hi buddy we're back this is Dave vellante Wikibon org with Stu miniman my co-host in this segment Chad saket just here a long time cube guest good friend of the cube Chad great to see you Dave it's my pleasure as always man Stu it's good to see you my friend you know it's unbelievable right we shot and I've been talking all week we started the cube 2010 at the MC world we did SI p sapphire the week right after and then the big show for us that year was was vmworld 2010 it's the best show in town it really is it's you know we said at that greatest show on earth we're betting the house on on VMware you know as a as a topic because it is the IT economy yeah obviously spent a lot of time and as you know effort and appreciate you know the shout out that you gave us the other day on the research that we just did I appreciate the shout out that you your results found well you know it's it's all legit you know as you know we do our homework but David's do put a lot of time to that Nick Allen as well so we're really proud of that that work and at the same time things are evolving yeah I guess they want to go back to it must have been 2009 maybe we sat in a room and you chuck talked the future storage networking the up security obviously compute yep management and the whole deal and we spent a good four hours in that room yep you know I was spent after that but I was just getting started I know you would just get that much everything you laid on us that day is coming true yeah really it's really true I mean you said storage is going to be invisible eventually going to get to the network I mean you know the security pieces and on and on and on so so you know I think that that's definitely the story of this year's vmworld right the idea of what VMware is done by abstracting the control plane of networking with NSX you know prior to that integration to Sierra having talked with a lot of them to see our customers they're super happy with it but prior to that it only worked with open V switch which meant it was you know reserved for the customers who are going all-in with kvm and with Zen now in vsphere 55 it supports the distributive V switch in vsphere which means that idea of network virtualization can be applied to a large swath of customers and likewise vmware is doing the same thing for the control plane of storage which you know Stu that was starting even when you were intimately involved at it when you were at emc absolutely around control abstraction using Vasa and and the early ideas of V vols and the other thing that's going on is they're disrupting the data services plane by becoming a storage vendor with their own storage stack with v Sam yeah and we're going to talk about that yeah for sure in a second I got some time on gots do so that's it that's just your wheel so on the storage piece you know unpack for us a little bit Chad you know we talked about storage becoming invisible and we'll talk about in the network space you know what is the value of the storage array of the storage stack itself and how does that play with VMware especially as we look down to everybody's showing bball so look the name of the game is hyper automation in the end it's not storage it's not networking it's not even compute right and we talked about in the past that the design and the dream of the software-defined data center we use different words for it back you know four years ago but the vision of joe and and all of the parts of the federation of emc vmware and now the third one pivotal is to try and say how do we make all the infrastructure in essence invisible pivot even takes it further by just saying hey we'll just use paths and and get rid of even all the measures are going service for years ago right I remember it well they so really do that yes so so that the reason for it is is that it sucks when you try to provision something a workload whatever the workload maybe and the tail the long tail in the process is touching the physical infrastructure of storage networking and compute virtualization historically has tackled and I would call that problem for compute in essence solved can there be improvements for compute sure bigger faster stronger right in storage land inevitably you know we move from the stage of you talk to the storage person they provision something to you to the storage person provisions a pool of something and then you can automate that and deuce from vsphere and use it through plugins and automation ultimately though you would not even want to have that step you'd want to have the storage advertise its capabilities and then when the vm gets created it says I want out of that catalog of services this stuff and that's what Vasa and whole storage policy based management stuff from vSphere 50 51 and now 55 we're all about in networking land you don't want to have to configure VLANs you don't want to have to configure firewalls you want it to be all able to be done programmatically an only way to do that is if you can like we're just talked about with storage and with compute abstract out the network topology yeah I mean I really look at it what we've always said is we need to get rid of that undifferentiated heavy lifting so that the question I have there's there's a lot of startups in this space that have built their products for this new generation builds is a vm aware if you will or just just simple simple and the critique on emc is that this is legacy equipment and well it might be integrated and you're updating it you know this was still legacy architectures you know how does that fit into the new world so you know when you are the leader everybody will throw stones at you and occasionally even as the leader sometimes we throw stones at others and I don't like that right but I think you might be talking about our friends at perhaps tintri as an example well that they are one that they are built for virtual environments absolutely and if you take a look at it what everyone who is in this space new players emerging players we're trying to today hack at that problem tintri to write because there's no constructs at the vSphere layer for vm awareness what they do in their Nasdaq we do in our Nasdaq is to say AHA file is an object a file can be snapped a file can be replicated and if we hyper couple it into vSphere using plugins and extensions we can then manage and operate on those files right now again I'm not saying that our implement eight it's up to the customers to decide about whether emcs is better or ten trees is better and ultimately the customers choose right but basically we're all kind of trying to hack at that because right now Vasa which is the official policy communication vehicle only operates on data stores data store unit of granularity right V vols has always been the target of how we would all as an industry do that right so i would i would argue that what we showed today about you know recoverpoint and the splitter driver and being able to do tivo like functionality for a vm or replicate for a vm i would argue we more than hold our own with the competition but the right answer ultimately is actually to keep going down the path of V vols in the evolution of vaasa so that you know it can be done correctly and not fake vm awareness but actually have fundamental vm awareness I so since we started on storage I got to chime in here so a couple things so I asked Pat this this morning and his response was essentially hey it's all good these guys are on board but I'm skeptical so about what here's the here's the about what so as I said sort of off-camera Microsoft and Oracle I've already been grabbing storage function and their narrow little parts of the world but you p.m. seen a nap everybody else you've seen NEP but particularly Mabel to find ways to add value I compete very effectively there iam VMware's this horizontal player mm-hm and doing something like v san yep you know its nose software-defined this is you know the future I said to Pat well don't guys like EMC and netapp and shirts certainly HP and itachi and IBM etc don't they want to do their own software-defined he goes yes but they're sort of bought bought into this and what do you think about that as a salt as emc I think I think I don't know whether it's right to say it on camera or not I think that basically as NSX was announced and v san has been announced and everybody in the industry is known that these things are coming you know you could hear audibly people's uh what this what the you know you know you're kind of a cisco right of these in I mean so V sans idea of saying hey I'm going to glom the storage that's in the server the dads the flash the pcie-based flash and use it as a distributed storage layer is a good idea it's an idea that is real and innovation is non containable as as Pat would say you know he's a super fan of andy grove right you know is his mentor Andy Grove had a famous quote that basically said innovation can't be stopped if the incumbents don't do it new startups will arrive that will do it yeah no that's that's fair right Sam Palmisano as well said you're going to get commoditized no matter what so so but the key thing is that it will take some time for V Santa mature the 10 target was correctly positioned in the in the keynotes as use it for non-persistent VDI use it for tests and Dev customers are slowly starting to grok the idea of hey wait a second this thing by definition has to create multiple copies of the data on multiple servers so it's space efficiency is not as good right but I think what's going to occur is your people are going to start to use it and they're gonna dig it yeah they're going to want more and they're going to want more which is great right now from our standpoint EMC sales reps may not like it but EMC likes it because you know what there are portions in the market where we have had great success taking lots of share continue to outgrow the competition but there's other places where we frankly fail to serve properly and if those customers choose v san kumbaya customer happy shareholder happy it's all good right v san will expand though right and in fact as a company we embrace the idea of a software-only data service and this is a data plane thing not a control plane thing that's why we acquired scale io recently right because we're looking a look v san will be the answer for customers who love vmware and our 100% vmware and i talked to a big one today who are like yep that's us likewise i talked to a huge one that were like nope we need an answer that's like v san but works with kvm Zen and hyper-v and vsphere some people like their stacks to lock in at one point and their trade that off and your surveys showed that yeah yeah others about half a woman to live with that right and get function they get function and simplicity right and V San will be phenomenal at that as people are seeing now right i've been using the beta for a long time so I know what but the reality of it is that it's going to be a broad kind of ecosystem of traditional storage stacks embedded into hypervisor storage stacks ones that are packaged as bring your own server akv San and scale IO type things ones that are packaged as will give you the server to new tannic simplicity we live in a beautiful chaotic works hope so boyer in this piece the piece that he had stew did took a little shot at the cartel and you didn't like that you thought you shot back so no that is absolutely not not how we roll it's not how are you roll so so how do you roll hotel eat what you kill Isaac cuts hit it you know so listen to be very blunt I'd be lying if I didn't said that there weren't moments whereas EMC we don't get frustrated that hey you know VMware you you should always work with us right again it happens more in the in the field rather than from a you know our headquarters standpoint right there's times where VMware gets really grumpy when EMC is supporting hyper V or OpenStack and a customer right there's times where vmware is really angry that pivotal runs on AWS and like the announcement earlier this week was hey it works great on vsphere like so think about how weird that is it's been like running on AWS for a while now it runs on vsphere and I bchs right Joe is I think Joe Tucci i think i have an insane amount of respect for that guy he was wise enough to go i need to resist the temptation to simplify for our own internal purposes and create lock-in from the past stack through the app stack through that you know vmware stack through the emc sec and instead say you must all fight for the customer independently and EMC you have to pursue it assuming that VMware isn't a constant VMware you must pursue it as if EMC is certainly not a constant pivotal you should pursue it as if neither one of them is a constant now the one thing that I would highlight to everybody who's watching is don't understand miss understand what I'm saying at the same time whenever one of them is not the best choice for the other jogos hey hey what's up guys it's got this yeah who's got this ball so when V CHS was being stood up and they were looking at alternate storage choices Pat didn't say you have to use EMC but he knocked and said guys we're looking at different storage choices you better come in here and if you don't win on your own merits we'll go with someone else you know I think thankfully they did right and we made that argument you're saying if part of Pat's 50 billion dollar cam comes out of AMC's hog well that's the MCS problem they got to figure out how to shore it up yeah we have to figure out how to compete Chad wonder if you know you own the global se forth you know for emc in this ever complicated world it was you know it wasn't easy when you created the V specialist force but it was focused on VMware and they got a lot of weight behind that there were product managers marketing people all with vmware yep titles inside emc in this world of OpenStack and you know hyper-v and kvm how do you deal with that in the field so so that's a great question man so the first observation just while there is diversity right your survey reflects what I tend to find at my customers right which is overwhelmingly VMware within the enterprise use of some k VMS and OpenStack you know where they would have used vSphere or or the vcloud suite a little bit of dabbling in the enterprise some enterprise customers more than others the cloud service cloud service providers far more right when we were doing the V specialist thing it was an effort to rapidly ramp things up and so we built small focused team small focused product managers what's now happened over the last four years is you know