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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.

  • >> Or segments with that VMware.

  • Before I want to just point out that you're wearing a

  • VMware tattoo for the folks who can see it.

  • Pat is making all his employees have a VMware tattoo.

  • (laughs)

  • Yeah we got a tattoo machine, yeah, we're in Vegas, so.

  • >> Ought to order some more CUBE stickers.

  • What happens in Vegas stays on your arm, remember that.

  • (laughing)

  • You ought to keep the tattoos up, it's funny and clever.

  • Let's get back to the keynote.

  • You said a couple things I want to get your reaction to.

  • One, the bridging of technology successfully

  • has been a transformational gift that VMWare has had

  • with good technologists and good engineers.

  • So I want you to talk about that.

  • Also, you had a quote around the old adage of

  • the network is the computer, that's old,

  • the new adage is the application

  • is a network, I think is what you said.

  • >> Precisely.

  • >> Tell about this bridging and why that quote,

  • that was a really good quote, I want to expand on that.

  • >> Clearly, we think about the history of VMware and

  • it started with this idea of HP, Dell, IBM, et cetera and

  • all of a sudden it became VMWare

  • with different hardware underneath it.

  • We bridged across those hardware islands.

  • Those hardware islands, when they started, weren't bad.

  • Extraordinary innovation but all of sudden customers want

  • to start using them together and VMware bridged that gap.

  • We talked about the device guy, and BYOD, and

  • the iPhone showing up and all of a sudden

  • IT wasn't ready to manage it, but customers wanted it.

  • So we see Windows devices, Macs, and IOS, and

  • Google, and Chromes and so on.

  • How do you bridge it, VMware is doing that.

  • We saw many of the networks, boy,

  • you know what my protocols are about.

  • Okay, Again, we're bridging across that, and

  • that's clearly where NXS is uniquely playing.

  • So this idea of bridging across these elements,

  • right, is deep in our heritage.

  • Right, we do it in an ecosystem-friendly hardware

  • independent now, Cloud-independent way, right.

  • Where we're now saying in the Cloud health acquisition,

  • we're going to bridge across these worlds and

  • make them easier for our customers to

  • consume them, wherever they may be.

  • These are powerful innovations, capabilities that are

  • emerging, but customers say, oh you know,

  • where is that workload running?

  • Increasingly, in the future, I'm going to say,

  • Oh VMware is running it for me, and not actually say,

  • oh where did you run that VMWare?

  • Because we are going to meet their policies,

  • we're going to meet their business needs.

  • >> And that bridges what, the Cloud?

  • The current bridge is what, the Cloud, or ?

  • >> Oh yeah, absolutely.

  • Right, but the Cloud will now be my private data centers

  • as well as different public resources.

  • I think one of the next big challenges that we'll have to

  • lean into more aggressively is the data challenge.

  • Hmmm, where's my data?

  • In a Cloud world, in a SAAS world, I want to be able

  • to use my data for different purposes, I don't

  • want to necessarily locked in a particular

  • SAAS application when I built up an S3 bucket.

  • Maybe I want to run some of my private analytics on that.

  • Oh, the laws changed and I now need to bring that

  • back on premise, and you know...

  • >> Is it going to cost anything?

  • Yeah, and you know, bridging across those worlds.

  • It's both an application statement, a networking

  • statement, and a data center.

  • >> So application is a network?

  • >> Yes.

  • >> I think if it were a network, not the network.

  • >> Yes.

  • >> What do you mean by that?

  • >> I gave you an example, a heads-up display in a

  • construction hat, as you're wearing a hard hat.

  • This AR-VR application running in my display for my

  • hardhat and I'm a factory worker now, right,

  • I'm getting cool new x-ray vision

  • into the machine of what's going on.

  • I'm able to look through walls at what's going on.

  • Wow, that's pretty cool, and I'm getting real-time safety

  • information of what's going...

  • oh, that's incredible.

  • Now think about the application behind that.

