrate everything to a VMware cloud. And then you have a decision point to make. You're happy where you are, you are leveraging public cloud for a certain applications. You're leveraging VMware cloud offerings for the standard applications that you've been running for years. Do you transform them? Do you keep them? What do you do? All those decisions can be made later. But I stress that repurchasing all your hardware again, staying inside your colo and doing everything yourself, it is for me, it's like a company telling me they're going to build a data center for themselves, single tenant data center. Like no one's doing that, right. But there are more options out there than just I'm going to go to Azure, right. Think about it. Take the time, assess the landscape. And VMware cloud providers as a whole, all 17,000 of us or whatever across the globe, people don't know that group of individuals of the companies is the third or fourth potentially largest cloud in the world. Right? That's the power of the VMware cloud provider ecosystem. >> Last question for you as we wrap up here. Where can the audience go to learn more about Phoenix NAP and really start test driving with you guys? >> Absolutely. Well, if you come to phoenixnap.com, I guarantee you that we will re-target you and you can click on a banner later if you don't want to stay there. (Lisa laughs) But yeah, phoenixnap.com has all the information that you need. We also put out tons of helpful content. So if you're looking for anything technology oriented and you're just, "I want to upgrade to Ubuntu," you're likely going to end up on a phoenixnap.com website looking for that. And then you can find out more about what we do. >> Awesome, phoenixnap.com. William, thank you very much for joining Dave and me, talking about what you guys are doing, what you're enabling customers to achieve as the world continues to evolve at a very dynamic pace. We appreciate your insights. >> Absolutely, thank you so much >> For our guest and Dave Nicholson, I'm Lisa Martin. You've been watching the CUBE live from VMware Explorer, 2022. Dave and I will be joined by a guest consultant for our keynote wrap at the end of the day in just a few minutes. So stick around. (upbeat music)

foreign welcome back to thecube's coverage of VMware Explorer 2022 Lisa Martin and Dave Nicholson here at Moscone West we're with about seven to ten thousand folks here so really good attendance at this first event since 2019 and the First with the new name Dave and I are pleased to welcome Jeff seraki the senior director of product management at Lumen as our next guest Jeff great to have you thank you for having me welcome so looked at the website I always love to see what taglines are and and lumen's website says welcome to the platform for amazing things talk to the audience a little bit about Lumen it's Mission Vision value prop would love to so much like a lot of the Enterprises that are out there today in the market lumens in the process of transforming we're transforming to a technology company from our Network routes but we also have roots in the I.T infrastructure business so we're bringing those together and creating that platform for amazing things uh we believe that our purpose is if you further human progress through technology and how we do that is we're enabling the fourth Industrial Revolution so moving in to the digital age where everything is it's all about data it's about real-time use of that data you machine learning artificial intelligence autonomous Cars Smart cities so the key tenet that we have around the fourth Industrial Revolution is data you need to acquire it and once you acquire it you need to analyze it then you need to act upon it because when you think about it data is just growing and growing and growing from the phones in your pocket to the devices that are sitting in front of us it's not going to stop and information that data is critical to driving business value and outcomes for customers so um so with that the I totally lost my train of thought sorry um uh the ability to to leverage that is critical um you know driving driving the revenue from that so for example like machine learning you can't have machine learning without data to feed the machine so they can start learning so they can look at pictures like oh look this is a picture of a dog this is a picture of a kangaroo so that's what our platform enables and that's what we're building we're building it brand new sitting on top of the Lumen networking capabilities of Global Network one of the largest IP backbone providers so we're super excited about what we have so these days every company has to be a data company to be competitive to you know well even to survive talk a little bit about enabling lumens customers to become data companies while enabling the fourth Industrial Revolution those two seem to be hand in hand yes so with the services that we provide particularly with our partnership with VMware we provide private cloud services that we can deploy on the customer premises or so whether it's a corporate office manufacturing facility a you know logistical facility so we can provide compute there or we can provide it in one of our plus 60 Edge data centers that are located in plus 60 metros so you don't have to put equipment on premises that's all connected by the Lumen Network Dynamic networking capabilities that connect from a customer Prem to Edge data center third party data center all the way into the public Cloud so we can stitch all of that together so I know you mentioned that you know you're you're you know based on your history you're moving further up the value chain with your customers but I'm still fascinated by kind of the history of lumen and when you when you refer to this Lumen Network um tell us a little more about that because that that's kind of a secret sauce ingredient to what you're doing yes so roots and Telecom roots and fiber and we have one of the largest fiber networks in the world and with that comes not only breath but also capillarity going to the markets we have over a hundred and eighty thousand fiber fed Enterprise buildings so with that imagine if your compute's there or if it's in a one of our Edge data centers how quickly you can transmit information from that Prem to the compute all the way into the cloud to acquire analyze and act on that data so that's really kind of the secret sauce we have that as you mentioned is that is that fiber backbone so I'm going to use the word capillarity at least once a day for the next week that's one of my favorite words awesome awesome word in it because and it actually it's evocative of exactly what I know you're what you're referencing but so you you guys are experts in latency bandwidth throughput those underpinnings of making sure that you can get data where it needs to be you can communicate between between environments um you've got that you've got that down so that's a very very strong Foundation to build off of is I guess the point that I wanted to see if I was correct definitely understanding and um just with that capability it really it comes down to outside the data is the user experience and with application performance you know one of the levers you can pull to drive application performance is is network but also location so you can put more bandwidth at it you can take put it on a network with less hops that's one of the advantages of our large backbone or you move the compo compute closer to the point of digital interaction which is what we're doing with our Edge platform so whether it's an edge data center on-prem yeah one thing one thing at the cube that we like to do is we we dive into those things that sometimes people think are inane and banal because we know how important they are we have a whole series on the question of does Hardware matter and so so we understand that you're delivering higher value to your customers but we also want to acknowledge just how important it is for you to have that Foundation yes underneath yeah and we're I mean the customers that in the marketplace they're expecting more and more services up this stack they don't want to have to worry about speeds and feeds well the way we're looking at it is the network has compute endpoints on it and everything has compute customers want to run their applications they don't want to worry about everything underneath it so that's why we're moving up so we want to be able to create that platform you worry about your applications you worry about development and execution of your applications and we'll take care of everything else talk a little bit about the VMware partnership I see Lumen Edge private Cloud on VCF talk a little bit about that how you guys are working together and some of the value of what's in it for me as a customer okay we've been working with for VMware for decades they're one of our best partners and our Flagship private Cloud product is based upon the cloud Foundation and it's a tried and true platform that the market understands and they have confidence in so it's something that they can relate to and they already have experience in so they're not trying to learn something new like trying to go out and find resources that can manage kubernetes like that's probably one of the hottest jobs out there probably took the wrong career path but anyways it's it's new it's emerging whereas VMware people know it there's a lot of people that know it so why spend time as an Enterprise retooling and learning and going to a different platform so with that VMware brings that foundation and the security of that that cohesive ecosystem that comes with VCF so we can provide that dedicated solution to our customers that they know and they Trust trust is critical right I mean it's it's table Stakes for businesses and their vendors and suppliers you know here we are at the VMware explore event that called uh the center of the multi-cloud universe which just sounds like a Marvel movie to me haven't seen any superheroes yet but there's got to be somebody around here in a costume in any event talk about how Lumen and VMware are enabling customers to navigate the the multi-cloud world that they're in by default and really turn it into a strategic advantage uh sure it's tied to the network um as much as I'm trying to say we opsificate it but it's um network is the critical part to it because you do have to physically connect things and the cloud is their computer somewhere so there is a physical behind everything but with the connectivity that we have and the partnership with VMware and the ability to take that platform and either from on-prem Edge data center third party data center or we can also provide that service with uh vmc and AWS we can provide it in the cloud so you have a ubiquitous platform that looks and feels the same no matter where it is and then that's critical to our customers again that the switching costs of learning it's it's a great product VMware is a great partnership to help bring that all together so what is a delighted customer sound like you're interacting with a delighted customer they're not gonna they're not going to pick up the phone and tell you you know what I love your network what what are they going to be what are they going to tell you they're happy about a delighty customer wouldn't talk about our infrastructure at all our virtual machines work our applications work our software Engineers they can develop against it our costs are optimized that's what they're going to care about if they start talking about oh our virtual machines or servers and that means there's probably something wrong so we need to make sure that platform that we're providing as a service and managing works so it's really if your application if you want to talk to me about your application that's what's top of mind for you we're doing our job now you share that love with the folks in your organization responsible for making sure that that infrastructure works right yes you let them know it's like look no no one is no one is touting what you do but it really still is important it is very you want to make sure keep those folks happy yes very important talk a little bit Jeff about how your customer conversations have evolved over the last couple of years as we saw you know two and a half years ago businesses in every industry scrambling to go digital have you seen priorities shift up the c-suite stock over to the board in terms of the infrastructure and the network that powers these organizations yeah I mean over the past couple years with the proliferation of public cloud you know the edicts of got to go to the cloud we got to go Cloud go to the go to the cloud so everything goes to the cloud it's great it's good for a lot of applications but not for all applications and the customer conversations were having a lot of it are okay what what comes back because with Cloud cream and costs it just yeah if you're looking at a permanent VM basis you know public Cloud works but when you have an entire ecosystem of virtual machines and applications to support entire Enterprise that cost can get out of hand pretty quickly are you saying that we we yeah we hear the term repatriation yes used are you saying a fair fair amount of that yes we're seeing that then the other part that we're seeing is getting out of the data center business that's expensive especially if an Enterprise has their own like that's you're talking about 10 million dollars per megawatt just of capital cost there so and then if they're in a third party you still have physical space and power you have servers there you have to assume someone's optimizing those servers and even if you have a hypervisor sitting on top of it that's a lot of work that's a lot of resources and human capital that our private Cloud solution with VMware takes away so that they can again they can worry about their applications providing business value providing customer experience versus is there anything on this server or not does somebody need this virtual machine what are all these public Cloud spend items we have how's this out of control it allows them to focus so that's kind of how things have have evolved and changed over the years one of the things that VMware talked about this morning in terms of the journey the cloud journey is going from cloud chaos which is where a lot of businesses are now to Cloud smart how does Lumen facilitate that transition of a business from cloud chaos to Cloud smart what is a cloud smart strategy from lumen's lens look like first of all you have to have a strategy as an Enterprise you'd be surprised how many of those that are out there that they don't know what to do and part of not knowing what to do is do we even have the right people looking at this and so what Lumen what we bring is that consultative capability to start breaking down some of those issues so maybe they do have a hybrid Cloud strategy okay have you implemented it no why not we don't have enough people okay those are resources we can bring in because not only you provide network and infrastructure but we also have managed surface capabilities managed Services capabilities we can sit on top of that we have Cloud migration practices we have centers of excellence around sap and other services so let us help dissect your problem let's take a let's look at the landscape you have out there find out where everything's buried and dig it up and then we figure out okay how do we move from one place the other you don't just lift and shift and so that those are the other services that Lumen brings in and that's how we help them and our private Cloud product we have it sitting on our Edge right in those 60 metros they can spin up a private Cloud instance tomorrow and they can start moving virtual machines from their data center to that cloud as a staging point to either keep it there you know move it to another place or move it into the public Cloud if that's where the application needs to live I'm curious about lumen's go to market strategy customers have a finite number of strategic seats at the table when it comes time to planning things out like what you just were referencing you know what what do we do next uh what's lumen's path to a seat at that table are you are you generally seeking to directly engage separately with that end user customer or are you going in partnering with others what does that look like in the real world in the real world it's Partners working together no one single entity can provide everything we have to work together and with our infrastructure layer we want to find the right partners that can help provide vertical specific Solutions that then you know they can be Hardware Partners they can be software Partners but then we can collectively go talk to the market talk to our customers about what we can help them with and then with our managed Services capabilities that's how we can kind of glue it all together so that's the direction we're going in so be very focused we're focused on manufacturing you're focused on retail because we see the largest opportunities there that's where we have a strong customer base strong customer relationships and that's how we're doing it we don't want to have an infrastructure conversation we want to outcome and application conversation that's what every customer is talking about it's all about outcomes is there Jeff a favorite customer story in manufacturing or retail that you think really articulates the value of what Lumen and VMware are delivering together yeah it's a yeah we kind of use this one a lot but it's it's uh it's a really good one um and we've seen um uh clones of this and and other opportunities manufacturing smart manufacturing you need to have the equipment that takes that information again that data from all the iot devices analyze it operate your manufacturing facility because most of it's all automated now so you can run that facility at optimal production with that compute you don't necessarily want that compute you know a thousand miles away you want it as close as possible particularly if you look at what if there's a fiber cut your network goes down okay then your factory goes down that's millions of dollars so with that compute there we allow that smart manufacturing capabilities and that's running on Lumen private cloud based upon VMware on vcloud foundation and it's working great and it's it's an opportunity for us to continue to expand I've seen similar use cases in logistics it's yeah I mean it's phenomenal what we can do when you're in conversations with prospects what's the why what's the pitch that you give them about why they should be working with Lumen to help them really maximize the value of their Edge Solutions it's really the resources we bring to bear like you know we we keep talking a lot about Network and uh trying to get away from the sniper that's my cousin the network is is key to the value proposition but it's not what people look at first but it's those other resources the ability to to manage I.T infrastructure which have been doing for decades a lot of people don't know that but we've been doing this a very long time and then with those areas of expertise managed Services it's providing that all together and with lumen's history the Partnerships we have I mean we have a lot of Partnerships so we have the ability to bring all these resources to provide the best solution for the customer and we like to use the term best execution venue so each application has an optimal place to live and we'll help help customers find that out and it's really I mean it's that simple we just need to sit down and have a conversation we can figure out where we can help you and we can get started as soon as the customer is ready so obviously some some changes coming up for VMware in the next few months or so what are you excited about as you continue this long-standing partnership and evolving it forward I'm most excited about us working together even more because we have not only do we have our private Cloud products uh we're leveraging them for kubernetes but also our sassy product we're partnered with VMware on that so we're really tight at the hip with these Cutting Edge Products that we're taking to Market to help customers solve those problems that we were just talking about so I'm just looking forward us coming together more and just getting out there and helping people threatening of the partnership excellent Jeff thank you for joining Dave and me on the program talking about what's going on with Lumen how you're enabling the fourth Industrial Revolution enabling customers to really become data companies we appreciate your time on your insights thank you for Jeff saraki and Dave Nicholson I'm Lisa Martin you're watching thecube live from VMware Explorer 2022. you're watching thecube the leader in Live tech coverage [Music]

>>The >>Cube presents HPE discover 2022 brought to you by >>HPE. Hi everybody. Welcome back to day three, the Cube's continuous coverage wall to wall coverage of HPE. Discover 2022. My name is Dave Lanta. I'm here with John furrier. Dave McGraw is here. He's the vice president in the office of the CTO at VMware. And he's joined by Scott. We, the vice president and CTO of global sales for Hewlett Packard enterprise. And we're gonna talk tech, we're gonna talk integration. Co-creation gens. Welcome to the cube. >>Thank you so much, >>Scott, let me, let me ask you a question on the Scott side on the HP, we had the sales executives on the leaders on the sales side. You're on the CTO side with customers. You're in the front lines with customers green. Lake's got traction. I got this 1600 plus customers, 70 services we heard. And just the beginning, when you're out front of customers, you've got the old HPE now the new HPE kind of developing, what are they talking to you guys about? Cause now you have this cloud layer. I call it cloud operations, architecture shift. Yeah. What is the main conversation that you're involved in? >>I think it's driven by fundamentally that customers want to consume differently, right there workloads are ever evolving. You guys have evolved to meet those and since their consumption methods have changed on how they want and right. A lot of it's agility and, and speed of business right. Has, has dramatically shifted. So I think you'll see HPE GreenLake, you know, obviously as the cloud that comes to you, try to meet the problem where the cloud experience is needed. And I think that's the fundamental shift we've seen. I spent a lot of time with customers here at this conference. And as we've moved from cloud first to cloud smart to cloud everywhere, we're sitting in the intersection of cloud ever and delivering the experience together. And I think that's the heart of most of the conversations that are going on. >>Well, VMware, you guys are on, on a cloud. You guys shifted up with the cloud play. That's accelerated the VMware proposition. Now we have yesterday, we were talking to the city, the storage folks, they're provisioning single pane of glass or storage to customers. And whether they wanna pipe it to S3 or develop at the edge, doesn't matter. It's one console. Yeah. That's brand new. That's shipping. >>Yeah. And you know, a lot of it's driven too. I think the days of trap silos of resources that support one line of business are over. So we're talking about cloud agility everywhere, right. And to be able to embrace the cloud in all the locations. Right. And you kind of see folks move beyond just like there's the cloud, it's everywhere. It's the cloud. And so things like storage and fundamental compute and fundamental network operations that we're working on together, I think are where the customers expect us to be. We no longer can just show up. We have to show up and solve and solve before their needs. And I think that's a unique shift in the experience that's going >>On. So when you go back to, you know, Antonio four years ago now said, okay, we're all in. Yeah. On as a service. And so when you do that, you say, okay, we're gonna, we have services. They're gonna help do that. We have financial models that we can take to market immediately. So let's start there. And I would imagine take, so take us back. That's the point at which, you know, you're, you got email, phone ring, whatever let's integrate from an engineering standpoint go yeah. You know, as fast as you can. So what did that mean in terms of an engineer from an engineering perspective between HPE and, and VMware take us through that progression. >>Yeah. No, thanks for the question in your spot on it started with flexible financing models around metered usage. That was sort of the need at the time to now the expectation of engineered integrated solutions where customers don't wanna be in the system integration business anymore. And that requires engineering right. Requires deep innovation partnership to evolve to where the customer's headed, like before they've thought about it. And you'll see, you know, what we've done with vCloud foundation together and the integration within the HP GreenLake ecosystem, what we're doing with unified hybrid cloud views of what's going on, I think requires deep innovation things we're doing with other projects that we're gonna talk about today. Like Monterey capital thunder, our deep integrative innovation projects, where we've got together to try to solve a big problem cross industry that our customers are expecting us to do. And I think that speaks to the spirit of our long partnership together too. It's a business partnership. Of course it's a customer partnership to solve, but it's an innovation partnership. >>I gotta, I gotta ask about the, um, hybrid, obviously hybrids, the steady state. We're all seeing that now multi-cloud is being kicked around, but it's not, multi-cloud in the sense of workload portability so much. It's more of hybrid stitched together. Um, but it's coming fast with a data plane and yeah. The fabric and control planes. Uh, VMware, you guys are talking heavy about cross cloud or multicloud. Absolutely. So this is now brings up the old school interoperability question, right? So GreenLake sits here on premise. You guys have the edge, you get public cloud together. Where's the cross cloud come in. Where are customers doing when they think about cross cloud or, or multicloud? What is that conversation? Is it, Hey, I got Azure cause I got office and teams and I got Amazon over here and I got my on premise edge. Are they moving towards just being agnostic on cloud or is what's the environment? What, what are you crossing in the cloud? What does that mean across the cloud? Can >>You, I mean, from, from our perspective at VMware on premises, it's VMware cloud foundation, having that available, it's a VMware cloud instance, full STD STDC stack, uh, that is interoperable with our VMware cloud instances at the hyperscalers. And so for us, it's really about putting the management and control planes around that so that customers can easily determine where they wanna place workloads and when they need to burst, they need to scale up scale down. They have the flexibility and we wanna make sure all of these capabilities are available with HPE >>Going forward. What's interesting is that, you know, with, with GreenLake, what I like about what I'm seeing is is that, um, the leveling up of the cloud operation model, it's always been DevOps. We've always saw dev stack ops, clearly being operationally with cloud now on premise and edge with public cloud, it's full end to end operational cloud. If you wanna call it that, what is a key technical issue the customers need to do to get that in place? Is it to be DevOps, is that have cloud native applications, um, what kind of managed services, what's the makeup of that operating model for cloud look like? >>Yeah. I think if you talk to any enterprise commercial account, a top account, they'll they'll, if you, they think about how they run their functions, right. And you got, and you spoke to one of them, you have it ops at the bottom, it's a layer cake, right? You have it ops, everybody's deeply looking for AI ops that can remediate and orchestrate and you guys are on that journey as we are, as you move up to devs and dev SecOps, cuz security's critical, you got financial ops cuz we know economic value matters all the way clear up to cloud ops and Mo ops. What we're talking about is building hybrid operating model cause hybrid, it is simplified it where you're out of the stack, we're doing that together as partners and hybrid cloud is multiple consumption methods, but an operating model is encompass encompassing, cyber resiliency, compliance, economic, operational control. >>That's what we're built and edges in there as well. Right? Folks is, and it's not OT and it touching that's happening too, as we build edge tax, but folks need a simplified way. And as you saw in a lot of announcements here, our job was to bridge the cloud locations, right? So the customer didn't have to back to the portability statement you made, we announced a lot here that will allow you to float back and forth. So you have choice, choice and control control is the me is what every customer wants and they want the right workload at the right place at the right time at the right economic with the right capability. So I think that's in our mission together. Right? So, and >>A big part of engineering obviously is, is futures and roadmap. Yeah. Thought you mentioned Monterey cap thunder, you know, Monterey's kind of the smart Nick. One of the mega trends in the industry is Silicon diversity that handle all these new workloads to help with the edge. You know, capital is like the VSAN of memory as I, I would describe it. It obviously fits in there as well. So talk a little bit about the engineering roadmap, whatever you can share with us and how you guys are working together on that. Yeah. >>Yeah. I mean, those are three key projects for us. So there's constant interaction and integration with the HPE engineering team and the VMware team to make sure we bring those solutions to market with full capability. And for us, ultimately it's taking that technology and having it available in a VMware cloud context so that customers can have a, a consistent experience on premises running VMware cloud running with HPE GreenLake and then two are various VMware cloud suppliers around the world. And it's not just the hyperscalers, right? There's thousands of VMware cloud, uh, you know, partners that we work with manage service providers across the board. So it's, it's a very significant network of cloud. And you know, being consistent allows for mobility of workloads allows for consistency and skill sets for it operators as well. Mm-hmm >><affirmative> yeah. I wanna get into that, um, manage service trend around skill sets, but yeah, I have a, the number one thing that we've got in our, my notes here on multi-cloud challenges and I wanna get your reaction to it real quick, inconsistent infrastructure, API database network, and security constructs are different by cloud. How do you guys view that? And when you go to customers and they say, well, I got APIs that are different. I got different security constructs. What do I do? What does that, how do you answer that, that, that, that objection. >>Well, it's, it's a great call out cuz it is still the ongoing challenge, right? To gets to some of the portability, some of unified model and how they treat resources and consumption. Right? And so we're, we've all gotten together as an industry. You'll see purposely that the hyperscalers are all here at, at the conference, right? We're working on deep integration with all of our partners to make sure the customer doesn't have to. And I think it does extend to the different security models are troubling for customers. We're all working hard on unified security models as well. It's not just a developer saying, I like this set of APIs anymore, right? Or this framework customers need to run tier zero tier one, tier three applications when it really comes down to it and we need to create that unified model together. So, and I think that's really what the, the spirit or the embodiment of hybrid really is. >>When you talk to any customer, who's running a big operation, they're running in that model, right? They're not just doing cool. They want operationally simplicity. And I think you'll see these, these things we're engineering together are going after some of the hard problems, applications are hungry or all the time customers need more and more resources. And I think we would all agree. We've spent a lot of time in industry together when we're all working on sort of systems of record. What I call the shift ride effect is happening. Now we're in systems of interaction and systems of engagement out at the edge. That's the creation point of data. We need to be able to have that unified model all the way through the data path for the customer so they can monetize business value. >>And the data model is coming together. That's right. Where all three of those types of work that's right. There's two iconic names. And the other thing is that their trusted names and you're right, you're solving some of those hard problems making it simpler, but also you people trust that if something goes wrong, you're gonna be able to recover. So guys. >>Yeah. And I, and I'll tell you on the security front, you know, we've worked closely together here. If you look at, you know, VMware strategy of intrinsic security, it's really around going back to the development of our products, making sure there's a secure bill of materials, working with these guys on route of trust. Right? Making sure there's a full stack, uh, solution for our customers. Ultimately >>That's a whole nother cube segment that's bombs and shifting left and supply chain. Absolutely >>Shifting game. Absolutely. Right. Shifting >>Lift we're >>Shifting. Right guys. Awesome story. Congrats on the collaboration. Really appreciate your time in the cube. Thank you so >>Much. Thank you so >>Much. All right. You're very welcome. Okay, John and I will be back right after this short break. You're watching the Cube's coverage of HPE discover 2022 from Las Vegas, right back.

