>>Welcome back everyone to the cubes, live coverage here at VMware Explorer, 22. We're here on the ground on the floor of Mosco. I'm John for David ante. We're at kit Goldberg, CTO of VMware, the star of the show, the headliner@supercloud.world. The event we had just a few weeks ago, kit. Great to see you super excited to, to chat with you. Thanks for coming on. Oh >>Yeah. Happy to be here, man. It's been a wild week. Tons of excitement. We are jazzed. We're jacked, like to look at things >>For both, of course, jacked up and jazzed. Ready to go. So you got UN stage loved your keynote, you know, very CTO oriented, hit the, all your marks cloud native, the vSphere eight intro. Yep. More performance, more power. Yeah, more efficiency. And now the cloud native over the top, you shipped a white paper a few weeks ago, which we discussed at our super cloud event. Yep. You know, really laying out the narrative of cloud native. This is the priority for you. Is that true? Is that your only priority? What are the things going on right now for you that are your top priorities, >>Top priorities. So absolutely at a high level, it's flushing out this vision that, that we're talking about in terms of what we call cross cloud services. Other people call multi-cloud, you guys have super cloud, but the point is, I think what we see is that there's these different sort of vertical silos, the different public clouds they're on-prem data center edge. And what we're looking at is trying to create a new type of cloud something that's more horizontal in architecture. And I think this is something that we realize we've been doing at VMware for a while, and we gave it a name, we call it cross cloud. But what's important is that while we do bring a lot of value there, we can't possibly do everything. This has to be an industrywide movement. And so I think what we're really excited about is figuring out, okay, how do we actually build an architecture and a framework such that there's clear sort of lines of responsibility. Here's what one company does. Here's what another one does make sure that there's clean sort of APIs between that basically an overall architecture and structure. So that's probably one of the, the high level things that we're doing as an organization right now. >>What's been the feedback here at VMware Explorer, obviously the new name, Explorer rag laid that out in the keynote. Yep. It's about moving forward. Not replacing the community. Yep. Extending the world core and exploring new frontiers multicloud. Obviously one of them key. Yeah. Very clever actually names dig into it. It's nuanced. What's been the reaction. Yep. You're right. Yep. You're crazy. I love it. I need it. It's it's too early. It's perfect timing. No, it's a bit of, what's the feedback always a little >>Bit of everything, you know, I think one of us firstno people didn't really understand it. I think people were confused about what it was, but now that we're here in person, I think generally speaking, I'm hearing a lot of positive things about it. We've been gone or been apart for three years now, right? Since the last in person one, and this is an interesting opportunity for recreation sort of rebirth, right? We've certainly lost some traditions during the COVID pandemic, but also gives us the opportunity to build new ones. And to your point, world was always associated with virtualization. And of course, we're still doing that. We're still doing cloud infrastructure, but we're doing so much more. And given this focus on multi-cloud that I just mentioned and how it is the go forward focus for VMware, we wanted to evolve the conference to have that focus. And so I've been actually really pleased to see how many folks for it's their first time here. Right? They haven't been Tom worlds before and you know, this broader sort of conference that we're creating to, to apply to the support, more disciplines, different focus areas, you know, application development, developers, platform teams, you got cloud management things with aria, public cloud management, networking security, and user computing, all in addition to the core infrastructure bits. >>So John all week's been paying homage to, to Andy Grove talking about, let chaos rain and then rain in the chaos. Right. And so when you talk to customers, that chaos message cloud chaos, how is it resonating? Are they aware of that chaos? Are they saying, yes, we have cloud chaos or some saying, eh, yeah. It's okay. Everything's good. And they just maybe have some blind spots. What do >>You think? Yeah. I'm actually surprised at how strongly it's resonating. I mean, I think we knew that we were onto something, but people even love the specific term. They're like cloud chaos. I never thought about it that way, but you're like, you're absolutely right. It was a movie. It's a great, yeah. I know. Sounds like a thriller, but, but what we sort of, the picture we paint there about these silos across clouds, the duplication of technologies, duplication of teams and training, all this stuff. People realize that's where they're at. And it's one of those things where there's this headlong rush to cloud for good reasons. People wanted to be in the agility, but now they're dealing with some of that complexity that, that gets built up there and it absolutely is chaos. And while speed is great, you need to somehow balance that speed with control things like security compliance. These are sort of enterprise requirements that are sort of getting left out. And I think that's the realization, that's the sort of chaos that we're hitting on. >>It's almost like when in bus, in business school, you had the economic lines when break even hits, you know, cloud had a lot of great goodness to it. Yep. A lot of great value. It still does on the CapEx side, but as distributed computing architectures become reality. Yep. Private cloud instantiation of hybrid cloud operations. Now you've got edge and opening up all these new, new net new applications. Yep. What are you seeing there? And it's a question we've been asked some of the folks in the partner network, what are some of those new next gen apps that are gonna be enabled by, by this next wave edge specifically? Yeah. More performance, more application development, more software. Yeah. More faster, cheaper going on here. Kind of a Moore's law vibe there. What's next. >>Yeah. So, you know, when we look at edge, so, okay. Take today. Today. Edge is oftentimes highly customized software and hardware. It's not general purpose or to cloud technologies. And while edge is certainly gonna be limited. You can't just infinitely scale. Like you can in the cloud and the network bandwidth might be a little bit limited. You still wanna imagine it or manage it as if it were another cloud location, right. That like, I wanna be able to address it. Just like I addressed a certain availabilities done within AWS. I wanna be able to say the specific edge location at, you know, wherever somewhere here in San Francisco, let's say right now there's a few different things though. The first of which is that you got to manage at scale. Cause you don't have with cloud, you got a small number of very large locations with edge. >>You got a large number of very small locations. And so it's the scale is inverted there. So what this means is that you probably can't exactly specify which edge you want to go to. What instead you wanna say is more relational. Like I've got an IOT device out there. I want my app to be in data to be near it. And the system needs to figure out, okay, where do I put that thing? And how do I get it near it? And there may be some different constraints. You have cost security, privacy, it may be your edge or maybe telco edge location, you know, one, one of these sorts of things. Right? And so I think where we're going there is to enable the movement of applications and data to the right place. And this again goes back to the whole cross cloud architecture, right? >>You don't wanna be limited in terms of where you put an app, you wanna have that flexibility. This is the whole, you know, we use the term cloud smart. Right. And that's what it means. It's like put the, the app where it needs to be sort of the right tool for the right job. And so I think the innovation though, it's gonna be huge. You're gonna see new application architectures that the app can be placed near a user near a device near like a, an iPhone or near an IOT device, like a video camera. And the way that you manage that is gonna be much kind of infrastructure is code base. Yeah. So I think there's huge possibilities there. And it's really amazing to see just real quick on the telco side, what's happening there as well. The move to 5g, the move to open ran telco is now starting to adopt these data center and cloud technologies kinda standard building blocks that we use now out at the edge. So I think, you know, the amount of innovation that we're gonna see, >>It's really the first time on telco, they actually have a viable, scalable opportunity to, to put real gear data center, liked capabilities yep. At a location for specific purpose. Yeah. The edge function. >>Yeah. And well, and what we, without >>Building a, a monster >>Facility. Exactly. Yeah. It's like the base of a cell tower or something telephone closet. But what we've been able to do is improve these general purpose technologies. Like you look at vSphere in our hypervisor today. We are great at real time workloads, right? Like as a matter of fact, you look at performance on vSphere versus bare metal. Oftentimes an app runs faster on vSphere now because of all the efficiency and scale and so forth we can bring. So it means that these telecom applications that are very latency sensitive can now run fun on there. But Hey, guess what? Once you have a general purpose server that can run some of the telecom apps, well, Hey, you got extra space to run other apps. Maybe you could sell that space to customers or partners. And you know, then you have this new architecture >>Is the dev skill, a, a barrier for the, for the telcos, where are we at >>With that? It, it, it is. I think the barriers are really, how do you provide, I dunno if it's a skill set. I mean, there's probably some skill set aspects. I think in my mind, it's more about giving them the APIs to get access to that. Like, as I said, you're not gonna have developers knowing, okay, here are the specific geographic locations of all the cell towers in San Francisco and set what you're gonna say again, I need to be near this thing. And so you used geolocation and figure out, just put it some, put it in the right place. I don't really care. Right. So again, I think it's an evolution of management evolution of the APIs that developers use to access. Like today, I'm gonna say, okay, I know my app needs to be on the east coast so I can use us east one. I know the specific AZs at a, at a cloud level. That makes sense at an edge level. It doesn't, you're not gonna know. Okay. Like the specific cross streets or whatever, you gotta let the system figure that >>Out kid. I know you gotta go on. Times's tight, real quick. You got a session here on web three. Yeah. The Cube's got the, you know, the cube versus coming soon. We might be heavy. The cube versus coming powered by arm token, we had all kinds of stuff going on. Yep. You saw the preview a couple years ago. We did with the Cuban. Anyway, you did a session on web three and DM. VMware's rolling real quick. What was that about? Yeah, what's the purpose? >>What's the direction. That was a fascinating conversation. So I was talking about web three. It was talking about why enterprises haven't really started even to scratch the surface of the potential of web three. So part of it was like, okay, what is web three? It's a buzz words. We talked through that. We talked through the use of blockchain, how that sits with the core of a lot of web three. We talked about the use of cryptocurrency and how that makes sense. We talked about the consumerization, continuing consumerization of it. We've seen it with end user devices. We may well see it with some of the web three changes around ownership, individual ownership of data, of assets, et cetera. That's gonna have a downstream impact on enterprises, how they go to market their commercial models. So it was a fascinating discussion that unfortunately it's hard to summarize, but gotten to a lot of the nuances of this and some of the, are >>You bullish on >>It? Very bullish, a hundred percent. Like I think blockchain is a hugely enabling technology and not from a cryptocurrency standpoint, put that aside. All the enterprise use cases, we have customers like broad bridge financial today leveraging VMware blockchain, doing a hundred billion in transactions a day with the sort of repo market >>You think defi is booming >>Defi. So I, I think we're just starting to get there. But what you find is oftentimes these trends start on the consumer side and then all of a sudden they surprise enterprises. >>They call it a tri tried tread five traditional fi finance >>Versus okay. >>Any >>Other way around? No, no, no. But I'm saying is that it's, these consumer trends will start to impact enterprises. But what I'm saying is that enterprises need to be ready now or start preparing now for those comings. >>And what's the preparation for that? Just education learning. Yeah. >>Education learning, looking at blockchain, use cases, looking at what will this enable consumers to do that they couldn't do before there is gonna be a democratization of access to data. You're still gonna wanna have gatekeepers. You're still gonna wanna have enterprises or services that add value on top of that, but it's gonna be a bit more of an open ecosystem now, and that's gonna change some of the market dynamics in subtle ways. >>Okay. So we got one minute left. I want to ask you, what's your impression of the super cloud event we had also, you were headlining and you guys were a big part of bringing the, a large C of great people together. Are you happy with the outcome? What do you think's next for? >>Absolutely. No. I was super excited to see how much reception and engagement it got from across the industry. Right? So many different entry participants, so many different customers, partners, et cetera, viewing it online have had a lot of conversations here at explore already. As you know, you know, VMware, we put out a white paper, our point of view on what is a multi-cloud service. What is the taxonomy of those services? Again, as I mentioned before, we need to get as an industry to a place where we have alignment about this overall architecture to enable interoperability. And I think that's really the key thing. If we're gonna make this industry architectural shift, which is what I see coming, this is what we got. >>And you're gonna be jumping all in with this and helping out if we need you >>Hundred percent. All right. >>All in. I really love your transparency on the, on your white paper. Check out the white paper online on vmware.com. It's the cross cloud cloud native. I, I call the, the mission statement. It's not a Jerry McGuire memo. It's more me than that. It's the, it's the direction of cloud native. Yep. And multi-cloud thanks for coming on and, and thanks for doing that too. >>No, of course. And thanks for having me. Thanks. Love the discussion. >>Okay. More live coverage here at world Explorer, VMware Explorer, after the short break.