if you think back man like EMC was like a no-show at vmworld 2006 right we our company got the memo focused in we won the best storage choice for VMware deepest integration blah blah blah the what's HAP makes me very happy now is that's now embedded into the product teams it no longer requires a someone watching it just happens organically gooood from a field standpoint the V specialist role many of those V specialists are now leaders of the SE orgs and all sorts of functions so it's no longer somebody thing it's now on everybody thing right but the V specialist mission which used to be makes sure that emc is the best choice for VMware has broadened out to really be best choice for the vcloud suite and VMware stack and also OpenStack to understand and reflect the fact that it's a it's a dynamic open world so so we brought to get in the hook and made me talk about networking so we're just going to ignore the hook for now and talk about networking so NSX yes awesome we saw Martines yeah a little demo up there but it's not going to be that simple why is networking so so hard and you now remember 2009 yeah showed us the roadmap yep now we're here where's it's so first things first what he demoed it is actually that simple if you can constrain a whole bunch of parameters right so if you can constrain yourself to every endpoint is a distributed virtual switch or an open V switch like that thermodynamics problem you can so know what I'm talking about so so if some assumptions its simplify rate they write it if you can if you can constrain it and say everything is connected to a distributive e switch from VMware or an open V switch from kvm and Zen and you assume that the net physical network layer is a bottomless pit of bandwidth and latency in other words you know that there will never be a contention you know at the core networking layer it actually is really that easy right now that may sound like Chad those two constraints are stupid they're not actually that stupid right within the core data center bandwidth is very easy to apply it's much easier to say I'll deploy 10 gige and then go to 40 gig e than it is to hyper design the data center with qos and manage the you know customers have demonstrated time and time again that they'll just go from one gig to 10 gig to 48 to 100 gig rather than trying to hyper engineer the whole thing inside the data center in the wam different story right right also I mean it is a true statement to say in a service provider and in most enterprises eighty ninety percent of their workloads do finish on a thing that is attached to a distributive virtual switch or a physical switch right now where it's going to get funky is that obviously I think NSX is perhaps out there in front in terms of SDN land but they're not alone you know there were lots of partners and we know that cisco has got some cool stuff that they talked about at Cisco live and that our are coming right and you can't you know this goes an amazing company and they have many beloved customers and CC IES and CCNA s around the globe that you know are going to be very interested to see what since you been see I mean interesting play and you can read all about it online and people speculation sure yeah it's going to it's going to be cool though I mean I think one thing that is fun to remember is like innovation is non-stop about it'sit's disruptions or can't be stopped they're going to happen no matter where and in the end it's fundamentally all good for the customer whether it's real CVM where NSX whatever what I love and I said this the pet and I said this did Paul Moretz when I first heard his you know vision I said you guys vmware is ambitious you know if nothing else its ambitious and it's executed on that ambition so it's toss them to watch oh and you know stay tuned for next week September the fourth speed to lead there's some exciting stuff coming from EMC we generally have learned over the years that it's not a good idea to do mega launches and big things during this week because like you said this is this is vmware show and it's the greatest show on earth right yeah okay so we'll stay tuned for that will be watching hi Chad thanks very much for coming on the cubase oh it's my pleasure guys thank you so much I keep right there buddy we're right back after this quick word

welcome back to vmworld 2013 this is our special live coverage live in San Francisco California this is the cube so look at angles flagship program we go out for the advantix track the signal from the noise talk to the tech athletes talk to the entrepreneurs talk to the customers talk to the party stuff to the execs join my coach Dave vellante and we're here the very special guest Sanjay from the new GM of the end-user computing business unit at vmware welcome back to the queue your cube alumni from sa p of which we've done for four years as well it's our fourth year vmware great to see you on the cube nice to be back executive at vmware so what a year it's been the whole theme has changed in 10 years a 10 year anniversary of vmworld defy convention change and our past conversations you can handle that your have so much experience at s 8 p-9 convinced that's made a by convention and and it via more need some help at the end user computing here at strategic area so over to my data center hybrid cloud and use computing pat simplified it down to three areas you're heading up and use a computing strategic to say the least for vmware what's your take of what that is today where has it been and what motivated you to come to vmware from sa p which had great edge mobile mobile analytics everything's happening at sa be great mobility okay you know i think what got you I've always loved being here so so first off thank you guys for having me back i looked at the way in which end users have been using computing and as you know I've been in the business user space practically all my life analytics big data in the last 15 18 months in mobile so I saw this as a great opportunity for a company that was came to extend their brand from the data center to the desktop and whether desktop is going my views of the desktop obviously is not just the laptop for the future of these mobile devices so the desktop of today is clearly going to move into the cloud there's mobile and then there's machines your Tesla your thermostat your refrigerator these are all the ways in which we think about children and these are all going to be end-user computing devices as personal computers absolutely not there is more software today in your car and then there was in the first spacecraft 1970 I believe that or not so from our perspective and you think about the types of players and technology infrastructure players that are going to be strong I believe that needs to be three core disciplines to what that company you have in terms of technology now cover the other aspen tree one was management technology the other security and virtualization and quite frankly I felt the VMware had much better access than any of the other companies to make that happen for what end-user computing the other aspect of it was VMware's always been accompanied this value of innovation we look at the roots of this company it's an innovative product and go to market it's an innovation company I wanted to be close to an innovating team the culture is very much of innovation from product to go to market and then you know from a joking perspective thirdly my commute got 50 yards shorter I used to turn left now I turn right 50 yards shorter that was effective and the campus is nice at the end of this beautiful campus as well I was SI p but I got to ask you about the end-user computing cuz you know one of the things Dave and I were talking about earlier we love that stack that Joe Tucci Pat Gelsinger and Palmer's laid out in 2010 you know four years ago and it was some call it the software mainframe cloud computing and it was beautiful nice we all recognize dad bill in the stack but there was some misfires virtualization expanded he could flash date of fabric all kind of was happening software to find jumped in there and and changed a little bit didn't change the direction but the top of the stack it was some misfires and just didn't feel right was that a factor that come in with a clean sheet of paper was it a turnaround situation was it just ok reboot reset grow what was the the dynamics at the top of the stack that yeah I don't think first off you want to go I mean I felt this was a company that had a tremendous brand 500,000 customers you know 40 50 million but this is a company that's a brand this year so that's always a good place to start you're not creating a brand you're building on that brand that was very very important but as you looked at where the data center was going it's moving to the cloud and cloud computing and we have a clear strategy there to play in cloud computing that was very very important to me but in terms of where the end-user computing opportunity was I saw this as just being the first inning the VDI space virtual desktops it really is a two player market there and I think our competitor isn't innovating very much we have an opportunity to be the innovator and gain market share and overtake them to be number one I'm here to be the number one player in bi but mobile were just in the beginning of that inning if you would the first to second and it's a wide open market social computing we've got social constants a great product Tim Young's the CEO of that company he's the real deal and in social computing we think that those areas desktop mobile social and where they're going to go are at least the first three aspects of where a user computing has a lot a lot of opportunity just Sanjay we the first three shows we ever did we did emc world was the first one we ever did with the Cuban and right after that we did SI p sapphire and then vmworld was always interesting to contrast you know the sort of infrastructure shows the sapphire and we saw the transformation of SI p pretty substantially particularly after the sybase acquisition so you had you know serious management as top management thrust toward mobile and then you also the acquisition of sybase gave you some of the management technology the security and and maybe not the virtualization piece but you really began to change the discourse and you and the customers bought into it so that was I felt a catalyst this there's an outside observer is that true and then what's the catalyst here was it cleaning up sort of what I used to call the misfit toys creating the pivotal piece and getting more focused bringing in the new leader what is that that catalyst you know I think force I was very blessed to see a transformation of saap from systems of record to systems of engagement I was very involved as you know in the analytics to the data and the mobile business much of that catalyst is still valid systems of record the systems our engagement so a lot of what's happening the end user computing area is those systems of engagement that continues that's abroad but then as I looked at the IT trends or the Big Data of mobile of social of cloud there's at least three or four of those now that we have an opportunity to play here in a big way yes there was an opportunity to redefine things with almost a clean slate in many areas and a fantastic team both patent and joe tucci were involved in recruiting me here have a grand vision and a great vision of where this is going they're fantastic executives and then the rest of the executive team from called to jonathan to everybody else here world-class people that i felt i could just culturally fit in very well with and in this area you know as you know business users stuff and end-user computing has been my passion me so it's a very natural area for me too hopefully extend what I've done in the last 15 20 years into something like their help to melt this company and then from a revenue perspective if we can double the revenue this company with hopefully a good par they're coming from and use your computer this will continue to be a very very hopefully well market capitalized company and also you mentioned SI p about you know the cloud they've had some cloud issues we've seen some ships and some some things they ever the mobile they were kicking butt on we saw that right away and you're in that but I looking at your view on the competition because Damon are talking yesterday are the first day about Ballmer's resignation and just did a reorg announcement goodly intelligent edge of the network so the conversation was disruptor or sustainer you know who are you right i mean vmware technology driven company is not sustaining anything still disrupting microsoft obviously kind of sustaining the status quo so so the question is who's your competitors is it a Microsoft is it someone else who's in your rear-view mirror and who's who you looking to laugh on the field I mean clearly if you look at each of our businesses there are different ones but in the core data center stuff traditionally computer in Microsoft but we are far and ahead a market share leader you know in that at least seventy percent plus so that's a very strong position there in the way the cloud is going it's open mark it's a complete open opportunity I think you heard from Pat Gelsinger a message where we're going to embrace an appropriate places OpenStack so you're going to see this not be a combative but a place where it's it's collaborative in some places in the end user computing area we are in some areas number two behind Citrix but I view it as a huge opportunity we're bigger them and as a brand as a company and my ambition here is to play to be number one and in the areas of mobile there is no clear leader it's very much an open area especially relates to mobile management of mobile security in the enterprise mobile and the good news i think in the end user computing especially as you think about the new aspects of mobile there is no one device operating system in the laptop world you guys both have max but windows is still about eighty ninety percent market share their in the device operating world of mobile it's a heterogenous world already from the get-go iOS Android Windows Mobile and that actually creates much more of an opportunity for a Switzerland type of player to be a leader in management security and virtualization so much of those dynamics you know I think requires to being innovative but my gentle attitude on competitors is you don't obsess about it clearly you have to UM ambition to be number one and competition keeps you honest but I'm much more focused not on who's in