>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome to Las Vegas. It's the cube live on the show floor at HPE discover 2022, the first in person discover in three years, there are about 8,000 people here. The keynote was standing room only Lisa Martin here. I got a powerhouse group joining me for this keynote analysis. Dave ante joins us, Keith Townsend, John farrier, guys. Lot of news. It's all about HPE GreenLake. What were some of the things Dave, that stuck out to you? >>Well, I'll tell you right now, I gotta just quote, Antonio OIR said, Neri said four years ago, I declared that the enterprise of the future would be edge centric, cloud enabled and data driven. As a result, we launched HPE GreenLake. It kind of declared victory. Now I would say that what they're talking about and what they announced, I would consider table stakes. You know, I wish it started in 2014. I wish Antonio took over in 2015 instead of 2018, but I have to give credit, he's brought a focus and uh, and a, he think he's amped it up, John. I mean, if he's really prioritizing, uh, the, as a service they're going on in all in they're burning the boats, uh, and it's good. They got a lot of work to do. They >>Got a lot of work to do three years ago, John Antonio stood on this very stage saying we, and by 2022, we're gonna be delivering our entire portfolio as a service here we are with GreenLake. What I wanna get your thoughts on Keith's as well. >>Yeah. Well, first of all, I think that the crowded house was, uh, and a sign of people wanna come back together. So it's, to me, that was the first good news I saw, which was the HP community, their customer base. They're all here. They're glad to be back and forth. So it shows that they, their customer base it's resonating their value proposition of annual recurring revenue as a service plus the contract values with GreenLake are up. So this resonance with the customers, Dave, on the new operating model, that's a great check the box there. Um, I would say that I don't think HP's, as far along as Antonio had hopes, he'd be the pandemic was a setback. Um, but GreenLake is a real shining star. It's, uh, it's producing some green if you will money for them in terms of contracts, but they still got a lot more work to do because they're in a really interesting zone, Dave, because edge the cloud, although relevant and accurate where the, the shift is going, are they really there with, with the goods? And to me, I'm looking forward to seeing this discover if they have it or not. Certainly the messaging's good, but we're gonna UN UN unpeel that onion back and look at it. But >>Keith they're on the curve, right? At least they're on the cloud curve. >>They're absolutely on the curve. They have APIs, they have consistent developer experience. They announced the developer portal. They're developer centric. You can now consume your three par storage array services via a Terraform, uh, provider. They speak the language of cloud practitioners. You might struggle a little bit if I'm a small startup, you know, why would I look towards HPE? They kind of answered that a little bit. They had evil genius as a customer on stage, not a huge organization. A lot of the pushback they've been given is that if I may startup, I can simply go to a AWS portal, launch, a free trial service and run it. HPE kind of buried the lead. They now have, at least they announced preannounced the capability to, to trial GreenLake. So they're moving in the right direction. But you know, it's, it's it's table states. Well, >>Here's the thing. Here's the dynamic day that's going on. This is something that we've got got we're first of we've been covering HPE HP for now 11 years with the cube and look at Amazon's success and look at where Amazon's struggling. If you can say that they're having crossed overs to the enterprise, uh, cuz the enterprises are now just getting up to speed. You're seeing the rise of lack of talent. It certainly changing, uh, cyber security. You can't find talent. Kubernetes, good luck with that. Try to find someone. So you're seeing the enterprise aren't really geared up or staffed up for doing what I call, you know, high end cloud. So the rise of managed services is, is what we're seeing out there right now. You want Kubernetes clusters is a great set of managed services. You want other services? So that's the tell sign that the enterprises H HP's customers are now walking before they can run. They're crawling, they're now they're walking. So it's they have time to get in the Amazon lane in my opinion. Well, you >>Think about the hallmarks of cloud, obviously there's as a service, there's consumption based pricing. There's a developer, you know, friendliness, uh, there's ecosystem, which is really, really important. I think today, a lot of the ecosystem is partners, resellers and managed service providers. And to your point, Keith table stakes are things like single sign on being able to have, you know, a console being able to do it from a, from a URL to your point about startups is really interesting because that's one of the other hallmarks of cloud is you attract startups. And Lisa, we were at the snowflake summit and I asked the same question, can snowflake attract startups with their own super cloud. And what you saw was ecosystem partners developing in the snowflake cloud and monetizing. And that's something that we're waiting to see here. And I, I think they know >>You're suggesting way you suggesting that HP's gonna attract startups. >>Well, >>I, I think that's a sign if they can do that. That's a sign. And, and right now, I mean, you heard the example that Keith Keith gave. Uh, but, but not, not many. >>Yeah. I'm hoping that H I don't think HP is gonna ever attract startups, but I think the opportunity GreenLake affords the ecosystem is build clouds or purpose driven clouds around GreenLake. Mm-hmm <affirmative> whether it's the agreement with Equinix or all the cos and semi clouds, I think GreenLake gets most small CSPs, a leg up or 80% of the way there, where they can add that 20% of the IP and build services around GreenLake. And then that can attract the, the startup >>Or entrepreneurs. So the, the big question is, okay, where are these developers gonna come from? They could come from incumbents inside of companies. You know, the, the, the DevOps crowd from the enterprise, the really ops dev crowd. Right? I mean, yeah, don't you see that as a sort of a form of innovation startup, even though it's not a true startup. >>Yeah. Even though it's not, >>So Todd's making faces over there, we <laugh> >>Look, it, look it, they have >>Listen, if they don't, if they can't >>Do that, no, this is their focus is not startups. I agree with Keith on this one, they have to take care of business, home Depot. They have big customers and they have a lot of SMBs as well. They've got a great channel. H HP's got amazing infrastructure and, and client action going on. They gotta get the operating model, right job one as a service ARR, and then contract value and, and nail that with GreenLake. >>Who's their ideal customer profile. >>Their ideal is their install base. Look what Microsoft did with 365, they were going down. Their stock price was 26. At one point go to the, they went to the cloud 365, moved everything to the cloud and look at the success they're having. HP has the same kind of installed base. They gotta bring them along. They gotta get the operating model, right. And the developers that they're targeting are the ones inside the company and, or manage services that they're gonna go to the ecosystem for. That's where the cloud native comes in. That's where thing kind of comes together. So to me, I'm bullish on the operating model, but I'm skeptical that HP can get that cloud native developer. I haven't seen it yet. I'm looking for it. We're gonna look for it here. >>A key to that is going to be consistently. I, the, one of the things I'm looking for on the tech side, I, I hate to compare what HPE is doing to what VMware did with vCloud error years ago, but vCloud error on the outside looked >>Wonderful. Yes, >>It did. Once you tried to use it, it was just flaky underneath. And that's the part I'm looking to see customers pounding on it and saying, you know what API call after API I call, can I, uh, provision 10,000 pods a day? Does it scale down? Does it scale? And is it consistent? Is it >>Fragile Al roo she's co seasoned veteran? Uh, she was at V VMware cloud. She saw that movie. She gets a Mulligan, Dave. So I think her leadership is impressive. And I think she could bring a lot to the table to your point about don't make that same mistake and they gotta get this architecture, right. If they get the operating model right with GreenLake, they can double down on that and enable the developers that are driving the digital transformation. That to me is the, the key positions that they have to nail. And they do that. The rest is just fringe work. In my opinion, >>The reason why Alma was brought in, sorry, Lisa, it was, and then you gotta chime in here was to really build out that platform so that internal people at HPE can actually build value on top of it and the ecosystem that's her priority. >>We're gonna hear a lot from the ecosystem in the next couple of days, but I wanna get your perspective on, you've been following HPE a long time, all three of you. What are some of the things that you're hearing right now that are differentiators? We were just at Dell technologies. We talking about apex. We saw the big announcement they had with snowflake. We were at snowflake two weeks ago. I wanna get all three of your opinions on what are you seeing? Where is HP leading? >>I mean, HPE and Dell will, both with Dell, with apex are go, they're both gonna differentiate with their strengths. And, you know, for Dell, that's their breadth and their, their portfolio. And for, for HPE, that's their sort of open posture. I mean, John, you, you know this well, uh, that's their, their ecosystem, which I know has to evolve. And to me, their focus, you know, Antonio laid out some of the key differentiators. I, I, I think some of them were kind of, you know, pushing the envelope a little bit. Uh, but, but I think they're focus on as a service burning the, the, the boats telling wall street, this is our business. I think that's their differentiator. Is that they're, they're all in. >>Yeah. I, I think they, they try to highlight it by re announcing their private cloud service. I don't even know why they needed to announce that they have a private cloud. GreenLake is a cloud it's is a private cloud >>With block storage, hit disaster recovery. It's like good >>With like everything you get. But I think the, the key is, is that all of that is available today and you can get it in all kinds of frame of, of formats and, and frames specifically, if I'm a customer and I wanna get outta the data center and you, you know, Dave, we go back and forth about this all the time, and I wanna repatriate some workloads to Kubernetes on prem. I don't need to spend up another data center. I can go to Equinix, get GreenLake min IO, object storage on the back end, HPE lighthouse, all those services that I need for Kubernetes and repatriate my workloads without buying a new data center. And I get it as a service. I can get that Dave from HPE GreenLake, Dell apex is on the way. The >>Other thing they're differentiating with Aruba, that's something that Dell doesn't have. Yeah. And, and that is their edge play, I think is stronger than >>Of the others. Mean the, to me, the differentiator for HP is their, their history. Their channel's amazing. They got great Salesforce and they have serious customers and they have serious customers that have serious problems, uh, cyber security, uh, infrastructure, the security paradigm's changed. Uh, the deployment is changed how they deploy applications in their customer base. So they gotta step up to that challenge. And I think their differentiator is gonna be their size, their field and their ability to bring that operating model. And the hybrid model is a steady state. That's clear multi-cloud is just hybrids stitched together, but hybrid cloud, which is basically on premises and cloud to edge operating model is the number one thing that they need to nail. And if they nail that right, they will have a poll position that they could accelerate on. And again, I'm really gonna be watching how well they could enable cloud native developers, okay. To build modern agile applications while solving those serious problems with those serious customers. So again, I think hybrids spun in their direction. I'm not gonna say they got lucky, cuz they've always been on the hybrid bandwagon since we've been covering them. But I thought they'd be for a long day, but they're lucky to have hybrid. That's good for them. And I think do what Microsoft did convert their customers over and they do that, right? >>I think the key to that is gonna be ecosystem. Again, the developers need to see, especially the data piece, they talk about the cloud operating model. I think they're really moving that direction. The data piece to me is the weakest. Like they'll, they'll make claims that we can do anything that the cloud can do. You can't run snowflake, can't run data bricks, can't run Mongo Atlas. So they gotta figure out that data layer and that's optionality of, of data stores. And they don't have that today. >>Yeah. They, they, they have an announcement coming and I can't pre-announce it, but they're, they've, I've deemed them against it. They have the vision, Emeral data services, their data fabric multi-protocol access is a great start. They need the data network behind it. They need the ability to build a super cloud, a across multiple cloud providers, bringing some Google infos love inside of, uh, right next to your data. They have the hardware, they have the infrastructure, but they don't have the services. >>That's a key thing. I think one, you just brought up great point, Keith, and that is, is that at the end of the day, Dave, we're in a market now where agility and speed can be accomplished by startups or any company and HP's customers. Okay. Can move fast too. Okay. And so whoever can extend that value. If HPE can enable value creation for their customers, that's gonna be truly their, their task at hand, they got the channel, they got some leverage, but at the end of the day, the customers have alternatives now and they can move faster to get the value that they need to solve their serious problems. Uh, like cyber, like scalable infrastructure, like infrastructures code, like data ops, like AI ops, it's all here. And it's all coming really fast. Can GreenLake carry the day. And >>By the way, everything we just said about GreenLake in terms of table stakes and everything else, it applies for Dell. >>Yeah, absolutely. >>No question. It does guys. We have, and jam packed three days. We're gonna be talking with the ecosystem. We're gonna be talking with HPE leaders with customers. You're gonna hear all of these, uh, all this information unpacked over the next three days. We will be right back with our first guest for Dave ante, Keith Townson and John furrier. I'm Lisa Martin. Our first guest joins us momentarily.

(upbeat music) >> Hi everybody. We're back at VeeamON 2022, we're winding down coverage to The Cube day two. We've done a lot of VeeamON. We're at the Aria hotel, smaller physical audience, huge hybrid audience, little different program. Great keynotes, really loved the keynote yesterday and today kind of product day today. Sean Smith is here with myself and David Nicholson. He's the staff Solution Architect at VMware. Sean, thanks for coming on the Cube, taking some time with us. >> Hey guys. Great to be here and great to be in person again. >> Yeah, it sure is. Hoping to see VMworld is no longer VMworld, right? >> It's VMware Explore now. Yep. >> Okay. Awesome. Looking forward to that. That was one of the first shows we ever did. It's kind of got that same vibe, I hope you don't lose that, the core of VMware. >> What we've been told is it's still going to be, the core of what we do and it's going to be the showcase of VMware. >> Which is the ecosystem, great vibe. You always know a million people there, which is great fun. How's it going at VMware today? I mean, let's start there. It's been a while since we've talked physically with... >> Yeah. VMware is, we've come through the pandemic, fairly well, relative speaking to what others have done. I'm part of the VCPP Program, the VMware Cloud Provider Program, and I look after cloud service providers, cloud builders, people who are actually building out networks for customers and environments that are very specialized and focusing on their needs and VMware is forefront with cloud service providers these days, doing really well. >> The last time we were physically proximate to VMware executives, I think Pat Gelsinger was still the CEO, Dell still owned the majority of VMware. So that spin happened. So that's good. I think the ecosystem in particular is probably really happy about that. Does it have any effect on your world? >> From a day to day business perspective, not really, right. Obviously we still have a very tight relationship with Dell. We still do a lot of innovative solutions and products with the Dell team. We have a tight integration there. It really gives us the opportunity to also work with many other vendors as well. And focus on solutions that our customers are looking for really, is where VMware is tryna focus. >> Yeah. It's funny, we were at Red Hat Summit last week. IBM Think was right across the street there was very little mention, if any, I think they talked about an IBM mainframe at Red Hat Summit. That was it. I mean IBM fully owns Red Hat, but a lot of people said, we hope that it's going to be like VMware and you guys have always had that independent culture. >> Fiercely independent. >> Fiercely independent. Yes. >> Yes. It's like when you coach, I don't know me anyway, when I coach my kids baseball, I'm a tougher on them than am with the other kids. I think you guys were sometimes tougher on your own or... And rightly so, you have a huge ecosystem. >> We do. >> That is epic. And so you have to look out for that. VMware has always done that. VCPP the V is for a VMware what's what's the acronym. >> So the CPP is Cloud Provider Program. It's a program that's specifically aimed at our cloud service providers. There's several solutions within the program, which are really focused on helping them build business, helping them go to market, helping them with being able to, for certain part of it compete with the hyperscalers and our support several cloud providers, mostly out of the Northeast, and they're doing really well. They're doing well against the hyperscalers, they very often provide solutions that are not easy to get on a hyperscaler. When you want to have customer interaction and things like that. So the VCP Program as I said, is really tailored, it has solutions which are very much focused on allowing them to build their businesses as a cloud service provider. >> Just a follow up if I may. >> Yeah. >> So the history of VMware Cloud has been really interesting. At one point vCloud Air, we know what happened there. This is not vCloud Air. >> This is not vCloud Air. It's got nothing to do with vCloud Air. It's really a program where we provide solutions that the cloud builders build with, right? So it's software solutions. There's no hardware involved. There's no VMware having the environment, it's really cloud providers building solutions. >> So it's interesting, Dave, this has come full circle, you used to work at Virtustream. There was point Rodney was like, bring it on AWS, correlation and back said, we can't lose to a book seller and all that was just, fun marketing talk for media people like us. But the interesting thing is, well, so VMware Cloud on AWS. Huge success of VMware Cloud Foundation. Doing really well. And obviously you've got momentum. Everybody thought, not everybody. >> It's in Google's, in Azure, it's in Oracle. >> Yeah, yeah. Sorry. >> It's an IBM. >> IBM a... >> It's an IBM. >> Number one in IBM. Yeah. >> And so a lot of people thought, I shouldn't say everybody, but a lot of people thought, MSPs, the cloud service providers, non-hyperscalers are cooked through 2010, 2011. The exact opposite happened. >> It's 100%. >> It's growing like crazy. We want to understand why, but it's come full circle. >> Yeah, it certainly has. I mean, the industry has changed considerably and especially over the last few years with COVID, I will say that the cloud service providers that are support and by the way, Virtustream was one of them, when I first joined VMware, I supported Virtustream. And they have had to adapt their businesses, the hyperscalers have come at them with everything that they've got and honesty, the cloud service providers that I support are phenomenal growth. They they're growing on a par with what some of the hyperscalers are doing. So there's definitely a place for cloud service providers, they've got great business, they've got great customers, great relationships. And it's as I said, it's growing a huge business. >> So we've talked a lot about theme from the perspective of the idea of a Supercloud. Something that can overlay a variety of on-premises and off-premises providers and provide sort of a unified view, unified management methodology. How much is what at least was formerly known as the SDDC stack, the Software Defined Data Center stack, still a part of VMwares vision that is right in line with that, from what Veeam is doing. How much of your business is deploying SDDC stacks that are then customized in one way or another. >> 100% of it. >> 100% of it. Right, okay. >> Yeah. So, when you're talking about having that single view of everything in the cloud provider program, there's a product called VMware Cloud Director. and it is the multi-tenant view of the infrastructure and the environment that the cloud providers are building. Right. So VMware Cloud Director has gone through many iterations and we've recently launched Cloud Director Service, which is a SaaS offering of the product. But what it actually does is you put it on top of VMC on AWS. you put it on top of GCVE, you put it on top of the cloud service providers, SDDCs, right. All of these are SDDCs underneath. >> AVS and Azure. >> AVS and Azure. >> I was associated with that. So I must have it mentioned. >> Exactly. >> They're all SDDC's. >> SDDC's, yeah, yeah, exactly. And as well as your on premise environment. Right. So all of these federate together through the VMware Cloud Director, and you end up having a single pane of glass across all of those environments. So whether it's running in the hyperscale, or running on your premises, running in a cloud service provider's environment, you have a single view, a single interface that you log into and you can see everything that's going on inside your environment. So it really brings that holistic, single view of everything to reality. >> How about from a licensing perspective? >> So from a licensing perspective... >> I'm a non-premises customer, I'm running VMware on-prem, I have been, I was at world VMworld 2004 and enjoyed BattleBots. So hopefully you'll start bringing BattleBots back. >> We will have to. >> And now I'm dealing with a service provider. That is one of the partners that you're working with. How does that licensing work? >> So the Cloud Provider Program actually has a slightly different licensing model to what you would have on premises, right? They have a rental model with VMware, it's a PAYGo model, right. One of the great things about the program is that it's consumption based. So it makes it easy for cloud service providers to build a consumption based business, which is kind of where everything is moving, right? >> Yeah, for sure. >> So whether you have an on-premise environment that's licensed through what we call perpetual or ELA licensing, from a VMware perspective, you can still layer on top, that cloud service provider solution VCD, right? And you would obviously have a financial relationship with the cloud service provider in terms of the environment that you have with them. And they will be able to hook up that environment to your on-premises environment and get that single view. So the licensing is not a restriction, right, you can still continue to have your traditional licensed environment in your data center, as well as being able to connect into these seamlessly, right. That's the great thing about it. And that's where VMC, AVS, GCVE, the OCVS, the Oracle version, the RBM one, you can bring all of these together and really look at it from a holistic perspective, bring in things like NSX-T and other solutions like that VM as well, it works seamlessly across all these environments. >> I am talking about Supercloud, I asked Raghu last year, who's virtually at VMworld, I kind of explained that concept of hiding the complexity, the abstraction layer, being able to hide the underlying primitives and APIs, seems like it's evolving. One of the things he said was yes, but if developers want to go there, we let them. And that was a key point, because you're getting more into that DevOps. >> Correct 100%. >> And I would imagine the cloud service providers really oftentimes need for their reasons to get to those underlying primitives and APIs. >> And actually VCD is the enabler, right? So VCD allows you to provide a container based service sitting right alongside your IAS in the same SDDC, right? We're not even talking about segregating them out, you can have it inside the exact same SDDC, all linked together, all taking a common security approach to what's going on and providing you with that ease of use. So from an end user perspective, the DevOps type of people, VCD is an awesome solution, because they can go in fire up a new VM, or fire up a new container or whatever, without having to go through the rigmarole of asking IT for a VM, or asking somebody's permission, as a organization, you would give your DevOps teams certain amount of resources, how they use it's up to them, right? Whether they put containers in there or they bring VMs, it's all there. And it's all in one single solution. >> You mentioned that your community is doing very well growing it let's call it 35, 40% a year. And it's a market that's quite large worldwide. Because it's a lot of local, regional CSPs, a lot of big country CSPs and you said... >> It's four and a 1/2 thousand of them. So, it's huge. >> There you >> Versus four hyperscalers. >> Yeah, exactly. >> Include Alibaba. So, they might be individually smaller, but collectively they're larger. But you said that the hyperscalers coming after them with everything they had was a comment that you made, are customers choosing CSPs over hyperscalers? If so, when and why. >> Sometimes they are choosing CSPs over hyperscalers, but not always, very often they're choosing CSPs and hyperscalers, right. And it really depends on what their needs are. So historically speaking, it's been everybody rushing to the hyperscalers because that's the flavor of the day let's move out of our data center. It's much cheaper to run everything in these hyperscalers, and they do it. And then the bill comes in and reality suddenly hits. And it's definitely not as cheap as they thought it was going to be, right. So there's many aspects that cause tenants to not only rethink that, but also repatriate, right. Repatriation is a big thing for our cloud service providers. Things like egress costs, most cloud service providers have no egress costs, right? They encourage movement of things amongst themselves and for their tenants, because that's what they want, right? So egress costs are a huge problem for many tenants who come into these environments and that's sometimes why they would choose a CSP over a hyperscaler. But really, it's more about choosing the right place for your workload. There are workloads that belong in hyperscalers, right? And if you have a solution with a CSP like VCD, that allows you not only to be able to connect your on premises and the CSP, but also the hyperscalers and actually have a much more holistic solution where you can determine where you want to put stuff and put it in the right place. It's more about that, than it is about choosing one over the other really. >> Yeah, and sometimes it's more of a business differentiation than a technical one. Is it a hyperscale or is it a CSP? If you're licensing the SDDC stack and you're running it on IAS in Amazon or in Google or Azure? >> I think the other thing too is the CSPs oftentimes they manage service providers, right? Is that true? >> The relationship, right? And that's one of the things if you talk to a cloud service provider and yesterday I was, I had a session and I was talking to a bunch of people about VMware stuff. And I said to them, how many of you have tried to pick up a phone and talk to somebody at AWS? And there was laughter, because the reality is that what AWS does is a kind of one size fits all approach, right? There isn't somebody on the end of the phone that you can pick up and call, if they have a major outage that outage is affecting 1000s of different customers and you one of those thousands really means nothing to them, right? Whereas a cloud service provider, generally speaking, has a very tight one-on-one relationship with both from an engineering perspective, right. With their tenants, but also at a higher managerial level. So they create those relationships and those relationships often drive these things. It's not always financial, there is a financial component to it, but very often it's the relationship, have they got somebody that they can talk to? If they getting many different solutions, can they get all those solutions from one provider? And if they can, it's much easier for them to manage from a... >> And I think so does that manage service... There's also a lot of things that despite their breadth and portfolio that the cloud service providers don't support, you can't do Oracle rack in the cloud, right? But you can in a service provider. >> Exactly. >> And Oracle, look you can negotiate with Oracle, so you can get similar pricing AWS, but this price is two x. They're either on-prem or in Oracle. So I could take my Oracle instance, stick it into a managed service provider or cloud service provider, do whatever I need to, and there are I'm sure 1000s of configurations like that, that aren't necessarily identically supported, security edicts that aren't necessarily exactly the same, so many specials that managed service say welcome to your point. AWS is as long as it's black, it's good. >> Yeah, exactly. And that's the thing, right? Those cloud service providers are doing exactly that. They have Oracle racks in there, they have all sorts of those solutions that are there in their data centers. And proximity is also an issue, right? Very often the people who are using those systems need their ancillary things to be close by, they can't be 10s or 20s or 30 milliseconds away, they need to be sub millisecond connectivity. And those are the areas where the cloud service providers really shine, they can offer those solutions that really enable their tenants to get what they want at the end of the day. Again to your point, you can negotiate with Oracle, but these cloud service providers do it day in and day out. Who wants their business? >> Who wants to do that with Oracle anyway, their lawyers are smarter than yours. Veeam, what are you doing with Veeam, in resilient architectures and cyber recovery? >> Yeah, we are a sponsor here at the event and Veeam is a great partner with VMware and we're great partner to them. A lot of cloud service providers actually use Veeam as their primary backup solution for their tenants, right. VMware Cloud Director that I was talking about just now, the thing that gives you a view of everything over the top, Veeam was actually one of the very first vendors to integrate with VCD. And you can use your Veeam environment directly from the screen, you right click, and you say do a backup and that's as easy as that from a Veeam perspective. So we have a lot of integrations with Veeam. We help the cloud service providers, ransomware is a big talking thing around this event, but all over the place, right? So a lot of the solutions that Veeam brings to the party, these cloud service providers are also deploying into their environments to help with ransomware. They have so many solutions that help those cloud service providers provide a holistic solution. >> Well, Veeam was basically founded saying, Hey, we're going to better our business on VMware. I first saw Veeam at a V mug, I think in Boston, and I was like, who is Veeam? VMware is that their product? It was just so you guys have had a long relationship, even though initially VMware was probably saying the same thing, who the heck are these guys? Well, how do you like them now? Sean, thanks so much for... >> Thank you. It's been great to be here. Appreciate it. Thank you for watching. Keep it right there. We'll be back shortly. We'll get a couple more segments left. Dave and I are going to wrap up later in the day, you watching The Cube at VeeamON 2022, be right back. (upbeat music)