>>Hey everyone. Welcome back to the Cube's day one coverage of VMware Explorer, 2022 live from San Francisco. I'm Lisa Martin, and I'm basically sitting with the cloud. I got a power panel here with me. You are not gonna wanna miss the segment, please. Welcome, nor Barage I probably did. I do. Okay on that. Great, thank you. VP and GM of cloud solutions at VMware. Thanks for joining us. Field brother tune is back our alumni VP solutions and alliances at NetApp bill. Great to see you in person. Thank you. And Steve Jones, GM SAP, and VMware cloud at Amazon. Welcome guys. Thank you. Pleasure. So we got VMware, NetApp and Amazon. I was telling Phil before we went live, I was snooping around on the NetApp website the other day. And I saw a tagline that said two is the company three is a cloud, but I get to sit with the cloud. This is fantastic. Nora, talk to us about the big news that came out just about 24 hours ago. These three powerhouse, we >>Were super excited. We are celebrating five years of VMware cloud this week. And with three powerhouses here, we're announcing the general availability of VMware cloud and AWS with NetApp on tap. We have AWS FSX. And so this solution is now generally available across all global regions. We are super excited with all our joint customers and partners to bring this to the market. >>So Steve, give us your perspective as AWS as the biggest hyperscaler. Talk about the importance of the partnership and the longstanding partnerships that you've had with both NetApp and VMware. >>Yeah, you bet. So first all, maybe I'll start with Ryan and VMware. So we've had a very long standing partnership with VMware for over five years now. One thing that we've heard consistently from customers is they, they want help in reducing the heavy lifting or the, the friction that typically comes with cloud adoption. And VMware's been right in the trenches with us and helping with that over the years with the VMware cloud on AWS offering. And, and now that we've got NetApp, right, the FSX on tap solution, a managed storage solution that is, is been known and trusted in the on-premises world. Now available since September on AWS, but now available for use with VMware cloud is just amazing for customers who are looking for that agility, >>Right? Phil talk about NetApp has done a phenomenal job in its own digital transformation journey. Talk about that as an enabler for what you announced yesterday and the, and the capabilities that NetApp is able to bring to its customers with VMware and with AWS. >>Yeah. You know, it started, it's interesting because we NetApp's always been a company that works very closely with our partners. VMware has been a huge partner of ours since gosh, 2005 probably, or sometime like that. I started working with Amazon back in about 20 13, 20 14, when we first took on tap and brought it to the Amazon platform in the marketplace ahead of what's. Now FSX ends like a dream to bring a fully managed ONAP onto the world's biggest cloud. So that work you you're really looking at about. I mean, it depends how you look at it, 15 years of work. And then as Ryan was saying that VMware was working in parallel with us on being a first party service on Amazon, we came together and, or Ryan and I came together and VMware and NetApp came together about probably about two years ago now with this vision of what we're announcing today and to have so to have GA of this combination for meaning global availability, anybody can try it today. It's just an amazing day. It's really a great day. >>Yeah. It's unbelievable how we have sort of partnered together and hard engineering problems to create a very simple outcome for customers and partners. One of the things, you know, VMware cloud is a very successful service offering with a lot of great consumption and different verticals. Things like cloud migration, you know, transforming your entire, you know, data center and moving to the cloud. Things like, you know, modernizing our apps, disaster recovery now ransomware this week. So really, really exciting uptake and innovation in that whole service. One thing customers always told us that they want more options for storage decouple from compute. And so that really helped customers to lower their total cost of ownership and get to, you know, get even more workloads into VMware cloud. And this partnership really creates that opportunity for us to provide customers with those options. >>Let me give you an example, just I was walking over here just before I walked over here. We were with a customer talking about exactly what Orion's talking about. We were modeling using a TCO calculator that we all put together as well on what we call data intensive workloads, which is in this case, it was a 500 gigabytes per VM. So not a huge amount of data per VM. The, the case study modeled out of 38% cost savings or reduction in total cost, which in the case was like 1.2 million per year of total cost down to 700 million. And just, you could do the, just depends on how many VMs you have and how big odes you have, but that's the kind of cost savings we're talking about. So the, this is a really easy value to talk about. You save a lot of money in it's exactly as nor Ryan said, because we can separate the compute and the storage. Yep. >>Yep. I was just gonna say the reason for that is it used to be with VMware cloud on AWS. If you wanted more storage for your workload, you would have to add another node. So with another node, you would get another compute node. You would get the compute, you'd get the memory and the storage, but now we've actually decoupled the ability to expand the storage footprint from the compute, allowing customers to really expand as their needs grow. And so it's, it's just a lot more flexibility. Yep. That customers had. Yeah. >>Flexibility is key. Every customer needs that they need to be agile. There's always a competitor waiting in the rear view mirror behind any business, waiting to take over. If, if they can't innovate fast enough, if they can't partner with the best of the best to deliver the infrastructure that's needed to enable those business outcomes, I wanna get your perspective, Steve, what are some of the outcomes that when you're talking to customers, you talked about fill the TCO. Those are huge numbers, very compelling. What are some of the other outcomes that customers can expect to achieve from this solution? >>That's a great question. I think customers want the flexibility. We talked about customers absolutely wanna be able to move fast. They're also very demanding customers who have had an experience with solutions like NetApp on tap on premises, right? So they've come to expect enterprise features like thin provisioning, snapshoting cloning, rapid cloning, right? And even replication of data given that customers now can leverage this type of functionality as well through the NetApp solution with VMC, they're getting all those enterprise class features from, from the storage in combination with what they already had with vs a and, and VMC. >>Steve earlier mentioned the word we used, we kind of took it from VMware or from Amazon was friction is so many workloads run in VMware VMs today to be able to just simply pick them up as is move them to Amazon makes cloud adoption. Just, I mean, frictionless is an extreme word, but it's really lowers the friction to cloud adoption. And as Steve said, then you've get all these enterprise features wherever you need to run. >>Just brings speed. >>I was just about to say, it's gotta be the speed. It has to be a huge factor here. Yep, >>Yep. Yeah. >>Sure. One of the things that we've seen with VMware cloud is operational consistency as, as a customer value because when customers are thinking about, you know, complex enterprise apps, moving that to the cloud, they need that operational consistency, which drives down their costs. They don't have to relearn new skills. They're used to VMware, they're used to NetApp. And so this partnership really fosters that operational consistency as a big customer value, and they can reuse those skills and really reapply them in this cloud model. The other thing is the cloud model here is super completely managed. If you think about that, right, customers have to do less VMware, AWS and NetApp is doing more for them. That's true in this model. >>So you're able to really deliver a lot of workforce efficiency, workforce productivity across the stack. >>Absolutely. >>And that's definitely true that it just, as it gets more complex, how do you manage it? Just continue, hear everybody talking about this, right. So when a completely managed service by VMware and Amazon is such a savings in com in management complexity, which then gets back to speed. How do I grow my plant faster? >>I mean, and really at the end of the day, customers are actually able to focus on what differentiate differentiates them, obviously versus the management of the underlying infrastructure and storage and all those, those things that are still critical, but exactly, but >>For, for the customer to be able to have to abstract the underlying underlying technology layer and focus on what differentiates them from the competition. That's like I said, right back here, right. That's especially if there's anything we've learned in the last couple of years, it's that it, that is critical for businesses across every industry, no industry exempt from this. >>None. One other thing, just an example of what you're talking about is we all work a lot on modernization techniques like using Kubernetes and container technologies. So with this, if you think about this, you, this solution, you can move an app as is modernize on the cloud. You can modernize, you can modernize and then move. You can, the flexibility that this enables like. So it's sort of like move to the cloud at your rate is a really big benefit. >>And we've seen so many customer examples of migrating modernize is how we like to summarize it, where customers are, you know, migrating, modernizing at their own pace. Yep. And the good, good thing about the platform and the service is that it is the home for all applications, virtual machines containers with Kubernetes backed by local storage, external storage options. The level of flexibility for all applications is really immense. And that drives down your TCO even more. >>What, from a target customer perspective, Noran, talk about that. Who, who is the target? Obviously I imagine VMware customers, it's NetApp customers, it's AWS, but is there, are there any targets kind of within that, that are really prime candidates for this solution? >>Yeah. A great question. First of all, the, the easy sort of overlap between all of us is our shared customer pool. And so VMware and NetApp have been partners for what, 20 years, something like that. And we have thousands of customers using our joint solutions in the data center. And so that's a very clear target for this solution, as they're considering use cases such as, you know, cloud migration, disaster recovery, virtual desktops, application modernization. So that's a very clear target and we see this day in and day out, obviously there are many other customers that would be interested in this solution, as well as they're considering, you know, AWS and we provide a whole range of consumption options for them. Right. And I think that's one of the, sort of the, the good things about our partnership, including with AWS, where customers can purchase this from VMware can purchase this from AWS and all of these different options, including from our partners really makes it very, very compelling. >>Talk a little bit about from each of your perspectives about the what's in it. For me as a partner of these companies, Steve, we'll start with you. >>I mean, what's in it for me is that it's what my customers have been asking for. And we, we have a long history, I think of providing managed services again, to remove that heavy lifting that customers often just don't want to have to do. Having seen the, the adoption of managed storage offerings, including the, the NetApp solution here and now being able to bring that into the VMware space where they're already using it in an on-premises world, and now they're moving those, those workloads being able to satisfy that need that a customer's asking for is awesome. >>We, every time we're at an AWS event, we are always talking about it's absolute customer obsession, and I know NetApp and VMware well, and know that that is a shared obsession across the three companies. >>Hey, Lisa, let me add one more thing. It's interesting, not everybody sees this, but it's really obvious that the NetApp on-prem installed base with VMware, which is tens of thousands of customers. This is an awesome solution. Not quite as obvious is that every on-prem VMware customer gets that TCO benefit. I mentioned that's not limited to the NetApp on-prem installed base. So we're really excited to be able to expose all the market that hasn't used our products on-prem to this cloud solution. And, and it's really clear customers are adopting the cloud, right? So we're, that's one of the reasons we're so excited about this is it opens up a huge new opportunity to work with new customers for us. Talk >>About those customer conversations, Phil, how, where are they happening at? What level are you talking with customers about migration to cloud? Has it changed in the last couple >>Of years? Oh yeah. You know, I've been working on this for years and a lot of the on-prem conversation, it's been a little