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  • >> Live from Las Vegas, it's theCUBE!

  • Covering VMworld 2018, brought to you

  • by VMware and its ecosystem partners.

  • >> Hello everyone, welcome back,

  • this is theCUBE's live coverage here

  • at VMworld 2018 in Las Vegas, I'm John Furrier,

  • your host, with Dave Vellante my co-host,

  • our next guest, CUBE alumni, special guest,

  • Pat Gelsinger, CEO of VMWare, always comes

  • on every year to share, and talk about the keynote,

  • talk about the news, all the great stuff.

  • VMWare, great, per it's financial performance,

  • great product portfolio, great R&D,

  • pumping on all cylinders, congratulations,

  • welcome to theCUBE, great to see you.

  • >> Thank you.

  • Always great to see you guys,

  • thanks John, thanks Dave, y'know.

  • >> Y'know, it's fun, this is our ninth year doing VMWorld,

  • you've been as the president of EMC

  • and six years ago CEO of VMWare.

  • We've been there, we've been following your journey.

  • >> Hey, y'know, we've been on this

  • path together, so it's been good.

  • >> And, y'know, we've talked candidly around

  • what was going on with Cloud at the time,

  • your vision, getting sorted in.

  • You made some real quick, decisive,

  • decisions on Cloud, okay, Andy Jassy comes on stage,

  • you're personally involved with Andy on the

  • Amazon announcement, which is,

  • I think people don't know how big that's going to be.

  • But VMware and Amazon are seriously deep in a partnership.

  • >> Yeah, absolutely.

  • >> This is a big deal, this feels like a little

  • Windtell kind of easy, cynergies across the board.

  • (Pat laughs)

  • >> Well, you know, in some ways,

  • we'll say number one in public coming together

  • with number one in private, that's a big deal.

  • Yesterday's announcement of RDS on premise

  • to me, sort of finishes the strategic

  • picture that we were trying to paint,

  • where it really is a hybrid world.

  • Where we're taking workloads, and giving people the access

  • to this phenomenal, rapidly-growing public Cloud, but

  • we're also demonstrating that we can seamlessly connect

  • it to the private Cloud and now

  • we're bringing services back from the public Cloud

  • onto the private and your own data centers.

  • And that is so profound because now customers can say,

  • Oh I like the RDSAPI's, I like the RDS management model.

  • I can now put the data wherever I

  • need it for my business purposes.

  • That hybrid, bi-directional highway is something we're

  • uniquely building with Amazon.

  • And, hey, we're obviously working with other

  • Cloud providers, but they are our preferred

  • partner and we're pretty thrilled.

  • >> Now we'll be talking about last

  • year and what entailing that was.

  • The clarity that allowed customers now to say,

  • okay now I get the Cloud strategy,

  • 'cause it wasn't clear before and boom, double down.

  • >> Yeah, it's just been absolutely great.

  • Customers get it now, and obviously

  • seeing Andy here again this year,

  • you've got a number of customers sort of

  • dipping their toes in the water, you know.

  • Now it's sort of like, okay, I'm ready to go.

  • When we laid the one and a half year road map of

  • availability zones, everybody sort of looking at that.

  • I had a couple of customers saying, hey,

  • you know I would really like that in Q1 rather than Q2.

  • It sort of like okay, let's just sign

  • the deal, we'll figure it out.

  • >> Gov Cloud, we saw that in June.

  • >> Yeah, in the public sector.

  • >> Talk about Andy, because we got to

  • know Andy over the years as well.

  • A great executive, both you guys are great

  • leaders of your team, both great managers.

  • You're kind of both no-nonsense kind of

  • executives, you get stuff done.

  • If this block is in the way, you kind of

  • remove them, you do the right thing.

  • Andy's committed, he's committed to this, you're committed,

  • this in for the, you're in it to win it,

  • that kind of loyalty plus he's

  • also customer-driven, heavily Amazon.

  • You guys are, too, this deal is not just

  • Amazon trying to do hybrid, it's customers.

  • Can you share some inside baseball around the

  • kind of customer demand around Cloud on premise

  • with VM, with specifically Amazon website.

  • This is new for Amazon, they've never done this.

  • >> Yeah.

  • >> They've never done this kind of of deal.

  • >> It really is unique in that way, and because

  • it was unique we went into it kind of

  • trepidously, How's this going to work?"

  • We committed ourselves, we do quarterly

  • business reviews with Andy and I.

  • You know, hey a lot of little action items,

  • they get finished the week before the Andy-Pat meeting.

  • (laughs)

  • >> You know, there we are, every quarter,

  • coming together and really building the teamwork

  • down the teams, right, as well, down the organizations

  • into the field, and just finding all sorts of you know.

  • We're super excited about the RDS announcement,

  • but hey, we have a pipeline of projects behind that.

  • >> We're reporting that customers want this.

  • >> Oh, Absolutely.

  • >> This is a customer, not a kind of like you guys want to

  • take over the Cloud, this is a customer-driven thing.

  • >> Absolutely, Amazon don't do anything, I mean nothing,

  • unless they believe there is meaningful customer demand.

  • They are extraordinarily customer-focused in that respect,

  • you know I think there's something we can all learn

  • from their myopic focus on that aspect.

  • They're engaging with customers, building things

  • that customers like and the response obviously

  • from the RDS announcement was really quite overwhelming.

  • >> So, we've been asking people all week,

  • and I'll ask for your commentary.

  • The conventional wisdom on that deal is it was a one-way

  • trip to the Hotel Cloud-ifornia and

  • it's become boon for the data center.

  • Why the misconceptions, why are you confident that

  • it continues to be a boon for both companies?

  • >> Yeah, hey, and we got to go prove it.

  • At the end of the day, we have to go prove it.

  • The analysts were sort of viewing it,

  • there's this big sucking sound in the

  • public Cloud where everything congregates.

  • Point one, and three years ago, that was the prevailing

  • wisdom, right, that that was going to be the case.

  • Now, everybody, like I had the big CIO who basically said,

  • hey, I've got 200 apps, I tried to move them to

  • the public Cloud, I got two done.

  • I can build new things there, but this moving was

  • really hard until we had the VMC service.

  • So this ability to move things to the Cloud

  • and from the Cloud, I call it the three laws.

  • The laws of physics, the laws of

  • economics, and the laws of the land.

  • The laws of physics, hey if I need 500 millisecond

  • round-trip through the Cloud and

  • the robotic arm needs a decision

  • in 200 milliseconds, eh, you know, physics.

  • Economics, I'm not going send

  • every surveillance picture of

  • the cat to the Cloud, bandwidth still costs, right?

  • Then laws of the land, right, where people say,

  • governance issues, GDPR, other things.

  • Because of that, we see this hybrid world, in particularly

  • as Edge and IOT becomes more prominent we fully expect

  • that there's going to be more of that, not less.

  • As I showed in my keynote last year, this pendulum of

  • centralization and decentralization has been

  • swinging through the industry for 40 years.

  • And we don't see that stopping and Edge will be a

  • force of more data, and computers pushing to the Edge, and

  • that's obviously part of our keynote, as well.

  • >> I wanted to get in a comment about how

  • you talk about bridging technology gaps, or

  • >> Yeah.