(gentle music) >> Welcome to this Cube Conversation, I'm Lisa Martin. Laura Dubois joins me next, VP of product management at Dell Technologies, Laura, welcome back to the program. >> Yeah, thank you so much Lisa, it's just fantastic to be here and talking about data protection now that we're coming out of COVID, it's just wonderful to be here, thank you so much. >> Isn't it so refreshing. So, you're going to provide some updates on Dell's data protection software, some of the innovation, how you're working with customers and prospects. So let's go ahead and dig right in, let's talk about some of the innovation and the enhancements that Dell is making to its data protection suite of software and also how customers are influencing that. >> Yeah, so it's a great question Lisa and you're right. We have driven a lot of innovation and enhancements in our data protection suite. And let me just level a second. So data protection suite, is a solution that is deployed by really tens of thousands of customers. And we continue to innovate and enhance that data protection suite. Data protection suite is comprised primarily of three main data protection software capabilities. So, longstanding capabilities and customer adoption of Avamar, which continues to be a central capability on our portfolio. The second one is Networker. So Networker is also an enterprise grade, highly scalable and performance data protection solution. And then a couple of years ago, we launched a new data protection capability called power protect data manager. So, all three of these capabilities, really the foundation of our data protection suite. And as I said, enterprises around the world rely on these three sets of capabilities to protect their data, regardless of wherever it resides. And it's really central now more than ever in the face of increasing security, risks and compliance and the need to be able to have an always kind of available environment that customers rely on the capabilities and data protection suite to really make sure their enterprises resilient. >> Absolutely, and make sure that that data is recoverable if anything happens, you mentioned cybersecurity. We'll get into that in a second. But so thousands of Avamar and Networker customers, what are some of the key workloads and data that these customers are protecting with these technologies? >> Yeah, I mean, so, actually tens of thousands. >> Tens of thousands. >> Tens of thousands of customers that rely on data protection suite. And it really, I think the strength and advantage of our portfolio is its breadth, breadth in terms of client operating environments, in terms of applications and databases, in terms of workloads and specifically use cases. So I mean, the breadth that we offer is unparalleled, pretty much whether Windows, Linux, OpenVMS, NetWare, kind of going back in time a long tail of kind of operating environments and then databases, right. So everything from SQL and Oracle and Sybase and DB2 to new types of databases, like the NoSQL or content store and key value store types of NoSQL schemas, if you will. And so, and then lastly is the word they use cases, right? So being able to protect data, whether that be data that's in a data center, out in remote or branch locations or data that's out in the cloud, right. And of course, increasingly customers are placing their data in a variety of locations; on Edge, on core data centers and in cloud environments. And we actually have over six exabytes of capacity under management, across public cloud environments. So pretty extensive deployment of our data protection suite in public clouds, you know, the leading hyperscalers, cloud environments and premises as well. >> So let's talk a little bit about the customer influence 'cause obviously there's a very cooperative relationship that Dell has with its customers that help you achieve things. Like, for example, I saw that according to IDC, Dell Technologies is number one in data protection, appliances, and software, leader in the Gartner Magic Quadrant for data center backup and recovery for over 20 years now. Talk to us a little bit more about that symbiotic customer, Dell relationship. >> Yeah, so it's a great question. We see our customers as strategic partners, and we really want to understand their business, their requirements. We engage on a quarterly basis with customers and partners in advisory councils. And then of course, we are always engaging with customers outside of those cycles on a kind of a one-on-one basis. And so we are really driving the innovation and the backlogs and the roadmap for data protection suite based upon customer feedback. And approximately 79% of the fortune 100 customers, our Dell data, Dell Technologies data protection customers. Now that's not to say that that's our only customer base. We have customers in commercial accounts, in mid-market in federal agencies, but, you know, we take our customer relationships really, really seriously, and we engage with them on a regular basis, both in a group forum to provide feedback as well as in a one-on-one basis. And we're building our roadmaps and our product release is based on feedback from customers, and again, know large customer base that we take very seriously. >> Right to the customer listening obviously it is critical for Dell. So you talked a little bit about what that cycle looks like in terms of quarterly meetings and then those individual meetings. What are some of the enhancements and advancements that customers have actually influenced? >> Yeah, so we, I mean, we, I think continuing to provide simplicity and ease of use is a key element of our portfolio and our strategy, right? So continuing to modernize and update the software in terms of workflows, in terms of, you know, common experiences also increasingly customers want to automate their data protection process. So really taking an API-first strategy for how we deliver capabilities to customers, continuing to expand our client database, hypervisor environments, continue to extend out our cloud support, you know, things like protection of cloud native applications with increasingly customers containerizing and building scale-out applications. We want to be able to protect Kubernetes environment. So that's kind of an area of focus for us. Another area of focus for us is going deeper with our key strategic partners, whether that'd be a cloud partner or a hypervisor partner. And then of course, customers, in fact, one of the top three things that we consistently hear from these councils that we do is the criticality of security, security and our data protection environment but the criticality of being able to be resilient from, and in the event of a cyber attack to be able to resilient recover from that cyber attack. So that is an area where we continue to make innovations and investments in the data protection suite as well. >> And that's so critical. One of the things that we saw in the last year, 15 months plus Laura, is this massive rise in ransomware. It's now a household word, the Colonial Pipeline for example, the meat packing plant, it's now many businesses knowing it's not, if we get attacked, but it's when. So having the ability to be resilient and recover that data is table stakes for, I imagine a business in any organization. I want to understand a little bit more. So you talked about tens of thousands of customers using Avamar and Networker. So now they have the capability of also expanding and using more of the suite. Talk to me a little bit about that. >> Yeah, so, I mean, I think it starts with the customer environment and what workloads and use cases they have. And because of the breadth of capabilities indeed the data protection suite, we really optimize the solution based upon their needs, right. So if they have a large portfolio of applications that they need to maintain but they're also building applications or systems for the future, we have a solution there. If they have a single hypervisor strategy or a multiple hypervisor strategy, we have a strategy there, if they have data that's on-premise and across a range of public clouds, one large customer we have as a, kind of three-plus one strategy around cloud. So they're leveraging three different public cloud, IS environments, and then they're also have their on-premise cloud environment. So, you know, we, it really starts with the customer workload and the data, and where it lives; whether that's be out in an Edge location in a remote or branch office, on an end point somewhere, they need to protect whether it be in a core data center or multiple data centers, or rather be in the cloud. That's how we think about optimizing the solution for the customers. >> Curious if you can give me any examples of customers maybe by industry that were, have been with Dell for a long time with Avamar and Networker for a long time and how they've expanded, being able to pick, as you say, as their, or as their environment grows and we've got, now this blur of right. It's now worked from anywhere, data centers, Edge. Talk to me about some customers examples that you think really articulate the value of what Dell is delivering. >> Yeah, so, I mean, I think one customer in the financial services sector comes to mind. They have a large amount of unstructured data that they need to protect, you know, petabytes, petabytes and petabytes of data they need to protect. And so I think that's one customer that comes to mind is someone we've been with for a long time, been partnering with for a long time. Another customer I mentioned in the, it was a kind of a three-letter software company that is a really strategic partner for us with on-premise, in the cloud. You know, healthcare is a big and important sector for Dell. We have integrations into kind of leading healthcare applications. So that's another big, whether they be a healthcare provider or a healthcare insurance company, and had a fourth example, but it's escaping my mind right now, but, I would say going back to the cyber discussion, I mean, one thing that we, where we see really customers looking for guidance from us around cyber recovery and cyber resilience is in what the, you know, of course president Biden just released this executive board on his mandate for ensuring that the federal agencies but also companies in the millisecond sector, sectors be able to ensure resilience from cyber attacks. So that's companies in financial services, that's companies in healthcare, energy, oil, and gas transportation, right. Obviously in companies and industries that are critical to our economy and our infrastructure. And so that has been an area where we've seen, recently in the last, I would say 12 months increased in engagement, you mentioned Colonial Pipeline, for example. So those are some high salient highlights I think of in terms of, you know, kind of key customers. But pretty much every sector. I mean, the U.S. government, all of the the agencies, whether they be civilian, or DOD or key kind of engagement partners of ours. >> Yeah, and as you said in the last year, what a year it's been. But really a business in every industry has got to be able to be resilient and recover when something happens. Can you talk a little bit about some of the specific enhancements that you guys have made to the suite? >> Yeah, sure. So, you know, we continue to enhance our hypervisor capabilities. So we continue to enhance not only the core VMware or hyperbaric capabilities but we continue to enhance some of the extensions or plugins that we have for those. So whether that be things like our VRealized plugin or a vCloud director plugin for say, VMware. So that's kind of a big focus for us. Continuing to enhance capabilities around leveraging the cloud for long-term retention. So that's another kind of enhancement area for us. But cloud in general is an ara where we continue to drive more and more enhancement. Improving performance in cloud environments for a variety of use cases, whether that be DR to the cloud, backup or replications of the cloud or backing up workloads that are already in the cloud. There's a key use cases for us, as well as the archive to cloud use cases. So there's just some examples or areas where we've driven enhancements and you can expect to see more, you know we have a six month release cadence for Avamar and Networker, and we continue with that momentum. And at the end of this month, we have the next major release of our data protection suite. And then six months later, we'll have the next update and so on and so forth. And we've been doing that actually for the last three to four years. This is a six month release cadence for data protection suite. We continue with that momentum. And like I said, simplicity and modernity, APIs and automation, extending our workloads and hypervisors and use cases. And then cloud is a big focusing area as well, as well as security and cyber resilience. >> Right, and so a lot of flexibility in choice for Avamar and Networker customers. As things change the world continues to pivot and we know it's absolutely essential to be able to recover that data. You mentioned 70, I think 79% of the Fortune 100 are using Dell technologies for data protection software. That's probably something that's only going to continue to grow. Lots of stuff coming up. As you mention, what are some of the things that you're personally excited about as the world starts to open up and you get to actually go out and engage with customers? >> I'm in just looking forward to like in-person meetings. I mean, I just loved going and trying to understand what problems the customers are trying to solve and how we can help address those. I think, you know, what I see customers sort of struggling with is how do they kind of manage their current environment while they're building for the future? So there's a lot of interest in questions around, how do they protect some of these new types of workloads, whether they're deployed on premise or in the public cloud. So that continues to be an area where we continue to engage with customers. I'm also really personally excited about the extensions that we're doing in our cyber recovery capabilities so as you can expect to hear more about some of those in the next 12 months, because we're really seeing that as a key driver to kind of increased policies around and implementations around data protection is because of these, you know, the needs to be able to be resilient from cyber attacks. I would say we're also doing some very interesting integrations with VMware. We're going to have some first and only announcements around VMware and managing protection for VMware, you know, VM environments. So you can look forward to hearing more about that. And we have customers that have deployed our data protection solutions at scale. One customer has 150,000 clients who they're protecting with our data protection offerings, 150,000. And so we're continuing to improve the, and enhance the products to meet those kinds of scale requirements. And I'm excited by the fact that we've had this long standing relationship with this one particular customer and continue to help in flowing up where their needs go. >> And that's something that even a great job of talking about is just not just a longstanding relationships but really that dedication that Dell has to innovating with its customers. Laura, thank you for sharing some of the updates of what's new, what you're continuing to do with customers, and what you're looking forward to in the future. It sounds like we might hear some news around the VMworld timeframe. >> Yes, I think so. >> All right, Laura, thank you so much for joining me today. Appreciate your time. >> Yeah, it's been great to be here. Thanks so much. >> Excellent from Laura Dubois and Lisa Martin, you're watching this Cube Conversation. (soft music)

>> Voiceover: From theCUBE Studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hi, I'm Stu Miniman, and welcome to this announcement with VMware cloud on AWS update. Happy to welcome back to the program, Matt Morgan. He is the Vice President of global marketing with VMware cloud services. And welcome into the program Fred Wurden, he's the general manager of EC2 enterprise at Amazon Web Services. Thank you so much both for joining us. >> Good to see you Stu. >> Same, thanks Stu. >> Matt, and Fred, the VMware AWS partnership is one that has gotten a lot of attention. I know any time back in the day when we used to go to physical trade shows, I could know when there was a session talking about this because it was usually full and overflowing. When I've written about this topic or doing videos about it it definitely gets quite a lot of attention. So it's been over three years since the partnership was announced but still, when I talk to people, they don't necessarily really understand the depth of the integration and the work that gets done on both sides even though you get clear messages from both Andy Jassy and Pat Gelsinger about how important this is. Matt, maybe start with you and Fred would love your commentary as to this three year partnership and where we are today here in 2020. >> Absolutely, since the initial announcement of the VMware AWS relationships, we have actually built a very special cloud service. And today, we're actually deepening our partnership. In fact, today, VMware goes to market saying that AWS and only AWS is our preferred public cloud partner for all vSphere based workloads. VMware cloud on AWS is a jointly engineered service. Meaning, our product teams our r&d teams are all working together to deliver VMware enterprise class Software Defined data center solution to the AWS cloud. VMware Cloud foundation is the core technology that's behind our service. And it gives us the capability to deliver that same level of infrastructure familiarity and consistency that our customers use today, across every data center location, the edge and of course inside the public cloud. VMware cloud on AWS attracts an enormous amount of interest from customers. And these customers are in every vertical, whether you're speaking of healthcare, media and entertainment, transportation, financial services, manufacturing, energy, government, education, professional services, and of course technology. And together with AWS, we're bringing together services that are being used across the whole portfolio of cloud optionality. This includes cloud migration from whether you're talking about a single app or complete data center, disaster recovery, whether you're talking about replacing a legacy system or building new disaster recovery in the cloud. Data center extension building that hybrid cloud. And of course, modernizing applications which we classify under the term application modernization. >> Great, and Fred from the Amazon side. >> Yeah, the partnership is been fantastic over three years. And I can't express enough how hard it is to actually deliver a simple solution that customers are asking for from all levels of both organizations. And to do that it takes both AWS and VMware to deliver a solution that allows companies to leverage what they know today and extend that into the cloud. And leverage all of the benefits that we're going to go over and a rapid delivery of new features which they haven't had before ever. So it's fantastic a partnership. I love what we've been doing at all levels. And I say it's going to continue. The scale at which we're growing is fantastic. And with that, I'm happy to go over some of the announcements and why we're doing what we're doing which is all based on listening and what our customers want. >> Excellent. Well, Fred, hey, we're glad first of all, that it did not get called VMC on AWS SS. Because we have enough acronyms already in tech. Matt, VMware and AWS, of course, clear leadership in the marketplace. With three years, bring us inside as to you talked about all the verticals that were used, but where's the proof on the adoption of this technology? Love to hear a little bit about that. >> Yeah, absolutely. So we have customer examples across the verticals we spoke of, but it's the customer stories that are the real value demonstrator. Let's pick up a couple of those. IHS market, they were able to move 1000 plus workloads to the public cloud. And that story is kind of common in the world. But what's unique about this particular story is IHS market moved them in just six weeks. If you look at the cloud migration strategy in general, for someone to move that fast with that many workloads, it's unheard of. VMware empowers that because the operating setup that organizations have standardized in their data center is identical in the public cloud. So organizations can move workloads we see them move hundreds of workloads in a week from their data center up to the public cloud. In addition to that, we have customer examples like the Pennsylvania Lumberman's Mutual Insurance Company. They were able to demonstrate 20% cost savings by moving their disaster recovery systems to VMware cloud on AWS. And that was initial savings right off the rip. Other customers like William Hill, George St. PA, Stage Coast, PHS Mortgage, they're all demonstrating the significant value adds when people move over to the public cloud, but leverage that VMware cloud solution. >> And Fred obviously, AWS also plays across these environments. We would like to hear your side too. >> Yeah, a couple examples like S&P global ratings, they spin up a new application environment in a few hours instead of months. Let alone taking all the burden off of their supply chain and management of that. Like Matt said in terms of seeing cost savings. So agility and speed allows them to really focus on their applications and start to modernize and innovate in areas that really differentiate them. They've had 100% uptime for regulatory applications and a 50% improved disaster recovery time. Other customers have built out a disaster recovery plan and then actually spun to VMware cloud on AWS as their primary because they had better performance. So it's the whole range of options in terms of better performance, better TCL and economics and mostly agility on what they can do going forward with applications that may already be built on AWS as well with native services. >> Matt, you touched on some great customer examples, maybe maybe give us some, broad themes as to what are the key drivers as to why customers are adopting VMware cloud on AWS? >> Yeah, absolutely. As with any infrastructure conversation, total cost of ownership is a big piece of the equation. Organizations want to look at their footprint today. They want to look at their footprint next year, and then of course, many years out. So when you look at the public cloud, cloud economics are a big driver. VMware, of course adopts the whole concept of cloud economics whole full horse. Meaning that we give you the capability to recognize the advantages of an apex object model, the ability to have on demand services, the ability to have a managed IaaS, all of that is part and parcel to our service. But on top of that, there's unique capabilities that VMware cloud on AWS delivers that deliver unique economic value. The first is this concept of zero refactoring. Our customers tell us that this alone allows them to eliminate what they call is rework, sometimes called the rework tax. Which prevents organizations from moving applications to the cloud without reworking them, without working their data layer, re architecting how they run, they can move them because the operating layer is consistent. Another area of value that's unique to VMware cloud on AWS is the leverage of existing skill sets. Today's operators are trained on vCenter. They're trained on all the supporting infrastructure around VMware. All of that applies with VMware cloud on AWS. So the ability to translate those skills into a cloud skill set right off the bat is of enormous value. Of course flexibilities another big one, as organizations embrace what it being seen as composite applications, which are applications that span the data center, the public cloud out to the edge. The ability to move logic as needed to be able to have portability is something we deliver. Again, that's an economic value that we are able to provide. Now this has been quantified by third parties. There's been several major third parties, including Forrester, including IDC, that have published value added statements around the total economic impact of VMware cloud on AWS. In fact, just last year, there was a study that was commissioned by Forrester that demonstrated a 59% reoccurring savings in terms of infrastructure and operating savings, compared to an on premise implementation. When you look at migration that accelerates to 69% 'cause organizations can save almost 70% of moving applications by eliminating rework and refactoring. That's an IDC statistic. >> All right Matt. Maybe it would make sense to talk about just overall adoption of the solution. I believe you've got some stats you can share. >> So yeah, if you look at the adoption, we have delivered enormous growth over the last year of the service. Total number of hosts year over year are up 2.5x. Total number of running VMs year over year is actually larger at 3.5x. Which indicates that customers are not just adopting, but they're accelerating their adoption. We now have 21,000 plus number of hands on labs that have been consumed since July of 2019, a year ago. And there are now 300 plus validated technology partner solutions available. And on top of that, 530 channel partners with VMware cloud service competency are now registered and available to assist. These are tremendous statistics for 12 short months. >> Well, congratulations on to both VMware and AWS on that progress. Maybe talk a little bit about trends. Just briefly, if I look over the last three months we've talked about AWS and VMware customers. Obviously, with the global pandemic, there's been certain things that they've needed to rapidly do things like, VDI, end user computing, remote contact centers are something that they need to rapidly expand on. But, is there anything different or general trends that that you would both like to share? Matt, we'll once again, start with you and then Fred get your take on it. >> Yeah, there's a regional school district in the US that in light of COVID, needed to spin up 10,000 plus people working remotely. And by leveraging VMware cloud on AWS, they were able to conduct virtual classrooms in very short order by leveraging this broad scale infrastructure powered by VMware cloud on AWS. Over time, that provided flexibility and agility, but it also reduced their costs. They've been able to eliminate hardware replacement plans that were going to cost significant amount of money. In fact, they're showing and telling us that they're able to save 75% of those forecasted costs. But everything is really about business continuity today. Today's unfortunate economic environment where we're working through this pandemic, this global pandemic, IT organizations and businesses, they're embracing a tried and true understanding of what it means to move to the cloud. But they're embracing it in a more aggressive way because the supply chain has been disrupted. If you think about a traditional supply chain, where organizations have to receive machines, set up those machines, have them wired in have certain people on site to get those machines configured, move application. That's a lot of steps in the process, many of which have been totally disrupted during the pandemic. The idea of VMware cloud on AWS is that you replace an analog supply chain with a digital supply chain. We can now help organizations get new equipment, new capacity, new resources up and running instantly. They don't have to worry about all the steps that were previously required that have been disrupted in a pandemic. The cloud provides that operating environment that maps one for one to the realities of today's world. And they're also able to understand that looking forward, that that setup enables them to be more future ready. Ready for whatever comes next to deliver what the business needs. >> Yeah, there's a number of reasons that you just touched on Matt, that are examples that we can bring out on that elasticity. For example, Penny Mac, anytime there are changes in the market, for example, on either both for VDI or just on processing of loans. When the pandemic hit, a lot of people actually paused on both looking and or changing their patterns. And this solution has been fantastic for either scaling up or scaling down both ways. And they can do it very quickly. They can do it within a number of a variety of means whether it's a single VM, or it's moving an entire migration into VMware cloud on AWS. So great results there. The case studies speak for themselves. There's a lot of examples that we have up on both of our sites. We'd really be good to take a look at those in detail if you're interested, it's fun to see. Helps a lot of people out. >> If I could follow up with you on something here. I want to talk about I go to the cloud, often that movement is step one, how do I take advantage of modernization, whether that be for my application standpoint, or leveraging new services? I wonder you can give me the AWS side there? And, Matt would love to hear how VMware is helping customers along this journey too. >> Well, the first is we want to meet people they're at with their knowledge set and their skill set. And this is a fantastic part. Customers can move quickly with the domain knowledge that they've go. We can assist in translating and making sure that the environment and the STDC is set up in a way that is tailored to what their needs are. Whether it's an extension, or if it's a complete migration of step one. But step two really is once they're leveraging VMware cloud on AWS is they have a lot of needs in terms of their CICD, their development tools, or samples and applications around automation. And we can take and help them with that. That content is already posted on our developer tool site and our developer center for this solution. It really assists them in learning about how to leverage the elasticity and the security and the networking capabilities that allow them to go in and then use all the rest of the rich AWS services as well. So, if you look at some of the things that are coming out for example, VMware Transit Connect. Which allows, a layer three solution to be built on top of our AWS transit gateway so that we can interconnect multiple VPCs in an environment that may be running either software as a solution on AWS or a native application that was built with managed services, completely in sync and in harmony, with VMware cloud on AWS. So that's what's happening at a rapid pace. It allows people to bite off the chunks that they want to modernize and reuse tools that are either familiar with them, and or automation improvements that we've got between code tools across the board. So it's great to see the work that they're doing >> Great, and Matt on the modernization piece. >> Yeah, so our surveys tell us that customers want to modernize their existing applications. But those same customers don't want to start over. So this is an important value proposition that we deliver in partnership with AWS. Organizations can take a business process application, they can migrate it to the cloud, they can extend and reach that application with AWS services. They can extend and reach that applications with additional machine learning capabilities, they can extend it with containerized extensions. They can support a broader modern agenda without having to start over. And I think that that is a value proposition that resonates with everyone, because people often need must leverage what they already have built with what the baseline is for the business itself. In addition to this, composite applications are now becoming the norm. With data and processing being more CO located, end to end Applications often consist of processing and data for certain tasks to be either pushed out to the edge or remain on premises in the data center in addition to the cloud. That value proposition of VMware delivering a hybrid cloud with consistent infrastructure and operations enables those composite applications to be built and deployed in a highly efficient way, which is a big piece to the modernization story. In addition to this with tons of Kubernetes grid as a customer managed option, organizations can run those containerized components right on top of our service, all of which integrates very cleanly with a whole library of services that AWS offers. End to end, you have all the optionality you need plus the speed of migration and capabilities once you get up to the public cloud. >> All right, let's get into the new pieces of the partnership here. Matt, first of all, when I think about VMware cloud on AWS, the customers that I've mostly spoken to over the last couple of years have tended to be some of the larger enterprises. I've heard you're alluding towards some capabilities to the small and medium business. I know I'm looking forward to talking to PLM insurance, one of the companies that are leveraging this solution as part of this announcement. What's new and the impact that this will have on the addressable market that VMware cloud can hit for AWS? >> Yeah, so with this announcement, VMware cloud on AWS, we're extending it to offer three new capabilities. Three new announcements of capabilities. The first one is all about what you just spoke of. Which is about extending the VMware cloud on AWS value proposition to more customers. So currently, customers can spin up production clusters with three hosts are, of course much more than that. But three hosts was kind of the entry level for a production cluster. What we're announcing is the ability to create production clusters with all the capable abilities that go into what we define as a production cluster with just two hosts. That means customers will be able to deploy production environments with two hosts in a cluster, dramatically reducing their costs. In fact, the traditional costs will come down by 33%. So this is all about providing the full capabilities of VMware cloud on AWS, but to be able to do it at a smaller investment envelope. So in addition to this, we're rolling out enhancements to VMware cloud director offering it as a service. VMware cloud director now will deliver multi tenancy to VMware cloud on AWS specifically designed for MSPs. As you know VMware partner ecosystem is filled with managed service providers. We have a mean enormous collection of these that add value on top of VMware cloud on AWS. Here by using VMware vcloud director service, they can deliver multi tenancy to their customers. And this is designed specifically to serve the needs of small to medium sized enterprises. These capabilities enable MSPs to serve those needs and it will be available initially in North America. And this will give them the opportunity to say, hey, if you want to get started on VMware cloud on AWS, we can give you bite sized pools designed specifically for what you need. And this is a very asset light pay as you grow model, which aligns specifically to that market. >> It's fascinating to watch Matt, I think, not that many years ago, if I had attended VMworld and talked to the MSPs. And they talk how deeply they appreciate the VMware partnership and that cloud company was the enemy. And, today AWS and VMware partnering with them, helping to make sure that in this hybrid world that they play a role to help get to the enterprise. Fred, anytime we go to reinvent, new announcements usually come to a huge fanfare, even something like a new bare metal instance. Last year it was the I3en metal instance. People get pretty excited. Help us understand you know what this really means, what advantages it has? Are there any limitations? What should we know about the capabilities AWS has now available to the VMware cloud? >> Well, first off, thanks Stu, I3en is really exciting that we're launching. It will meet the need of storage intensive workloads. And it'll do it far better than what we've had before. It takes advantage of all the learnings and the investments that we put into instances across the board for AWS such as Nitro. If you have, high random IO access, such as needed for relational database or workloads that have additional security that we have baked in, it's going to meet those needs. Compared to I3 metal, it has more memory, more usable, high performance storage and additional security. The example of a yield compared to I3 is about a 22% performance improvement and value. We're delivering four times the raw storage for about 2.2 times the cost. So in essence, you're getting raw storage at half the cost of an I3. So customers are excited. it's one of many instances that we will launch in the future for VMware cloud on AWS. And that's one of the advantages, is people can instantly take advantage of these innovations that we have. Just like we've done across all of the other instance families to meet workloads that customers are talking to us about that they want to run on this platform. >> Excellent, well, we really look forward. I know we're going to have a deep dive with Colbert to go into a little bit under the hood. And as I mentioned, got one of your joint customers PLM Insurance to understand their use case and how they're doing it. Matt and Fred, if you could just give us final takeaway, VMware cloud on AWS, Matt, and then Fred. >> Well, first off, thank you Stu for this opportunity to speak. I always enjoy spending time with you and certainly with Fred. We're just super excited and thrilled about our partnership. VMware couldn't be happier with our partnership with AWS from engineering to marketing, customer experience. Our teams are working together hand in glove to ensure success for our customers. VMware cloud on AWS is a truly unique service. Customers can continue business operations with minimal disruption in case of any uncertain event, they can migrate their workloads fast in a very cost effective manner with minimal risk. And we're really all about helping large enterprises as well as small and medium businesses accelerate their cloud migration and modernization journey. In fact, if you look across the board, we have seen enormous uptake. And now with these new offerings that we talked about, especially the two hosts production cluster, and VMware cloud Director service, we believe we're going to be more attractive to more organizations of various sizes. We're excited about the road ahead. >> And Fred. >> Customers are excited about this road, I would add. One, thank you guys for having us on. It's great to tell this story. The feedback has been phenomenal . The growth in the adoption and what we're seeing in terms of the use cases across the board is much stronger than we could have imagined. So it's really great to see this work that is hard to do to really merge the best of VMware and the best of AWS in a true deep partnership. And that takes work at all layers, whether it's a commerce system integration, or if it's the instance engineering and roadmap work across the board or networking. And customer support across the board for solutions that run on this platform. Both of us are joined to make sure customers are satisfied regardless of what it takes. That's something that no one else has. And it is unique. And it's a long term commitment that we have with each other to do the right thing for the solution. 'Cause we can't do it individually. This is something that truly only a joint partnership as strong as this is, and has gotten stronger can deliver. So we're super excited about it. I think you're going to continue to see the pace of innovation on what we're delivering increase. And so, with that, it's been great to work with VMware on this. It's really fun. >> Well, thank you, Fred. Thank you, Matt. Yeah, congratulation to your team. And of course, love hearing the customer stories and feedback. >> Thank you Stu. >> All right. Be sure to check out the other interviews as part of this announcement and check out theCUBE.net of course, we're covering VMware and AWS deeply including their shows whether they are in person or virtual. I'm Stu Miniman and thank you for watching theCUBE.