bifurcated that on-prem is on-prem and cloud developers or cloud developers. And Amazon's done a huge amount to break that down. VMware getting in the game, a lot of it's networking complexities, those have gone down. A lot of people are cross connected and set up today, which that wasn't so true five years ago. So now it's a lot of conversations about, I hear carbon footprint reduction. I hear data all in around data center reduction. The cloud guys are super efficient operators of data center infrastructure. We were talking about different use cases like disaster recovery. It's it's everybody though. It's small companies, it's big companies. They're all sort of moving into this, it call it at least hybrid world. And that's why when I say we're get really excited about this, because it does get rid of a lot of friction for moving loads in those directions, at the rate, the customer wants to do it. >>And that one last really quick thing is I was using NetApp as an example, we have about 300 enterprise workloads. We wanna move to the cloud two, right? And so they're all running VMware, like most, most of the world. And so this solution is, looks really good to us and we're gonna do the exact, I was just out with our CIO. We're going, looking at those 300, which do we just lift and move? Which do we refactor? And how do we do that? In fact, that Ryan was out to dinner with us last night, talking about >>This it's more and more it's being driven top down. So in the early days, and I've been with Amazon for 10 years now. Yep. Early days, it was kind of developer oriented, often initiated projects. Now it's top level CIOs. Exactly. I >>Are two mandates today talking to customers. >>I think of reinvent as an it conference. Now in the way, some of these top down mandates are driven, but listen, I mean, we got great customer interest. We have been in preview for three to six months now, and we've seen a lot of customers were not able to drag their entire data center workloads because of different reasons of PCO data, intensive workloads, et cetera. And we've seen tremendous amounts of interest from them. And we're also seeing a lot of new customers in the pipeline that want to consider VMware cloud now that we have these great storage options. >>So there's a pretty healthy Tam I'm hearing. >>Absolutely. >>I think so. Yeah. It's interesting. Another, just both like WWT and Presidio, channel partners, big, huge channel partners. It takes no selling to explain. We, we just say, Hey, we're doing this. And they start building services. Presidio is here with us talking about a customer win that they got. So this is it. It's easy for people to see why this is a cool, a cool solution. >>The value prop is there >>Definitely >>There's no having appeal the onion to >>Find it. No, the money savings. It's just in what or Ryan said, a lot of people have seen the, the seen an obstacle of cost. Yeah. So the TCO benefit, I mentioned removes that obstacle. And then that opens the door to all the features Steve was talking about of the advanced storage features and things on the platform. >>So is there a customer that's been in beta on this solution that you can talk about in, in terms of what they were looking for, the challenges that you helped them erase and the outcomes they're achieving? >>Yeah, sure. I can. I can provide one example. A large financial customer was looking at this during the preview phase and you know, for, for, for reasons before that were already a customer, but they were not able to attract a lot of their other workloads from other business units. And with this solution, now the service is a much better candidate for those workloads and those business units that had not considered VMware cloud. So we're really excited to see new workloads coming from that particular customer, given this particular solution and the whole TCO math for them was very, very straightforward and simple. And this became a more attractive option for that particular customer. >>Is there a shadow it elimination factor here in this technology and who you're selling to? >>Not real, I, don't not intent. Wouldn't intentionally. I wouldn't say yeah, not intentionally. I, it was funny with the customers I was thinking is yes. The question, the customers that are in the preview are seeing the benefits that we're talking about. The, one of the reasons we started the project on our side a number of years ago was this very large cement company was looking for carbon CO2 reduction. Part of that was moving disaster recovery to the cloud. There was a lot of friction in the solution prior to this, the, the customers have done some of the things we're talking about, but there's a, it takes a lot of skill. And we were looking at working with that customer going, how could we simplify this? And that was from our point of NetApp's point of view, it, it drove us to VMware and to AWS saying, can't we pull some of the friction of this out. And I think that that's what we've seen in the, in the previews. And it's, that's what I meant. It's so exciting to go from having say, I know we have about 20 previews right now, going to the globe today is the, is the exciting news today. >>And is the solution here in booze that it can be demoed and folks can kind of get their hands on it. >>Yeah. Yeah. They can go to the VMware cloud booth at the expo and they can get their hands on their demo and they can take it for a test drive. >>Excellent. >>You can run TCO calculators and do your own math and see what you're gonna all this, the all that's integrated today. We >>Also have pilots where we can help walk customers through a scenario of their own. >>Yep. Excellent. Is there, is there a, a joint website that you guys have, we should drive folks to? >>Yeah, it's >>Actually talk about the press release. It's >>It's yours. So >>It's it's prominently on our website. Okay. VMware cloud. It is onc.vmware.com where we also have the other, you know, our corporate marketing websites that have this vmware.com is a great starting point. Yeah. And we feature the solution. Prominently customers can get started today and they can even participate in the hands on labs here and take the solution for a test drive. >>All right. Last question, nor Ryan, we'll start with you on this. Here we are. I love the theme of this event, the center of the multicloud universe. Does it not sound like a Marvel movie? I feel like there should be some, is there any superheroes running around? Cause I really feel like there should be, how is this solution an enabler of allowing customers to really extract the most of value from their multi-cloud world that they're living in? >>Yeah. I mean, look, I mean, our mission is to build, run, managed, secure applications in any cloud, right. And regu has been talking about this with the keynote this morning as well. You know, at least with NetApp, we share a very good joint vision of enabling customers to, you know, place applications with really good TCO across clouds. And so it's really good story I feel. And I think this is a really good step in that direction where customers have choice and flexibility in terms of where they put their applications in the TCO value that they get. >>Awesome. Guys, you gotta come back next with a customer would love to dig. Maybe at reinvent sounds, we can dig into more and to see a great story of how a customer came together and is really leveraging that the power that is sitting next to me here. Thank you all so much for joining me and having this great conversation. Congratulations on the announcement and it being GA. >>Thank you. Awesome. >>Thank you. Thanks Lisa. All right. Fun conversation. I told you power panel for my guests. I'm Lisa Martin. You're watching the cube, keep it right here for more live coverage of VMware Explorer, 2022 from downtown San Francisco. We'll be right back with our next guest.

>>Welcome to the cubes coverage of VMworld 2021. I'm Lisa Martin, two guests joining me next. Matt Morgan is here. Vice-president cloud infrastructure business group at VMware and Steven Jones joins us as well. Director of services at AWS gentlemen. That's great to have you on the program. >>Thank you, Lisa. >>Glad to see everyone's doing well. Here we are virtual. So we are just around the four year anniversary of VMware cloud on AWS. Can't believe it's been 20 17, 4 years. Matt talked to us about VMware AWS partnership and how it's progressed over that time. >>The partnership has been fantastic and it's evolved. We announced VM-ware cloud on AWS general availability all the way back at VMworld, 2017, we've been releasing new features and capabilities every other week with 16 major platform releases and 300 features as customers have requested. So it's been an incredible co-engineering relationship with AWS. We've also expanded our go to market by announcing a resale program in which AWS can resell VMware cloud on AWS. We did that back in 2019 and in 2020, we've announced that AWS is VMware's preferred public cloud partner for vSphere based workloads. And VMware is AWS's preferred service for vSphere based workloads. >>So as you said, Matt, a tremendous amount of evolution and just a short four year timeframe. Stephen talked to me about the partnership through AWS, this lens. >>Yeah. You bet. Look, I agree with Matt that the partnership has been fantastic and it's just amazing to see how fast four years has gone. I really think that AWS and VMware really are a really good example of how two technology companies can work together for them. The benefit of our mutual customers, um, as Matt indicated, VM-ware is our preferred service for vSphere based workloads. And we're broadly working together as a single team across both engineering and go-to-market functions to help customers drive business value from the, the, the investments they made over the years. And then also as they work to transform their businesses into the future with cloud technology, >>Let's talk about digital transformation. That is a term we've been, we've been talking about that for many years on this program. And at every event we've all been at, right. What we've seen in the last year and a half is a massive acceleration. Now talk to me about how VMware and AWS are helping customers facilitate that digital transformation. >>So our customers see modern it infrastructure as the core pillar of a digital transformation strategy and public cloud has been a digital transformation enabler for organizations. And that's because they have so many benefits when they embraced the public cloud, including the ability to elastically consume infrastructure. That's required the ability to employ a pay as you go financial model and the ability to reduce operational overhead, which helps save both monetary costs, but also provides more flexibility. But the big driver now is the ability to embrace innovative cloud services and those services help accelerate application development, deployment and management VMware cloud on AWS is a prime example of such an offering, which not only provides these benefits, but enhances them with operational consistency working the same way their it architecture works today, giving them familiarity and enterprise robustness that VMware technologies are known for, but being able to maximize the power of the global AWS cloud >>And every year from a customer adoption perspective, that's doubling Steven walked through a couple of customer examples that really highlight the value of VMC on AWS. >>Yeah, I've got a couple here. I think, uh, Kiko Milano is a good one. There a then our Italian company, they sell cosmetics and beauty products through about 900 retail stores in 27 different markets. So quite large, but they found that their on premises data center and outsourcing partner was just too inflexible for the changing needs of their company. And within four months, uh, Kiko actually migrated all of their core workloads to Amazon. Is he too, and particularly surprised how easy it was to migrate over 300 servers to the VMware cloud on AWS offering. And this is, this is key because the actually leveraging the same platform that they were used to, which was BMR. Uh, the Kiko team actually didn't have to perform any testing or modify any other existing applications. They also, they didn't have to actually train their teams again, because again, they were already up-skilled with being able to leverage the BMR technology. >>So again, we think it's the best of both worlds customers like Kiko can come and use VMware cloud on AWS, consolidate their server footprint and also take advantage of, of a hyperscale platform. That's pretty cool. Another customer, uh, SAP global ratings that our company provides a high quality market intelligence in the form of credit ratings, research, and thought leadership to help educate market participants to make better financial decisions who doesn't want to make a better financial decision. Right? So in order to accelerate their business growth and globalization really meet new business capabilities, they knew they needed to move a hundred percent to the cloud and wanted to know how they're actually going to do that. Now they also have an aging data center system outages, which are becoming more frequent, which to them actually concerned that they actually might, um, uh, face in the future, some penalties from the sec. >>So they didn't want to do that. So over the period of about eight months, think about this eight months, they moved to 150 financial apps to AWS leveraging VMware on AWS. Uh, pretty impressive. They