the rearview mirror competitors I describe some of them in that league but a lot of where we believe we should be going you were talking a little bit before I caught the Internet of Things at the industrial internet and Cisco calls the internet of everything i love the cube because we get to do all these great events we were at the GE industrial internet launch and and I know pivotal so they're a big partner in a part of that right so I wanted to scrape because get to talk to all the smartest people like you and extract their their knowledge so I want to understand the roadmap for the customer so you take down the enterprise with what used to be known as a VDI is it a parallel path to the Internet of Things or the industrial Internet talk about that look I think you know first off you've got to think about where the desktop is today and where the desktop is going because that's the primary aspect of where people have traditionally been using their computing time has been on the desk top 10 for 20 years ago you probably did all your email on a desktop area today a significant part of that is on smartphones okay as little as possible so the world of the time spent between a desktop and a mobile device is changing we've seen it especially since iOS came out now the fact of the matter is that computing inside machines is not not a new concept it's been there for a while but the ability to manage them secure them potentially virtualized on is something that's very nation and one way I believe there'll be an opportunity so my view is that whether it's the desktop whether it's a mobile whether it's a machine the technologies are going to have some common substrate a fabric that are going to be common to all of them but there's going to need to be some miniaturization you can't apply potentially the exact same software you have in the data center to a tiny thermostat and not the beauty of it is we've got smart engineers we have understand the miniaturization aware this technology needs to apply and we're going to play this out i think the machine a machine Internet of Things opportunities well ahead of us we're in the beginning of that but the good opportunity there is it's 50 billion plus things tens of billions of devices and so and so forth the other thing that I think is important is that there are other technologies i mentioned management security virtualization there are other technologies that I think they're also going to play social computing what is the appropriate place for how people are going to collaborate in processes I don't think that's been that it's well understood in the consumer world because you see the facebooks in the LinkedIn but there is some mirror of that in the enterprise which i think is wide open any machine learning big data those kinds of trends will drive a lot of how you're going to collaborate not just between man to man man dies yeah right otherwise the Steelers opportunity that's the automation piece that keeps on coming back as the automation I got to answer since you brought up the thermostat thing and you're kind of riffing on that you've a lot of experience and certainly SI p in the verticals it's interesting mobile has different verticals they know how you talk to financial services government is that a constraint or an opportunity I think it's a great opportunity I think that any company that grows horizontal which is what we've done you know we're fight i'm in three the most baffling stat when Pat and Joe talked to me was that VMware's 500,000 customers that's huge but most of that growth has happened horizontally there's been no gradually an industry verticals ation one of the things we did very well at SAAP was industry verticals there's now SI p is a 40 year old company you'd expect that what we're going to start doing and end-user computing is starting to vertical eyes some of our aspects of how we sell for example in VDI we're finding a number of healthcare places where they want to equip physicians and clinicians with either laptops or devices now where you can get get to their clinical records medical records on a device that's completely locked down and virtualized so that you don't have to worry about that device or that laptop getting locks that's a real real opportunity for virtualization in healthcare the same and government we're seeing the same in many of the very very sophisticated branch and local type of remote you know office type of settings so increasingly we think both the desktop and mobile they're going to be vertical use cases and we'll start building out technology and both solutioning of them that allow them over I want your app sunk in the industry and I think some of them that are very relevant our health care banking federal and then you know several the other sectors where there's lots of employees very distributed and sense and also ones where you've got to ensure that the data doesn't leave their device laptop or mobile Sanjay ponen here inside the cube now with VMware GM at the end user computing group thanks for coming inside the cube I'll give you the final words I want to ask you I'll see your senior executive great leadership move for VMware you can come in with your running shoes on there's no no real delay there so I'm expecting to see some great stuff from you but what's your objective you're gonna get ingratiating from the new culture which is not going to be hard for you again left turn vs right turn your understand tech what's your going to be here your personal objectives over the next couple months as you get in and start to you know put together the plan I mean obviously metrics or clean the objects are clear SDDC hybrid cloud and use a computing Europe and fear piece what are you going to roll out and I think you all as you know in any software company your assets of your people so my first focus is to really understand the fabric of our team of people it's a it's a smaller team than s API to worry about 65,000 people here it's 15,000 but in my own team getting to understand how we can continue to retain and grow great talent we have a fantastic team not just if we remember also in my immediate team and we're going to continue to grow that team and in that I think you'll find great innovation secondly we're going to define goals that are revenue and market share related that a both short-term and long-term to be number one than the undisputed number one in every aspect of our market in some of our markets there are existing competitors being other ones we're completely creating new markets and third we're going to go and make customers enormously successful I think when you make customers successful with great innovation and great people you have a fantastic business right and I could envision you know over a multi-year period imagine that VMware's twice the size that we are today five billion dollar company if a significant part of that could come from end-user computing that's going to be a phantom great you know morale-boosting and better shut the streets down here in San Francisco like to do with oracle openworld right down 23,000 people estimated here everybody else is going right up straight up so vmworld you can a vision that fifty fifty billion dollar Tim you know 39 million billion market cap I mean you could I could see that within i double the revenue you guys do the estimators but double right along with it and then you gotta focus make we talked we talked to pat you got to figure out that your camp and then it yeah we can double the revenue triple mark it was all good problems and now we're dreaming a little bit but I think you guys ringing the future before you create an aftermarket most inspirational thing we could do is help our employees and our customers be in that future and that's what I'm excited to do sanjay pune we're here at vm will be document it's our fourth straight vmworld will be continuing document we're here in the cube thank you for coming on your check athlete looking forward to seeing you with your running shoes on and using computers needs a big lift they have the right guy for a job be right back with the cube with our next guest our friends at Andreessen Horowitz and a hot start up in the space in virtualization I'll be right back after this short break

(upbeat music) >> Hey welcome back to VMWorld 2013. This is theCUBE, flagship program. We go out to the events to extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm joined with David Vilante, my co-host from Wikibon.org and we're kicking off today with an awesome interview. CEO of VMWare, Pat Gelsinger, CUBE Alumni. Been on the theCUBE with Dave and I multiple times. So many times. You are in like the leaderboards. So in terms of overall guest frequency, you've been up there, but also you're also the top dog at VMWare and great to see you again. How are you feeling? >> Thank you, thank you. Good morning, guys. >> Pleasure. >> Good to see you. >> So what's new? I mean obviously you're running the show here. You're running around. Last night you were at the NetApp event. You ran through CIO, R&D. You got to go out and touch all the bases out here. >> Yeah, yeah. >> What does that look like? What have you done and obviously, you did, the key note was awesome. What else is going on? >> You know, everything, you know, VMWorld is just, it's just overwhelming, right? I mean 23,000 people almost. I mean you know the amount of activities around that and it really has become the infrastructure event for the industry and you know, if you're anything related to infrastructure, right, what's going on, right in the enterprise side of IT, you got to be here, right? And there's parties everywhere. Every vendor has their events. Every you know, different particular technology area, a bunch of the things that we're doing, and of course to me, it's just delightful that I can go touch as many people and you know, they get excited to see the CEO. I have no idea why, but hey I get to show up. It's good. >> You've been in the industry for a long time. Obviously you've seen all the movies before and we've talked about the seas of change in the EMC world when you were there, but we had two guests on yesterday that were notable. Steve Herrod who's now a venture capitalist at Generalcatalyst and Jerry Chen who's a VC at Graylock, and we have a 10-year run here at VMWare which is esteemed by convention, but the first five years were a lot different than the last five years, and certainly, the last year you were at the helm. So what's changed in the past 24 months? A lot of stuff has certainly evolved, right? So the Nicira acquisition certainly changed up, changed everything, right? You saw software-defined data center now come into focus this year, but really, just about less than 24 months, a massive kind of change. What, how do you view all that? How do you talk to your employees and the customers about that change? >> Well you know, as we think about the software-defined data center vision, right, it is a broad comprehensive powerful vision for rearchitecting how the data center is operated, how customers take advantage of it. You know and the results and the agility and efficiency that comes from that. And obviously the Nicira acquisition is sort of the shot heard 'round the world as the really, "Okay, these guys are really serious "about making that happen." And it changes every aspect of the data center in that regard. You know and this year's VMWorld is really, I'll say, putting the beef on the bones, right? We talked about the vision, we talked about each of the four legs of it: compute, networking, storage and management of automation. So this year it's really putting the beef on the bones and the NSX announcement, putting substance behind it. The vSAN announcement, putting substance behind it. The continuing progress of management and automation. And I think everything that we've seen here in the customer conversations, the ecosystem of partner conversations are SDDC is real. Now get started. >> Can you, I think you've had some fundamental assumptions in that scenario, particularly around x86 in the service business. Essentially if I understand it, you've said that x86 will dominate that space. You're expecting status quo in the sense that it will continue to go in the cadence of you know, cores and Moore's Law curve even though we know that's changing. But that essentially will stay as is and it's the other parts, the networking and the storage piece that you're really, where you define conventions. Is that right? >> Yeah certainly we expect a continuing momentum by the x86 by Intel in that space, but as you go think about software-defined everything in the data center really is taking the power of that same core engine and applying it to these other areas because when we say software-defined networking, right, you need a very high packet flow capability and that's running a software on x86. We need to talk about data services running in software, right? You need high performance. It's snapshots, file systems, etc. running on software, no longer bound to you know physical array. So it really is taking that same power, that same formula right, and applying it to the rest of the elements of the data center and yeah, we're betting big right, that that engine will continue and that we'll be successful in being able to deliver that value in this software layer running on that core powerful Silicon engine. >> So Pat, so obviously when you came on board, the first thing you did was say, "Hey, the pricing. "I want to change some things." Hyper-Visor's always been kind of this debate. Everyone always debates about what to do with Hyper-Visor. But still, virtualization's still the enabling technology so you know, you kind of had this point where the ball's moving down the field and all of a sudden, in 2012, it changed significantly, and that was a lot in part with your vision with infrastructure. As infrastructure gets commoditized, what is going to change in the IT infrastructure and for service providers, and the value chains that's going to be disrupted? Obviously economics are changing. What specifically is virtualization going to do next with software defined that's going to be enabling that technology? >> Yeah, you know and I, you know, we're not out to commoditize. We're out to enable innovation. We're out to enable agility, right, and then the course of that, it changes what you expect and what the underlying hardware does. But you know, it's enabling that ecosystem of innovation is what we're about and customers to get value from that and as you go look at these new areas, "Hey, you know, we're