>> Announcer: Live from Barcelona Spain, it's theCUBE. Covering Cisco Live 2020. Brought to you by Cisco and its ecosystem partners. >> Hello everyone, welcome to theCUBE here live in Barcelona Spain for Cisco Live 2020. This is our first CUBE event for the year. Next 10 years of CUBE history, we look back 10 years since we've been around, for 10 years, we have another 10 more we're looking forward to. And this is the first event for 2020 Cisco Live at Barcelona. I'm John Furrier, your host, with Dave Vellante, Stuart Miniman, extracting the signal from the noise. The cloud business is noisy, the networking business is under siege and changing, Dave and Stu we're pre gaming, Cisco Live, kicking off the show, end of the first kind of pre day, Tomorrow's the big keynotes. David Geckler, Verizon exec is preparing to announce rumor has it some insights into what Cisco's position will be vis a vis cloudification, that's going to change their portfolio and probably identify some opportunities, and also some potential gaps in their strategy and what they can do to be competitive. The number one leader in networking, they got a great market position. But cloud is changing the game with networking. >> Yeah, john, it's funny, I heard you talking about, the 10 years and everything. 10 years ago, if I thought about Cisco, I'd be looking at the I pattern of getting the jitter out of the network and trying to tweak everything. And today, what are we talking about with Cisco? We're talking about software, we're talking about cloud. We're talking about developers. Yeah, they're a networking company at its core, but Cisco has been going through a significant transformation, it's been an interesting one to watch. Dave, you wrote a little bit about, Cisco is one of the four horsemen of the internet era, of course the dotcom, they were one of the ones that actually survived and thrived after the dotcom burst, but Cisco is a very different company today far from the $500 billion market cap that they had a few years back, they were at about $200 billion, but still dominant in switching and routing. But there are threats from a number of environments and a lot of changes as to what you need to think about when it comes to Cisco. >> Well, sometimes it's instructive to look back and see how we got here. Cisco made three big bets during its ascendancy, the first one was it bet on IP, I mean, John, you've talked about this a lot, it decimated the mini computer industry by connecting distributed computing and client server, the underlying plumbing there. The second big bet it made was it trained a bunch of engineers, the Cisco certified engineers CCIEs, and they used that as a lever and created a whole army of people that were Cisco advocates, and that was just a brilliant move. And the third was under the leadership of John Chambers, They did about 180 acquisitions, and they were quite good at acquisitions and what that did for them is it continued to fuel growth, it filled in gaps and it kept them relevant with customers. Now, part of that, too, was, Chambers had dozens and dozens of adjacent businesses, remember, he said they were all going to be a billion dollars. Well, most of them, didn't pan out. So they had to cut and burn, and so but now under the leadership of Roberts, they're a much more focused company, kind of getting back to basics, trying to bet on sure things and so let's talk about what some of those sure things are and how Cisco's performing. >> Well it's clear you said lever, they're got to pull a lever at some point and turn the boat that is Cisco, aircraft carrier, what do you want to call it? In the right direction? That's been something that, we've been covering Cisco for decades Stu as you just pointed out, and while we've been close to all the action, I think Cisco knows what's going on. It's clear to me that they kind of understand the landscape. They understand their opportunities in the future, but they're a massive business, Dave, you pointed it out. The combination of all those mergers. The thing that got my attention was as they understood the unification many, many years ago in the compute side, you saw Cisco clearly understands the unification. They know cloud is here, they know that do not make a move, that's cloud friendly, they were going to get swept away and be adrift with the next wave, which is cloud 3.0, whatever we call it. So to me, that's the big story with Cisco. What is the impact of the company when you cloudify business? That's not public cloud, that's hybrid public, economics are changing, the compute capabilities are changing, the network capabilities are changing, got the edge. I think Cisco will be defined by their actions over the next two to three years. What they announce, how they position it, and what they bring value to the customers because you got Silicon One chip, good move, got cloud position, got App D on the on the top of the stack, you got cloud center, they're trying to get to the cloud, but you can't do that until you have the subscription business, until you, can't do pricing by usage unless you have that model. So I think it's a brick by brick, but slowly they're doing it. We have to hear some things next year on Cisco, on how they're going to be true, cloud enabled? >> Well, software is a huge play for them, right? I mean, they've got it, because Cisco's been the dominant player in networking with two thirds of the market, I mean, they've sustained that for a decade plus, and it has allowed them to drive 60 plus percent gross margins for years and years and years, huge operating margin. So how are they going to continue that? Software is the key. And as you say, John, subscriptions is the cloud model that is critical for Cisco. Now they talk about 70% of their software business is subscriptions and annual recurring revenue, it's unclear really how big their software business is, they give hints, I'd peg it at about seven to eight billion last year, maybe growing to 10, 12 billion this year. So pretty sizable, but that's critical in terms of them driving the margins that they need to throw off free cash flow so they can invest in things like stock buybacks and dividends which prop up the stock. >> Well, the problem is you start chasing your tail on the stock price and or product TAMS and product revenue, you might actually miss the boat on the new product. So it's a balance between cannibalizing your own before you can bring in the new, and this is going to be the challenge with Cisco, when do they bite the bullet and say, "Okay, we got to get a position on this piece here "or that piece there, ultimately, "it's going to be about customers." And what do we know, public cloud succeeded with one data, hybrid cloud is a reality and people are executing specific technologies to do an operating model that's cloud And to me, the big wave for Cisco, in my opinion, is multi cloud, because that's not a technology. That's just, that's a value proposition, it's not so much a technology. >> Yeah, Dave, you mentioned a lot of the acquisitions that Cisco has done. In many ways, though, some of the areas where Cisco can be defined is the acquisitions that they didn't do. Cisco did not buy VMware, and were behind in the virtualization wave. And then they created UCS and that actually was a great tailwind for them, created their data center business. They did not end up buying Nicira, and yet, Nicira's done very well. But if you talk to most customers well, even if you're deploying NSX, whose hardware do you tend to have? Well, yes, sure, it might be Arista, might be somebody else's but Cisco still doing good, going well, so they haven't had, there hasn't been a silver bullet to kill Cisco's dominant, but how are they going to do without cloudification? The data center group has gone through a lot of challenges. If you look at they fumbled along with OpenStack, like many other companies did, they went through just as VMware really failed with VCloud Air, the cloud group inside of Cisco had, they had this large Cisco offering that for a couple of years, everybody's looking, I don't know, are you enabling service providers? What are you doing? Now they have management pieces, they're partnering with Google, Amazon, Azure, across the environments, they are heavily involved in Kubernetes and the service meshes. So it remains to be seen where Cisco will find that next Tam expansion to kind of take them to the next wave. >> But Stu, acquisition is a good piece. And what I think they got to do some M&A clearly and organic but the question is would Nicira have been successful at Cisco versus VMware. Look at the timing of that, I think VMware being bought would have been a home run. But Nicira, I don't think that succeeds at Cisco. I think that would be a bunch of knife fights internally. And Nicira would have been shifted up because what it was then and what it is now and VMware are two different things because VMware took it, and shaped it, that I don't think Cisco could have done it at that time, >> The success would have been a defensive move to keep VMware out. That would have been the nature of the success, but I think you're right, the infighting would have been brutal, but VMware wouldn't have Nicira. >> VMware, What they did when they bought Nicira is they spent the first three or four years just making it an extension of VMware. Now it's starting to become their multi Cloud Interconnect. And that's where we need to see Cisco be involved. Cisco's bought many companies that have promised to be multicloud management or that interconnecting fabric and they have not yet panned out. >> Well, security is the linchpin though here, they've made a bunch of acquisitions in security. And I've always said that they've got a position, their networking is the most cost effective, the highest performance and the most secure to connect multiple clouds to hybrid on-prem. And they're in a good position to do that. >> Well, I think I've always said this from day one, you guys know I'm harping on this, Stu and I, we High Five each other all the time when we say this, but back in the days in IT days, the heyday, if you were a network operator, network designer, network architect, you were the king, king or queen. So you had the keys to the kingdom. VMware is a legitimate threat to Cisco. They compete, and they talk about that all the time. But the question is, which community has the keys to the kingdom? Rhetorical question. >> Yeah, well John one point I made earlier, (John laughing) >> Okay, go ahead. >> I remember Pat Gelsinger got on stage and he's like, "Hey, here's the largest collection of network admins" and everybody's looking at him, what are you talking about Pat? When I talk to customers that are deploying NSX, it is mostly not the network team, it is the virtualization team, and they're still often fighting with the network team. But to your point, where I've seen some of the really smart network architects, and people building stuff, Amazon, Azure, Google all have phenomenal people, and they're building environment back Cisco needs to make sure they partner and are embedded there. >> If you, Dave mentioned the leverage. Cisco's got to pull that lever or, turn the boat around and one shift move now, or otherwise, they'll lose that leverage. They have more power than they think in my opinion, they probably do know, but they have the network. And I think the network guys trump the operating guys, because you always swap in operating staff, but you got the network, and the network runs the business. No one could swap out Cisco boxes for a Synopsis years ago, so or Bay, whatever it turned into, so they have that nested position. If they lose that they're done. >> Yeah, and I agree with you, John, there's a lot of, Stu, you pointed out this, people buy NSX and Cisco ACI, but my question is, okay, how long will that redundancy last? I think, to your rhetorical question, Cisco is sitting in the catbird seat and they know networking, they're investing in it. I don't think they're going to lose sight of that. Yeah, wrist is, common Adam and Juniper, but Cisco, they know how to manage that business and maintain its leadership. I guess my question is, have they lost that acquisition formula? Are they as good at acquisitions as they used to be? >> I think their old model's flawed for the modern era. I think the acquisition's got to come in and integrate and I think VMware has proven that they can do acquisitions right. I think that comes from the EMC kind of concept where it's got to fit in beautifully and have synergies right away. I think what Pat Gelsinger is doing I think he's smart and I think that's why VMware is so successful. They got great technical talent, they know the right waves to be on and they execute. So I think Cisco has got to get out of these siloed acquisitions, this business unit mindset and have things come in, if they work, in line with the strategy and the execution. It has to from day one, I've got it. You got to be fitting perfectly in. >> The portfolio is still pretty complicated. You got the core networking. You got things like WebEx, right? I mean, would you want to be going up against Microsoft Teams? But they're in it, Cisco's in it to win it, and they got to they got to talk about-- >> Don't count out Zoom. >> Talking about, no, Zoom's right there too in the mix. And so Cisco's got some work to do, expect some enhancements coming there, in HCI, they've got to walk a fine line Stu, you made this point. On the one hand, they've got, IBM and NetApp with UCS and conversion infrastructure, but then they buy Springpath, which is designed to replace converged infrastructure. So they've got to walk that fine line. >> All right, what are you guys going to hear this week? Let's just wrap this up by going down the line on thoughts and predictions as the keynote kicks off tomorrow, I took some notes, I was doing some, going around the floor trying to get inside people's heads and ask them probing questions. And here's what I got out of it. I think Cisco is going to recognize cloud and absolutely throw the holy water on the fact that it's part of their strategy. I think we'll hear a little bit about Silicon One and how it relates to the portfolio, but I think the big story will be how tying the application environment together with networking, not end to end but really as one seamless solution for customers. I think it's going to be a top story that's been teased out by some of the booths that I saw, connecting things as one holistic thing with application development focus with DevOps. >> Yeah, so John, ACI was application centric infrastructure. And it was critical back in back in the day there is like, well, the application owner really doesn't have much connection there. If you look at what Cisco has been doing the last few years, it is tying together more that application owner, the DevNet group that, we're sitting here in the DevNet zone, that connection between the developer and making enabling them as part of the business absolutely is a wave that Cisco needs to drive. I don't think we're going to see a ton of the Silicon One, 5G and that kind of stuff, if for no other reason then in about a month, they're going to be sitting here with 100,000 people from Mobile World Congress and that's where they keep their dry powder to make sure that they push that piece of it. But that is super important, so and yeah. >> I think, software and security, I mean, I, as you were talking about, Zoom, Teams, so they better focus on collaboration and I want to hear some stuff there, security, IoT and the edge. They've got a very strong position there. Their security, Cisco security business grew 22% last quarter, it's really doing well. So I want to hear more about that. And I think data center, what they're doing in the data center, what they're doing with their switching business, their HCI stuff and converged infrastructure, hyper converged and, three important areas that we'll hear about this week. >> And Dave, I'll emphasise on what you were saying. Edge edge edge, absolutely, if Cisco is going to maintain a dominant player in the network, they need to deliver on that edge. And I've heard a couple of messaging strategies in the past, there was fog computing and all this other stuff, but I think Cisco is in a position today between Meraki that they have between their core product, >> Dave: Devnet. >> To really be able to enable-- >> And those are really-- >> Well, I want to see more progress, I'm looking forward to see, I'm going to drill them on the interviews we do here. They spent millions, billions of dollars satisfying and creating a subscription model with the cloud. We're going to dig into it, we're going to extract the signal from the noise, theCUBE coverage here in Barcelona, Spain. First show of 2020, Cisco Live 2020, I'm John Furrier, Stuart Miniman, Dave Vellante. We'll be right back. (upbeat music)

>> From the SiliconANGLE media office in Boston, Massachusetts, it's theCUBE. Now here's your host, Stu Miniman. (techy music) >> Hi, I'm Stu Miniman, and welcome to a special CUBE conversation here in our Boston area studio. Happy to welcome to the program first time guest, Patrick Morley, who's the CEO of Carbon Black. Of course, recently announced acquisition by VMware of $2.1 billion. Patrick, thanks so much for joining us. >> Stu, thanks for having me. >> All right. So, you know, we love digging into tech. There is no hotter space than security, you know? All the cybers are, you know, really exciting stuff, and even your company's Waltham-based. >> That's right. >> So actually a little closer to Boston than we are here in Marlborough, Massachusetts. When we had a green screen we used to kind of fake it with the skyline, but you know, the Boston area people know more than just Massachusetts Tech, but you know, a lot of, you know, great technology in Boston of course, you know? A lot of good technologies, a lot of good schools that have driven things. You have been CEO since 2007 and have seen quite a bit. You know, merger, Bit9 and Carbon Black many years ago, IPO, you know, not that long ago in the past, and now acquisition, as we said, for $2.1 billion. So, you know, give us a little bit of step back as to, you know, the journey, how we got here, and you know, what's it like to be kind of at the helm with your crew through, you know, all of those changes? >> Yep, well certainly very, very proud and very thankful to all of the customers that have been with us for many, many, many years. And as you said when you first started here, Boston is an awesome place for cybersecurity. I think I fits a bit of the personality on the East Coast, and if you just look at Boston in general there's a lot of great cybersecurity talent, a lot of great cybersecurity companies. And I'm extremely proud and grateful to all of my employees in Massachusetts who have built Carbon Black over the last number of years. And of course we have offices elsewhere across the globe, but Boston is, and Massachusetts is, where the companies roots really come from. And as you said, 2007 is when I joined the company. Obviously cyber was a very different world back then, and it's amazing if you just kind of roll back. In 2007, the idea of a CISO, of a chief information security officer, was still very new, and most companies we dealt with back then did not have a CISO, they had a network administrator or somebody, so that's all changed. If you look at security as a board-level issue, in 2007 there were certainly some areas of some sectors like the government where it had a lot of importance, but outside of that it did not have the same visibility as a strategic issue as it does now, it's been amazing. >> So much, you know, my background is networking and virtualization. I've spent a lot of time, you know, since 2007 looking at all the cloud world, and as I said, back in the early 2000s security was top of mind but often bottom of budget. You know, the network people, you know, back in the day it was like, "Can't you just lock the door," or you know, "Make sure the rack is secure," and you know, "Well we'll run things over Optical," and therefore we'll know if somebody splices into it from a networking standpoint. Today, as you stated, clearly it's a board-level discussion, CISOs, you know, rising power in the organization, and often dictating a lot of how the stack is built out there. >> Absolutely. >> So wow, bring us a little bit, you know, your portfolio. You know, security is not a thing. You know, any customer I talk to, they're like, you know, there is no such thing as a silver bullet in security. Most customers I talk to really think of security as a programmatic effort, so help us understand a little bit, you know, where Carbon Black fits today, and then we'll get into, you know, your, you know, broadened scope once you're going to be under VMware. >> Yeah, so the core founding idea behind Carbon Black was a simple one, which was that fundamentally the adversary was in a position where they eventually would figure out a way to get in, and if you fundamentally believe that then you do everything you can to stop the adversary, but you say, "I need telemetry. "I need data in order to understand what's happening across my environment in order to be able to see and stop the adversary." And so we began a journey to essentially be able to collect and analyze all the data that an adversary, that an attacker would touch in order to run their program, and you know, we always have equated it to essentially a movie camera that allows you to rewind the tape, and with all that data that we collect we can run tremendous analytics against that in order to be able to see and stop the adversary and understand what's happening across the environment. We essentially created a market that's now called EDR endpoint detection and response, and it's that simple idea of being able to understand and have situational analysis, situational visibility across the whole enterprise. We did that initially on-premise, so we did all that analytics, and each one of our customers' back-ends in their data center, and two years ago we began a journey to say, "Look, we want to do two things." One is we want to leverage that data to be able to provide more security capabilities across a platform, so let's revolutionize, continue to revolutionize cybersecurity by offering a cloud-based platform, we're going to move all of that analytics up into the cloud, all those capabilities up into the cloud, and offer a multi-tenant, cloud native SaaS platform, and over the last two years we've done that with multiple services now up on that cloud, with thousands of customers who are using it, and the benefits of the cloud are pretty straightforward, and they've revolutionized other industries, they're revolutionizing cyber right now. Certainly you can analyze data at a scale that's just not possible when that data's locked up in multiple customers, so that's one big change. Obviously-- >> Yeah, I just, to want to help unpack and tease out that data piece, because you know, we always hear out there it almost, you know, is a bit trite, you know, the importance of data. Data's the new oil, it's the rocket ship, but you know, the value of that data, how much of that is Carbon Black leveraging the data, how much can the customer themselves take advantage of that data, or you know, this isn't in a vacuum. There are other security products, other pieces of, you know, that vendor's stack that might be able to leverage that data. >> Yeah, well Carbon Black's cloud native platform, security platform, is built on a totally, it's totally open, so from an API basis, so you should, you should think about, our customers certainly think about it this way, as one, we're leveraging that data, we analyze a trillion security events a day, one trillion, just immense, and the benefit of that is if we see something across the globe that has a high risk score, that's known malware, that might be a new form of attack, that might be a living-off-the-land attack, all of our customers get the benefit of that analytic. So Carbon Black, we certainly leverage it, but in addition, the way we've built the platform, customers can get access to all the data from their enterprise, and they can correlate that data with other aspects of their security or their IT infrastructure in order to build a more holistic view across the entire enterprise, and we also have third party partners out there, managed security service providers and others, who also have access to that data for their customer set to be able to run analytics on it. So when we think about data, as you said, you know, as the oil of the new world, we need to leverage that data, but we also need, in this new world order, to give our partners and our customers the capabilities to do what they want with that data as well for their own data. >> Yeah, love that, especially if you're talking in that cloud native world it can't just be something that's locked up and only used in one environment. You know, we track the observability companies out there, you know, they have similar type of messaging. Of course data protection, you know, once there is that, you know, breach, you know, how do I recover from this information? So that ripple effect, and love, you know, openness, APIs, making sure that can be shared. You know, maybe not something that traditionally I'd heard from VMware when you talk about the openness and where they're doing maybe. I think there are a couple things you want to talk about Carbon Black, but why not get to the VMware piece, too? >> Yeah, I was just going to, on the cloud side, you know, the power of the cloud, obviously it's revolutionized other industries, and certainly one of it is the ability to provide analytics at scale. The other piece, which I already mentioned, is the network effect on my ability to see something somewhere across the globe and help millions of other customers across the globe when I see something, and the other piece is just my ability to deploy quickly and my ability to innovate quickly, because rather than having to deliver new software into each enterprise I can do that on my cloud native platform. So I think it positions the defender, the security teams around the globe where they can be more on the offensive than they've ever been before because suddenly I don't have to spend my time worrying about deployment mechanics or other pieces. I can focus on what I really want to do, which is I want to secure my environment, I want to be able to understand what the adversary might be doing. So we're real excited about what we've done over the last two years with our cloud platform. >> Okay, so the deal hasn't closed yet but it's announced that you will be leading up the cloud security group at VMware. Give us a little bit, you know, directionally, where's that heading, what will that mean? Of course we've tracked, you know, where VMware touches a lot of that environment, you know, with my background in networking I talked to the Nicira team before, and then through what's become a very successful NSX, Sanjay Poonen with the AirWatch acquisition and where they've gone. Of course I would expect that's the closest piece that you started out with the endpoint protection with that team, with the Workforce ONE. So explain kind of the security portfolio, and interesting, cloud security is the discussion because that's the newer piece of the Carbon Black portfolio. Help us understand how the whole, all the pieces fit together. >> Yeah, so first I'll just reiterate what you said, which is the transaction's not yet closed, so everything I'm talking about is pre-closed, and obviously post-close we'll have additional commentary about what everything will look like. But absolutely we are very, my team, my customers, we announced the transaction a little over a month ago. Everyone was really, really excited, and I think fundamentally they're excited because organizations understand what Carbon Black delivers today, and what we deliver are great security products, and increasingly the majority of those products are in the cloud. And VMware has a tremendous reputation in the industry for the technical capabilities, for the value that they provide to customers, and just for the breadth of the portfolio that they have. You mentioned a few of them, right? And many organizations and people think about VMware from a virtualization standpoint. But increasingly over the last few years they've dramatically expanded their portfolio, network virtualization, and the NSX, the Workspace ONE as well, which was based on the AirWatch acquisition they did. Those are big businesses today, and they're helping organizations transform their infrastructure, the way they manage devices, et cetera. And so Carbon Black, on the security side, we've been partnered with VMware for the last couple of years. We've had an opportunity to get to know each other quite well. We've had an opportunity to integrate in two key spots. One, we've integrated with their App D capabilities, which you can think about essentially as helping to protect and provide telemetry for what's happening inside of the virtualized environment. And then secondarily, we've also partnered with Workspace ONE as well, again more on the device side. Those are two natural points where security, building security intrinsically into that compute stack, we've seen with customer reaction, has a fundamental impact on being able to have security right there rather than having to bolt it on afterwards. >> Yeah, you walk into an interesting configuration. First of all, you know, as you said VMware not thought of as a security company per se, lots of products that absolutely fit in the security space and are there. When you look out, of course VMware, you know, primarily owned by Dell, there's Secureworks, there's RSA, those are well known security brands. You know, how, give us how you think of how all those pieces go together and kind of the trajectory of where things are headed. >> Yeah, well goal number one, once we close the transaction, goal number one is to do two things. One, we're going to continue to drive forward with the cloud roadmap that we have. It's an aggressive road map we've been innovating aggressively over the last couple of years and we're going to continue