reduce technical debt, uh, from legacy systems that were hosted on sun Solaris, Oracle excavator, and a X. And then now actually able to meet the goal demands of their business. The fun part here is they're actually meeting their uptime, uh, needs a hundred percent of the time since it actually moves these workloads to the VMware cloud on AWS. So pretty exciting. See customers link this kind of journey, >>Absolutely impressive journeys. Also short time periods to do a massive change there. It sounds like the familiarity with VMware in the console is a huge facilitator of the speed of migration and folks being able to get up and running. Stephen talked to me about some of the trends that you were seeing in organizations like the customers that you just mentioned. >>Yeah. So there are some emergency transfer store and a lot of customers want to leverage the same cloud operating models, but also in their own data centers. So they can take advantage of agility and innovation of cloud will also meeting requirements that they sometimes have that keep them from adopting cloud. Uh, you can think of workloads that sometimes have low latency requirements, right? Or they need to process large volumes of data locally. Uh, other times customers tell us they really need the flexibility to run data workloads, um, in a particular area that has data sovereignty or residency requirements. So when, as we talk about customers, um, they tell us that not only do they want to minimize their, their need to actually manage and operate infrastructure, um, and focus on business innovation is sometimes need to do this, um, in a, in a data center this close to them, if that makes sense. So they're looking for the best again of both worlds. >>Got it. The best of both worlds and Matt, you have some breaking news to share. What is it? >>So today we're announcing the general availability of VMware cloud on AWS outposts. >>Awesome. Congratulations. Tell me about that. Let's dig into it. >>So for customers looking to extend their AWS centric model to an on-premise location, that data center edge location via more cloud on AWS, outposts delivers the agility and innovation of AWS cloud, but on premises and VMware cloud on AWS outpost is based on VMware cloud, a jointly engineered service. So together we're delivering this service on premises as a service. This gives us the capability to integrate VMware's enterprise class architecture and platform with next generation dedicated Amazon nitro based ECE to bare metal instances. It provides a deeply integrated hybrid cloud operating environment that extends from a customer's data center to these particular services running on premises in the data center, the edge, or to the public cloud and having a unified control plane between all of it. >>A unified control plan is absolutely critical. Uh, Stephen eight, >>We have a detailed plan to offer integrated AWS services, and that capability really enhances the innovation angle for customers as they embraced the modernization of their applications. >>Another great example of how deep the partnership is Steven AWS outpost was announced at reinvent, I think 2019, which was the last time I was at an event in person. So coming up on a couple of years here, when GA talked to me about some of the key use cases that you're seeing, where it really excels. >>Yeah. So Matt, Matt highlighted a number of these, right. And you're right. It was 2019. Uh, we were all together back then and hopefully we can do that, uh, very soon here, um, quickly on apple. So overall, since, since we're talking about outposts, uh, VMware cloud on a post as well. So the thing here and Matt highlighted this is that without posts, we actually live we've leveraged, leveraged literally the same hardware and control plane technology that we leverage in our own data centers so that the customers will come to know and love and expect about the AWS platform and VMC on AWS, uh, uh, is, is, is the exact same thing that we'll be able to get with the Apple's technology. I'll give you a couple of customer examples. I think that that actually speaks to the use cases best. So, um, you remember, I talked a little bit about data locality and residency requirements. >>So first ABI Dhabi bank, uh, is the largest bank in the United Arab Emirates, right? And they were offering corporate investment and personal banking service, and they wanted to deliver a digital banking service, including email and mobile payments, but they had to follow a specific residency and data retention requirements and they had to do it in the UAE. And so what they've done is they've actually leveraged multiple AWS outposts in the UAE to allow them to provide business continuity while also leveraging the same API APIs that they had to come to know about, uh, and love about the AWS services in region, right? Phillips healthcare is another really good example. Um, you can imagine that, uh, what they do every day is, is, uh, very important things like predictive analytics for preventative treatments. And so outposts Phillips has actually taken those and that developed cloud applications, again, deployed on the same infrastructure they were used to within region. Now they can actually do this in clinics at hospitals, and they're in managing that the same tools providing, uh, same end-to-end, um, view and to their own providers, 19 administrators. And so they actually estimate they have over 70,000 servers now distributed across 12,000 locations or 1200 locations. Excuse me. So that's an example of, again, just two use cases that really broadened the reach and the flexibility of customers to run workloads in the cloud, but in a on-premise fashion. Does that make sense? >>Yes, it does. And you mentioned two great stories there. One in financial services, the other one healthcare, two industries that have had to massively pivot in the last 18 months amongst many others, but let's talk a little bit more Steven, about some of the things that you're hearing from some of the early customers of BMC on outpost. What are some of the near term opportunities that you're uncovering? >>Yeah, I've got to say here too, that, uh, customers are VMware customers have been asking us for this for quite some time. I'm sure Matt would agree. Um, so look from, uh, go back to some of the use cases we've discussed low latency compute requirements. So one of our higher education customers today who has migrated workloads to be more cloud on AWS, um, is looking at, uh, extending the same capability to an on-premise experience specifically for, um, uh, school applications that require a low latency, um, uh, integration, um, from a local data processing perspective. Again, one of our VMware on AWS top biopharmaceutical companies, uh, here again in the U S um, is planning to use VMware cloud on AWS outposts for health management applications with patient records that need to be retained locally at the hospital hospital sites. And then finally you can kind of going back to the story around data residency. We have a large telco provider in Europe that is planning to use this particular offering for their applications that need to remain on premises to meet regulatory requirements. So again, you know, we're just super pleased with the amount of interest, not only in VMware cloud on AWS, but also in this new run that we're announcing today. And we're really excited to be able to support the VMware cloud experience really on the AWS Apple's platform for a of these use cases. >>One of the things we've talked about for many years with both VMware and AWS is the dedication to listening to the voice of the customer. Not obviously this is a great example, Steven, as you said, VMware customers have been asking for this for awhile. So while customers have a ton of choice, I want you guys to unpack what the differentiators are of this service. And Matt, if we can start with you to bring you back into the conversation, we'd love to get your, your input on those differentiators. >>Yeah, absolutely. So people have to look at this for the service that's delivered and on the VMware side of the equation, we're delivering the full VMware cloud infrastructure capability. This is delivered as a service as a cloud service on premises. So why is this valuable? Well, it relieves the it burden of infrastructure management and fully maximizes the value of a fully managed cloud service, giving an organization, the capability to unlock the renovation, budgets, and start to invest truly an innovation. This is all about continuous life cycle management, ongoing service monitoring, automated processes to ensure the health and security the infrastructure. And of course, this is backed by expert VMware site recovery and reliability engineers, to ensure that everything works perfectly. We also enable organizations to leverage best in class enterprise grade capabilities that we've talked about in our compute storage and networking for best-in-class resiliency auto-scaling and intrinsic availability. >>So there's no long procurement cycles to set up these environments. And that means it's developer ready right out of the box. We're also deeply integrated with what customers do today. So end to end hybrid cloud usually requires end-to-end hybrid processes. And with this integration into those processes is instant, no reconfiguration, no conversion, no refactoring, no rearchitecture of existing applications using VMware HDX or B motion organizations can move applications to leverage this cloud service instantly. It allows you to use established on premises governance, security, and operational policies, and ensures that that workload portability I mentioned goes both ways. It's bi-directional as customers need to have portability to meet their business requirements. As we mentioned earlier, there's a unified hybrid control plane with a single pane of glass to manage resources across the end-to-end hybrid cloud environment. And we're giving direct access to 200 plus native AWS services. And that enables an organization to truly modernize their applications, starting where they are today. And so that gives you the real capability to deliver a unique service. One that gives you an organization, the ability to migrate without any downtime have fast, fast cost effective capabilities and a low risk to their hybrid cloud strategy. >>Excellent. That's a pretty jam packed list of differentiators there, but one of the things that it really sounds like not from what you said is how much work has gone on to make the transition smooth for customers, give them that flexibility and that portability that they need. Those are marketing terms you and I know are used very frequently, but it really seems like the work that you've done here will be done straight to that. I want to ask you Stephen, that same question from AWS's perspective, what really differentiates the solution. >>It is a good question. I'll just, uh, I'll agree that there has been a ton of work first that is, has gone, gone into actually making this happen. Right. Um, and to, to all the points that Matt made. And I would just add that again. 80 was outpost is built on the same AWS nitro system and infrastructure. The customers have already come to love in the cloud. And so gone really are the days where customers have to worry about procuring and racking and stacking their own gear layer on all the benefits, the map outline from a VMware perspective. And again, we, we really believe the customers are getting the best of both worlds here. Um, with, with specifically with the compute that comes in the outpost rack, um, customers actually get getting kind of built in redundancy and resiliency, hard security, all those things that customers don't know, they need certain things. >>The customers know they need to pay attention to, but also want some help with. And so we've, we, we put a lot of thought and effort into this. Um, but could I just, uh, explain a little bit about the customer experience, um, when a customer orders and AWS outposts rack, right? AWS actually signs up, uh, to do a fully managed experience here. Like we'll bring people in to actually do site assessments. Um, we'll manage the hardware, setup, the installation and the maintenance of that gear over time. Well, VM-ware also manages the, the software defined data center construct as well as, um, the, the single point for, uh, for support questions. And so together, we really thought through how customers is met, but it get an end to end experience from hardware all the way up through application modernization. It's pretty exciting, >>Very deep partnership there. And we're out of time, but I do want to ask you guys, where can customers go, who are interested in learning more about this new service? >>So at VM world, there are a collection of DMR cloud, AWS sessions, including sessions, dedicated to VMware cloud on AWS outpost. We encourage everyone who's attending VMworld to look up those sessions and you'll learn all about the hardware, the service, the capabilities, the procurement, and how to get started. In addition, on vmware.com, we have a web portal for you to gain additional knowledge through a digital consumption. That's vmware.com/vmc-outposts. >>Awesome. Matt, thank you. I'm sure folks will be just drinking up all of this information at the sessions at VMworld 2021. And I hope to see you in person at next year's VM. I'm crossing my fingers. Great to see you guys Format Morgan and Steve Jones. I'm Lisa Martin, and you're watching the cubes coverage of the em world to 2021.