  • I'm accessing 30 year old building plan databases,

  • I'm accessing systems of record, system designs that are

  • coming from my equipment suppliers and cool new

  • container-ized AR-VR applications.

  • That's my application, when I

  • think about it in that environment.

  • And what a complex network of different services, legacy

  • applications, modern, new, microservice,

  • >> Data sources, those kind of things.

  • >> All of those things are brought together

  • into my application, and in that sense,

  • the application is a network of these

  • different services, data sources, et cetera.

  • We believe in that, bridging across silos isn't

  • important, its essential to do that because,

  • as you say, security models across that.

  • When that application isn't performing like

  • I expect it to, how do I go, even debug it?

  • Because now, a flag went off, saying the hardhat AR

  • application is not performing well and I have upsets.

  • You know, manufacturing people on the floor not being

  • able to get real-time data:

  • I got to go debug that.

  • You know, what's not working right?

  • It's this network that needs to be able

  • to be analyzed, any metrics across all of those.

  • I need security models, you know, the ability to

  • essentially load-balance across

  • a complex network of services.

  • That's the world we're headed to and we think we have

  • some pretty good opportunities to help customers get there.

  • >> So, Pat, explain how technically does the platform

  • of VMWare change and evolve to meet those needs?

  • Is it sort of embracing those new services or is it

  • rewriting at the core, can you explain that?

  • >> Yeah, it's some of both, I'll give two examples of that:

  • one is that we're embracing the Kubernetes layer.

  • Right?

  • That's what you heard us say.

  • I'm going to make Kubernetes a new

  • dial-tone for the VMWare layer.

  • I didn't create Kubernetes, it's part of open-source

  • community, but I tell you what, we are going to help evolve it,

  • standardize it, make it part of that infrastructure.

  • So that Kubernetes dial-tone, right,

  • (laughs)

  • Hopefully, everybody is old enough to

  • understand what that means, right?

  • You know, boom, it is always there and

  • we're going to make sure it's always there.

  • So I'll say in some cases we're embracing new industry

  • innovations and that one happens to be CN-CF, the Cloud,

  • native computing foundation in that community, so we're

  • participating, we're contributing.

  • In other cases, we got to go rewrite things.

  • You know, NXS, the current version of NXS was primarily

  • bound to V-sphere and customers have increasingly said,

  • oh I need to make NXS much bigger then we ever conceived

  • for the first NXS, and I need it to work on all these

  • other environments, including non-V sphere.

  • So that's why we did what we called NXS-T, which is

  • a fundamental re-architecture of NXS.

  • There's probably three or four lines of code that we

  • re-used, but that's about it.

  • (laughing)

  • I mean it is a major architectural redo because now we're

  • saying I need to scale this, essentially, across the planet.

  • I need it to work in VMWare and non-VMWare environments.

  • I need it to be native in multiple public Clouds and

  • I need to stretch it into the container level.

  • That was a big re-architecture project that we undertook.

  • In some cases it will be both, and like in Cloud health,

  • it will be things inorganically go acquire and then

  • figure out how to meld them into the

  • infrastructure that we build and offer.

  • >> So, do you, as the CEO and a technologist,

  • you have a very interesting organizational

  • ownership, governing structure.

  • Do you ever feel constrained writing

  • an 11 billion dollar dividend,

  • do you ever feel constrained in terms of your ability

  • to fund the R and D necessary to do some of those things?

  • >> No.

  • >> Grayson said the same thing off

  • camera, I'm asking you on-camera.

  • >> Generally, no.

  • Am I constrained in how much RND I can do?

  • Well, hey, I've got a budget, we build a PNL, we communicate

  • it to the street and every day possible,

  • I'm pushing to grow the business faster so I can shove

  • more dollars into one of two places.

  • More dollars into RND or more dollars

  • into sales and customer facing.

  • If Robin Matlock is here, I keep giving her

  • the table scraps at the end of those things.

  • Build products that are innovative,

  • radical, and break through.

  • Sell products and support our customers using them.

  • That's the two things we're ...

  • >> That's the golden rule.