to do that within VMware. The second piece is obviously to maximize the opportunity to build security into the compute stack of VMware, so that when customers think about security they don't have to think about it as a separate piece, but it's already there at their fingertips. And then as you mentioned, so those are two big goals right there, and as you mentioned obviously Dell has a large portfolio. There's other security products within the Dell portfolio, and you know, when we think about that obviously over time we're already partnered with some of those. Secureworks, for example, has been a very close and valuable part of Carbon Black's for many years. You'll see us continue to partner. There's other parts of the Dell family where we have partnered in the past, not tightly, but I think we'll have the opportunity to do more as part of the Dell family. All of this means for customers more value, because rather than having to go and figure it out themselves we're going to be delivering it in conjunction with the solutions they're already using. >> All right, Patrick, I want to help you, have you address a schism I see in the marketplace when it comes to the messaging around security. When peers of mine went to the RSA conference this year they came back almost unanimously with two words, doom and gloom. >> (laughing) Right. >> In Boston this year Amazon held the inaugural re:Inforce, positioned itself as the, you know, cloud security conference for the industry. We covered that, you know, both of those shows with theCUBE, and Stephen Schmidt from AWS said the state of cloud security is strong. VMware, very much we hear from Pat, you know, we need to do over, security's broken. Friends of mine in the security industry, and Carbon Black's been around since 2002, is you know, come on, you know, it's not just another acquisition, it's going to be a point product. You know, yes we have work to do as a whole, but you know, saying we need a do over or it's broken is a between hyperbolic from my peers in the industry, so what is the state of the industry, is there traditional storage and cloud storage is all rainbows and unicorns, or you know, where do you see it today? Of course we know as an industry there's always work to do, but you know, how do you round that circle? >> Yeah, I would take it, and you're right, by the way, I hear all the same commentary, and I think we have to take a step back and just look at industry, the industry in general, look at security in general. We started the interview talking about well, what was the world like in security in 2007? Security has gone from, "Hey, it's a niche area over here "and we know it's important but don't talk to us," to super strategic, again, at a board level, at a company level, and so that rapid growth has driven a lot of funding into the environment, a lot of vendors, there's over 5,000 security vendors out there today, all competing. I don't know how CISOs and CIOs and practitioners really figure out who does what, it's very challenging, and at the same time you've got the adversary, this third party continuing to advance their attack types using new techniques. You've got ransomware, which is a huge industry now, driving billions of dollars, so you have all of that happening, and so in hyper growth environments like that you get a lot of vendors. The average enterprise security team has 75 different products, and so, and they have to stitch that together, so the fundamentals of what, the way you described it I think are accurate on both sides. One, security's broken, it is broken. We've got too many vendors and we're bolting it on, we got to fix that. VMware is in a position, partnered with Carbon Black, to do that I think really well. The second piece is that the cloud does allow us, I'm not sure about rainbows, but the cloud does allow us to change security fundamentally because of some of the characteristics that I described earlier, and if you take Carbon Black plus VMware, plus what VMware is doing to deliver across any cloud, any device, any application, I think we're in a really interesting spot to help customers get more value from their compute stack and from security. >> You know, one of the things that VMware has always done well is they play in multiple environments. Back in the early days of server ritualization, didn't matter what hardware, they would get that across. Their cloud strategy went through quite a few iterations, you know, Sanjay Poonen came on our program and said, you know, "vCloud Air, we failed. "We got it wrong, we did it," but today every cloud show I go to there's a VMware piece of that. They're partnering with AWS, with Azure, with Google, with Alibaba, with Oracle even-- (chuckling) And IBM recently. But still one of the critiques I have for VMware is VMware does good at managing their house, but security, customers, as you said, they've got 75 tools and they're going to have their VMware state, and they're going to have their native cloud pieces, and they're going to have their non-VMware environment. So how can, you know, once you're under VMware, you know, participate in that environment? Will you primarily be VMware environment and the VMware cloud environment, or will it be a broader cloud security strategy? >> Yeah, well I think certainly VMware has done an amazing job over the last few years of really pushing this any-cloud model, right? "Hey, no matter where your workloads "are going to be in a hybrid cloud environment," you know, "we're going to be there to help you," and more effectively, more efficiently, faster, better performance, strong ROI. And so if you look at Carbon Black's roots, and I mentioned this earlier, one of our core beliefs is that one vendor can't do it all. You have to build on an open, extensible API-based platform, and that's what we've done since the beginning of the company, and so you will not see Carbon Black change our philosophy. You know, we will continue to be very, very open, and I think, by the way, that reflects very much VMware's strategy as of late, which is an open strategy where they're playing with lots of providers in the marketplace. Again, the benefit of Carbon Black plus VMware on that platform is that for VMware infrastructure, their products, I think you're going to see out of the box security capabilities that are going to give advantage to customers, from ease of use, from the way that that security works, et cetera, and then we will continue to partner with other vendors out there across the market. >> All right, Patrick, we know, you mentioned how many different tools customers have to deal with. There are more new threats coming out, you know, every day. There's no way that a person or a team can keep up with all of this, so you know, is AI the answer? How are these technologies going to be able to allow our systems to be able to protect us better and update, you know, we haven't talked abut AI yet. I know it does fit in-- >> We have to talk about AI. (chuckling) >> So just to understand how you know, the systems and the software and the solutions are going to help enable teams to be able to keep up with, you know, the rapidly expanding and changing landscape in security. >> Yeah, AI is a tool, we use it, and just as I've mentioned cloud, right, along with the ability to analyze trillions of events on a daily basis, things like AI can play a very significant role in helping me to understand what's happening across very large corpuses of data, and so we use a lot of it, and that allows us to understand when there's an anomaly somewhere across the globe on some system, some endpoint or device, anywhere across the globe and then leverage that to help our other customers. So AI role is playing an important part. It will continue to play an important part. But AI leverages the data that we collect, so if you go back to where Carbon Black is today with all that data that we're analyzing, one of the really interesting things is VMware today has 70 million VMs. 60 million of those are on-prem, 10 million of them are on the cloud. Part of the benefit that Carbon Black gets from VMware is we're going to get all this additional telemetry that we're going to be able to, again, consume, leverage AI capabilities to help with the analysis of that, and again, provide more customer back to the value on seeing and stopping the adversary. That also extends to what VMware's doing on the device side with Workspace ONE, et cetera, so there's a lot of opportunity over the coming quarters and years to provide more value for customers in understanding what's happening across their environment because of all of the touchpoints we're going to have as part of the VMware compute stack. >> All right, Patrick, final thing, what does this mean for your customers? You know, I think back to, you know, not that long ago you did an IPO, you know? What would that mean for the growth, the investment into technology and growing the team. Now, you know, in industry parlance, you know, you had another exit and you will be part of VMware, so we might not get as much visibility into the specific revenues and the hiring that you're doing there, but what will this ultimately mean for Carbon Black's current and potential future customers? >> Yeah, so we have over 5,000 global customers out there today, and first and foremost it's going to mean more investment from a product roadmap standpoint. If you look at 2019, this year, the number one area of investment for Carbon Black was in R&D, and as we move forward, again post-close, our customers are going to see continued investment in the platform, in our cloud security platform, in order to ensure we continue to bring more capabilities to market. And then, as I said earlier, in conjunction with that do everything we can to integrate in with the VMware product portfolio, again, so that security's not bolted on but it's intrinsic to the compute stack, and so I think that's the biggest thing. I have had the opportunity to go out and speak to many customers over the last four weeks. Customer and partner reaction has been outstanding. They get it, they understand it, they understand that there's a better way and that's what we're going to be doing as part of VMware. >> Yeah, any surprising nuggets in the last month talking to the customers and partners more that you've learned? >> This is going to sound self-serving, but it's the truth. I will tell you that the VMware reputation out there is outstanding. I mean, and I had been surprised at how little I have to do to tell them why this makes so much sense. They get it, the majority of our customers get it. They understand the possibilities of what we can provide, and there's a level of excitement out there, again with our customers and partners. It's just, it's awesome. >> All right, Patrick Morley, CEO of Carbon Black. Thank you so much for joining us on theCUBE. >> Stu, thanks. >> All right, lots of coverage, of course, through 2019 and gearing up for 2020 where we'll all have perfect hindsight, I'm sure. Check out thecube.net for the events we've been at, search where we're going to be, and please reach out if you have any questions. I'm Stu Miniman, and as always, thank you for watching theCUBE. (techy music)

>> Narrator: Live from San Francisco celebrating 10 years of high tech coverage, It's the Cube! Covering VM World 2019 Brought to you by VMware and its ecosystem partners >> Hello everyone and welcome to the Cube's coverage here in San Francisco, California of the VMWorld 2019. I'm John Furrier with my cohost Dave Vellante Dave, 10 years covering VMWorld since 2010, it's been quite a ride, lot of changes. >> Dave: Sure has. >> John: We're going to do a Power Panel our format we normally do it remote guests in our Palo Alto and Boston studios in person because we're here. Why not do it? Of course, Keith Townsend, CTO Advisor friend of the Cube, Cube host sometimes and Sarbjeet Johal, cloud architect cloud expert, friends on Twitter. We're always jammin' on Twitter. So we'll have to take it to the video. Guys, thanks for joining us on the Power Panel. >> Good to see you, Gents. >> Good seein' ya. >> Good to be here. >> Yeah, I, I hope we don't come to blows, Sarbjeet. I mean we've had some passionate conversations over the past couple months. >> Yeah, Santoro, yes, yes. >> John: The activity has been at an all time high. I mean, snark aside, there's real things to talk about. >> Yes. >> I mean we are talking about VMware a software company, staying with their roots. We know what happened in 2016 The Amazon relationship cleared the air so to speak, pun intended. Vcloud air kind of goes it's way stock prices go up and to the right Yeah, fluctuations happening but still financially doing well. >> Keith: Yeah. >> Customers have clarity. They're an operate. They run, they target operators not developers. We're living in a DevOps world we talk about this all the time dev and ops this is the cloud world that they want Michael Dell was on the Cube Dell Technologies owns VMware they put Pivotal on VMware moves are being made. Keith, how do you make sense of it? What's your take? You've been on the inside. >> Well, you know, VMware has a tough time. Pat came in, 2013, we remember it. He said we are going to double down on virtualization. He is literally paying the cost for that hockey stick movement VMware has had this reputation of being an operator based company Infrastructure based, you go into accounts, you're stuck in this IT Infrastructure cells movement. VMware has done awesome over the past year. Few years, I had to eat a little crow and say that the move to eject Pivotal was the right thing for the Stock but for the reputation, VMware is stuck so Pat, what, tallied up 5 billion dollars in sales, in purchases last week to get out of this motion of being stuck in the IT Infrastructure realm Will it pay off? I think it's going to be a good conversation because they're going to need those Pivotal guys to push this PKS vision of theirs. This PKS and Kubernetes vision that they have >> Well they got to figure it out but certainly it's a software world and one of the things that's interesting we were talking before we started is, they are stuck in that operator world but it's part of DevOps, Dev and Ops. This is the world that they operate in Google's cloud shows how to do it. You got SRE's run things and developers this program infrastructure is code. This is the promise of this new generation. Sarbjeet, we talk about it all the time on Twitter developers coding away not dealing with the infrastructure, that's the goal >> Yeah, traditionally, developers never sort of mucked around with infrastructure. Gradually we are moving into where developers have to take care of infrastructure themselves the teams are like two person teams we hear that all the time. They are responsible for running the show from beginning to the end. Operations are under them, it's Dev and Ops are put together, right? But I'll speak from my own personal experience with working at VMware in the past that from all the companies which are operations focused, that's HP, IBM, and Oracle to a certain extent. So portfolio and all that. And BMC, and CA, those are pure companies in the operations space, right? I think VMware is one of those which values software a lot. So it's a purely, inside the VMware it's purely software driven. But to the outside, what they produce what they have produced in the past that's all operations, right? So I think they can move that switch because of the culture and then with Pivotal acquisition I think it will make it much easier because there's some following of the Pivotal stack, if you will the only caveat I think on that side is it is kind of a little bit of interlocking-ish, right? That is one of the fears I have. >> Who's not, even RedHat these days is, locking you in. >> Yeah, you know, I pulled some interesting stat metadata from a blog post from Paul Fazzone announcing the Pivotal acquisition. He mentioned Kubernetes 22 times. He mentioned Pivotal Cloud Foundry once. So VMware is all in on this open-shift type movement I think VMware is looking at the Red shift I mean Red OpenShift acquisition by IBM and thinking, "Man, I wish we didn't have this "Sense of relationship with Pivotal "So we could have went out and bought RedHat." >> Well that's a good point about Kubernetes, I think you're right on that. And remember, we've been covering Open Stack up until about a year ago, and they changed the name it's now something else, but I remember when Open Shift wasn't doing well. >> Keith: I do too! >> And what really was a tipping point for them was they had all the elements, but it was Kubernetes that really put them in a position to take advantage of what they were trying to do and I think you're right, I think VMware sees that, now that IBM owns RedHat and Open Shift, it's clear. But I think the vSphere deal with Project Pacific points out that they want to use Kubernetes as a distraction layer for developers, and have a developer interface to vSphere. So they get the operators with vSphere, they put Kubernetes in there and they say, "Hey developers, use us." Now I think that's a hedge also against Pivotal 'cause if that horse doesn't come across the track to the finish line, you know... >> It's definitely a hedge on Containers just a finer point of what you were saying there was a slight difference in the cash outlay for RedHat, 34 billion versus the cash outlay for Pivotal was 800 million. So they picked up an 800 million dollar asset or a 4 billion dollar asset for 2.7 billion. >> Hold on, explain that because 2.7 billion was the number we reported you're saying that VMware put out only 800 million in cash, which, what's that mean? >> That's correct. So they put out 800 million in cash to the existing shareholders of Pivotal, which is a minority of the shareholders. Michael Dell owns 70% of it, VMware owns 15% of it. So they take the public shareholders get the 800 million >> John: They get taken out, yep. >> Michael Dell gets more VMware stock, so now he owns more of VMware. VMware already owns 15% of Pivotal, so for 800 million, they get Pivotal. >> So, the VMware independent shareholders get... they get diluted. >> Right. >> Did they lose out in the deal is the question and I think the thing that most people are missing in this conversation is that Pivotal has a army of developers. Regardless of whether developers focus on PCF or Kubernetes is irrelevant. VMware has a army, a services army now that they can point towards the industry and say, "We have the chops to have "The conversation around why you should "Come to us for developing." >> So I want to come back to that but just, a good question is, Do the VMware shareholders get screwed? Near term, the stock drops, right? Which is what happens, right? Pivotal was up 77% on the day that the Dow dropped 800 points. Here's where I think it makes sense, and there are some external risks. Pivotal plus Carbon Black, the combination they shelled out 2.7 billion in cash. They're going to add a billion dollars to VMware's subscription business next year. VMware trades at 5x revenue multiple, so the shareholders will, in theory, get back 5 billion. In year two, it's going to be 3 billion that they're going to add to the subscription revenue so in theory, that's 15 billion of value added. I think that goes into the thinking, so, now, are people going to flock to VMware? Are Kubernetes developers going to flock to VMware? I mean to your point, that to me, that's the value of Pivotal is they can get VMware into the developer community. 'Cause where is VMware with developers? Nobody, no developers in this audience. >> That's true. >> What are your guys' thoughts on that? >> Yeah, I think that we have to dissect the workload of applications at the enterprise level, right? There are a variety of applications, right, from SAPs Oracles of the world those are two heavyweights in the application space. And then there's a long trail of ISVs, right. And then there's homegrown applications I think where Pivotal plays a big role is the homegrown applications. When you're shipping a lot as an ISV or within your enterprise, you're writing software you're shipping applications to the user base. It could be internal for partners, for customers, right, I think that's where Pivotal plays Pivotal is pivotal, if you will. >> I think that's a good bet too, one of the things we've been pulling the CESoEs data for when we got reinforced we started pulling CESoEs in our network, and it's interesting. They're under the gun to produce security solutions and manage the vendors and do all that stuff they're all telling us, the majority of them are telling us that they're building their own stacks internally to handle the crisis and the challenge of security, which I think's a leading indicator versus the kind of slow, slower CIO which LOVES multi-anything. Multi-vendor, control, a deal with contracts CESoEs, they don't have the DOGMA because they can't have the DOGMA. They got to deliver and they're saying, "We're going to build a stack "On one cloud. "Have a backup cloud, "I want all my developer resources "On this cloud, not fork my team "And I'm going to build a stack "And then I'm going to ship APIs "And say to my suppliers, in the RFP process, "If you support these APIs, "You could do business with us." >> Keith: So, if you don't -- >> That's kind of a cutting edge. If you don't, you can't, you can't. And that's the new normal. We're seeing it with the Jedi deal with Oracle not getting, playing 'cause they're not certified at the level that Amazon is, and you're going to start to see these new requirements emerging this is a huge point. I think that's where Pivotal could really shine not being the, quote, developer channel for VMware. I think it's more of really writing apps >> And John, I think people aren't even going to question that model. Capital One is probably the poster child for that model they actually went out and acquired a start-up, a security, a container security start up, integrated them into their operations and they still failed. Security in the cloud is hard. I think we'll get into a multi-cloud discussion this is one of the reasons why I'm not a big fan of multi-cloud from an architecture perspective, but from a practical challenge, security is one of the number one challenges. >> That's a great point on Capital One in fact, that's a great example. In fact, I love to argue this point. On Twitter, I was heavily arguing this point which is, yeah, they had a breach. But that was a very low-level it's like the equivalent of a S3 bucket not being configured, right? I mean it was so trivial of a problem but still, it takes one whole-- (hearty laughing) One, one entry point for malware to get in. One entry point to get into any network where it's IOT This is the huge challenge. So the question there is, automation. Do you do the, so, again, these are the, that's a solvable problem with Capital One. What we don't know is, what has Capital One done that we don't know that they've solved? So, again, I look at that breech as pretty, obviously, major, but it was a freakin' misconfigured firewall. >> So, come back to your comments on multi-cloud. I'm inferring from what you said, and I'd love to get your opinion, Sarbjeet. That multi-cloud is not an architectural strategy. I've said this. It's kind of a symptom of multiple vendors playing but so, can multi-cloud become, because certainly VMware IBM RedHat, Google with Anthos, maybe a little bit less Microsoft but those three-- >> Dell Technologies. >> Cisco, Cisco and certainly Dell all talking about multi-cloud is the clear strategy that's where CIOs are going, you're not buying it. Will it ever become a clear strategy from an architectural standpoint? >> Multi-cloud is the NSX and I don't mean NSX in VMware NSX it's the Acura NSX of enterprise IT. The idea of owning the NSX is great it brings me into the showroom, but I am going to buy, I'm going to go over to the Honda side or I'm going to go buy the MDX or something more reasonable. Multi-cloud, the idea, sure it's possible. It's possible for me to own a NSX sports car. But it's more practical for me to be able to shop around I can go to Google via cloud simple I mean I can go via cloud simple to Azure, GCP or I can go BMC, I have options to where I land, but to say that I am going to operate across all three? That's the NSX. >> If you had a NSX sports car, by the way, to use the analogy in my mind is great one, the roads aren't open yet. So, yeah, okay great. (hearty laughing) >> Or you go to Germany and you're in California. So, the transport, and again in the applications you could build tech for good applications all you want, and they're talking about tech for good here but if it's insecure, those apps are going to create more entry points. Again, for cyber threats, for malware, so again, the security equation, and you're right is super important, and they don't have it. >> Dave: What's your thought on all (mumble)? >> Sarbjeet: I think on multi-cloud you are, when you are going to use multi-cloud you going to expand the threat surface if you will 'cause you're putting stuff at different places. But I don't think it, like as you said Dave, the multi-cloud is not more of an architectural choice, it's more like a risk mitigation strategy from the vendor point of view. Like, Amazon, who they don't compete with or who they won't compete with in the future we don't know, right? So... >> You mean within the industry. >> Yeah, within the industry right-- >> Autos or healthcare or... >> Sarbjeet: Yeah, they will, they are talking about that, right? So if you put all, all sort of all your bets on that or Azure, let's say even Azure, right? They are not in that kind of category, but still if you go with one vendor, and that's mission critical and something happens like government breaks them up or they go under, sideways, whatever, right? And then your business is stuck with them and another thing is that the whole US business, if you think about it at a global scale, like where US stands and all that stuff and even global companies are using these hourglass providers based in US, these companies are becoming like they're becoming too big to fail, right? If you put everything on one company, right, and then something happens will we bail them out? Right, will the government bail them out? Like stuff like that. Like banks became too big to fail, I think. I think from that point of view, bigger companies will shift to multi-cloud for, to hedge, right, >> Risk Mitigation >> Risk mitigation. >> Yeah, that's, okay, that's fair. >> I mean, I believe in multi-cloud in one definition only. I think, for now, the nirvana of having different workload management across utility bases, that's fantasy. >> Keith: Yeah, that's fantasy. >> I think you could probably engineer it, but there might not be a workload for that or maybe data analytics I could see moving around as a use case, certainly, but I think-- >> D-R! >> The reality is, is that all companies will probably have multiple clouds, clearly like, if you're going to run Office 365, and it's going to be on Azure, you're an Azure customer, okay. You have Azure cloud. If you're building your security stack on Amazon, and got a development team, you're on Amazon. You got two clouds. You add Google in there, big tables, great for certain things you know, Big Query, you got Google. You might even have Alibaba if you're operating in China So, again, you going to have multiple clouds the question is, the workloads define cloud selection. So, I've been on this thing, if you got a workload, an app, that app should choose its best infrastructure possible that maximizes what the outcome is. >> And John, I think what people fail to realize, that users, when you give them a set of tools, they're going to do what users do, which is, be productive. Just like users went out and took credit cards swiped it and got Amazon. If you, if in your environment you have Amazon you have GCP, you have Azure, you have Salesforce, O-365, and a user has access to all five platforms, whether or not you built a multi-cloud application a user's going to find a way to get their work done with all five, and you're going to have multi-cloud fallout because users will build data sets and workloads across that, even if IT isn't the one that designed it. >> All right, guys, final question of the Power Panel Dave, I want to include this for you too, and I'll weigh in as well. Take a minute to share what you're thinking right now is on the industry. What's taking up your attention? What's dominating your Twittershpere right now? What's the bee in your bonnet? What's the hot-button issue that you're kicking the tires on, learning about, or promoting? Sarbjeet, we'll start with you. What's on top of the mind for you these days? >> I think with talk about multi-cloud all the time, that's in discussions all the time and then Blockchain is another like slow-moving train, if you will, I think it's arriving now, and we will see some solutions coming down the pike from different, like a platformization of the Blockchain, if you will, that's happening, I think those are two actually things I keep my eyes on and how developers going to move, which side to take and then how the AWSs dominance is challenged by Microsoft and Google there's one thing I usually talk about on Twittersphere, is that there's a data gravity and there's a scales gravity, right? So people who are getting trained on Amazon, they will tend to stay with them 'cause that's, at the end of the day, it's people using technology, right? So, moving from one to another is a challenge. Whoever throws in a lot of education at the developers and operators, they will win. >> Keith, what are you gettin' excited about? >> So, CTO advisor has this theory about the data framework, or data infrastructure. Multi-cloud is the conversation about workloads going here, there, irrelevant, it's all about the data. How do I have a consistent data policy? A data protection policy, data management policy across SAS, O-365, Sales Force Workday, my IAF providers, my PATH providers, and OMPRIM, how do I move that data and make sure another data management backup company won Best of VMWorld this year. This is like the third or fourth year and a reason it's not because of backup. It's because CIOs, CDOs are concerned about this data challenge, and as much as we want to talk about multi-cloud, I think well, the industry will discover the problem isn't in Kubernetes the solution isn't in Kubernetes it's going to be one of these cool start-ups or one of these legacy vendors such as NetAp, Dell, EMC that solves that data management layer. >> All right, great stuff. My hot button is cloud 2.0 as everyone knows, I think there's new requirements that are coming out, and what got my attention is this enterprise action of VMware, the CIA deal at Amazon, the Jedi deal show that there are new requirements that our customers are driving that the vendors don't have, and that's a function that cloud providers are going to provide, and I think that's that's the canary in the coal mine. >> I've got to chime in. I've got to chime in. Sorry, Lenard, but it's the combination what excites me is the combination of data plus machine intelligence and cloud scale. A new scenario of disruption moving beyond a remote set of cloud services to a ubiquitous set of digital services powered by data that are going to disrupt every industry. That's what I get excited about. >> Guys, great Power Panel. We'll pick this up online. We'll actually get the Power Panels working out of our Palo Alto studio. If you haven't seen the Power Panels, check them out. Search Power Panels the Cube on Google, you'll see the videos. We talk about an issue, we get experts it's an editorial product. You'll see more of that online. More coverage here at VMWorld 2019 after this short break. (lively techno music)