>> Narrator: From around the globe, it's theCUBE with digital coverage of Dell Technologies World Digital Experience brought to you by Dell Technologies. >> Hi welcome back everybody, Jeff Frick here with theCUBE coming to you from our Palo Alto studios, with our ongoing coverage of the Dell Technology World 2020, the digital experience, we can't be together this year, but we can still get together this way. And we're excited for our very next segment, really talking about one of the big leverage points that the Dell VMware relationship can result in, so we're excited. Joining us our next guest is Guy Bartram, he is the Director of Product Marketing for Cloud Director, for VMware. Guy great to see you, where are you coming in from? >> Thanks for having me on Jeff. >> Where are you coming in from today? (Guy chuckles) >> So this yeah, this London for me, this is from London. >> Excellent, great to see you. >> In the UK. >> And also joining us, Doug Lieberman, he is the Global Solutions Director for Dell Technology, Doug, great to see you, where are you coming in from today? >> Well, thanks for having me, I'm calling in from just outside of Philadelphia, Pennsylvania in the United States. >> Excellent, love Philly's lived there for a couple of years and man, there's some terrific food in that part of the world, I tell yah. So let's get into--- >> You say--- >> Are you Pat's or Geno's. >> Actually I'll eat either one but I think I prefer Pat. >> Okay buddy, I used to get one of each and eat half and half and piss people off that were the purest, but that's a difference--- >> That's the right way to do it. (Jeff and Guy laughs) >> Right, so let's get into it, you know, before we turned on the cameras, you guys were talking about this exciting announcement that you've been working on for a really long time. So before we get kind of into the depths and the importance, why don't we just go ahead and tell us, what is the big announcement that we're sharing today? Go to you Guy. >> And so VMware and Dell really have worked together and we both have partner programs that are focused on service providers, Cloud Service providers, and systems integrators and strategic outsourcers. And what we've done is work together to build a solution that is really targeted towards them in the cloud arena, so taking our cloud capabilities and solutions and optimizing it for cloud providers and doing that through what we call, leveraging our Dell Technologies Cloud Platform and putting VMware Cloud Director on top of that. >> So that's pretty amazing, and really, to you Guy, what does that enable Cloud Service providers to do that they couldn't do so well before? >> It brings a whole lot of benefits to a Cloud Service provider, I mean, for cloud providers, historically they've had to have infrastructure services that've been, you know, quite heavy for them to build, taken a long time to get the market, and really had a high burn and operational costs and this solution VMware Cloud Director on Dell Technologies Cloud Platform is going to bring them the multitenancy aspects of cloud director and all of the speed and efficiencies in application and infrastructure delivery to enable them to address the common need now around hybrid cloud management and hybrid cloud operations. >> And you talked about before, I'm sorry, go ahead, Doug. >> No, I was saying, you know, I think that the big key piece is that, there're special requirements that cloud providers really need from their infrastructure, from their cloud, that makes it special to their business model, and what this aims to do, is to provide those capabilities in a easily consumable and rapid implementation format so that they can get to revenue faster and they can get to higher level services faster. >> It's funny, you talked about getting to revenue faster, back in the day I worked at Intel and Craig Barrett was famous for TTM. TTM, everyone used to think it was time to market bringing a new product to market, and he said, no, no, no, it's time to money, right, how fast can you get operational, so that you can basically get this thing to start generating revenue, I always think of that when you look at seven 37 sitting at a gate, you know, how do you get it operational? So Doug, what were some of those special challenges that they have in their market and how are you helping them solve them? >> So it's a great question, Jeff, as we work with service providers all over the world, they've given us a consistent message, that the days of the value in their service being, how they build the underlying cloud and how they do that orchestration automation are really behind us, right, they're expecting today, an end to end capability delivered as sort of an appliance for that underlying infrastructure for the cloud components, so that they can focus on the higher level services and the things that provide more value and more margin for them, and so, you know, the as a service offerings that run on top of the underlying cloud. And so what this joint solution does is really provide a validated design so that they can redirect their engineering resources from figuring out how to make that base cloud work in a service provider format, with multitenancy, chargeback, showback, portals, et cetera, and get that up and running faster and not have to worry about how to automate all that themselves, so they can focus their engineering efforts on those higher level services that provide greater value to their bottom line, to be honest, >> Great, that's great, and Guy, I want to go back to you, you know, the Cloud Service providers probably don't get as much of publicity as you know, we hear all the time about the big public Cloud Providers, you know, the big three or four or however you want to count them and we hear a lot about data centers and staff migrating between those two, we don't hear a lot of conversation in kind of the hybrid or the multicloud discussion about the role of the smaller Cloud Service providers. So I wonder if you can share a little bit about how they play in the market, you know why this is a really important segment for everyone's, you know, kind of architecture and ability to deliver applications. >> That's great common, I mean, one of the things we tend to call on our partners internally is the fall of mega cloud, that you know you really haven't heard of, there's 4,000 partners in our partner program and all of them are providing very valuable cloud services. They provide cloud services they've in all areas of cloud, so this could be into Azure, Google, AWS or in their own data centers, and many of them have come from infrastructure rich environments or what we call asset heavy environments and delivering services in these environments. The recent kind of drive to cloud adoption and digital transformation has meant that there's been a growing demand for Cloud Service providers to deliver valuable managed services and professional services to help customer do that digital transformation and really help the customer identify, where their customer's workloads, would be best apt and running. And, you know, cloud providers specialize in delivering these services like Doug was saying, they're looking at that higher value and they brought a lot of skills and capability in those areas. >> That's great, 'cause it's really good to keep in mind they pay a really important role in this whole thing. And Doug I want to go back to you in terms of working together with VMware in the solution space, right, so it's one thing to talk about a relationship between two companies, it's one thing to see Michael Dell and Pat Gelsinger on stage together, it's a whole nother deal to get together and put in the investment in these joint solutions. So I wonder if you could share a little bit more color on not only today's announcement, but what this really means for you guys going forward and more importantly, your customers, and ultimately your customer's customers. >> Absolutely, so Dell and VMware are both committed to really driving the success of our Cloud Provider partners all over the world, and to do that, we recognize that there's an additional level of capabilities that we need to bring together and jointly do that. And so we agreed to work together to go build a series of capabilities that are really targeted at going beyond just the basic HCI market and the basic cloud market and extending that for capabilities that are targeted specifically and built specifically for our service providers. And so this solution that we're announcing today is the first step on a journey, but we both committed to and made investments in, continuing that and adding more and more capabilities as we move forward and really addressing that very specific market. And working with our Cloud Service provider partners to figure out what is the next step, what do they need from us, at the end of the day, we're looking to jointly help them be more successful and accelerate their time to market and their go to market capabilities. >> Right, that's great, and Guy back to you, you actually had some numbers, some IDC numbers that you can share in terms of some of the real measurable benefits of this. >> That's right Jeff, yeah, we have, IDC did a recent analysis for us with about 12 partners interviewed across the globe, and some of the results that came back were pretty astounding actually, this pay-for is available on our VCE product page on vmware.com. But just as kind of summarize, you know, we talk about getting to revenue faster, they found that on average service providers were able to onboard customers, i.e migrate them, into their cloud environment around 72% faster, 57% faster delivery of new services and we all know that, you know, portfolio and construction of services takes a long time, but you get business units to buy in to give it support services, so 57% faster delivery of services is incredible. And then, you know, obviously getting to revenue 32% more revenue from VCD services than without VCD and 51% overall more growth with VCD from things like more efficient operations, which are also marked at like 31%. So, you know, significant advantages to having Cloud Director bringing those economies of scale, bringing that capability to migrate from a customer premise into service providers cloud, and then obviously be able to utilize multiple larger clouds across multiple regions. >> That's great, and Doug, I wonder if you could share, are there some specific applications that are driving this more than others, is there any particular kind of subset of the solutions that you can highlight where you're getting the most demand and where you see kind of the both short term opportunity as well as mid and longterm opportunity? >> A great question, I think it really evolves around a couple of different aspects. So one is from a pure security standpoint and things like data sovereignty, we're seeing an increased demand for the service providers that are our partners, as in the ecosystem of cloud, there will always be a role for the hyperscaler clouds as well as the role of these independent Cloud Service providers that are at the next tier down, both for the data sovereignty issues, things like GDPR, but as well as kind of that personal feel, that personal touch and specialty in applications, some of the specific areas we're seeing are things like business process management capabilities, database as a service, VDI as a service, but even more critically things like cyber recovery and backup as a service we're seeing, especially in the current situation that we're in, really an uptick in the cyber attacks and the ransomware, et cetera, and so solutions such as our cyber recovery are critical in those capabilities and those higher level services tied into and integrated with an overall service provider framework are key. And so in the area that we're really seeing uptake are really the business critical mission functions that enterprises are looking to run in a trusted partner's data center, and that's what we're seeing, where we're a lot of traction for this Dell Technologies Cloud Platform, combining VCD and VCF together to give you all those features and enterprise reliability. >> Right, and I didn't ask you Guy kind of the partnership question about having the opportunity to put your capability, you know, on the Dell Cloud Platform, opens up a whole new set of field resources, a whole new set of technical resources, you know, a whole different resources, not that VMware's short on resources by any stretch of the imagination, but it's certainly an additive, you know, kind of one plus one makes three opportunity. >> Yeah, I mean, it's great to be doing this and we've actually already been doing this on a couple of other initiatives, so from my perspective, I, you know, I manage Cloud Director Portfolio and we've already integrated Dell, Data Domain Dell, Avamar backup solutions, Data Protection Suite, into VCD as self service and we've already put in quite a bit of work, working together with Dell on that, as we go forward we're going to be putting more work into supporting VCD on the Dell Technologies Cloud Platform and integrating more services from Dell and from other vendors into the solution as well. So all we want to really provide is the capability for service provider to have the easy to consume hardware model, easy to consume subscription software model, with our program, and then the extensibility of services over and above just the infrastructure layer. So looking at things like object storage, and as Doug said, data protection, migration services, container cluster services, there's a myriad of services that VCD provides today out the box, and then there's the a whole extensibility framework, which we use when we work with partners, like we've done with Dell to deliver things like data protection. >> Yeah, I want to go back to you Doug, in terms of kind of a higher level, this whole transition to as a service, you've been in the business for a long time, you've