changing how you do networking." Right, all of a sudden, we're going to create a virtual network overlay that has all of these services associated with it that are proficient just like VMs in seconds. We're creating a new layer of how storage is going to be enabled. You know, this policy-driven capability. Taking those capabilities that before were tightly bound to hardware, delivering it through the software layer, enabling this new magnificent level of automation and yesterday's demo with Carl. I mean Carl does a great CTO impersonation, doesn't he? And he's getting some celebrity action. He's like, "I got the bottle." >> Oh yeah. >> Steve Herrod gave him a thumbs up too. >> Yes, yeah Steve gave him a good job. But you know, so all of those pieces coming together, right, is you know, really, and you know, just the customer and the ecosystem response here at the show has been, "Oh, you know, right, "SDDC, it's not some crazy thing out there in the future. "This is something I can start realizing value for now." >> Well it's coming into focus. It's not 100% clear for a lot of the customers because they're still getting into the cloud and the hybrid cloud, I call it the halfway house to kind of a fully evolved IT environment, but you know. How do you define? >> No it is the endgame. Hyper cloud is not a halfway house. What are you talking about? What are you talking about? >> To to full all-utility computing. That is ultimately what we're saying. >> Halfway house? >> I don't mean it that way. (group laughs) >> Help me. >> Okay next question. >> (chuckles) When you're in a hole, stop digging, buddy. >> So how do you define the total adjusted mark at 50 billion that Carl talked about? >> Yeah you know, as we looked at that, we said across the three things, right that we said, software-defined data center, 28 billion dollars; hyper cloud, 14 billion; eight billion for the end-user computing; that's just 50 billion opportunity. But even there, I think that dramatically understates the market opportunity. IT overall is $1.7 trillion, right? The communications, the services, outsourcing, etc. And actually the piece that we're talking about is really the underpinnings for a much larger set of impact in the part of what applications are going to be developed, how services are delivered, how consumers and businesses are able to take advantage of IT. So yes, that's the $50 billion. We'll give you the math, we'll show you all the details of Gartner's and IDC's to support it. But to us, the vision and the impact that we're out for is far more dramatic than that would even imply. >> Well that's good news because we said to Carl, "It's good that your market cap is bigger than--" (Pat laughs) >> Oh yeah your TAM is bigger than your market cap. Well okay now we-- >> Yeah, that's nice, yeah. Yeah, we're out to fix the market cap. >> Yeah he said, "Now we got to get the 50 billion. So I'm glad to hear there's upside to the TAM. But I wanted to ask you about the ecosystem conversation. When you talk about getting things like you know, software defined network and software defined source, what's the discourse like in ecosystem? For guys like, let's take the storage side. EMC, NetApp last night, they say, "Hey you know, software defined storage. "We really like that, but we want to be in that business." so what, talk about that discussion. >> Yeah, clearly every piece of software defined, whether it's software defined storage, software defined data services, software defined security services or networking, every piece of that has ecosystem implications along the way. But if you go talk to a NetApp or a EMC, they'd say, "You're an appliance vendor." And they would quickly respond and say, "No, our value's in software, "and we happen to deliver it as an appliance." And we'd say, "Great, let's start delivering "the software value as a software appliance "through virtualization and through the software delivery "mechanisms that we're talking about for this new platform." Now each one of them has to adjust their product strategies, their, you know, business strategies to enable those software components, right, independent of their hardware elements for full execution and embodiment into the software-defined data center feature. But for the most part, every one of them is saying, "Yes, now how do we figure out how to get there, "and how do we decompose our value, embody it it in new ways "and how can we enable that in "this new software-defined data center vision?" >> And they've always done that with software companies. I mean certainly Microsoft and Oracle have always grabbed a piece of the storage stack and put it into their own, but it's been very narrow, within their own spaces, and of course, VMWare is running any application anywhere. So it's more of a general purpose platform. >> Absolutely. >> Is it a tricker fit for the ecosystem to figure out where that white space is? >> Absolutely. Every one of them has to figure out their strategy. If you're F5, you know, I was with John McAdam this morning. "Okay, how do I take my value?" And you would very quickly say, "Hey, our value's in software. "We deliver it as mostly as appliances, "but how do we shift, you know, your checkpoint?" Okay, you know, they're already, right, you know, our largest software value or Riverbed, you know, the various software vendors and security as well. Each one of them are having to rethink their strategies and the context of software define. Our customers are saying, "Wow, this is powerful. "The agility and the benefits that I get from it, "they're driving them to go there." >> So what's the key to giving them confidence? Is it transparency? You're sharing roadmaps during integration? >> Yes, yes, yes. >> Anything else? Am I missing anything there? >> You know, also how we work with them and go to market as well. You know, they're expecting from us that, okay, "you know, if this is one of our accounts, "come in and work with us on those accounts as well." So we do have to be transparent. We have to the APIs and enable them to do integration. We have to work with them in terms of enabling their innovation and the context of this platform that we're building. But as we work along the way, we're getting good responses to that. >> Pat, how do you look at the application market? Now with end-user computing, you guys are picking that up. You got Sanjay Poonen coming in and obviously mobile and cloud, we talked about this before on theCUBE, but core IT has always been enabling kind of the infrastructure and then you get what you get from what you have in IT. Now the shift is, application is coming from outside IT. Business units and outside from partners, whether they're resellers. How do you view that tsunami of apps coming in that need infrastructure on demand or horizontally scalable at will? >> Yeah so first point is, yes, right, we do see that, you know, as infrastructure becomes more agile and more self provisioned, right, more aligned to the requirements of applications, we do see that it becomes a tsunami of new applications. We're also working very hard to enable IT to be the friend of the line of business. No longer seen as a barrier, but really seen as a friend, partner enabler of what they're trying to do because many of the, you know, line of businesses have been finding way. You know, how do I get around the slow-moving IT? Well we want to make IT fast-moving and enabling to meet their security, governance, SLA requirements while they're also enabling these powerful new applications to emerge and that to us is what infrastructure is all about for the future is enabling, you know, businesses to move at the speed of business and not have infrastructure being a limiter and as we're doing things, you know, like the big data announcements that we did, enabling infrastructure that's more agility, you see us do more things in the AppDev area over time, and enabling the management tools to integrate more effectively to those environments. Self-service portals that are enabling that and obviously with guys like Sanjay in our mobile initiative, yeah that's a big step up. Don't you like Sanjay? He's a great addition to the team. >> Yeah Sanjay's awesome. He's been great and he has done a lot on the mobile side. Obviously that is something that the end users want. >> That's an interesting way that I put him into that business group first. (group chuckles) >> Well on the Flash side, so under the hood, right? So we look under the hood. You got big data on the dashboard. Everyone's driving this car to the new future of IT. Under the hood, you got Flash. That's changing storage a bit and certainly reconfiguring what a DaaS is and NaaS and SaaS and obviously you talked about vSAN in your key note. What is happening, in your vision, with compute? I mean obviously as you have more and more apps hitting IT, coming in outside core IT but having to be managed by core IT, does that change the computing paradigm? Does it make it more distributed, more software? I mean how do you look at that 'cause that's changing the configuration of say the compute architecture. >> Sure and I mean a couple of things, if you think about the show here that we've done, two of them in particular in this space, one is vSAN, right? A vSAN is creating converged infrastructure that includes storage. Why do you do that? Well now you have storage, you know, apps are about data, right? Apps need data to operate on so now we've created an integrated storage tier that essentially presents an integrated application environment in converged infrastructure. That changes the game. We talked about the Hadoop extension. It changes how you think about these big data applications. Also the Cloud Foundry announcement. Right on/off premise of PaaS layer to uniquely enable applications and as they've done that on the PaaS layer, boy, you don't have to think about the infrastructure requirements to deploy that on or off premise or increasingly as I forecast for the future, hybrid applications, born in the hybrid, not born in the cloud, but born in the hybrid cloud applications that truly put the stuff that belongs on premise on premise, puts the stuff that belongs on the cloud in the cloud, right and enables them to fundamentally work together in a secure operational manner. >> So the apps are dictating through the infrastructure basically on demand resources, and essentially combine all that. >> Absolutely. Right. The infrastructure says, "Here's the services "that I have already, right, in catalogs "that you can immediately take advantage of, "and if this, you fit inside "of these catalogs, you're done." It's self-provisions from that point on and we've automated the operations and everything to go against that. >> So that concept of "born in the hybrid" is a good one. So obviously that's your sweet spot. You're going from a position. >> Yeah and this stupid halfway house hybrid comment. I mean I've never heard something so idiotic before. >> One person, yeah. (group chuckles) >> I don't know, it was probably an Andreessen comment or something, I don't know. (group chuckles) >> He's done good for himself, Marc Andreessen. >> Google and Amazon are obviously going to have a harder time with that, you know, born in the hybrid. What about Microsoft? They got a good shot at born in the hybrid, don't they? >> Yeah, you know and I think I've said the four companies that I think have a real shot to be you know, very large significant players for public cloud infrastructure services. You know, clearly Amazon, you know Google, they have a large, substantive very creative company. Yeah Microsoft, they have a large position. Azure, what they've done with Hyper-V and ourselves, and I think that those, you know the two that sort of have the natural assets to participate in the hybrid space are us and Microsoft at that level, and obviously you know we think we have lots of advantages versus Microsoft. We think we're miles ahead of them and SDDC, right, we think the seamlessness and the compatibility that we're building with one software stack, not two. It's not Azure and Hyper-V. It is SDDC in the cloud and on premise that that gives us significant advantages and then we're going to build these value rate of services on top of it, you know, as we announced with Desktop as a Service, Cloud Foundry as a Service, DR as a service. We're going to quickly build that stack of capabilities. That just gives substantial value to enterprise customers. >> So I got to ask you, talk about hybrid since you brought it up again. So software defined data center software. So what happens to the data center, the actual physical data center? You mentioned about the museum. I mean what is it going to look like? I mean right now there's still power and cooling. You're going to have utility competing with cloud resources on demand. People are still going to run data centers. >> You're talking about the facility? >> Yeah, the actual facility. I'm still going to have servers. This will be an on premise. Do you see that, how do you see that phasing out to hybrid? What does that look like physically for someone to manage? Just to get power, facility management, all that stuff. >> Yeah and in many ways, I think here, the you know, the cloud guys, Googles and Amazons and Yahoos and Facebooks have actually led the way in doing some pretty creative work. These things become you know, highly standardized, highly modularized, highly scalable, you know, very few number of admins per server ratio. As we go forward, these become very automated factories, right, of cloud execution. Some of those will be on premise. Some of those will be off premise. But for the most part, they'll look the same, right, in how they operate and our vision for software defined data center is that software layer is taking away the complexity, right, of what operates underneath it. You know, they'll be standardized, they'll be modularized. You plug in power, you plug in cooling, you plug in network, right, and these things will operate. >> Basically efficient down to the bone. >> Yeah. >> Fully operated software. >> Yeah and you know, people will decide what they put in their private cloud, you know, based on business requirements. SLAs, you know, privacy requirements, data governance requirements, right? I mean in Europe, got to be on premise in these locations and then they'll say, "Put stuff in the public cloud "that allows me to burst effectively. "Maybe a DR because I don't do that real well. Or these applications that belongs in the cloud, right because it's distributive in nature, but keep the data on