(upbeat music) >> Introducer: Live, from San Francisco, celebrating 10 years of high tech coverage, it's theCUBE. Covering VMworld 2019. Brought to you by VM Ware, and it's ecosystem partners. Hello and welcome back to theCUBE's live coverage here in San Francisco, from VMworld 2019. I'm John Furrier with my co-host Dave Vellante. Dave, 10 years of theCUBE, covering VMworld. A lot's changed, a lot's happening, 10 more years. Two great guests here from Veeam. Carey Stanton is VP of Global Alliances and Ken Ringdahl who is the VP of Global Alliance Architecture. Both with Veeam. Love the green. >> Good to see you gents. >> Epic party last night. You guys are known for the legendary party. >> Yes. Andy Rammer? Did you? It was great. We had 2,500 people waving, shouting. Yeah it was great. >> So welcome back to theCUBE. So what's the news for you guys? You're always popping some news out. What's going on here for you guys at VMworld 2019? Top story. >> Top story for us I think is continuation of what we're doing with VMware on VMC and AWS, you know we continue to be the number one data protection workload on VSAN, working with them on their new marketplace as a design partner that they just launched this week as well, so I would say that we are always everything to VMware and then we just continue to ratch it up with continuing to grow out their ACF platform with VSAN and the new marketplace which is their VCPP, which is a big part of our business. >> And the cloud's certainly a big part of the equation for VMware this year. I mean you've seen the announce cloud native support, kubernetes on Vsphere, so they're starting to get their software mojo down on trying to build that next generation platform. You guys are kind of there with your solution. What's the big takeaway technically that's going on that customers should care about in your mind Ken? What do you think? >> Yeah, you know. Certainly this, is a big push towards Cloud I think. You know as Ratmir our co-founder would tell you, "hey, we track VMware." So when VMware started on print we would track along, they've now moved into the public cloud, and we're following along there, so whether it's VMC and AWS, the new relationships with Azure and Google, you know, goodness for us because we provide inherent support there. But you know some of the next generation things, a lot of news about project Pacific, and kubernetes, and next generation cloud native applications and, yeah we're here to support our customers, you know we're looking at all the new things that are there, we've done a lot of things recently about adopting object storage for cloud storage, etc. A lot of things we're doing from a product and technology perspective. >> So Pat Gelsinger, on theCUBE one time said, "If you don't ride the waves you're going to become driftwood." You guys have always been wave riders. When you see something like the project Pacific, what does that mean to you? How do you respond to that? Do you talk to customers? Do you sort of huddle internally and start designing? >> We do. We certainly take a lot of feedback, you know as we all know in tech, there's a lot of things that come and go, some of these things are great ideas, and at VM where you can look at vCloud Air right? You know, it was great momentum for a while and VMware made a very good pivot right? They understood that, we shouldn't compete in the space, we should partner in this space, and so we do the same thing, we look at when we're evaluating new technologies, kubernetes, etc., I mean I think at this point we know kubernetes is here to stay right? That's not a fad. It's very clear, the adoption is clear, so we're evaluating how we participate there. Our customers are largely, on-prem customers but moving to the cloud it's a real hybrid story, and so when we go in and implement our support and look at how we're going to integrate that, it's all about how we help our customers in that world. So when you see a new trend you say what, "We can protect that." Right? It's anything, everything needs to be protected. How do you think about protecting containers? Yeah so we look at it and say, hey look, the way that containers are delivered it's inside of a system regardless so, sometimes it's inside a VM, sometimes it's within a physical system. We can protect what support's there and we're looking at how can we help customers today. A lot of customers are moving their workloads. Similar to when server virtualization came up, it was a little bit of a lift in shift right, I'm going to take what was working on physical, move it to virtual. A lot of customers today are moving what they have in legacy apps and they're just putting 'em into containers just to get there, and then they're building new applications, they're moving in a more stateless fashion. We can support the customers today when they move to a stateful system. And we're evaluation how we support more the stateful longterm view of kubernetes. >> But Carey so you obviously know VMware very well. Yes sir. I've spent some time there. When you think about how the ecosystem's evolving, VMware now is a networking company, they're a storage company, obviously they compute, but they haven't sort of aimed the cannon at data protection, they've left that to the eco system. Your thoughts on how the ecosystem is evolving, your relationship with VMware, and the broader. >> Yeah I think it's not dissimilar to, if we just pick vSAN, storage, primary workload, they don't play in the secondary storage, and they allow their customers to work with reference architectures that we create to say which data protection partner would you like to have. We're fortunate to be number one, if you look at HBE, right, again, they have a lot of partners, we're number one with them, NetApp, Cisco and the like, so you know, VMware's not any dissimilar, so we're fortunate to have that Tier 1 relationship with them that they're looking to us as serving their customers. And then we also have a very close working relationship with them on the engineering side to ensure that we're always protecting their customers, and we have lots of other great meetings this week and lots of other things to be announced in the weeks ahead with working with them and their customers so we're very excited on what they're doing in that space and how we can solve their customers. >> That's interesting. None of the big platform players really have attacked ever, historically, back up, I mean I guess IBM kind of, but that's for different reasons. They'd probably say, "Okay, we've replicated, we're good." Why do you think that is? Is this cause it's so hard? You guys as an industry are that far ahead of the functionality? It's a tough business? >> Well I think it's.. It's big, it's a large business I think it is. It's a 6+ billion dollar town. I think that it's also a legacy. I mean if you look at where Veeam came in and we were disrupters when VMware was it and doing the virtualization, we were disrupting the legacy players without saying all the names what we did, and I believe that with the two decade plus world the data protection has been in, and the evolution, that it would take a lot of work on their part to want to come in and say that they're going to get into that space and try and have a solution that is as credible as Veeam is in the marketplace. So again we're fortunate, we stay very close with them and you know we continue to see them as one of our Tier 1 partners as well. >> Talk about the integration aspect because you're Tier 1, you guys are number 1 recommended with these guys, relationship's strong, integration's are key, for you guys and with VMware but also as customers, look at the Cloud 2.0 world, and you guys are following VMware with multi-Cloud, you guys can play everywhere. You're going to be integrating a lot, so that has to be a core competence for you guys. Can you just talk about, how you guys view your integration with VMware and then, from a customer standpoint, why is it important? >> I'll take the first crack and then pass it Ken, but if you look at two years ago with VMC on AWS when they made those announcements, we were a design partner in, and then they started to evolve that and doing those pilot, we're starting to see those pilots turn into large enterprises deployments. You hear Pat and Sanjay talking about the evolution that they're having and we're seeing the result of that, the customer's saying, "I need what was using on-pram." And that's moving to the Cloud and it just works, the Veeam slogan, it just works. So we're seeing a lot of those deployments for customers taking those enterprise solutions that they had on AWS and scaling them out, and we're going to continue to do that across all of, you know, what Ken was just talking about kubernetes, the Pacific project and others that were.. Again, we're at the table working with them, but I don't think that Veeam is going to stay away, we're only going to get closer as go into new technologies. >> You have to and the tech's getting better too. >> Yeah, what I'll say also is, Veeam, when you look at the data protection landscape we're a pure play ISV. That actually makes us pretty unique because all of our competitors either sell their software on a piece of hardware, or it's at least an option. We have no Veeam whitebox option that you'll see a Veeam label on it, and it really resonates with out partners. We're totally non-competitive, or non-overlapping with our partners and so, they welcome us with open arms as a result of that, and it really helps us drive in. But the integrations are critical and just to quickly make a comment about the last question about sort of the point solutions and why doesn't the big platform players. I'll give you two examples, two public Cloud examples: Azure and AWS, the two primary hyperscale Cloud vendors. They both have backup solutions, AWS has site recovery, sorry, Azure has site recovery, AWS come out with AWS backup. About a year ago they announced that at Reinvent. They need that for point solutions for customers that are looking for a checkbox. Customers, really that more the developer that just needs the base level protection. But they partner with folks like ourselves, for the broader support, for the hybrid support, because silicon angle right? I just read an article yesterday, or two days ago on silicon angle. It's a hybrid cloud world. You guys, talking all about it. That's where our strength is and that's why we have these partners coming to us. You know they build point solutions on their own, again for that checkbox, we're not checkbox, we're deep integrations, we're hybrid cloud, portability, flexibility, reliability. >> And that's smart of the cloud guys to do that because some people want end to end or compliance reasons they have to use the cloud's solution, or it's a requirement, but look at Cloud Trail, and data job's going public. You got New Relic. You got these companies that are winning in adding value with their products through leadership. Not necessarily. Amazon's got a solution out there but they're not really, going down that road. >> And John, and what I would say is also they see, the number of customers and the size of the petabytes that we're driving on the respective clouds, again back to Ken's point on AWS and Azure, I mean that business for us is growing 30 to 35%, month over month, and so they understand the number of customers, and they see that this is a hybrid play, the customers tiering off data to the cloud, but their primary workload is on-prem >> That will give you more EC2 cycles. I mean, crank up the EC2 baby. >> And they know that we're coming out with cloud native solutions as well so, I mean we're doing all the heavy RD investment, solving their customer problems, so again reason number 452 as to why they would want to go in and be disrupted to that? >> As you guys do these integrations, a lot of cloud action, you got VMC on AWS, Cloud Tier with AWS and Azure, you have a bunch of stuff going on with VMware solutions with Cloud Simple. As you work in this multi-cloud world, how are you changing your licensing and pricing models to adapt? Yeah a think Ratmir and Danny were on this week and talking about instances, so we're moving the portability of the license no longer, making the customer have to make a hard decision on the day of licensing with Veeam, is we're saying, hey, the license, it's an instance, it's on-prem, it's an instance in the cloud, you determine what's right for your business and move those licenses. So we were the first to really make that giant leap and we're going to continue to evolve that solution and make it even easier for them to do that, and then another thing that Veeam is there's no tax, we don't charge the customer any money if you want to move those data environments up into the public cloud, and again that's Veeam differentiating as it were, that customer company. We're always focused on what's right for the customer, from the product, right down to the licensing model. Yeah you're tag line is it just works. And I don't know it that's the tag line but that's what customers always say. >> It was for many years. And it's more than just a product, it's the business model. You guys have always been, pretty innovative in that regard. And especially with partners, you and I have talked about this in terms of how you make a transparent for the partner, for the sales reps. On the partner's side, to not care, whether it's they're selling on-prem or if it's a cloud solution. >> And it's been well received as you know we have global resell agreement with the Cisco's and HP's and NetApp's of the world and they're very appreciate to the way that we make it easy for them to sell to their customers and allow them to have that portability of the licenses. >> It's been great following you guys and your events, and getting to see you guys be successful, the product does the talking, and the customers are the references. I mean they vote with their wallets. You know and you guys are a Tier 1 partner. Congratulations. >> Yeah. Thank you very much. >> Final question for you, is the event successful in your mind for you guys? What do you think is happening here? What's the top story coming out of the event overall for the folks that didn't make it here? >> So, first and foremost, huge success, we're 100% back here next year trying to make it even bigger, and I would say that what's coming out of it is just the, the success that our customers show by coming to our booth and showing us that they're looking to keep with Veeam on the journey as they go with VMware. And Ken touches on kubernetes and look at all the new solutions, and so we have an overwhelming support to customers saying, "Hey, I've been with you for the last decade, I want to be with you on the journey." And so that's, we've hear that over and over again this week so very strong. >> Yeah, I think I'll second what Carey said and maybe I'll give you a broader picture. I mean if you look at what VMware's done over the last 12 to 15 months. Last year at VMworld they announced the Cloud Health acquisition, they acquired Security Company, Pivotal, you know they're really broading and they're seeing that hey look, it's not just about on-prem server virtualization, we need to have a very broad story. We need to be relevant in the public cloud, we need to provide some management and multi-cloud capabilities. We're doing the same, but I think VMware is clearly in a period of transition and figuring out.. You know I think VMC and AWS is a great step. You know having the CloudSimple relationship and virtustream for Azure, you know runnig VMware, and Azure, and Google, but I think you'll continue to see that evolve and I think they've put the breadcrumbs down so that as we go forward here in the coming months, weeks, and next year when we're here at VMworld, you'll see that continue. >> And it's certainly a great growth in terms of infrastructure's, code. You're starting to see the Enterprise Cloud start to stand up a little bit. Hybrid cloud's got visibility. It's not as easy as leaving stuff in the cloud, getting the enterprise to work, you guys know that first hand. And Congratulations. Thanks for coming on theCUBE. Thank you very much. Appreciate it >> VMworld 2019 CUBE coverage. Here live in San Francisco, I'm John Furrier, Dave Vellante. We'll be back with more after this short break. (upbeat music)

>> Announcer: Live from San Francisco, celebrating 10 years of high tech coverage, it's theCUBE. Covering VMworld 2019. Brought to you by VMware and its ecosystem partners. >> Welcome back to bright and sunny San Francisco. Gorgeous day here in the City on the Bay. Dave Vellante, John Walls. We continue our coverage here on theCUBE VMworld 2019 with Doc D'Errico from Infodant, CMO. Doc, good to see you again, sir! >> Infinidat. >> Oh Infinidat! Sorry, sorry, sorry. (Doc laughs) But, good to see you! >> I missed my opportunity but thanks, Dave, yeah, it's good to be back. >> John: You bet. Marc Creviere, who is principle systems engineer at US Signal. Good to see you again, Marc here. You were here just last year, right? >> Yeah, I'm an alumni now. >> We'll touch base on that in just a little bit. Doc, first off, let's just talk about the show from your perspective. What you're doing here, explain to our viewers at home what it's all about and what you find the vibe that's going on this year. What kind of sense do you get? >> The vibe is fantastic The sense is great. Coming back to San Francisco, I'm not sure what we were really expecting but it's a really good tempo, a lot of great people, lot of great feedback on our recent launch. A lot of people looking at what're we doing, especially with VMware and availability. Lots of new use cases for snapshot technologies which is fantastic. The 100% availability, it's great getting people come up to you who say "Hey, this is incredible. "You guys actually put some teeth behind your guarantees," "you know, you're not just promising "some future discounts or something. "In the VMworld environment where I've got my VMs, "I need that kind of guarantee, I need that support. "I need to know that my systems "are going to be there when I need them, "because that's my business," right? It's just an incredible vibe. >> And had your party last night? >> We had our party last night. And guess who was there? (laughs) >> I did stop by, it was a very cool venue. The San Francisco Mint, which is, it was kind of awesome. >> Yeah, it was a great, great environment. It was great having people like Dave there, and some of the other industry luminaries talk to our customers. >> I didn't get the tour of the Vault. >> Doc: I'll get you a picture. (laughing) >> So, Marc, I mentioned in the intro, we had you on last year. So, let's look back at the last 12 months for you. US Signal, and what's been going on with you, and what are you seeing here and kind of feeling here in terms of business? >> Yeah, thanks for having me back. It's been another great year at US Signal. We are planning on opening a new data center in the Detroit Metro area, coming up online Q1 of 2020, so that's exciting for us. Purpose built, wholly owned and operated by us, so that's great. It's going to add to our capabilities in that region. We've had a heavy focus on DR technologies, DR as a Service technologies in the past year. Seeing a lot of success, a lot of really good conversations with customers and developing their plans, and bringing our new capabilities to be able to service those needs. >> So, tell us more about the DR as a Service. I mean, that's obviously one of the early sort of cloud-use cases? >> Marc: Yeah. >> Add some color, what is it all about, how does it relate to some of the other DR solutions that are out there and what role do these guys play? >> Yeah, well we conducted a survey of a little over 100 of companies in our region, a little over 100 respondents, and three out of four respondents told us that their biggest concerns were either distributed denial of service or ransomware. Obviously, we've got these bad actors out there. And it doesn't necessarily have to be a bad actor, it could be something force of nature making data unavailable, right? It doesn't matter how great the equipment is if either a bad actor or nature takes it out for you. So, having that protection, we're able to have replication technology. We actually have three separate technologies that we use now. We enhanced our Zerto-based offering to include multi-cloud so we can now have customers replicate to either multiple cloud destinations, us being one of them, or they can replicate to one of their sites and us as a tertiary site, so that's new. They're able to bring their existing licensing. One thing that's exciting to me, near and dear to my heart, is drafts for VMware based on the vCloud availability platform. So, we're a big VM, vCloud shop, big consumer of VMware technologies, that's why we're out here, and that's really exciting to me because it uses built in VMware replication technologies. There's not a lot of learning curve, there's not a lot of extra components. Super simple to get up and running and get RPOs as low as 5 minutes, and it's easy, and it's relatively cheap on an OPX-type platform, where you're paying for storage and per VM and that's it. And then we've also spun up a replication for Veeam, Cloud replication for Veeam based on that ecosystem. So, we've got a lot of entry points, a lot of different ways that we can protect that data and bring it in and get a copy in our data center, so in the event that it becomes unavailable at the source, it's either managed or customer managed. We can get it up and running in a short time frame on our infrastructure. >> And Infinidat is the primary storage underneath all this? >> Marc: Yeah. >> So, explain more about... So, Doc, you and I have had these conversations. The state of the art, whatever, 15 years ago, was three-site data centers, very complex, extremely expensive. I'm interested in how we're attacking that problem today. You obviously, with multi cloud, it's multi-site, but how are we attacking the cost problem, the complexity problem, the "I can't test because I can fail over "but I'm afraid to fail back" problem? >> Well, you know, there's so many different ways to cover all of these. We're talking just about ransomware, you know, ransomware are immutable snaps, become an important play and we have Snap Rotator which will allow you to build a certain number of snaps and have them just rotate through so you're not just creating an infinite number, you're not wasting time and space. And, by the way, time and space, our snapshots are zero-overhead. There's zero performance penalty, unless you want to crash consistent copy, and there's really zero data overhead because it's only the incremental data that you write. So, by creating this, you can do it every couple seconds, and then create some immutable copies of that. You know, make them time out, so they can't be modified, 30 days, 60 days, whatever you decide administratively. So that's great. If you're looking for the DRaaS, the DR as a Service-type capabilities, whether it's single site or multi site, going to cloud service providers makes a lot of sense. 'Cause now, even if it's on premises to a cloud service provider, now you're not having to worry about that second set of infrastructure, you're not having to worry about the management of it, you're not having to worry about the systems integration of it, or even go CSP to CSP, right? Go from one data center within your favorite cloud service provider, hopefully US Signal, to another or any one of our great partners would be super, too. And then, of course, InfiniSync, where if you really want that longer distance capability, why bother with a bunker site? Why bother with all that complexity and that cost and overhead? Put in an InfiniSync appliance in with a VM, and you've got the recoverability. You can go asynchronous distances, and have a zero RPO. >> For way, way less. >> Oh, a fraction of the cost. It'll cost you less for the InfiniSync appliance than it'll cost you for the telecoms equipment that you need for a bunker site. >> If I don't want to build another data center... Go ahead. >> What I'm curious about; I heard a number yesterday in one of the interviews we had, about ransomware. The number kind of blew me away, and I thought about one out of every three companies will be a victim of, or at least a ransomware attack within the next two years, which means everyone, over the next six, if you extrapolate that out. Does that sound about right from what you're seeing? That the intrusions are reaching that kind of frequency? >> I'm surprised it's that low, but I'll let Marc try and answer that. >> We've done some events where we actually demo how easy it is, like, through a phishing attack, to get that in there. So, it's not just about having those protections in place, it's your user training; that's a huge area, training those users what to look for in those emails to avoid that sort of thing, but it's not perfect. People are imperfect. >> Dave: And yeah, you got to have both the protection on the front end, the training for the people, and those recovery options in the event it does get in. In our survey, the average monetary damage was over $150,000 per incident. And that means that some people got off a little lighter and some people paid a lot more, if that was the average. >> Should you pay the ransom? >> Uh, not if you've got a good plan in place that can test it. (laughs) >> But it is, it's a reasonable question. >> Huge quandary. Some are, some aren't, right? Atlanta says "no, we're going to pay a boatload "to protect against it, but we're not going to pay that," what was it, 55,000 or whatever it was? >> Let's negotiate. >> Yeah, I think I said last time I was here that until you've tested your plan, you don't really have one. You know, it rings just as true today. >> What's your business worth? I mean, it's a great question, really. What is your business worth to you? Your business is probably worth a lot more, and they probably throw these numbers out there, thinking "Well...", then becomes a no-brainer for you to pay, and that's the whole point. Because what is ransomware? It's malware that's recoverable, maybe. You're not even sure of that. >> Is it usually, is it operator error? Is it human error that allows that to work more often than not? Or, is it a mixture of technical chops, or just...? >> It's a mixture; you've got to know what vulnerabilities are out there on your infrastructure, you got to make sure you're staying up to date on patching those vulnerabilities, paying attention to any compliance practices, if you're a compliant organization. You know, HIPAA, PCI, our entire infrastructure footprint is actually HIPAA and PCI compliant at the levels that we control. So, it's a heavy lift. You got to stick with it. >> But just to kind of bring it full circle to the comment about the ransom and paying it, you know Marc said something really important, "Have a good plan." I would argue, have a good partner. If you don't have a CISO who's got the chops to be dealing with these types of problems, that's when you need a partner like US Signal to really step in and take you through what's involved in a realistic plan, something that's not going to break the bank, something that's really going to protect your business going forward, because these things are very real. >> One of the concerns I have in this topic is that things happen really fast these days. So, if there are problems, they replicate very, very quickly. How do you address that problem? Is it architecture, analytics, I'm sure process, maybe you could add some color to that. >> All of the above. Having those controls in place, those segregations, we've got, obviously, clear segregation between our management and customer data plans. And each of our customer data plans are separate from each other. It's secure multi-tenancy, not just multi-tenancy. So yeah, it's important to keep those delineations, user access, making sure that people only have access to what they need, and a lot of that, again, is covered by those compliance practices and paying close attention to what they have. There are reasons they have these guidelines and these rules and these audits. It's to help, in large part to protect against that. >> You mentioned before, Marc, you're a heavy VMware user, Infinidat, it's kind of the new kid on the block. People said "Oh, they'll never be--" >> Marc: Not for us. >> What's that? >> Not for us. >> Not for you, right, but for the storage industry. Doc and I have been in the storage industry a while. But, I'm curious as to what you want from a supplier like Infinidat, why you chose Infinidat? How're they doing with regard to VMware affinity, all those things people tend to talk about as important. >> Marc: All right, well-- >> What do you think is important? >> Well, in the Infinidat experience, the company experience, the support experience, it is the benchmark by which we judge all other vendors now. It's that good. The working with us whenever we need equipment, obviously they've got, the price per terabyte is hard to beat with the way they're able to leverage that technology. The responsiveness, if we've needed something in a hurry they've been able to get it to us in a hurry, It ties in extremely well with our infrastructure because we scale so quickly, right? Trends are very hard with us, because there's all these hockey sticks. It's going, going, going, we get a big order and it goes up really fast. I think the theme right now is scale to win? >> Yep. >> So that resonates with us because by having that in place and having that scale ready to go, we don't even need to anticipate those hockey sticks because it's already there. >> Great. Well, gentlemen, thanks for the time. We appreciate that. Doc, Infinidat. (laughs) >> Thank you very much it's great to see you both again. >> John: Look forward to see you in 2020, right? >> I'll be back. >> Yeah, it's become an annual thing. >> Michael said we'll be celebrating our 20th year, so I'm looking forward to seeing-- >> And this is our 10th year here, so anniversaries all across the board. >> Congratulations. >> Congratulations. >> Have a good rest of the show, we appreciate the time. >> Thank you very much. >> Thank you. >> Back with more VMworld 2019, we continue our coverage live here on theCUBE. We're at Moscone Center North in San Francisco. (upbeat electronic music)