been in the solutions a long time, but, you know, switching everything to as a service, as often as we can, and as frequently as we can, and as broadly across portfolio is really a terrific response to what the customers now, are looking for. So I'm wondering if you share some color on, you know, this philosophy of trying to get to, as a service, as much as you can, across the broadest solution set as you can. >> Yeah and if you look over the last decade, and decade and a half, there has been this increasing trend to moving to as a service offerings and the public clouds really drove a large part of that, than in tier two service providers around the globe. The key piece especially in the current business model, then going forward is how do you optimize, your CapEx versus OPEX and how do you really leverage the IT infrastructure to the maximum extent possible, based upon current business conditions, and that means the ability to grow and train and the ability to only consume what you need. In the past, when we had traditional data centers, you basically built for the worst case, and so the worst case was you had, an accounting run that happened at the end of the month that required a lot of processing power, then you built to that and that's what you use, and for the rest of the month, it really mostly idle. The cloud model really gives you the ability to A, improve their, or only use what you need and consume when you want to use it, but also adds in really shifting the responsibility for the management and the operations into someone, people who are experts in that area, so that again, you as a business can focus on your mission critical aspects of what you do whether that's developing a drug, building cars, making pizza, whatever it is, really as a service model enables your business to drive their core competency and not have to worry about the IT infrastructure that other people can do more efficiently and with better value than you could do it internally. And all that drive to that as a service model with the additional financial models that really aligned to the business paradigm that really companies are looking for. >> As you're saying that I'm thinking, wow, remember those days when our worst case scenario, was running a big batch load at the end of the month or the end of the quarter, and that would be re-missed, right, we are 2020, we're spread out all over the country and the world on both sides of the Atlantics. If I didn't say something about, you know, kind of the COVID impacts in terms of this accelerate, 'cause we hear it all the time in social media, right, who's driving your digital transformation, is it the CEO, the CIO, of COVID, and we've moved from this kind of light switch moment and then merged to, hey, this is an ongoing thing, and you know, kind of the new normal, is the new normal. And it's really shifted, a lot of people are talking about, you know, kind of shifts in the cloud infrastructure, the direction of the traffic, right, from going now from East to West and it's North to South, 'cause it's going to everybody's home. I wonder, I'll go back to you Guy, in terms of, the response that you've heard from some of your customers, in a response to, you know, kind of A, let's put a stop gap in early March that was interesting, and critical, and done, but now, kind of looking forward as to, you know, kind of a redistribution of workloads and architecture and users and I think Doug talked about security. How are you seeing any kind of ongoing effects and how is this impacting, you know, kind of you go to market and what you guys are bringing to market. >> Yeah, we're definitely seeing a lot of change in the way that service providers are trying to address this now. At the start of COVID, it was really a struggle, I think, for everyone to get the resources that they required to keep customers up from running, a lot of people started re-examining their disaster recovery contingency planning, and realizing that actually, what has happened in the last couple of years is, you know, workloads have exploded, a lot of patient workloads have completely gone through the roof and container workloads have grown drastically, and what's happened is the contingency plans behind all this stuff haven't changed and they just simply can't keep up the dynamic nature of the way we're doing business. Quite simply put technology is outpacing our weight, our ability to deal with that, so, you know, service providers need to provide a platform solution that enables them to be able to orchestrate at scale and enables them to orchestrate securely at scale, and really that means they've got to move away from this is hardware analog and move into virtual resourcing, cloud resource pooling elasticity, and particularly hypothesy. I know VMware we talk a lot about hybrid solutions and multicloud, but it's a reality when you look at where customers are today in their cloud journey, most of them have a footprint in their premise, have a footprint in a cloud provider premise and have multiple footprints in public cloud environments, so they need to have that consistent security model across that, they need to have data contingency and backup solutions, and someone needs to be in that to manage that, and that's where the service providers come in. They need to move away from the kind of infrastructure day to day operations that they were doing before and scale it out to now application protection and application development environments. >> Right, so Doug, I'm going to give you the last word as we wrap up this segment, you know, it's easy for us and pundits and people to write about multicloud and hybrid cloud and all these concepts, you guys actually have to make it work on the ground with real customers and real workloads. So I wonder if you could just kind of, you know, share your perspective, you've been working on this Dell Cloud Platform, you know, kind of how you see this evolving over time, and again, kind of what gets you up in the morning as you look forward as to what this journey is going to be over the next six months, one year, two year, three years down the road. >> Brought a lot of functionality capabilities to the world, right, the ability to consume things as you need them, the ability to really rely on a combined set of clouds and multicloud, and if you look at any enterprise that by any estimate, any company of any size, it's probably got 12, 15 clouds that contain their multicloud between using hyperscalers, tier two service providers, as well as cloud based services like Salesforce.com or Office 365, and you combine all those together and what that provides is a lot of flexibility, a lot of functionality, but also an extreme amount of complexity. And that complexity is really where Dell Technologies Cloud and Dell Technologies Cloud Platform is looking to help and to reduce that complexity, 'cause ultimately a successful enterprise is going to leverage the best from multiple clouds across multiple different implementations in order to provide the end to end IT experience that they need for both their external facing and internal IT operations. And with Dell Technologies Cloud Platform and working with our service providers, what we aim to do is to simplify the implementation of those multiple clouds and how they work together and make it as seamless as possible to shift workloads where they need to be, see your entire virtual enterprise IT environment, no matter where it's running, and to really optimize on your business to understand how you're using cloud, where you're using cloud, and how those clouds work together. And so the integration of all the different features with VMware and Dell bring together that end to end capability to significantly simplify the multicloud experience, and then ultimately our service provider partners, can help you on that journey to provide that management and orchestration across those different clouds and the data transformation, the digital transformation necessary in order to drive success. >> That's great, well, thank you Doug, for putting a nice big bow on it, and congratulations to you both for getting this release out, I know there's a lot of hard work and effort behind it, so it's always kind of good to finally get to expose it to the real world, so thanks for taking a few minutes with us. >> Great, thank you for having us. >> Absolutely. >> Yeah thanks Jeff, thank you. >> All right, he's Guy, he's Doug, I'm Jeff, you're watching theCUBE's continuous coverage of Dell Technologies World 2020, the digital experience. Thanks for watching, we'll see you next time. (soft upbeat music)

>> Covering VMWorld 2015. Brought to you by VMWare, and its ecosystem sponsors. Now your hosts, Jon Furrier, and Dave Velante. >> Okay, welcome back everyone, we are here live in Muscone North Lobby at VMWorld 2015 San Francisco, this is theCUBE, SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier the founder of SiliconANGLE, joining my cohost Dave Velante, confounder of Wikibon.com Our next guest is Pat Kelsinger, CEO of VMware. Welcome back to theCUBE. Again every year. >> Hey my pleasure. >> Six years now in a row. CUBE alum in all our CUBEs. Thanks for taking the time. I know you're super busy. Thanks for-- >> My pleasure. >> Number one for the record. Number one guest. Number one CUBE. >> That's on the record. >> Yeah I was bugging you guys yesterday, that you tell that to all your guests. >> It's definitive that you are number one. >> Now you're the only one who's outlast us. 34 minutes is a record and your handlers were so mad at us. But that's okay. Thanks for coming on. >> My pleasure. >> So keynote was great. Just everyone who didn't watch the keynote, go check out the replay. It's on siliconangle.tv, on VMware.com under vmworld. Really good speech this year. I like how you laid out the future. Really set the canvas for the next generation. So was that kind of by design? Were you thinking hey I want to paint the picture. A lot of talk about VMware in the news that recently, speeds and feeds, Vcloud, all this product stuff. On day one. What was the purpose of the speech? >> Yeah and it really was as Rob and Carl and I were sort of architecting the speeches, and this whole idea of run, build, deploy, secure, and how we were trying to carry that theme through everything that we were doing. And having me kick it off would have been very traditional, right, and we says well what would it mean if I was wrapping it up with a much more visionary and future looking speech and ask Carl to set context. And the more we tried that idea, right it really sort allowed me to I'll say go to a different altitude, and you know rise up from some of the more techy things that I love but to put it in a context that's much more industry and futuristic. So the more we played with the idea, the more we liked the idea, and given the good response from this morning, I think it worked pretty well. >> And it brings a long term perspective, versus the short term myopic you know, what we can do and stock prices, all that stuff today so congratulations. But one of the things I noticed was this asymmetric messaging around the future. And I want to ask you because I asked you three years ago, Pat is hybrid cloud the resting, full destination or is it just a way station in between public, private cloud. Oh it's the future. So hybrid cloud I've been asking all the guests. What is hybrid cloud and what is it today, because clouds are different. Every company will have a different cloud. Is hybrid cloud a product or the outcome of deployment or engineering like distributed computing? >> You know clearly from our perspective is, you know it is the culmination right, of bringing together these capabilities. And to deliver to our users the ability to treat a range of different clouds, you know from SAS providers, through what they're doing in their own private data center, and be able to treat that in a homogeneous way. That they can look at the set of resources, they can manage across those secure, across those environments right, and in many cases have increasing flexibility of how they run their workloads and you know scale them across. That is the vision of what we're off to build. That is what unified hybrid cloud is about. Now obviously underneath that right, there's a whole lot of work to get done. And from us and a product perspective, hey that means our management products got to be heterogeneous. Right it means that they networking layer, hmm there's some things I can do when it's Vcloud Air on the other end of the wire, and you know VMware stacked within the data center, and you know wasn't that cross cloud VMotion, wasn't that cool? You know to me that was my favorite demo of the show. And then in other cases, boy there's more limited things. And we are starting to demonstrate even connectivity at the core networking layer into Amazon, right and one of the work bench will show let me show you how we can extend the NSX connection all the way into an Amazon node, I mean so those pieces are part of that broader set of vision, but we want our customers to be able to say, VMware you are my best partner to deliver that complete set of cloud services that I require. >> I like how you brought in the history lesson there, brought us some early intel days, and I want to ask you this question, the futuristic question around what's possible, because really you laid out the future. And I want to bring in kind of the Moore's law analogy. I just interviewed Jerry Chen at Graylock, and he said I was talking about cloud, and VMware's role potentially in the future, whether it's openstack today or containers tomorrow, he said, "Is this technology the best "of the last generation, or the first "of the next generation?" And I want you to take that quote in context. Talk about what Moore's laws could look like in the cloud, in the future if you assume that the market's going to be you know 10x improved, 100x improvements in these areas. How does Moore's law apply to