premise. You know, and really treat it as a menu of options to optimize the business requirements between capex to opex, regulatory requirements, scale requirements, expertise, mission critical and all of those things then are delivered by a sustainable position. Not some stupid hybrid halfway house. A sustainable position that optimizes against the business requirements that they have. >> Let me take one of those points, SLA. Everybody likes to attack Amazon and its SLAs, but in many regards. >> Yeah, I'm glad I got your attention. >> Yeah, that's good, we're going to come back to that John. (group chuckles) >> In my head right now. >> I don't think we're done with that talk track. (laughs) So it's easy to attack Amazon and SLAs, but in essence, the SLA is, to the degree of risk that you're willing to take and put on paper at scale. So how transparent will you be with your SLAs with the hybrid cloud and you know, will they exceed what Amazon and Google have been willing and HP for that matter have been willing to promise at scale? >> Oh yeah, absolutely. I mean we're going to be transparent. The SLAs will have real teeth associated with them, you know, real business consequences for lack of execution against them. You know, they will be highly transparent. You know, we're going to have true, we're going to measure these things and you know, provide uptime commitments, etc. against them. That's what an enterprise service is expected, right? At the end of the day, that's what enterprises demand, right? When you pick up the phone and need support, you get it, right. And in our, the VMWare support is legendary. I'm just delighted by the support services that we offer and the customer response to those is, "Hey you fixed my problem even when "it wasn't your problem and make it work." And that's what enterprise customers want because that's what they have to turn around and commit back to their businesses against all of the other things as well. You know, regulatory requirements, audit requirements, all of those types of things. That's what being an enterprise provider is all about. >> John wants to get that. Talk about public cloud. (Pat laughs) >> I want to talk about OpenStack because you guys are big behind OpenStack. You talk about it as a market expansion. Internally what are some of the development conversations and sales conversations with customers around OpenStack instead of status, what's it doing, how you guys are looking at that and getting involved? >> Yeah, you know, we've clearly said you know, that you have to think about OpenStack in the proper way. OpenStack is a framework for building clouds, and you know, for people who are wanting to build their own cloud as opposed to get the free package cloud, right, you know, this is our strategy to enable those APIs, to give our components to those customers to help them go build it, right and those customers, largely are service providers, internet providers who have unique scale, integration and other requirements and we're finding that it's a good market expansion opportunity for us to put our components in those areas, contribute to the open source projects where we truly have IP and can differentiate for it like at the Hyper-Visor level, like at the right networking layer and it's actually going pretty well. You know, in our Q2 earnings call, you might recall, you know, I talked about that our business with the public OpenStack customers was growing faster than the rest of our business. That's pretty significant, right, to say, "Wow, if it's growing faster, "that says the strategy is working." Right, and we are seeing a good response there and clearly we want to communicate. We're going to continue that strategy going forward. >> And the installed base of virtualization is obviously impressive and the question I want to ask you is how do you see the evolution of the IT worker? I mean they have the old model, DBA, system admins, and then now you have data science on the big data side so with software defined data center, the virtualization team seems to be the center point for that. What roles do you see changing with hybrid cloud and software defined data center and user computing? >> Well I think sort of the theme of our conference is defy convention. Right and why do we do that? Because we really see that the, you know, the virtual admin and the virtual infrastructure that they have really become the center of IT. Now we need the competence of networking, the security guys, the database guys, but that now has to happen in the context, right, of a virtualized environment. DBA doesn't get to control his unique infrastructure. The Hadoop guy doesn't get his own unique infrastructure. They're all just workloads that run on this virtualized infrastructure that is increasingly adept and adaptable, right, to these different workload areas and that's what we see going forward as we reach into these new areas and the virtual admin, he has to go make best buddies with the networking guy and say, "Let me talk to you about virtual networking "and how we're going to cross between the virtual overlay "domain and the physical domain and how these things "are going to stitch together for making your job better "right, and delivering a better solution "for our line of business and for our customers." >> One thing you did to defy convention is get on stage with Marc Andreessen. So I want to talk about that a little bit. You guys had I would call it, you know, slight disagreements and, into the future. >> Just a little. >> But I thought you were kind to him. And he said, you know, "No startup that I work with "is going to buy any servers." And I thought you were going to add, no never mind. I won't even go there. (group laughs) I won't even go there, I want to be friends. No so talk about that a little bit, that discussion that you had. Your view of the world and Marc's. How do you respond to that statement? Do they grow up into VMWare customers? Is that the obvious answer? >> I mean I have a lot of regard. You know, Marc and I have known each other for probably close to two decades now and you know, we partnered and sparred together for a long time and he's a smart, successful guy and I appreciate his opinions. You know, but he takes a very narrow view, right, of a venture seed fund, right, who is optimizing cashflow, and why would they spend capital on cashflow when they can go get it as a service? That's exactly the right thing for a very early stage startup company to do in most cases, right? Marc driving his customers to do that makes a lot of sense, but at the end of the day, right, if you want to reach into enterprise customers, you got to deliver enterprise services, right? You got to be able to scale these things. You got to be cost-effective at these things and then all the other aspects of governance, SLAs, etc. that we already talked about. So in that view, I think Marc's view is very perspective. >> Also Zynga and those guys, when they grew up on Amazon, they went right to bare metals as soon as they started scale. >> They had to bring it back in right 'cause they needed the SLAs, they needed the cost structures. They wanted to have the controls of some of those applications. >> And rental is more expensive at the end of the day. >> There you go. Somebody's got to pay the margins, right, you know, on top of that, to the providers so you know, I appreciate the perspective, but to me it is very narrow and periconchal to that point of view and I think the industry is much broader and things like policy and regulation are going to take decades, right? Not years, you know, multiple decades for these things to change and roll out to enable us a mostly public cloud world ever, right, and that's why I say I think the hybrid is not a waystation, right? It is the right balance point that gives customers flexibility to meet their business demands across the range of things and Marc and I obviously, we're quite in disagreement over that particular point. >> And John once again, Nick Carr missed the mark. We made a lot of money. >> I think Marc Andreessen wants to put a lot of money into that book. Everyone could be the next Facebook where you you know, you build your own and I think that's not a reality in enterprise. They kind of want to be like Facebook-like applications, but I wanted to ask you about automation. So we talked to a lot of customers here in theCUBE and we all asked them a question. Automation orchestration's at the top of the stack. They all want it, but they all say they have different processes and you really can't have a general purpose software approach. So Dave and I were commenting last night when we got back after the NetApp event was you know, you and Paul Murray were talking in 2010 around this hardened top when you introduced that stack and with infrastructure as a service, is there a hardened top where functionality is more important than which hardware you buy so you can enable some of those service catalogs, some of those agility features in automation because every customer will have a different process to be automated. >> Yeah. >> And how do you do that without human intervention? So where is that hardened top now? I mean is it platform as a service or is it still at the infrastructure as a service model? >> Yeah, I think clearly the line between infrastructure as a service and platform as a service will blur, right, and you know, it's not really clear where you can quite draw that line. Also as we make infrastructure more application aware, right, and have more application development services associated with it, that line will blur even more. So I think it's going to be hard to call, you know, "Here's that simple line associated with it." We'd also argue that in this world that customers, they have heterogeneous tools that they need to work with. Some will have bought in a big way into some of the legacy tools and as much as we're going to try help them move past some of those brittle environments, well that takes a long time as well. I'd also say that you know, it's the age of APIS, not UIs, and for us it's very much to expose our value through programmatic interfaces so customers truly can have the flexibility to integrate those and give them more choice even as we're trying to build a more deeply integrated and automated stack that meets a general set of needs for customers. >> So that begs the question, at the top of the stack where end user computing's going to sit and you're going to advance that piece, what's, what's the to do item for you? What needs to happen there? Is it, on a scale of one to 10, 10 being fully baked out, where is it, what are the white spaces that need to be tweaked either by partners or by VMWare? >> Yeah and I think we're pretty quickly finishing the stack with regard to the traditional PC environments and I think the amount of work to do for the mobile environment is still quite enormous as we go forward and in that, you know, we're excited about Horizon getting some good uptake, a number of partner announcements this week, but there's a lot to be done in that space because people want to be able to secure apps, provision apps, deprovision apps, have secure work spaces, social experiences, a rich range of integrations to the authentication devices associated with it to be able to have applications that are developed in that environment that access this hybrid infrastructure effectively over time, be able to self-compose those applications, put them into enterprise, right, stores and operations, be able to access this big data infrastructure. There's a whole lot of work to be done in that space and I think that'll keep us busy for quite a number of years. >> This is great. We're here with Pat Gelsinger inside theCUBE. We could keep rolling until we get to the hook, but a couple more final questions is the analogy of cloud has always been like the grid, electricity. You kind of hinted to this earlier. I mean is that a fair comparison? The electricity's kind of clean and stable. We have an actual national grid. It doesn't have bad data and hackers coming through it so is that a fair view of cloud to kind of look, talk about plugging electricity in the wall for IT. >> I think that is so trite, right? It came up in the panel we had with Andreessen, Bechtolsheim, Graeme, and myself because you know, it's so standardized. 120 volts AC right and hey you know, maybe it gets distributed as four, 440, three phase, but you know, it is so standardized. It hasn't moved. Sockets standards, right, you're done. Think how fast this cloud world is evolving. Right the line between IA as in PaaS as we just touched upon, the services that are being offered on top of it. >> Security, security. >> Yeah, yeah, all these different things. To me, it is such a trite, simple analogy that has become so used and abused in the process that I think it leads people to such wrong conclusions right, about what we're doing and the innovation that's going on here and the potential that we're going to offer. So I hope that every one of our competitors takes that and says, "That's the right model." Because I think it leads them to exactly the wrong conclusion. >> I couldn't agree more. The big switch is a big myth. I wanted to get tactical for a minute. I listened to your conference calls. I can't wait to read the transcript. I just go, I got to listen to the calls, but just observing those and the conversations around here, I just wanted to ask you. I always ask CEOs, "What keeps you up at night?" They always say execution so let's focus on execution in the next 12 to 18 months. I came up with the following. "To maintain dominance in vSphere, "get revenue beyond vSphere, "broaden end user license agreements, "increase end user computing adoption "and proof points around hybrid cloud." Are those the big ones? Did I miss anything? >> That's a good list. >> Yeah? >> That's a good list. >> So those are the things an observer should watch in let's say 12 to 18 months of indicators of success and of what you're doing and what you're driving. >> Yeah and you know, clearly inside of that, with SDDC, obviously we think this environment for networking, right, and what we've really, I'll say delivered that. That would be one in particular inside of that category that we would call out you know, with regard to our hybrid cloud strategy. It's clearly globalizing that platform. Right, we announced Savvis here, but we need to make this available on a global basis. You go to an enterprise customer and they're going to say, "I need services in Japan, I need services in Singapore. "I need to be able