>> Announcer: Live, from San Francisco, celebrating 10 years of high-tech coverage, it's theCUBE. Covering VMworld 2019. Bought to you by VMware and its ecosystem partners. >> Welcome back to theCUBE's live coverage here at Vmworld 2019, San Francisco, California. We're in Moscone North Lobby. I'm John Furrier, with my co-host Dave Vellante. Dave, 10 years of covering VMworld. This is our 10th year. Pat, you've been on every year since 2010. We have photos. >> That's sort of scary. >> You had a goatee back then. (Pat laughs) We've heard your rap going way back. Welcome back, good to see you. >> Oh man, scary. You guys probably got some dirt on me. Boy, I better be careful. >> John: Pat Gelsinger, the CEO of VMware on theCUBE. Thanks for coming on this evening. >> Oh, always a pleasure to be on with you guys, love it. >> Don't end up as driftwood. Security is a do over. We're going to talk about all that. >> We're going to spend the entire segment just talking about Pat Gelsinger's predictions. We'll recycle some of them, but let's get into the core news here, VMworld. You've done such an amazing job. We've given you a lot of props on theCUBE over the years, but still continuing, even in the market climate that's swinging up and down right now, VMware still producing great results. The team is executing. Their transition since October 2016 when you kind of made that move, cloud is it, clear vision, a lot's been falling into place. Pivotal has dropped on your lap, and you got the engineering stuff coming out on top of vSphere and a bunch of other things. Great stuff, I mean, you must be geeking out. >> Well, thank you. At the US gymnastics finals, Simone Biles did a triple double. First time ever in competition. And I think of our last week as a triple double, right, two major acquisitions, an earnings call, and now VMworld and all the announcements as part of it. It's like wow. >> John: You stick the landing, you stick the landing. >> That's right, we did yesterday morning. We stuck the landing and Ray did that today as well. So super proud of the team in bringing these across the line. And I think certainly meeting with many of the customers and the partners here everybody's sort of going wow. And I was excited about VMware before I got here. Now I'm just euphoric, and it's really-- >> I'm told Ray did an exceptional job. I'm going to talk to him later today on theCUBE. Today in his keynote he was great. He repeated the messages over and over again, but he nailed the tech piece. I got to ask you, as the engine of VMware is continuing to be put together and expand it's like a new turbo engine gets pulled in here. There's a lot of really good engineering going on. What are you most excited about? How would you describe all the action going on? If someone says, "Pat, what's the underlying engine here?" What's being built? What's going to be the outcome of all this? >> Well, I think it sort of boils down to, right, these two phrases that you heard from me yesterday. We're going to engineer for good, the tech for good stuff, we're going to do good engineering. And doing both of those is just okay. And you sort of say, "Hmm, we got vSAN," right? We're not being able to optimize the performance because big blocks, little blocks, latency, buffer size, all this other kind of stuff, so now we're doing Magna, right? And when you see that demonstration there, it's like we're going to do it automatically for you to be a fine-grain optimizing your storage. Wow, that's pretty cool, and it's intelligence, right? It's sort of saying, "Wow, this is really cool." So let's go automatically produce an understanding of the underlying network, understand what's going on, give you the rules that we recommend, and allow you to simulate them, which is super cool, right? Within minutes, we will give the network engineer more understanding of what's really going on in our applications, and then allow them to see it in real time and then apply it. Every one of these, and it's just 10 or 15 tremendous engineers who are doing these little innovations that are fundamentally changing the industries that they're in, in addition to the big stuff. It's just thrilling. >> Dave did a survey before coming into VMworld with customers with a panel. 41% said they're not going to change their spending habits with VMware so creating the-- >> Dave: They said they're going to increase-- >> Increase. >> In the second half, only 7% said they're going to decrease. >> So great customer loyalty, and remember, VMware's moving so fast and transit. Customers aren't moving as fast as you guys are, and you've talked about that before. What are you hearing from customers as they look at it and say, "Wow, is it too much new stuff?" 'Cause they want to continue to operate, but they also want to enable the developer piece. Because remember, DevOps means dev and ops. You guys got the ops piece down. You're adding stuff to it. There's always concerns there making sure it's smooth and you guys work on that. The dev piece becomes super critical. That's where Amazon really shined with public cloud. So hybrid cloud's here. What is the DevOps equation for hybrid? I mean Kubernetes is a good start. Where do you see it going? >> Yeah, and that's really the center. To me, that is the most important news of VMworld this year is the entire Tanzu message, the coming together of Pivotal, the coming together of Pacific, coming together with Mission Control, so really leveraging VMware in the run layer, leveraging Pivotal in the build, and Heptio in the manage, right, and those coming together into Tanzu. I think that's the most important thing that we're doing. And I think for operators, which is really the center of our audience here at VMworld, they've always struggled with those crazy developers. They do this cool new stuff. It's not operational, it's not secure. But in bringing those together, the magic formula for that is Kubernetes. And that's why we're making these big bets. The move with Pivotal, obviously the Heptio guys, I mean Joe Beda and Craig, they're just the rock stars of that community because they really are solving in an industry-consensual standard way. That's really the magic of Kubernetes. This ain't a VMware thing, this is an industry thing. >> Is Kubernetes the technology enabler? I mean, TCP/IP was that in the old networking days. It enabled a lot of shifts in the industry. You were part of that wave. Is Kubernetes that disruptive enabler? >> Yeah, I really see it as one of those key transition points in the industry. And as I sort of joked, if my name was Scott, and we were 20 years ago, I'd be banging the table calling it Java. And Java defined enterprise software development for two decades. By the way, Scott's my neighbor. He's down the hill, so I look down on Mr. McNealy. I always sort of like that. (everybody laughs) >> He looks up to you. >> But it changed how people did enterprise software development for the last two decades. And Kubernetes has that same kind of transformative effect, but maybe even more important, it's not just development but also operations. And I think that's what we're uniquely bringing together with Project Pacific, really being able to bridge those two worlds together. And if we deliver on this, I think the next decade or two will be the center of innovation for us, how we bridge those two roles together and really give developers what they need and make it operator friendly out of the box, cross the history to the future. This is pretty powerful. >> So that does lead to the big question. You just mentioned developers. And when you look out the VMworld audience, it's not comprised of huge developers. I know you're thinking about this, so what's your plan to attract those developers? You're giving them platform now, and the technologies. but those builders, what are you going to do for them? Is it build community, more events, more training? What's the plan there? >> Yeah, and I'd say I think about it in a couple of different context. One is if we were here six years ago, and you would have asked me about open source, right? I mean, VMware's reputation in the open source community wasn't good, right? We hired Dirk, we started to build momentum, make contributions. One of the litmus tests for Joe and Craig on Heptio, 'cause remember, a lot of people could have bought Heptio. Because some was who's going to be the buyer, but also will they be a willing seller. And their litmus test was are you really serious about open source, right? Are you really committed to the open source, Kubernetes tree and development and cloud-native computing foundation? Are you really there? 'Cause they were also looking do I want to be bought by you? Do I want to be part of the VMware family? And we passed the test. That's why Heptio's part of the team. Clearly, this has been central to Pivotal and their views. So we have to be open-source credible. We also have to be developer credible, and those two are tightly linked. And that's why we noted on stage Pivotal, particularly the Java community, is three-plus million developers. Bitnami is two million-ish developers. We now have high volume connections to the developer community, and you're going to see us show up in dramatically more profound ways at places like Kubicon and SpringOne is coming up, just start to be in the developer spaces. And ultimately, you got to do stuff that they care about. At the end of the day, winning developers has nothing to do with great marketing, even though that's important. You have to do great code, right, and bring them value to their development assignments. And we think with the assets that we're lining up, that's why we did Pivotal, Bitnami, Heptio, some of our organic things, Dirk's leadership here. I believe that a year or two from now VMware could be seen as the most developer and open source enterprise company in the industry. And that's the goal that I'm on. >> Well, I have an idea for you. Allocate 1,000 engineers to open source and start having them build new applications, new workloads, give it away to the open source community, and then sell your products and services to them. That would get you in fast. >> Well, by the way, we now have hundreds of engineers who are committed to open source, who their full-time job is open source contributions. So I'm not to 1,000 yet, but I'm now several hundred that their day job, night job, weekend job is open source contribution. So we're becoming very credible, and as you heard me say in the keynote, we are now top three contributor to Kubernetes. This is big, and some areas like the networking area we're clearly the leader in a number of the key networking open source technologies, and you'll see us do more of those kind of projects. >> One of the things you mentioned, I mean you mentioned about open source six years ago, you might have rolled your eyes, or you might not have had an opinion on it 'cause the timing of where VMware was. But one thing you've been banging the drum on since 2012 is hybrid cloud. And so you see certain things early. You see those waves. That's what you're known for, in my opinion. You're really good about it. You see blockchain as a great wave, but as a headline I'm reading on Fortune it says, "VMware CEO Pat Gelsinger, "Bitcoin is bad for humanity." >> Sold all my bitcoin (laughs). >> Okay, so now are you implying then, and blockchain is a lot of open source components there. It's evolving, you've a lot of blockchain projects. So is that an indictment on the unregulated currency market or is it the underlying infrastructure? And are you excited about blockchain as an underlying? Is it one of those hybrid cloud moments for you, or is it more of we'll see how it develops? What's your thoughts? And explain the bitcoin comment too. >> Yeah, the idea of distributed ledger technology, immutable distributed trust, I've said I think of that and blockchain as the underlying technology as almost like public private key encryption, right? If we go back 40 years before RSA or Vashumi and Ari, it's that important. This is breakthrough, innovative technology in how you do distributed secure trust. That's powerful, so we are huge believers, strongly committed to blockchain and distributed leverager technology. Now, why do I make my comments like I do on bitcoin? So bitcoin, as it's implemented, and implementation of blockchain and distributed ledger, I assert is bad. It's bad for two reasons. One is it's an environmental crisis, right? A single ledger, if you and I transacted a penny, right, I would consume enough energy to power your house for half a day. I mean, it's incredible, and I mean, that's why you have these crazy bitfarms being built and people finding GPUs. >> So you think from a sustainability standpoint. >> Absolutely. >> That's where you came from. >> Climate sustainability, right, this is a terrible implementation of blockchain. Secondly, the way it's also done as well in this totally unregulated environment, almost all of its uses are for illicit and criminal purposes. That's who's trading in bitcoin as well. So its purpose is almost all illicit, right, and it's environmental crisis. I say bad. Now, I'm not saying that blockchain is bad. I think this is revolutionizing. >> I want to make sure we clarify that because obviously unregulated outside the United States has been a big problem. We see it in the SEC crackdown, and results are-- >> Studies have shown over 95% of the use of bitcoin is criminal, so say bad. Let's go make it good, and that's what I mean these two phrases, do good engineering, and engineer for good. How do we make blockchain, and this is part of the reason, we had just announced on Sunday a partnership with Australian Stock Exchange and Data Asset, that they're leveraging the VMware distributed ledger technology, right, as part of their go-forward strategy for the stock exchange of Australia. Well, that's good, right? We're making it suitable for enterprises, meeting the regulatory requirements and-- >> John: Are you happy with the progress of where the blockchain is for you guys? >> Absolutely, and we're order-plus magnitude better in terms of performance and energy consumption. So yeah, and we're just getting started. >> And it's consensus-based, which is great. A quick question for you on multicloud. So hybrid cloud you said in 2012, I challenged you on it, and you've been banging the drum since 2012. It's a couple years into it, and hybrid cloud is pretty much standard. People see it, recognize it as the cloud 2.0. Multicloud is all the buzz and all the rage. I hear it everywhere. What does it actually mean is a different debate, so I want to get your thoughts on defining what multicloud is and is it going to have that same gestation period of the same kind of years? 'Cause if it's seven years to get or six years to get hybrid cloud mainstream, is multicloud going to have a similar trajectory? >> Yeah, so let's try to be very crisp with the definition. Multicloud is simply that. Customers using multiple clouds for different business purposes. And what we said is is that we're going to help them manage. That's the center point of cloud health, right? Help customers manage, cost optimize, secure in a multicloud environment where the underlying infrastructure is dissimilar, not compatible, right? And in that sense, you sort of say you can have consistent operations if we do our job well with cloud health, but you're not going to have consistent infrastructure, meaning I can't VMotion between these things, I can't have higher these things. So that's the multicloud. Now a proper subset of multicloud is hybrid cloud. And hybrid cloud is where you have both consistent operations and consistent infrastructure. And that's when we can do things like you saw on the demo today, right? We're running a VMware stack on Azure. We're moving Azure running workloads in real time, right, without stunning them, pausing them, to an Amazon VMC instead of moving workloads from Amazon VMC onto an Azure instance. That's the hybrid cloud, and that's the power at work, from private data centers to multiple different targets in the public cloud where you can be optimizing the location of work nodes based on the proper business requirements. And that might be governance. That might be performance. It might be latency. It might be the time of the day of the week when you have capacity available, right? And that's really what we're saying. Consistent operations and consistent infrastructure, proper subset of multicloud. >> I have a question on something you said yesterday. You said, "Strength lies in differences not similarities." True, I buy that. There's a number of difference between you and your preferred public cloud partner. AWS doesn't use the term multicloud. They say you shouldn't say security's not broken. And there are a number. You want to be the best infrastructure and developer software company. They want to be that platform. They want to be the security cloud, on and on and on. So I see this impending collision course, maybe not tomorrow, but what are your thoughts on the differences and the good or bad that does for the industry? >> Yeah, well, we appreciate Amazon, the investments that we're making. We've both bet big with each other, and they've been a great partner. And in fact, I'm going to talk to Andy before the end of the week, update some of the announcements and some of the things. Great partner, we have regular cadence of our activities with each other. And as we said, they're our preferred public cloud partner. And with it, it's preferred in two senses. It's a go to market and how we position that, but it's also an R&D statement, right? This is where we're doing a lot of core engineering, and that will flow into private cloud embodiments, flow into our other public cloud and our cloud-verified partners. But that's the point of the arrow in terms of the innovations, the go to market, and the R&D aspects of the partnership. And I expect we're going to be here five years from now and we're going to have this conversation, and I'm going to answer it exactly the same way. >> That'll be our CUBE's 15th anniversary, and so we'll be excited for that. It's our 10 year, so I want to last question put you on the spot, looking back over 10 years, pick the moments that you think were key inflection points. What were key notable good things that happened, bad things that happened, or things that didn't happen, right? And then going forward 10 years, you laid out a few of them with Kubernetes. Just past 10 years, could be CUBE memories, but in VMware's world, you were at EMC first, then became CEO, a lot's changed. Paul Maritz laid out the original vision. And where we are today, what's your key moments? >> Yeah, well, I think if you go all the way back, obviously, hey when the first WSX, right, people could run Linux and Windows on their client. Wow, right? The first VMotion, right, oh my gosh, and that sort of ushered in ESX. Obviously the transition from Diane to Paul, the public offering, boy, that was a pretty tumultuous time. And from Paul to Pat was very much we lay it out pretty much this any cloud vision, and that model, it was formative and we're sort of bringing it together. It was get rid of some assets, bring together, so sort of that transition was challenging for the company. But then we've started to sort of systematically say build from the core. What do we have? What do we need as we started to build these layers in the concentric circles? The Nicira acquisition, boom, that was the shot that changed the world of networking. And obviously, that doesn't change quickly, but we have a multibillion dollar networking business, Avi Networks, VeloCloud, we're building that set of assets. >> Software-defined data centers. The Core engine, that was a key point. >> Dave: That was a total game changer. >> You cannot build a software-defined data center if you don't address the networking. It's just that simple, and that's why I was so passionate about that. Obviously, the HCI move with vSAN. Joe Tucci was so pissed off at me, right? (everybody laugh) What are you doing? It's operative. It's part of the ingredients of the data center, Joe. I got to do it, wait. >> John: Just being a software company. >> Yeah, yeah, right, so that was a pretty tense moment. The period of the Dell EMC merger, a tough period, right, as well, and just where the company's going to go. And within a week, right, I'm going to be fired. I'm going to be spun out, right? I'm going to be the new CEO of Dell, right? I mean, it was going to be HP. >> John: All the rumor. >> Stock is 40, obviously the Amazon moment, when we did that partnership. vCloud Air, hey, we had the right idea. We didn't implement it properly, and then we did it right with the Amazon partnership, and that just changed the cloud industry. And I think we're going to look at today, this week, and the moves with Heptio, Kubernetes, Pivotal, those pieces coming together, and to this audience Project Pacific, right, it's just like okay, wow, everyone of them will become Kubernetes enabled. 20,000 selfies with Joe Beda, right, have now been ushered because it is that game changing, we believe. This is the biggest free architecture of the Core platform in a decade, so. >> My favorite quote from you was if you're not out on that next wave, you're driftwood. You said that on the QA, I forget which year it was. >> And mine's security's the do over. (Pat laughs) >> You're doing it over, you're doing it, Mr. Gelsinger. >> Next 10 years, what's the big wave everyone should be on? What's the wave that you identify? You've seen many waves, you've created waves, you've been part of waves. What's the wave for the next 10 years that people should pay attention to, that they need to be on? >> Well, if they're not on the networking wave, get on it, right? They got to be on this multicloud hybrid wave. Could it be louder? The Kubernetes one is the one, right? That's the one I'm going to put at the front of the list. And this move in security, I am just passionate about this, and as I've said to my team, if this is the last thing I do in my career is I want to change security. We just not are satisfying our customers. They shouldn't put more stuff on our platforms if they can't-- >> John: National defense issues, huge problems. >> It was just terrible. And I said if it kills me, right, I'm going to get this done. And they says, "It might kill you, Pat." >> Mount Kilimanjaro right there. Pat, thank you for all your commentary, and great look back 10 years. You've been one of our favorite guests coming on theCUBE, bringing A game, you're bringing the tech chops, the historian aspect, also you're running one of the most valuable open source companies in the cloud. (Pat and John laugh) >> Love you guys, thanks so much. >> Thanks, Pat. Pat Gelsinger here inside theCUBE. Our 10th year, VM's looking good off the tee right now, middle of the fairway, as they say, for the next 10 years. I'm John Furrier, Dave Vallante, thanks for watching. (upbeat music)

>> Narrator: Live, from San Francisco, celebrating 10 years of high tech coverage, it's theCUBE, covering VMWorld 2019. Brought to you by VMWare and its ecosystem partners. >> Hey welcome back to theCUBE live here in San Francisco for VMWorld 2019. I'm John Furrier with Dave Vellante For CUBE coverage live. We're here with Michael Dell, founder and CEO of Dell Technologies. Great to see you. >> Great to be back with you guys. Thank you guys for all the great coverage here at VMWorld. >> Thanks for coming on. >> And being here. >> I know you're super busy, got a lot of time. So let's get right to it. You're not on stage, you haven't been involved in the keynotes, it's been pretty much a VMWare show, but Pivotal being bought by VMWare, big news, Carbon Black, those were the acquisitions coming in that got everyone abuzz, but there's a lot of technical integrations going on with VMWare, as Dave called it once, the crown jewel for you. >> I agree. >> What's goin' on? I mean, what's inside your head right now? Share what's goin' on. What's on the chess board? >> Well, you know, if we step back to 2015 when we announced the combination and fast forward to today to 2019 we're really delighted with, you know, the progress, and, you know, how we've been able to bring the Dell Technologies family together, the great progress and innovation going on here at VMWorld. You know, you see it on stage, and you know, more today as well. Integrating Kubernetes right inside of vSphere. You know, that's super important. Obviously bringing together the developer and the infrastructure, you know, with build, run, manage, connect, and protect, all the progress we're making at the network layer with NSX, with security, with Carbon Black, and all things Dell are powered by VMWare, so our Dell Technologies cloud vision, the multi-cloud vision, again, think about it from the perspective of the customer. We always start with the customer. Customer is looking for a developer-centric environment that is location agnostic, right? And they don't want to get locked in, and when you think about computing, increasingly it's highly distributed. Right, you got Edge, you got all sorts of clouds, you got software as a service, and how do you seamlessly move things around. And VMWare Cloud Foundation is the perfect substrate to be able to manage in that >> I want to get into that-- >> Future world. >> I want to get into the whole the spare parts comin' together. You guys are pulling a lot together with Dell Technologies, but first I want to say that this is our tenth year covering VMWorld, it's our 10th year-- >> Congratulations, thank you. >> This is the last show standing, 'cause the first show we did was EMC World, which you bought, so that's technically part of Dell Technologies. We've been covering theCUBE, when we first met you-- >> Still there, it's just now even bigger. >> Don: It's even bigger. >> When we first met you you were a public company, and I remember we had conversations around going private and some of the things that you saw and you wanted to do, you're doing them. So we're now five, six years into that. You've been number one in a lot of categories. You like to talk about, we're number one in service, we're number one in storage. You've been number one in a lot of those things that you used to compete and still do. Now the game has changed, the platform of cloud is certainly there, you're bringing all these piece parts together. Not easy, I mean it's, you look at it, it looks obvious on the surface, but it's not obvious putting it together. This is kind of what's happening right now. This seems to be the top story for Dell Technologies. You're bringing the collection of Dell plus VMWare and new stuff into the fold. Is that the right kind of way to categorize it? >> You know, I think if you, if you look at it as a trajectory it's all very clear and it's not really that different from the vision that we laid out in 2015 and 2016. And certainly we were given a incredible opportunity to be able to bring, you know, EMC and VMWare into the Dell Tech family, along with Pivotal, and it's resonated with customers. We've had incredible revenue synergies, and I couldn't be more excited about the level of innovation that we're driving, and the feedback we're getting from customers continues to be quite positive. And you know, what I see out there, looking out, you know, five years, 10 years, is this boom in Edge computing. And I think there again it plays to our strengths and how do we enable this digital future for our customers, you know, and to be able to unleash all this data to enable humanity, and that's why we built this company. >> So as it relates to the Edge, and one of the areas that you're not number one in, one of the few, is public cloud. So you're kind of redefining the notion of cloud with multi-cloud. So I wonder how you think about that opportunity. You're known for go big or go home, you like big markets, how do you look at the total market for multi-cloud and Edge and as it relates to sort of the existing on prem business, the public cloud growth that you're seeing, what do you see for that multi-cloud/Edge new cloud opportunity? >> Well, since we're here at VMWorld, right, VMWare has about 70 million workloads. I think that's actually bigger than the public cloud, right? You can correct me if I'm wrong, right? >> Yeah, I mean they are, look, on-prem's way bigger than the public cloud, right? No