the cloud, because the cloud is an accelerant? >> Yeah, and you know the beauty of Moore's law, you know I mean if you go down to it's fundamentals, right it's not a law in the physics sense. Right it's an observation in the economic and technology sense, right, this doubling every two years. And the power of the cloud though, is it allows you to benefit from both the scale, right you know the performant capabilities, as well as the economics right, because it's saying you know you can scale out, as well as scale up in each processor capacity. And that really is the magic of the cloud, and you're able to do that dynamically. And essentially I can rent the biggest computer in the world now I mean for ten bucks I can rent the largest supercomputer that's ever been built. It might be only for you know a few milliseconds, right but the ability to aggregate essentially an unlimited scale resource for my application you know is just fabulous. So you really benefit from Moore's law both economically as well as the scale. Each node gets bigger and faster as well. And that ability right is why every cloud is built on x86 is because you see this engine of innovation that has not stopped. >> So do you see creativity being unleashed on that, because I mean I know there's all these different themes of them over the years of unleash your creativity, but unleashing now think about that concept of unlimited as you were pointing out. What are some of the things that you see, and you guys on the VMware team see around what creatively is going to get done in that new world? >> Yeah and you know clearly some of the things that we described here as well, I mean some of the things with respect to security. Right you know these are very much game changing, and you know people as they build more and more of their mission critical environments, you have to address it. You know enabling some of these forward looking analytics environment that we described, and very much the proactive future that we described that you know, I mean you know it's not like machine learning and some of these AI algorithms. I mean these are 30 year kinds of investigations, and now you've just got this enormous compute resource that I can even take some mediocre algorithms with extraordinary amounts of data, and start bringing some incredible insights that predict behavior and opportunity. Right I mean those are exciting capabilities. If you start going into different domains as well, where all of a sudden you're, I mean you can ask almost any question, and get an answer very quickly to those when you've put your services and capabilities into the cloud. So it's so many ways, you know we're just creating you know this next phase of innovation that, as we described the proactive phase of the internet. >> You said recently, "We've committed ourselves "to the heterogeneous management strategy, "which allows us to be managing "in a multicloud environment both on and off premise, "including AWS and Microsoft Azure." Two questions. How much of AWS and Microsoft Azure are you managing today, and do you expect to be managing in the future? Let me start there. >> Yeah, and you know today we have a small amount that is being managed by a lot of customers. Right and you know it's interesting because almost every customer's asking, right but it's putting those CMP layers in, those cloud management platforms layer using those in the day and many cases it's I want to do a little bit, so I know that it works. Right I want to know that the proof point is there, that I can use it in that capacity. But what we're finding for customers is okay I need the promise of where I might go, but I got so much work to do just to operationalize my own private cloud environment that the reality of how much they're really doing in that way is fairly modest. Right now we're not bothered by that. In the sense that you know they are going through this fundamental transformative phase, and most of the private cloud automation for our management stack today is in this phase where they are going from ITIL, CMDB, trouble ticket dominated environments to self-service automated provisioning catalog environments. And they are so deep into that transition that taking advantage of some of the heterogeneous cloud things is sort of number four on their list and they haven't clicked off number one two and three yet. But that promise is definitely there, and we're seeing an increasing amount of customers taking advantage of it. >> So the second part of my question, and I want you to help me square a circle. So we've heard Joe Tucci in the past talk about the advantages that some of the big hyperscale guys have in homogeneity, and part of VMware strategy over the years has really been to get VMware out into the cloud service provider space. At the same time we live in this heterogeneous world, so how can you achieve that vision, with all that heterogeneity? What is the underlying strategy and technology that enables you to do that? >> Yeah in different layers of the stack, you need to do different things. And for instance at the lowest layer, cross cloud VMotion, that's going to be homogeneous for quite a while, right? (laughs) Just is, right and there's lots of things in terms of copying page tables, synchronizing page tables. Fail forward, fail back environments. >> You've got your best people working on it, but. >> Yeah. >> It's not trivial. >> And yeah right and that kind of stuff. But at higher levels of the stack, depositing work loads, observing work loads, getting telemetry on work loads, okay there you can be highly heterogeneous, so really I'd say the higher you are in the stack, the more heterogeneous you can be. Right the lower you go in stack, you know to deliver a value proposition, right you know it's exciting the customers, the more homogeneous you tend to be. And obviously technologies tend to sediment down over time. So our commitment is you know, a broader and broader set of cloud capabilities across other party clouds, and of course we want to enable as many of our partner clouds as well, and those technologies. I mean one of my most exciting products NSX, right you know one of the fastest growing segments, is into service providers who are running that as part of their cloud as well. So that's going to build some of those hybrid networking capabilities into non-VMware hosted cloud environments as well. >> You talked in your keynote about your Cinderella career. Is VMware your glass slipper? >> Is it my-- >> Is it your glass slipper? (all laugh) >> Well you know I'm loving what I'm doing right now. It's a great place to be in the industry. I don't expect to go anywhere else, so you know at this point in time I'd say yep sure is. >> Well so you were asked yesterday on CNBC, you know they want to know about how you touch consumers, and you gave some very good examples of ways that you power companies that power consumers. You also gave some internet of things, I would call internet of things examples, you said, "There are 7,200 objects orbiting the earth." And IT in your bloodstream were two, sort of two examples that you gave, so you upleveled your keynote this morning. Wondered if you could talk about VMware's role in powering things like the internet of things, and things like consumer technologies. >> Yeah you know one of the, maybe my favorite examples right now on some of the internet of things that we're doing, one is a medical devices. You know heart monitors, you know being able to pain medication injection devices and so on. It's ends, you know the next generation of those is going to be managed through a cell phone. Right you know so you'll be able to go to your cell phone, you click oh, my pacemaker kicked me three times last night, right kind of things. But those devices need to be managed and secured. So how's the next generation going to be done? The leveraging, air watch and our horizon suite. We're going to be doing that kind of capability. Right and those things are just, you know I mean we're talking about people's lives, and changing the lives, but then it's also about the telemetry that goes on the other end. You know my wife has a heart monitor in right now. Just, and you how painful it is to get access to that data? Right you know. >> It's my heart. >> Yeah and you know why is it so hard. It's going to be hosted in the cloud, and we're building those clouds for those environments and to me, some of those applications, you know it's not just about going to an IT guy and let me tell you how you can save a bunch of money. You know let me go to that IT guy and say let's go partner into your line of business and say how can we change your business? Right and that's really where I try to end this morning's speech is very much, right that is the role that everybody at VMworld gets to play. You're the smartest tech guys. Go be the evangelists, the entrepreneurs, inside of your business. Because you are the person who's going to enable them to take advantage of these core trends to change their business. >> Yeah one thing on that point is that people looking at, we talked to some, a lot of customers and CIOs, and they're looking at the different vendors. Oracle, you know they're looking at VMware, wherever, IBM, HP and everyone else. But the trend that we're seeing is kind of pivoting off the appliance and engineered systems concept and end to end, you mentioned homogeneity and heterogeneous at the top of the stack. They want an end to end solution. They want it to work so it can kind of outcomes you described. In order to have that they need developers, and you guys have an ecosystem that has a big focus on dev ops. So very geeky company, a lot of engineering at VMware. A lot of people know what dev ops is. Is that servicing up at the top of the senior management team where dev ops is top priority? The API-ification, these kinds of things. Can you share some of the mindset and some of the conversations you're having at the senior level with dev ops and developers. >> Yeah I find the conversation, by the way I'd be very interested in your guys' perspective on this. You know with one of the recent dev ops conferences recently that we had a team go and attend, and we're presenting some of our products and value propositions there, and a survey was done of how many of those were IT folks versus how many of those were developers. And what was the answer? >> Ops dev. >> It was almost all IT folk. >> It's, yeah. >> Operations guys. >> Right because do developers really want to carry pagers at midnight? Right you know it's. You know, no. Right you know and there's this funny-- >> No they're too busy writing code. >> Exactly, right. >> They write code at night. >> And so there's this aspect of hey, they want programmable infrastructure, right because they don't want some long, trouble ticket kind of model to go get infrastructure, so they want API access that's automated, self provisioned and so on. But do they really want to take over infrastructure operations? And that the answer to that is no freakin' way. >> Yeah, no way. >> At that point of way. >> Because they you know, so it's very much they don't want to be bottlenecked right, they want to be enabled by infrastructure right for it. And so a lot of this dev ops is how do we bring those two worlds together so the developers can go do what they want to do, right develop, innovate, and at the pace of that that they are never limited by any of the infrastructure deployment or lifecycle management capacities. So as we're having those conversations, it's very much how can we present more and more API access to a more, and more automated set of our products. And that's why we've embraced openstack. That's why we've embraced containers. It's why we've done the cloud foundry. Right it's why we continue to have our own traditional vsim interfaces that we've supported forever. We're just going to give them more API surface area than any other guy on the planet, and the next thing that comes up, right if the Volante development environment emerges, hey we're going to support that. If they get more than 10 developers on it, we'll be there. >> Right, CrowdChat. >> You support CrowdChat APIs, so I got to ask, the development's a good point, I love that point, because IT is where your wheelhouse is. Certainly in the ops side of VMware's install base. But now you bring up the developer community, those guys have embraced containers. That's changed the game a lot, because now you can abstract away the complexity you guys can provide, and kind of harden that top. So how do you see that market? So two questions. Containers, comment on the containers. We asked that last year. And where's the line on the hardened top? Where's the line where developers, hey don't look here you're cool, programmable interface whatever you want to call it, infrastructurous code, where's the line on the stack? And then develop this new developer ecosystem that's developing? >> And I think as I said last year when I was on the CUBE that you know we see the container trend as a more significant, a long term one even than openstack. Right and I think it really does become the biggest issue in the future for developers because it's an application value proposition right and at that level, how can I make application development, deployment, lifecycle management in a more effective and productive way. And software does eat the world, and everybody needs to become more productive in their application experience. And then the hardened top question. You know it's a great question because developers, do they want to reach, I mean do they want to go worry about infrastructure? No they don't, but they don't want to be hindered by infrastructure right at that level, so the question is can we present in a light way, open way that they can take care and not worry about oh how do I get enough storage for this. How do I secure that network, how do I connect to this other thing, what is my directory service. We're trying to present an