to operate in a global basis." So clearly having a platform, building out the services on top of it is another key aspect of building those hybrid user cases and more of the value on top of it and then in the EUC space, we touched a bit on the mobile thing already. >> So we'll have Martin on later, but his PowerPoint demonstration. >> What a rockstar, what a rockstar. >> He is a rockstar and we've had him on before. He's fantastic, but his PowerPoint demonstration is very simple, made it seem so simple. It's not going to be that easy to virtualize the network. Can you talk about the headwinds there and the challenges that you have and the things that you have to do to actually make progress there and really move the needle? >> Yeah it really sort of boils down in two aspects. One is we are suggesting that there will be a software layer for networking that is far more scalable, agile and robust than you can do in a physical networking layer. That's a pretty tall order, right? I need to be able to scale to tens, hundreds, millions of VMs, right? I need to be able to scale to terabytes of cross-sectional packet flow through this. I need to be able to deliver services on top of this, right, that truly allow firewalls, load balancers, right, IDSes, all of those things to be agile, scale. Yeah, it is ambitious. >> Ambitious. >> This is, right, the most radical, architectural statements in networking in the last 20 or 30 years and that's what gets Martin passionate. So there's a lot of technical scale and we really feel good about what we've done, right, but being able to prove that with robust scalability, right, for which like the Hyper-Visor, it is more reliable than hardware today, in being able to make that same statement about NSX that just like ESX, it is better than hardware, right, in terms of its reliability, its resilience. That's an important thing for us to accomplish technically in that space, but then the other pieces, showing customer value, right? Getting those early customers and what a powerful picture. GE, Citigroup and eBay, right? It's like wow, right? These are massive customers, right, and being able to prove the value and the use cases in the customer settings, right, and if we do those two things, you know, we think that truly we all have accomplished something very very special in the networking domain. >> Pat, talk about the innovation strategy. You've been now a year under your belt at VMWare and you were obviously with EMC and Intel and we mentioned on theCUBE many times, cadence of Moore's Law was kind of the culture of Intel. Why don't you tell us about the innovation strategy of VMWare going forward, your vision, but also talk about the culture and talk about the one thing that VMWare has from a culture that makes it unique and what is that unique feature of the VMWare culture? >> We spent time as a team talking about what is it that drives our innovation, that drives our passion, and clearly as we've talked about our values as a team, it is very much about this passion for technology and passion for customers and how those two coming together, right, with fundamental disruptive "wow" kind of technologies where people just say, like they did when they first used ESX and they say, "Wow, I just didn't ever envision "that you could possibly do that." And that's the experience that we want to deliver over and over again, right, so you know, hugely disruptive powerful software driven virtualization technologies for these domains, but doing it in a way that customers just fall in love with our technologies and you know as, I got a note from Sanjay and I just asked him, "You know, what do you think of VMWorld?" And he said, right, "It is like a cult geek fest." Right, because there's just this deep passion around what people do with our technology, right, and they're not even at that point, they're not customers, they're not partners. They are deeply aligned passionate zealots around what we are doing to make their lives so much more powerful, so much more enabled, right, and ultimately, a lot more fun. >> People say it's like being a car buff. You know, you got to know the engine, you want to know the speeds and feeds. It is a tech culture. >> Yeah, it is absolutely great. >> Pat, thanks for coming on theCUBE. We scan spend a lot of time with you. I know we went a little over. I appreciate your time. Always great to see you. >> Great to see you too. >> Looking good. >> Thank you for that. >> Tech Athlete Pat Gelsinger touching all the bases here. We saw him last night at AT&T Park. Great event here, VMWare World 2013. This is theCUBE. We'll be right back with our next guest after this short break. Pat Gelsinger, CEO on theCUBE.

Carl Eschenbach - VMworld 2013 - theCUBE - #VMworld

hey welcome back to VMworld 2013 this is the cube live in San Francisco California Moscone Center south lobby this is a cube our flagship program we go out the events expect to see the flu noise I'm John Frieda founder of silicon I'm joy of my coasts day Volante boogie bun or hi everybody wanna talk flash with Ken Grohe he's here from Viren and he's a worldwide vice president of customer ops Ken welcome to the cube thank you for a long time watcher of item appreciate that yeah so you're enough obviously smoking hot space we've been talking about in a flash all week you saw the announcements of you know V sand from from VMware that's you know great news for you guys and just you know give us the update on on Viren and you guys have you know really you know we know Mike so I'm Mike come on all of a sudden things started happening and did the deal with Seagate so what's what's the latest well the crux is numbers numbers speak more than anything so I'm pleased to see that our company's growing 300 this year which is a huge change and I realized flashes everything if you walk the floor right now and a lot of vibe I think about 23,000 people across the show I think most almost 80% exhibitors are all around flash so the good news about buried in though is we're really beginning to invest we started generally availability of our flash max connect software as of April so there's a lot of talk about creating a flash platform but really we're really walking the walk now by having the practive ailable having our high availability software available having our shareability software so it's not just selling flash for the performance aspects Dave it's really building and creating and leading a flash platform transformation and that's where we're gonna get through I think you've talked about prior questions about how do we get it to the enterprise space so the web scale I think we all know is all PCI flash based but how do we get to the brick-and-mortar enterprise space and I think the familiarity of getting to a platform that looks like a sand it feels like a sand and as the data services of a sand will albeit with the respect of the performance at microseconds that flash and only PCI Flash can provide from Vera Dhin I think that's how you get to enterprise accounts that everyone's like to see yeah I mean when you talk to people in the labs they they tout your product as you know one of the best if not the best out there but so that that flash transformation that's largely software lead absolutely so talk about that a little bit well it has to be software led because at some point you basically if you one of the troubles we have going through is do you want to buy a flash array and some of the in users might say where's PCI flash makes more sense where it does make more sense is your heritage behind it if you want to get close to the apt and you want to be closer to the actual performance behind it you want to get that performance but you also want the familiarity so you can go back to the IT director of the santa administrator and have the same type of data services or high availability that you might be accustomed to so that kind of bridges the gap between the person who's representing or maybe being the database administrator or maybe the application owner or actually the people they're administrating thus and so i mentioned the word transformation because i just didn't talk about how we're transforming the data center with flash and getting a greener i talked about how the people who manage the storage how they need to be professionally transformed I liken it to of we were in the business for a while I liken it to back when the first sands were sold people were putting raid storage out there but it wasn't until the transformation happened to sand and that IT professionals actually had to decide how you can have networking and actually have that build to everybody that transformation is happening today but would flash the building blocks PCI flash our company is uniquely equipped to actually bring out for lack of a better word of Veritas like what they do on the sand basis but actually have the high ability software the share building software actually in place so people can have a comfort and familiarity with the actual San in place ever have the speed as far as PCI flash can talk about the dynamic in the marketplace I'll see variants Lisa I always thought telling entrepreneurs this you get in the market is you're an entrepreneur you build a company you got to get on the field you can't score a touchdown or hit a homerun if you're not swinging at the plate or being on the field you can't really do anything from the stance you guys hit the flash thermal growth like all of a sudden the market was just realized spun in your direction your technology right there you're right with a puck came to you as they say in Wayne Gretzky analogy you guys were where the puffy you skated to where the puck was coming what is it about Bearden that makes it today really hot and you guys are growing get good growth sure 3% growth what's that 300% growth reason why the customers are buying tell share it the audience up there what three reitman what it is thanks for the questions I appreciate and thanks for acknowledging our growth and I shout out to our founders Kumar and Vijay who started this company seven years ago and then basically moved and worked it from nor flash and the appliance over to PCI flash two years ago but the reason for the growth is really threefold first off if you're an only M you really resonate with the fact that you've got unconditional performance at the higher you beat up this card the more there is an OEM would actually perform better for their applications and that that's why we're becoming a choice given the flash marketplace it's out there so performance number one o on condition performance if you go to our website that's our tag line I'm provision performance however you mentioned bring Wayne Gretzky on where the puck is going to where the pucks going to and I think you will you'll see our tagline kind of move towards is more of a leading the flash platform transformation so I mean by that it's it's the integrations Dave you mentioned before with high availability with shareability with caching software at the kernel level actually after the actual design for flash having them available so you actually can make that transition so no longer you clinging on to the stand tree you move into the performance of actual flash so that helps in the end user and what I've kind of done since I moved over in May is build what I think is a pretty good than using Salesforce and September 10th we'll talk about a partner kitty will be building as well but if you get the end user that creates the demand we're bringing on more more OMS I mention this card before you got om om and use direct sales in direct indirect indirect will be announced a separate tenth we are doing okay there are some of you big customers that's a big oh yes so if you don't extreme super flash that's a goob EMC is doing it yeah so and then um seagate of course x8 their product were very happy to be one of the providers of them as an OEM but over 50% of our sales to date have been to the direct end users that's where a big part of a business and that's that's where it really resonates people if you look I think Pat's first slide was he talked about how the applications going from first to second to third it's all consumer based it's all I carry an iPhone 5 F where I go when I I try to work at that type of real time speed with that type of transition to consumer eyes type applications you need a third generation type you know building blocks and that would be PCI flash my garden so I wonder if we could unpack a little bit more how you guys differentiate John I've been talking all week you know just that Jerry on from Kray lock just talking about the nightmare he really thought I and yeah but of course the other flipside of that is people saying it she's like the Winchester just drives to the 1980s you had 80 companies and and you know can the market sustain them also so how do you guys differentiate from all the here we always say extract the signal from the noise how do you differentiate from the other players out there well first off for the people who know the business the people that buy in by the pallet fall let's call it the scale that accounts the people they're leading us their new you've probably name the names before those customers the flash innovators they're buying pervasive flash they're the people who enjoy using the customer using actual product itself because it's got the highest high-end performance so unconditional performance you don't have the outliers the more you hit it with a high thread rights the high red thread reads that's where we really shine so thanks for noticing that as far as the customer base I mean the ability to have a vkn product with a right back no one else had well one of two players that have that as far as the VHA software its uniquely positioned so you have the same familiar out there and then every time they give an end-user presentation for my Salesforce when you see the V sharing capability as far as software that's truly unique Dave in the market talk about that V cashing with the right back I think you said that's unique so describe what that is and what makes it so hard well the reason why it's hard is you've got to have it so it conforms the existing systems you have to have in place so that the actual methodology in place as far as the applications and the accounts are you used to having different situations where you have the the same familiarity the same data services you have in place with right back you have different choices you have right through you have right around a write back cache and the fact that we've been in the flashing business