question. >> Exactly, and what's happening, of course is-- >> Are grown faster, sorry, but it's much much bigger. >> The line is blurring between, you know, what's a public cloud, what's a hybrid cloud, multi-cloud, Edge, and so, look, our opportunity is to really make all that go away for customers and allow them to choose and express our unique value add in whatever form the customer wants to use it. So you've seen us align with all the public clouds. You know, you're seeing us take steps in the Edge. We're continuing to improve the on-premise systems. You know, with project dimension now it's the VMWare cloud on Dell EMC that we're managing for you. And it's on-demand, it's consumption, and it's consumed just like a public cloud. >> And I (voice muffled) numbers there. >> It's all coming together and who's got a better capability and position than we have? >> Well that's what I was getting at about the piece parts being put together, bringing the spare parts, because I would agree that the on-premise is bigger than the public cloud, but, you know, it's like it's a declining old technology that's being refreshed so you have the customers looking at, you know, that's why containers are popular. You can put containers around legacy. But those technologies have to transform into new ones. This is the cloud platform, I think, opportunity, and so you guys now have VMWare cloud on Dell EMC, which is what looks like it's a managed service for the on-prem as kind of a starting point to kind of re-platform IT or the enterprise because, yeah, it's a big market that's declining or transforming, the spends there, but it might not be the same as it was before. You know what I'm saying? So that's kind of where we see that. Your thoughts on that dynamic. >> Customers don't want to be locked into a particular way of doing things, and if you think about workloads and containers and where these things will reside, one thing we know is it'll change over time, right? And new requirements, security regulation, performance, cost, et cetera. We see things moving back and forth, and I maintain that when we're here on theCUBE, you know, at the 15-year anniversary or the 20-year anniversary, we'll be talking about the Edge being bigger than all the clouds combined. >> Yeah, I like that Edge story. One of the things I want to get thoughts on, you said on theCUBE last year, data tsunami. You've always been pro data, that the data piece is a critical aspect of this new equation. There seems to be a competitive battle for what I call the control plane of data. That's my words, no one has really written that up yet, but data is a strategic asset when you're dealing with applications, whether it's, you know, cloud native and/or on-premise using microservices, but Edge, certainly in data, is a critical thing, too. Do you move compute to the Edge? Do you have data at the Edge? So data's a critical ingredient in all this. What's update in your mind in terms of how that's changed or is it still the same course? What's the current vision of the data role? >> I think it is the critical ingredient. I mean, that's sort of the plot, right? And when you think about neural networks and machine learning and AI and all of those great tools, they're nothing without the data, and we're just at the beginning, you know, we're in the pre-game show of 5G. And we have an increasingly intelligent and connected world, and so, you know, if you think you have a lot of data now, in five years from now you have a thousand times more, and so we're building out this infrastructure to enable, you know, humanity to really bring value from that data. >> Michael, when you bought EMC, I was having a conversation with one of your, CEOs of one of your competitors, and that individual said that, well, Dell's not going to be able to buy companies anymore 'cause of all this debt. And I said, well, what about VMWare? >> How about 40 companies in the last four or five years? There you go. >> So my question to you is around M and A, you obviously as Dell, you bought a lot of companies, Joe Tucci before you bought a lot of companies. Now you and Pat are buying a lot of companies. You've learned a lot about M and A. What do you look for, and what have you learned, what do you look for? I'm sure you've made some mistakes along the way, but what do you look for in M and A? I mean, what's the secret sauce as to how you're successful in M and A? >> Well what we don't do is wake up in the morning and say, "Let's go find a company to buy." Okay? We actually start with the strategy of the company and what are we trying to accomplish and what is the strategic intent and the problems that we're trying to solve on behalf of our customers? And, there are many ways to do that, right? We have organic innovation, you know, the list of the top, you know, patent holders and producers just came out for 2018. We were ranked number 12 of all companies in the entire world. That's pretty good, you know? Up from number 18 the year before. You know, we were a couple patents behind Apple, and, you know, our organic innovation engine is very very strong. Then we have partnerships, right? We're not going to do everything ourselves, right? Look out there at the expo you see every company in the industry is part of the VMWare ecosystem, love it, fantastic, right? Then we have investments. We have our Dell Technologies capital. And we're continuing to make investments. We're going to announce another one here, it'll probably get your attention, in the compute space, in the AI space. And we continue to sort of shoot ahead, you know, three to five years into the future with these new investments. And then of course, acquisitions are also a tool to accelerate. And if you think about how we built NSX and adding new capabilities into the software-defined network, which I continue to believe is an enormous opportunity that we're incredibly well positioned for. So we have a platform to add new capabilities, but you know, acquisitions are just one of the factors. (voices muffled) >> Well and you also have some dry powder, if I may, and it relates to this, that you haven't really pulled the trigger on yet, which is Dell Boomi, Secureworks, and RSA. I mean these are assets that, you know, it's not exactly clear where they fit in the whole family. You have a lot of options there. I don't know what you can share about those. >> You are correct, we do have a lot of options, and we have some great assets that continue to grow. You know, Boomi continues to boom a long, and adding thousands of colors and continues to be, you know, quite well adopted. But here at VMWorld super excited about the ability to bring together Kubernetes and Pivotal and VMWare all together. You know, I think, you know, if you look at the endpoint business on a revenue basis nobody has a bigger endpoint business than Dell Technologies, all right? And you know, with what we're doing in Workspace ONE, which was already having great momentum, and now with Carbon Black, the ability to secure those endpoints, which are increasingly very diverse, as we were talking about before. You know, our capabilities continue to expand. >> You guys have done a great job. I mean, Dave and I were commenting, the shareholder value, stakeholder value, both shareholder and stakeholder that you've done, went private, then went public, all this financial success, congratulations, but I want to talk about Pat Gelsinger and VMWare because we were commenting during the vCloud Air transition before the Amazon relationship where, you know, Pat saw the wave, he's like, look it, we got to go and make a, clean this mess up. Those weren't his exact words, but something along those lines. They made, the team looked at Amazon, partnered with Amazon. Since then the VMWare stock price shareholder value (voice muffled) so all good moves around, so you know, props to everyone, but the whole tech for good thing is now part of, I want to get your thoughts on this because this backlash against tech these days, right? And I thought Pat's keynote yesterday was clever to point that out that it's the neutral opportunity to shape it. This is now a big part of, it's not window dressing anymore, this isn't about just throw some niches out there, this is part of corporate culture that is directly relevant to some of the political wins happening. Your thoughts on balancing and shaping tech for good and leveraging the financial success, the stakeholder success, not just shareholder, your thoughts. Right, well first of all I think the biggest thing that we can do is to, you know, use all this data to enable humanity in a positive way, right? And that's sort of our core mission as a company and what we do. I think as Pat correctly pointed out, you know, AI doesn't wake up in the morning and say today I'm going to be bad or today I'm going to be good. It's what do we as humans ask these things to do? And you know, storytellers are good at scaring people, and as long as there have been humans telling stories to each other, we've been fearful of new things, right? But the reality is that the vast majority of technology is used for good. I do think there are some companies in today's world that have been looking the other way because they've been minting money. >> We know who they are (chuckling). >> By using customers' data and they're exploiting their privacy in a way that is not good. And, you know, I think they're going to be subject to regulation and, you know, the rules will change. We're not one of those, right? >> If I may, I mean, look, the tech industry, yes, there's some examples, but the tech industry in general has, I think it got a bad wrap. And I'm glad that people like yourselves and leaders like yourself are sort of saying, hey, we actually are doing good. Here's some examples, and really leaning into that because I would say, on balance, the contribution to society of tech has far outweighed the negative. >> And look, the way we've always approached this is to say, you know, what do, you know, what is the best possible thing that we could be doing here? And, you know, if we're waiting for a regulator to show up and tell us that we did it wrong, that's completely the wrong answer, right? So if you look at, for example, in our sustainability and, you know, the environment, we're way, way ahead of any rules or things. You know, we're proactively thinking about how do we dramatically improve our footprint and the materials and the energy consumption, and certainly we have legions of stories about how technology and genomics research and disaster recovery in, you know, imaging to, you know, understand, you know, what's going on across the globe is having an enormous positive difference. >> One of the things you mentioned about the Facebook example, you didn't actually say Facebook, but it pretty much was Facebook, was it was weaponized and there was some digital damage and some collateral damage, but when you talk about Edge computing one of the national defense security concerns is when it's not just malware attacks we're worried about to steal credit cards, there's take over of actually machines. So the industrial IoT piece of it, there's a lot of concerns around the role of leaders like yourself and companies around national defense because with the ransomware of 13 cities hit, was that cyber? Was that intentional? Was that just blackmail? We don't know. I mean, you take over a self-driving car and you can make it do something. That's lives are now in danger, not just credit card data. So the whole discussion around cyber defense becomes now a topic that politicians are not really that qualified to address right now. >> Well, it's-- >> The role of our industry is changing. >> Yeah, it's something we spend a lot of time on, and obviously with RSA and Secureworks and the intrinsic security that we build into our software and hardware infrastructure solutions, we spend a lot of time on this. You're absolutely right as everything becomes intelligent and connected, the attack surface and the vulnerabilities also become much, much larger. So we have a real responsibility not only in securing our supply chain, but in securing all of those, you know, devices and virtual machines, the containers that are out there running the infrastructure of the world. I mean, we have about half of the world's mission critical, you know, organizations are running their most important things on Dell Technologies. >> It's great that you've been proactive, having good judgment as a corporate citizen. I think that's a great leadership, congratulations, and that's something that everyone should emulate. My final question for you is what are you excited about right now? I mean, a lot going on. You got a spring to your step. VMWare stock is still at a high, even a little dip here with some of the political landscape going on, but still, a lot of integration. New techs happening. You got Kubernetes, you got a lot more on top of that with microservices. You got 5G, as you mentioned, is pregaming right now. But a lot of other stuff is going on. What are you most excited about? >> Well, you rattled off several of them. I think, you know, on-- >> Pick your favorite. >> The stage with Ray O'Farrell and Greg Lavender, they had a kind of landscape there of 21 new technologies that are super interesting. I could geek out and get excited about any, any >> your favorite. >> Any one of those. You know, look-- >> Hey, hey guys, it's my turn. >> Hey. >> Hey. >> You ran over here, my turn. >> John: Okay, all right. (voices muffled) >> Did he do okay? >> He did good. >> Good, okay. Thank you, Michael. >> Sure thing. We ready to let you take over? >> All right. >> Come on in. Mic him up. I think he's got to go. Michael's got to go? Okay, well, Pat's on deck here. >> I'm saying 5G, very excited about 5G. >> Pat want to get in the batter's box here. He wants to get into the game. >> It's 5G, data explosion. >> Michael, thanks for, thanks for joining us. Really appreciate it. >> Absolutely. >> We'll be back with Pat Gelsinger who's on set right now, ready to go. We'll be right back. (light techno music)

>> Narrator: Live, from San Francisco, celebrating 10 years of high-tech coverage, It's theCUBE! Covering VMworld 2019. Brought to you by VMware, and its ecosystem partners. >> And, welcome back here on theCUBE, we're at the Moscone Center here at downtown San Francisco. Gorgeous day outside, by the way. Picture perfect day. Chamber of Commerce weather, but a lot of big news happening inside here for VMworld 2019, along with John Troyer. I'm John Walls, we're joined by Pierluca Chiodelli, who's the Vice President of Product Management at Dell EMC. And, Pierluca, good to see you, Sir. >> Thank you, it's awesome to be here. >> Great, thanks for being here. And Muneyb Minhazuddin, whose the VP of solutions product marketing at VMware. And Muneyb, I know you're right just hot off the presentation stage. >> Yes I am. >> Catch your breath, it's all going to be fine. How was your audience? I'm sure standing remotely. >> Yeah, it was thirteen hundred plus >> Excellent, yeah. Been a big week, already. >> Of course it has, yeah. >> For you and your team. So, first off, let me just, let's step back, talk about the vibe of the show, the theme of the show we saw Pat on the stage. >> Muneyb: Perfect. >> About an hour and a half this morning, just your thoughts about day one and the big announcements that VMware's been making. >> It's been a great week, and it's actually been a great approaching week. As you know, on Thursday we announced intent and acquire both Pivotal and Carbon Black for close to about $5,000,000,000. So, that's, kind of a big announcement by itself, and then how do you kind of bring in and keep day one where you're not too focused on those two, but get the narrative of VMworld across. And really, you know, where we have, you know, CUBE has been with us on this journey for a long time. >> Right. >> We've seen that data center shift into kind of two tangents. One is, you know, workloads into data center break out into public clouds. Second, rerouting into cloud native applications. And, if you've seen our strategy wall when that was kind of the key messages. Hey, we're embracing both the modern app development, the focus on Kubernetes and Tanzoo announcement, was all about to say, "VMware platforms ready "for the breakout of both tangents." First, Cloud Native, we've got Kubernetes, we're bringing it right into vSphere, so that everybody in the audience can support it. Second, the breadth of our cloud everywhere, right, so, we've gone from Amazon to IBM to Google to Ajour. So, it'll give you the infrastructure for your workloads to be your choice. Modernize or migrate. (chuckles) That was a key message for us to kind of land today. For a lot of our audience who are kind of stuck in that same piece of, "What am I doing with my workloads? "What is that platform I got to build on?" And, you know, the key foundational platform being VMware Cloud Foundation. Right, that was our strategy, and I think last year we called out VMware Cloud Foundation in Pat's keynote, because I wrote it 44 times. (laughs) (group laughter) We didn't do it that many times, this time. We only said that's the platform that lands in Amazon, GCP, Ajour, IBM, and 4,200, you know, cloud provider partners. That gives you really that public cloud extension. The second part being modern apps, Kubernetes is a new, kind of, modern app development platform, vSphere is embedded into that project pacific and the whole Tanzoo announcement, right? So, really, a powerful message, what do you think? Was that successfully landed? >> I think so. John, do you feel good about what you heard today? >> Yeah, absolutely, I think VCF is super interesting. I'm also kind of, so there was an announcement today also about the Dell Technologies Cloud Validated Designs for using VCF. So, VCF the layer, which is kind of the VMware stack with some extra magic in it, that can be in, can make a private hybrid cloud, you know, everywhere. So, talk to us a little bit about Dell Technologies Cloud. As I call it, "DTC." The, it's a lot, there's a lot of stuff in that as well, so, but we have two very complicated solutions stacks that are, we're talking about now, so. >> Yeah, absolutely. >> Can you talk a little bit about the validated design and what came out of that? >> Absolutely, so before we go into the validated design, I think it's very important as Muneyb said. When we think about the Dell Technology Cloud, really, it's a component of the best (murmurs) technology from our storage, networking, and also compute, but we did the VMware VCS on top. So, we work very closely with VMware, and today we are announcing today the Cloud Validated Design. As we announce at the Dell Technology World in May, we said Dell Technology Cloud is this, now we want to tell to the people, how you can easily deploy this. What is make this tangible? So, what we are doing today is rapid time to value. We did design and pretested configuration, that we put in Dell Technologies Cloud Validated Design, as we said. The other important things as Muneyb said, right? It's... And, I heard this also from theCUBE. There was a debate with Stu and other people about, what is the Cloud? How I deploy the Cloud? When we think about Dell Technologies we speak with different peoples, and two set of peoples. One is the app, right? The Cloud app, all the app people that, they want to build have all the automation, DevOps operation and all these things. But, behind those people, there's still an infrastructure. So, we are speaking on both things. So, it's very important this paradigm is there, where you can have people that they can consume the technology, and understand how to build the infrastructure to be automated, and build that automation for the Cloud. So, that's what is the Dell Technologies Font Validation Design. Right. So, one of the biggest things here that we announced, is not only the Cloud Validation Design. It's the first one but also the ability to have compute, storage and network together, and also use it primary storage as a primary citizen of the VCF. So, we should talk about that later but that's-- >> Absolutely, and I think to catch onto that, you know, talking about the applications et cetera, you know, again, in the evolution of Cloud, and we've been on the journey for 10 years is, we've had, the first few years of the Cloud journey was, felt a little like a one way street, which was, kind of meant where people were shutting down data centers and going to all these public cloud providers, was always a one-way street. Now, VMware, and if you followed us closely, we had a service call VMware, you know VCHS, which is VMware Hybrid Cloud Service before the vCloud Air and then we came out with this solution, right? The idea was, we thought there's going to be movement back-and-forth but it wasn't the case. People were seriously shutting down and going one way. As we made all these partnerships of you know, Amazon, IBM, we started seeing, and you heard stories of IHS, Freddie Mac on stage where they take six weeks to move 100 applications one way into the Cloud, customers started asking us some questions, say, 'If it's so easy to go that way, is it also that easy to bring it back?' >> Come back! >> Right? And, that kind of lead to the whole kind of Dell partnership, Dell announcement within the Dell Cloud Foundation, you know, VMware Cloud Foundation, Dell Technologies Cloud Platform to say that, "Hey, it's actually..." There's a notion of not going from hardware-specific, you know, just high-tuned for workloads to commodity hardware in the Public Cloud. There's now a need for having common hardware platform on both on-PRAM, off-PRAM because there is a need for customers to take EC2 workloads or, you know, Ajour workloads and bring it on PRAM again. That was just a notion of how fast it is. I add that point because it is so critical to know that your hardware is performing in tuned, to perform for a high business critical applications. People forgot about them the first few phases of going to the Cloud, and now as they think about a hybrid, true hybrid Cloud nature, they want optimal performance in the software layer, in the hardware layer. You know, hence our announcement of Dell Technologies Cloud, Cloud Foundation, Validated Design. It's really supporting that customer notion. >> So, it's like this optimal, or maximized flexibility is what you're trying to give people. I mean, is that-- >> Pierluca: With the Cloud simplicity, that's really the key. >> But what drives that? I know that you have, you've, you know, whether you're on-PRAM or you're off-PRAM, you're going to decide what workload's going to go on what space on, so forth, but is some of that kind of hedging bets for future workloads because you can't predict where they're going to be done or where you want them done? Or is it just providing flexibility today, and let's not worry about tomorrow? You know, it just seems like there's a lot of runway here, if you will. >> Yeah, and I think there's no right or wrong answer. One of the big workshops I do with our customers is really kind of say have you figured out what's your three to five-year application strategy? Because again, in that first phase of that fast migration to the Public Cloud, people were just like CIOs I know, it's like, I have a cloud for strategy, what does that mean? I'm shutting down all data centers, I'm going to the Cloud. Right or wrong, and that's my Cloud First strategy. Now, what they've come to realize is not all workloads work effectively in the Cloud, right? So, they kind of like, hey, put an application strategy to say what are the most optimal applications that will get the benefit of Cloud? These are like, e-commerce retail. They have to have, you know, Black Friday, expanding elasticity. If you got no slow, mundane, you know backend processes doing batch processes of massive storage of in a bank ledger in the back end, they're not going to get that elasticity. I know what it is, I know how many, you know, batch processes I got to run. So, people are getting smarter about which ones get the benefit of, you know, modern app development, or Cloud elasticity, which ones don't really need to have that. So, we've seen best practice customers actually have a very good app strategy, three to five years, and then decide how much of my app strategy is gone to the right, you know, or gone to the left, right? It's pretty much to say, "I don't have to change." 60, 70% of my Eastern European customers, their banking ledgers are still on mainframes. They're not in a hurry to go to the Cloud, whereas, you know Fintech on the East Coast is going, "I'm going to the, I'm going to the Cloud", right? So, it's really that strategy that's, they should take the app strategy and decide what the infrastructure strategy is on the top shelf. >> I think from the storage business, we see that really clear, right? The app is definitely what is moving the things, right? It's not, people they're not thinking anymore because the transformation is in the way that you consume the infrastructure. They not thinking anymore about what I put there, but is about what app I need to run, how I build my app. So, it's the environment. And, I don't think personally I meet a lot of customer. There is not one right way or wrong way, it's an end, right? As you can see also in VCF we have Vsend, VxRail and primary storage. If you look at two years ago, we will be sitting here and say, you know, "It's only this, not the other things." When we, I been in governor conference, three years ago was like, it's all Cloud. It's reality is the world, the information technology world is always the same, where is a natural genius things. Because people, they need to have the trust, right? You cannot run your entire things on something that you don't know or you didn't prove. So, what we give here today with our technology is the flexibility. You can have a Cloud approach, but use the trusted PowerMax, for example, in conjunction with Vsend, in conjunction with the Unity. So, not all these is the proof that you can preserve your investment. But, is the proof that you can start to build those up. And, if you've seen what paths say today, then those app can live everywhere. So, you can go, you can move, it's much easier to move, and you can just trust what you're doing. >> And, you hit an important point on the move part, right? And, people are so easy, like, "Hey I moved a thousand applications in six weeks "to VMC and AWS." The fundamental notion where that was not possible before, was compute, network, storage. Like, we've been doing vSphere for a long time, you know that. And, it wasn't that easy because what used to happen is people thought, "Hey, a virtualized computer, I can move it." But, what did not happen as you moved that, was your databases, you know, your storage, rules didn't follow you into the Cloud. Your networking QOS and, you know, policies, and you know, priorities didn't follow you into the Cloud. So, that was kind of like, you know, you know, I'm an Australian, so it was a half-assed solution, right? (group laughing) So bear with my language, right. It was a half-assed solution, but really what needs to happen is your compute, your network, your storage has to all work together. And, that's where Cloud Foundation was powerful. And, what we're lighting with this Validated Designs is also that capability that your computer, or storage is one unit from a app. Once you package it and make it available in all the platforms, then that migration becomes six weeks, two weeks to move that. Because once you break it apart, it's a nightmare. There's not a lot of folks who have survived database migrations. (laughs) >> I mean maybe Pierluca, you can kind of sum us up here. This conversation's been a lot around evolution, right? And, there's also been an evolution of data center design and what to expect with that, you know, just buying things off the shelf and getting a Var and, you know, the VMAX, and we've been through this whole, and now, we've talked about VxRail, which can be part of this solution. But, can you talk, just, maybe, take us in, take us out with the, or into the future with the Dell Technologies Cloud as the idea of the Validated Design, the idea of this stack from Dell Technologies in storage et cetera, what can we expect in the near future? And, how much guidance will folks get? >> Yeah, absolutely. So, without breaking any NDA things, but this is only the first step. So, the Cloud Validated Design is just the first step where we said, 'Okay, we are tasked in this, "we putting this together." We are working very closely to also solve the entire things that VCF allow you to do first day deployment, allow you to expand the infrastructure, and allow you also to do life cycle management. For example, with the VxRail we already have the life cycle management part. We are working in way to do that also for our storage and other things. So, if you think about that then it becomes as you said, all the policy we put, like with Vworld, will be strategically in that sense, the policies can be carried over. So, then you can go to VMC, you can go to another place where the software and infrastructure can move back. So, because people can do this on PRAM, a replicate exactly but not only replicate the application, but replicate the (murmurs). What do you do on the QOS, all these key things that makes people running enterprise application, right? So that's, I think, it's very exciting moment. I think it's just the starting of this dream. >> Absolutely. >> Gentlemen, thanks for the time. >> Thank you. >> And you're all, you paint a pretty exciting future, don't ya? >> I hope so. >> So, I can't wait to look forward to even VMworld 2020? >> Wait 'til Barcelona, come on? (laughs) >> All right, well I'm not making that road trip, so unfortunately-- >> We going to more out there. >> But, Barcelona's going to be good. >> Yes, thank you for having us. >> No, I'm not the best guy, so, all right good. Hey, gentlemen, thank you for the time. >> Thank you >> Thank you. >> I appreciate it very much, great discussion. >> Thank you very much. >> Thanks for having us. >> Back with more from San Francisco right after this. (techno music)