infrastructure that gives them the surface area that they require, so that they don't need to go down the stack. Because they're not going down the stack because they want to but because there isn't a flexible, easy way for them to get there another way. >> To them it's just like smashing rocks, I mean they don't want to do that. They want to program some code. >> That's right you know. They want application code, interface code, you know things that create business value. So our job is to present them a capability that makes those things easy. And that's what the Photon platform announcement was all about, making it easy. Making it easy for traditional IT. >> NSX is playing a role there, too, big time. >> Oh yeah absolutely. NSX you know we're doing the bindings in the storage layers. We're absolutely bundling in the right way so that IT gets visibility into that environment so they can manage and secure it, you know deploy it, but the developers get the flexible interfaces that they like as well and really, sort of, if you remember the old Oklahoma movie, can the cowboys and the farmers be friends? Right you know and that's our objective is to bring those two worlds together. >> So I got to bring up the cloud native question, because we're seeing this transition now to, Dave and I were talking in theCUBE on the intro here about the old mini computer trend and how that spawned a whole level, you know you had Sun, HP, back, and Intel writing chips and this x86 servers. The whole SAP, workflow, ERP systems, manufacturing got innovated, all this new automation happened. So we're seeing cloud native take on a similar role there where you're seeing people at the services level, the big consulting firms want to deploy more apps fast. And you mentioned the apps are taking over Hollywood. So where do you see the pressure point for the services-- >> Bird Man or Angry Bird, I don't know. >> So that trend's happening right now. So what's the pressure, what's holding back that explosion of new services that are going to roll out, consulting services, big firms rolling out apps for banks and every vertical, as you said they're being disrupted. What in the infrastructure is holding back that? >> You know I think that, and part of the reason we're so excited about some of the Photon announcements in that sense is because it is too hard and too slow today. You know at the, it's heavy, complicated. Right the IT processes aren't nimble, and you know self service environments are minimally deployed. Right you got the application guys over here, hey they're innovating at pace, and these scale outs, container oriented microservices architectures that are beginning to, they're not scalable, they're not manageable, they're not secure. Right so the problems are so obvious on both sides of it. Right but it's these worlds are coming together, some of the early embodiments you know of the new applications et cetera are so thrilling that people are really are moving into the space. So the fundamental limiters right we think are, you know an agile, light weight infrastructure with the right set of northbounds APIs that give programmatic access to the infrastructure. And on the other end is a developer environment that can take advantage of those, that's highly productive with the level of software skills. I think ultimately you know on that side of things, you're going to be developing, you're going to be limited by software development capacity. And that's what we are finding when we meet, and particular Pivotal meets with the largest companies in the world right their biggest issue is, do I have the software development skills to do that? Can I be productive at that level? You know the app is now more important than the color and the warrantee on the car. You know that's the shift that's occurring. >> Pat I want to ask you a couple public policy questions. I don't want to get into politics, but as a CEO in Silicon Valley, you know you hear folks like Donald Trump sort of saying well we should really clamp down, he goes after Zuckerberg for example. >> Build that wall. >> Right build a wall. But he goes after Zuckerberg in particular. I'm talking about H1b visas so. What's your take I mean presumably, you want more talent, we educate talent, what do you say as a CEO of a public company regarding educating and then keeping folks here? >> I think it's wonderful that the world wants to export our top talent, their top talent, to the United States right. And almost-- >> Right, thank you. >> I mean please. >> Where's your best. >> Absolutely. >> And smartest people. >> And the fact that we want to close our doors to the most talented human beings on the planet that want to come and work, develop, create the next generation of startups in our, right in our communities and on our soil, right to me that's a stupid policy. >> Yeah great, and then the second question. You mentioned self driving cars. I wanted to ask you about, you know for decades, millennia, we've seen machines replace humans. And we're seeing now that GDP grows, you know income grows, but the average, median income has dropped from $55,000 down to say $50,000. From '99 til today. Yet you guys and I'll be interested in you, too John. You live out in Silicon Valley. And it's like okay well there's always opportunities. Because you guys live in a virtual reality field, and you're positive thinkers right. So are you concerned as again a CEO of a public company, and somebody who's pretty prominent, about that effect and what's the answer? Is it more education, and what can companies like VMware do to support that? Not that trend, but to reverse that trend? >> You know at the heart you know you mentioned education, to me that's so right, you know so foundational at that level and increasing you know STEM education, beginning at the earliest ages, you know we need more software programmers. We need more women in software programming in particular. I mean we have almost half the population is excluded from that potential right today by the very low entry rates into those areas. We got to fix those issues. The quality of U.S. education at the secondary level, you know at the collegiate and university level's unmatched on the planet, right. You know at the high school and junior high level it's pretty weak on a world scale. Those things are fundamental, got to be fixed in that respect. I also believe that you know many of these technology shifts are actually going to enable a, let's say a renaissance of some of the communities that some of the areas that have been not available for American workers and this whole idea of, I'll say just briefly mention in my speech this morning, the idea of customized, automated manufacturing. Well as that emerges you know now, right if I can have highly automated, customized manufacturing, you know 3D printing, et cetera that occurs, boy you know I believe we will see a resurgence of some of the manufacturing sectors you know back onto mature market, to soils, to back onto American soil as well. Because it isn't just going to be a cost arbitrage question anymore to find the lowest cost labor on the planet. Transportation costs become you know, essentially a barrier to export. >> And you're unlocking like, see big data as an example. You're unlocking new jobs around data analysis, and development. >> Right. >> You know that's very much what we see as one of the huge opportunities associated with internet connectivity in a global basis, whether it's health care, education, or unlocking new jobs-- >> Internet of things. >> I mean machines like airplanes, throwing off data, they're going to need people to analyze that. So I got to ask the question along with Dave, is that you know when I was talking with some young college kids and my wife and I talked to our two youngest, who are, one's in eighth grade, and one's a freshman in high school, around how to think about technologies. Not just oh you need to be computer science and have two daughters, so obviously we're talking to them about hey don't be bullied out of computer science. If you love technology there's plenty of things. So what's your take on that? What's your view on different opportunities for young people? Women, boys, girls. All across the board. It used to be just programming, electrical engineering, computer science. And now it's kind of like the two pillars. But now what new opportunities do you see to a young physics major, or someone in high school who just loves technology? Because they're all connected. They're all on Instagram, they're doing their thing. >> Uh-huh. >> They're breathing technology, they're natives. >> Yeah. >> So what academic, what things might inspire young people? >> Yeah I think some of-- (coughs) Excuse me. You know some of it is taking down some of those, I'll say false barriers or perceptions as well, and John Hennessy, president of Stanford, you know he and I have a great relationship, and Stanford now is almost 50/50 in the incoming class for women into computer science. I mean obviously they put huge emphasis on that, and so they said you know getting away from first player shooter games as the first touchpoint of technology and into much more social experiences has changed the perception, right, of you know females into that sector. Excuse me. You know I've still got two more days of VMWorld to go. I need a voice. >> The CUBE is tiring. >> We might outlast you this time. You beat us last time, 34 minutes that was a record. >> I think it was longer. >> It was more like 50 minutes. >> Yeah, right at that-- >> But there's a lot of >> opportunities to your point. I mean there's not just programming. There's a lot of interdisciplinary stuff now. >> Yeah and that was exactly the next point I was going to make. Because computer science and programming ends up being cool in every aspect. Right you know whether you're in economics. Hey you know I mean you got to build models. Hey if you're in the medical field. Hey there's an increasing amount of telemetry, big data, other things coming into it. Every field is touching on it, and to me that cross disciplinary view of the impact of technology, into every segment and every interest, becomes more and more powerful going forward. And I think some of those are the ways that we can actually change the perception even right that everybody, it's sort of like, imagine if you would go to school, and you would say our school does not teach math. I mean would you send your kid to that school? Of course not. >> Only if they had programming on top, instead of math. >> Right but... And they say, but you know your daughter, she wants to be a psychologist. But you're not going to teach her math? You know it's a basic life skill. She got to learn math. That is the essential of technology and computer science going forward. It is a basic life skill that we have to teach everybody, and have to participate in it regardless of what field that may pursue. >> So we're getting crunched on time here. I want to ask you my final question. Dave probably may have a final, final question. Seems to be the new thing going on here at the CUBE. This year at Vmworld, what do you think will happen this week when you look back down the road? You've got a great career here. Looking great with VMware, we love working with you on the CUBE here and the keynotes. What about this year is so transitional for VMware? Is it the fact that now we have full dev ops, now the cloud is mainstream? Is it the fact that the company's transforming itself into a whole, another power. Is it because the ecosystem, all of the above? What's your take on this year's kind of inflection point for VMware? >> Yeah I think you know obviously at the front of the list for us is this whole unified hybrid cloud. And really getting people to view, because you know three years ago, cloud was ooh I'm an enterprise customer. Now it's really how can I take advantage of these resources that will be heterogeneous across multiple environments and the value proposition that we can be and everybody needs to be doing that. So that's one of the takeaways. You know second is the engagement into the developer community, the Photon announcements are probably the most second, the second most important shift to thinking that we've delivered here. Maybe the third is you know the thing that I'm always thrilled about when I show up at VMworld is the ecosystem. You know friends and foe alike here show up to talk about how they're collaborating together to bring more from the things that we do, and that's what's just so energizing about it. When you go around the show floor it's just overwhelming. >> And you've got investors too after the VCs. Top tier VCs, NEA's here. Graylock, XL, all of them are here. >> Well a lot of startups coming out of the woodworks, too. >> Oh yeah. >> They launch at VMworld. >> Absolutely. >> You know it's just wonderful that way, and this ecosystem effect just couldn't be more powerful, and alive and well than it is here at the show this year. >> And we're six years here, we love watching the transformation. We've seen everyone. Palmer has produced that first slide that was there and now here so great job. >> Yeah and thank you for expanding our space this year. That's really great. >> Hey you know what. >> Us going north. >> You know. >> You said you were in a corner of Moscone North. I mean I said this is the CUBE. (all laugh) I think you mispositioned that. >> We were in the lobby, the big lobby of Moscone North. >> Half the lobby. >> We have the lobby. >> Thanks for everything, we appreciate six years. And great to see you every year, and thanks for taking the time out of your busy schedule to share your insight, >> Oh thank you I love it. and the data, and your vision, and product news. Thanks so much. >> Thank you. >> Pat Kelsinger here live inside theCUBE, here in San Francisco, Moscone North lobby. We got the big lobby here, and of course it's Vmworld 2015. I'm John Furrier with Dave Velante. We'll be right back. (light rock music)