you mentioned it acknowledged the newer appliance with our founders that you know this is this is knowing our first first attempt in the flash marketplace we've been in the biz five years before we went to PCI flash we can do the hard business that we can do the different choices for customers whether it be right back right through a right around and supposed to be caching but the truth is when we go in and user sales calls they always resonate around shareability they like the fact that you can put this as a 2.2 terabyte card they like they can share some of the namespaces and we convey shares across the different so you actually have a shared pool of these spaces around the different pool of flash I think earlier today I know Carl mentioned it I know Pat mentioned yesterday that's truly unique for us the ability to share and access has cross more users but you had mentioned I think when the raid vendors were out there there was like 20-something raid vendors but then after the change to the San marketplace to get down to two or three I think you didn't see that type of change around flash as well there are five or six flash PCI Flash vendors I think we're gonna be one of the three or four that people built bet their business on because we have a familiarity of having that software and that's where our investments are Ken talk about something that's I'm always gonna stickler on like buzz words but and but it did some of these things matter high availability Madison unquestioned is a word that's like a punchline it's like cost of ownership it does it's relevant but I want to actually specifically what is change in the current marketplace around high availability high availability is a table stakes kind of deal for a lot of the infrastructure side I mean that's a goal where everyone wants high availability like freedom right so so but what is about high availability today well it's different than was a couple years I'll give a tangible example one of our best use cases with the VHA software that you just mentioned as well as Oracle RAC some of our customers want the demands of Oracle RAC and the bridges the way that that can seamlessly work in their environment and to be blunt with you you get the speed of PCI flash but the affordability of putting you know a few cards in your environment and have that be able to do it but you have the blessing and the endorsement of actually having a rack environment have it out there so that's the way I view high availability at the highest levels five nine step availability where the customers could depend upon it and that's something you got to pitch a lot with your clients all day that's that's probably a second most proficient servers and my availability kind of go hand in hand I mean well sometimes they don't I mean people don't have availably they don't go down they're not performing so it's kind of like a implied benefit yeah John it's its database it's we're doing great in the e-tailing marketplace so I think the bricks and mortar type companies that are putting a front end that looks amazing like Google or amazing like Amazon amazing like Facebook but there's still the large retailers you might go shop on a weekend with so some the people at the show are talking about two major themes we're hearing follow the applications have a patient-centric infrastructure and enabling infrastructure that's going to be available to enable the apps to basically run DevOps and or create infrastructure so so what are you guys doing let's talk what's the innovation strategy around the around the enable in the middle of the stack because VMworld VMware can't get to the top of the stack and innovate until they fix the middle of the stack which is performance availability but enabling apps flash seems to really sit beautifully for the apps it's like a memory tier it's not also you can put if a disk so what are you guys doing in that area what can you talk about photos whatever we can do to make it seamless so people enjoy using the emotion what we can do to enjoy so that seamless for B motion I mentioned Oracle RAC before one thing I'd like to do is in my in my past we enjoyed seeing VM win I think Pat went through the slides before where VMware has get to a point there's more virtual servers in place than physical servers I think what three four years ago it went about 50 percent Moritz Zion okay thank you so what we need to do in the value we provide to our OEM partners and our end users that last twenty five percent so even the most proficient virtualized customer out there they need that lasting hooda to get their Tier one critical applications fully virtualized and it gets one of the mantas that know Carlos talk with us pat was talking about this flash technology is gets the mission-critical applications so they can be virtualized as well because I think this whole robust environment here twenty two thousand people would benefit if it was a hundred percent versus a final question for you we were up on time here can did you guys I've got great growth what's next what's around the corner can you just give us a peek around the corner for you guys you mentioned messaging some some new messaging that might be come around but what else is what's gonna be new for you guys well thank you for acknowledging so it's leading the flash platform transformation September 10th to see a big announcement of our channel ecosystem I appreciate that you will see denser cards but more importantly we're investing all we can in our saw where we want to lead that flash platformer transformation you will see future releases about different availability as far as card management and other sophisticated ways so we can make it seamless as you're used to running your Sam but for a flash network flash network so having that fabric in place and again work its addicting work in microseconds the fact that the product in bring in 50 microseconds versus a familiarity we used to have around four to ten milliseconds people gonna like me post into the applications consumer side and it's exciting time for us for the growth potential new customers that might not know Veera didn't explain to them real quick we'll give you the final word of the segment why you've helped other customers that might be like them and what should they know about Bearden we'll wrap it up okay great on your third generation applications you might out there a sequel a new database that might be in place there it is exactly your choice to put out there it will give the speed you need that's out there in the familiarity of actually having the data services around our software flash math connect if you have an existing second-generation application that you'd like to get end-of-life or a little more kick out of it on a midlife kicker whether it be Oracle s ap we even have a huge use case and one of the largest companies in China just put in through an exchange environment that's a great use case as well so today's performance next generation tech performance but familiarity of data services that you've been around for 15 20 years and that's why I think we're leading the flash on the transformation so thank you Ken that's awesome flash as hot as I always tell Dave and I was talking about it under the hood is the engine of innovation the apps are what's driving the car all the instrumentation is there with Big Data and flash is a big part of it congratulations new sets and watch mirrored in we're gonna be watching you guys be written inside the cube this is Jon and Dave here we'll be right back with our next guest after this short break

hey welcome back to vmworld 2013 this is the cube our flagship program out the advanced extracted from the noise I'm John furry the founders SiliconANGLE my co-host Dave allante co-founder Wikibon or go to Wikibon org for free content go to slipping the angle for the reference point for tech innovation and go to SiliconANGLE com for all the footage also go to youtube.com slash SiliconANGLE for all the replays i'm showing with my co-host hi everybody i'm dafe a lot a leak as well as here is the vice president virtualization product group that fusion-io we welcome back to the cube thank you very much it's great to be here see you guys again this venue is terrific yeah you here in a new role actually I a new company new role is very exciting to us I'm going for you how many vm Rose have you been to oh yes it's all right yeah you Jen your veteran exactly so you have seen a lot of change and that you know since virtualization I mean flash is the next big exciting thing is 0 10 years I mean a lot to change first five years just give us your perspectives you worked at VMware right five years and second five years what's just what's a summary what's the bumper sticker you know when we started off the back in like two thousand we basically like to say well what are we going to virtualize first and it was the easy stuff right take all the applications that were running that weren't very i/o intensive it wasn't the Oracle databases we want to go put on virtualization now we've got what seventy eighty percent of workloads being virtualized what's left well all the hard stuff right and that's where flash is coming in is how do we go and take the hard applications and make those sing in a virtual environment so I've seen you're at heading up the virtualization team at fusion is that correct that's the roles that's the official title yes so what's the big news for you guys this week you know we've got some very exciting deliverables that we've shown we have a technology demonstration we're doing on a new product called I ovd i Iove I basically solves the problem of how you get performance into virtual desktops without breaking persistent storage and giving you a cost that's less than a physical desktop which is what everybody wanted from the start so you have to solve the cost problem solve the performance problem I ovd I is that that's the latest port now the latest implementation of our i/o turbine software so it's a very interesting way to go and say we'll take all the benefits of the i/o memory flash platform which you know I've been you know the basics of fusion-io success so you and I had you and I had a chance to chat on last week prior to the embargo of the new yet but one of the things we were talking about and then I was I went Dave about earlier they say was that everything at the top of the stack has always been this elusive dream right when Palmer its laid out the original vision you know 2010 it was really laid out we called the software mainframe what everyone want to call it it was a stack at the top of the stack e with apps being where I tried to her hand at that now pivotal's out outside and still there was a lot of work to do in the middle ground right so yes I would say it got stalled a little bit mainly because the hypervisor stuff a lot of the middle where big data hit the scene storage virtualization network virtualization all kind of started to happen yes so with that what's happening above the stack so stuff starting to commodify the infrastructure service platform deserves but then the apps data fabrics are there so what's your at the top of the thing you got to look up what's the view and what's the trends there well one of the aspects of virtualizing flash is that we're looking at basic hypervisor level virtualization first and this was the phase one of what I owe turbine had to develop which is how do we go and solve the i/o blender problem so any virtual virtual appliances or virtual machines have to go and look carefully at how we're going to go take what looks like now a random workload and how do we accelerate that that was phase one now we have with IO vdi a very interesting way to run in the guest and add more intelligence and so the intelligence now could be paying a desktop environment how do I take advantage of common files to speed up boot times how do I take advantage of the fact that there's a substantial amount of desktop rights that actually never matter remember your desktop even that drive goes on you're like what's it doing that's all data that doesn't ever have to go to this and we could take advantage of this now intelligently at the guest and do some very interesting work to speed up acceleration make sure desktops are working fast and that's the sort of intelligence you look at and it's all based on applications and solution knowledge one of the things that I've been working on it at fusion-io so I got to ask you leave I've been coming to vmworld now probably auto six or seven years and and my remember my first vmworld I said oh my gosh storage is good to get killed right and it was everybody's complaining about storage and and so so then we started down this path of integration you know via a I and Vasa and the Lycan right and every year Wikibon does this evaluation of the integration points and we rank oh you know who's got wat and I'm looking at the other day and I'm saying all this stuff is designed to sort of minimize the the spinning disk penalty mm-hmm and I've look at the integration points that relate to flash and it's like a handful of them mm-hmm so to the extent we get to that vision it seems to be is coming soon we're all my active data we talked about this with Gary earlier well my active data is served out of flash all those other integrations that I just spent all this time and money on kind of become irrelevant that was my take so the first time I've articulated that I wonder you know you're an expert in this area and products is that a fair characterization yet for years the disk drive has been doing a dual service it's been providing both performance which it's not very good at and capacity which is very good at right and so what's happening is it as you look at flash right now this is one of the reasons fusion-io is so successful early on is a single pci card serves the performance delivery of over 200 drives and so what's happening now is there's this radical split happening where wherever you can take the performance and disaggregate it from the capacity needs now that's changing extremely fast and so we're seeing that overall or I'm going to use a disc for a relatively cold store anywhere I can provide acceleration the software stack is how we do that yeah well if I could do that through an API call right right based on some kind of policy so so where are we in terms of being able to do that and what role does fusion-io play in that regard yeah very good question we've done some very interesting things with IO control for example this is an acquisition we had recently where we're now applying quality