  • >> And, by the way, you made some MNA, you've got

  • Cloud health, which is a good thing.

  • That was a vertical focus in health care.

  • >> Yeah, and not just healthcare.

  • Cloud health is a multi-Cloud management platform.

  • They've built their initial focus primarily in cost

  • management of multiple Clouds, but, you know, we're going

  • to build that platform out for every aspect of

  • compliance management, performance management, et cetera.

  • >> Multi-Cloud play, Boston-based.

  • >> So, final question for you:

  • as you look at NXS,

  • it's becoming kind of that feels like a TCPIP moment.

  • Okay, we thought you Andy gotcha to sign a baptism.

  • He was very complimentary of NXS.

  • I asked him what TCPIP did to connecting, inter-networking,

  • creating, and boom, the OSA model stopped at TCPNIP,

  • that created a lot of opportunities and,

  • welp, that's where we are today.

  • Is there a disruptive enable as powerful as TCPIP that

  • you see coming, and is that an NXS mindset?

  • What's your vision on this, because this is what the

  • Cloud needed, it needs interoperability,

  • it needs to go to a level to create goodness

  • in the ecosystem, wealth creation for entrepreneurs.

  • This is the new era, where is that disruptive enabler?

  • >> Well, a couple of comments, and one is:

  • if Andy says it, it's right.

  • (laughs)

  • >> Yeah.

  • >> Yeah, you remember, this is the one Rembrandt

  • of systems design for the last 30 years.

  • Andy is that profound in his contributions to the industry.

  • In terms of technical leadership, visionary

  • leadership, he's very high on my list of

  • seminal figures of Silicone Valley.

  • At the systems level, it's just hard to get better than

  • Andy, so you know, he honored you by coming on theCUBE.

  • He honored us by being here at VMworld.

  • >> He is complimentary of NXS in his position in the

  • marketplace as a leader, he's very candid about that.

  • >> Now with NXS we really are, I think, in this moment where

  • you're saying okay, the old model of

  • networking simply doesn't work.

  • It must all be done from a software level.

  • This isn't just like putting a few APIs on top of my

  • hardware and saying it's now software-based,

  • it is conceiving a globally-distributed control plane

  • that allows you to essentially span multiple Clouds,

  • multiple data centers, multiple services anywhere on the

  • planet, totally consumable for services that run on top of

  • it, transforming every aspect of a layer four through seven

  • service, low balancing, fire wall it, all of those,

  • routing, all of those need to be reconceived in a totally

  • distributive fashion and underneath saying, we support a

  • very, very broad range of different hardware.

  • The hardware can never constrain what you do at that SDN

  • ladder, and that's the core of our

  • virtual Cloud network strategy.

  • Obviously, Velocloud, hot product.

  • ST WAN, branch transformation, pushing that

  • edge of the network out in a fully

  • Cloud-based way, very excited about that capability.

  • >> We know you're probably under a lot of

  • time pressures so we're going to let you go.

  • Five seconds, summarize VMWorld 2018,

  • what's this about, what's the vibe here in five seconds, go.

  • >> Five seconds?

  • >> Or 15, 20, 30, whatever you need, go.

  • (laughs)

  • Alright, take 10.

  • >> It is, the seminal moment where the industry

  • is seeing the value of the multi-Cloud era.

  • Right, and now we're giving them the tools to embrace it.

  • >> And two leaders have, on stage, Andy Jassy C of A WS, Pat

  • Gelsinger, CEO of VMWare, are talking about multi-Cloud

  • validation from customers and strong technology teams in

  • business.

  • Congratulations on your success, okay.

  • >> Thank you.

  • (laughing)

  • >> Pat Gelsinger, we pay you for theCUBE sticker, we

  • get royalties on that.

  • Thank you so much, Pat Gelsinger

  • inside theCUBE, CEO of VM here, breaking it down, great

  • vibe here, VMworld 2018.

  • Stay tuned after this short break,

  • I'm John Furrier with Dave Vellante we'll be right back.

  • (techno music)

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

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