of service across as a policy across application environments so if you want to have a sand and basically run multiple applications how do I go make sure that I've got I've got performance now that I can allocate so that I can make sure that i'm getting the performance i need for the applications i care about allocating not just baseline performance but quality of service becomes a very important differentiator that fusion-io is driving okay and i can do that through an API call that's why I can open the API yes and you can go and actually allocate this on a policy-based by your application then I can change that pretty much on the fly on the fly yes it's one way of thinking that it's not just raw performance that users care about it turns out what users care about and you know this from your own experience waiting for that look that little life you know the hourglass to change what you care about is you care about persistent or seek consistent performance as much as you care about vegetable consistent performance right yeah the one thing that drives users nuts is if they don't know when something's gonna complete right and if it's too slow then they'll throw it out and get a new one but if it's consistent and predictable and I know what's coming one of the build processes around it here's one of the area's we've spending a lot of time on we are so early with flash we spend a lot of time on solutions so if you look at what are the key solutions at flash accelerates today well its databases server virtualization VDI big data if you take those as a group we have a set of customers that have deployed and seen successful the acceleration in the field and we're just going to show other customers here's how you can do this we've stripped out all the risk of making this work in the field so talk a little bit more about the the customers and how use cases are expanding kind of where they started and where you see them going and I know that's if there's a wide variety but I wonder if we can generalize especially as your product line has begun more more robust well we've taken a mapping right now of whether you're on a server side are you on the storage side with caching are you going to basically try and bridge the gap between these and the applications look like this so within databases databases love block storage and they love fast response times you can service more customers you can save costs you can consolidate infrastructure these are terrific benefits now for how flash can make a difference in server virtualization we've got the ability to go and run more VMs more consistently that's a huge driver of getting more virtual workloads going personal desktops got that same same concept of how do I make sure that users get that level of consistent response times and then lastly in big data big data is all about processing no data is deleted anymore the data that you have is just processed over and over and over again and that processing is all consistent with high-performance flash so big daddy talking about extending in-memory analytics potentially persisting in-memory analytics right every yeah we have some is Hannah crazy but Hannah Healy persistent data we've been doing a lot of work on Hannah lately his eats it's great I mean I love we love the concept but but you talk to Hannah users and they keep telling you what goes down a lot so well we need to persist it I know you guys are working on part on helping us ap out with that problem well there's some very interesting applications we announced Spotify as a customer for example streaming music is an ideal case of how do you have very fast performance over latency sensitive applications these types of things and how you go and manage things like playlists right become very important for businesses that want to take all of the effort they were doing on managing i/o take those developers off that work put them on developing new applications or new features that you're going to use to competing as your you know your competition that's how you've changed the game right now is I don't have to actually worry about managing io because we have thousands of I ops to work with hundreds of thousands of I ops the all of a sudden what was a scarce resource in the past now you've got a lot of it so think about riorca texting that's the that's the sort of you know cathartic change we're going through right now Lee how do you talk to guys first of all there's two there's two professions to this one first one is Silicon Valley is always a new stars coming on so like are there any seats left at the table in the i/o gain we'll get to that one to say but I watch this or the second one first which is if you're an IT guy you get all the storage laying around yes you know Nass and gas and all of its laying around usually tied to some app by going server-side talk about the dynamics that you guys get in there is it a rip and replace is an extension you guys commoditize it is it just you treat storage as a a resource that can be commoditized I mean how you view that what's the solution it's very interesting one thing we're finding is that there's so much extra capacity now because customers into buying discs to deliver performance that element right if having to buy so you know 15k SAS drive gives you a hundred and fifty I ops it costs seven dollars to get that level of performance flash is relatively inexpensive at a nickel so you can all of a sudden now you can free up all of this capacity so one of the things we're seeing first off is what drives buying decisions is how do I consolidate the infrastructure I have we're consolidating physical infrastructure we're consolidating licenses as well by having this level of performance so that's one dynamic customers are come in different shapes and sizes some customers want to buy server-side flash some customers want to buy storage side flash we're delivering both we have with our eye on products and IO control products if you want to buy storage we have some very interesting ways to deploy it that way if you want to buy servers we got the fastest in the industry on the server side so you know our metal our Metro right now is that you know however you want to consume it we're going to supply the economics is you can come in and maximize pre existing investments same time get that flash data center built out is that kind of like yeah let me describe one one way we're doing that with IO vdi which is new for virtual desktops we're coming in saying we're taking all the performance dependencies from the sand and basically moving them into the server side so by having it on the server side now you can say well I'll just tap into the sand for capacity which is really what you wanted in the first place huh I just wanted to add sand for data protection and so the sand administrators is great this is what I was hoping to do in the first place give you a few terabytes you're off and running I deploy this on server side deployments basically gets you back into that seamless increments of deployment well we saw a lot of action today in the news violin filed to go possible that so competition there was always new startups coming out so what are you back to the start of a question is always a new startup iOS hot so you have some innovation what are you seeing on the on the startup scene and are there any seats left at the table well who knew storage was going to be so sexy we did I guess you guys did right shopper come on Georgie day really yeah head Jojo Jojo G of storage a sexy I'll tell you what you know he got enough expected when he turns out he's gonna taught yeah it's funny mate if there's a lot of room for innovation left this is what you know we're we're seeing you know flash by itself is one way to go and deploy this there will be others right over time what what we're looking at is once you take any imperfect media and flash like disc is an imperfect media you have to start thinking about hey how do i how do i basically overcome some of the limitations there's reliability considerations i got to make it reliable right there's density how do i go and aggregate it together there's protection i mean all of these things and so all of that tends to lead towards software innovation right software innovation is where we're putting the bulk of our effort right now on making flash more more social so everybody wants a piece of you I mean you guys came out you had like a four-year lease on the industry and you did the side because oh wow maybe yeah the flash in the pan and so so it now all these big guys investing buying you back etc so you said software is where the innovation is is that how you keep your regiment if we could talk about that a little bit and help us understand you know what we can expect generally yeah that's that's a really good question there's no doubt and I've had experience in the past at one time my career I was selling some silicon to Intel for 69 margins and the question was so how did you get away with that rest of the day thank you me too and the answer was C 45 the value prop was not about this so yeah right listen item at what's not about the silicon itself who is how did you prove out things like compatibility software value add and in our case at fusion-io solutions what we've done and what we offer to customers is it's not so much about like raw acceleration because anybody can pull a number off a data sheet and say hey we're faster in this one case what we can show is we've made these customers this much more successful in the field and so our value right now is to show that we're going to accelerate your success with flash not just accelerate some portion of your data so what are those solutions we talked about him briefly before but so what talking about in generic terms database you know I abetik stuff it was interesting actually looking we have a luxury it from a marketing standpoint of saying they're actually fairly definable so within the database case Microsoft sequel server we've got Oracle both for rack for Oracle 11 12 X my sequel if you look there when you look into virtualization well clearly we've got VMware today and then moving to hyper-v right within VDI so it's both VMware for view and Citrix and then within big data we see some very interesting we're some work there not like to comment on that for a minute because because of our success on flash just showing the raw performance then we had application developer saying hey I'd like to rewrite the applications now and so we've had some very good success with companies like sky sequel Maria DB percona of rewriting the applications now to take advantage of the native the native benefits of flash yeah so that's two orders of magnitude performance it's a very interesting dynamic right so so okay so that's that's always been fundamental to your strategy and a big part of it has mediation and you guys are kind of unique in that area I think you got it well at some point there we're moving from the early adopters so early adopters right they like words like visionary disruptive groundbreaking this is going to be de like well to the later adopters right the CIO of a grain company in the Midwest like that sounds pretty scary so what we've done now is we've reduced the risk saying hey you get these / benefits and one of the things we have we have a theme st. same planet different world and that is designed around the aha moment that occurs when people realize are you kidding me forty percent of our customers see more than 10x performance in their applications 10x in the field from our surveys 10x performance can you imagine the moment where you go really seriously I could do that while the norm is to get that low latency you know feel like hey no disc at all but you know I think that's the key so I want to ask you two final questions we wrap up the place what's so you guys also you're doing great and we were talking earlier with Gary orenstein and some other folks the stuff under the under the hood is where all the actions in the data center so yeah so I'm gonna find data centers not just one thing it's that it's a bunch of parts yeah flashes is a big part of it yeah what is the big takeaway for folks out there shares I'll give you the last word share with them in your own words what's going on with flash this year at vmworld is 10th anniversary so flash the benefits of flash are so compelling it's going to be deployed everywhere where disk has been deployed when you think about it that way all of a sudden you look at the server side you look at the storage side and you look at how you bridge the gap in between we're going to see flash come on than everyone and what fusion-io has done is said we're going to be able to give you solutions however you want to consume it will give an offering there that you can go and say the advantages that we've developed and hardware and software take that and deploy it at low risk final question please add one more you've been at vmware veteran your industry vet been on the block you've seen at the movie a few times kids going to college our kids going to college so yeah but you've been all the vm worlds what what can you share the folks from the beginning of the first vmworld to now ten years what has happened how big has it become what's your giving the order of magnitude share some perspective or experiences sure you know in the early days the question was hey there was a customer question of virtualization is it safe right just to start off with like will my data like will my apps run and so you go through that first phase right of jumping in the pool like am I going to jump it is it okay right and then you jump in and you're like wow that was pretty good right one of my experiences early on was that the first benefit was about consolidation because that drove cost improvement and then the subsequent value was around high availability and management we're seeing the same thing in flash right now and you're seeing everyone get in the act the first element is hey is it safe is it going to work how can I consolidate infrastructure we're going through that we've gone through that phase now it's how do I manage this how do I make sure it works in the applications how do i get a che how do I support vmotion these are the questions customers are asking it's an integration question we think we're in a great position to capitalize on that the castle is fusion-io thanks for me on the cube we right back with wrap up after this short break day 1 i'm john forward day volante this is silicon angles the cube here live at vmworld in San Francisco we right back after this short break