 from Las Vegas. It's theCUBE, covering AWS re-invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. And welcome back here on The Sands, as we're at the AWS re-invent day one of our coverage here. We're here Tuesday, Wednesday, and Thursday live here on theCUBE as we continue our coverage from the show floor. Hall D, again, if in the area, come on by and say hi to Justin Warren and myself. Along with Justin, I'm John Walls. We're joined by Andy Langsom, who's the COO of N2WS. Andy, good to see you today. Good to see you too. Thanks for being here, and Danny Allen, who's the Vice President of Product Strategy at Veeam Software. Danny, good afternoon to you. Thank you very much. Now we can talk about a lot of things. Canadian citizenship, fractional ownership, a lot of great conversation, but let's talk about data. And of course, the paramount need these days, right? Everybody's got to know I'm all right. I'm secure. I've got this big warm blanket around me. What are the two of you doing to give people with those kinds of concerns the ability to sleep at night peacefully knowing their data's safe? Well, N2W was founded on the premise of not to worry. That was the founder's vision. And if you could convince somebody that was doing the backup and disaster recovery, not to worry, that was a great way to get started. But we're excited today. We've announced N2WS version 2.4, and it's focused on taking your EC2 snapshots and putting them into S3 storage to lower your costs by up to 40 and 50%. And so that's one of the things that we're talking about today. All right, Danny? Yeah, and so if you expand on that, so this is data protection for the cloud. And one of the things historically we've focused on as well as data protection in the data center. So this brings the two together and gives you data protection holistically across wherever your environment happens to be. And it goes beyond that, not just data protection, but how can I take the data and do more with it? And so we're excited and seems to be resonating with customers. We have, what, 189% year-over-year growth on the cloud side. It's just huge. It's a booming business. I would assume, yeah, you don't have any problem getting people's attention these days, I would assume. No, we don't. At the booth, it's just amazing. 8,000, 9,000 signup badge scans and people all wanting demos and wanting trials of the software. Anytime you can talk about cost reduction from five cents a gig on EC2 storage to two cents on S3, it's a tremendous savings for our customer base. And so they're very excited. We did a survey recently and over 50% of our customers spend over 10,000 a month on storage costs in AWS. So if you think about that, and if they can save 40% on that, that's real savings. More than the cost of the software alone. Sure, yeah. Yes. One thing about cloud that has often sort of went past people because they were used to the data center and they were used to how they protected their data in the data center. And cloud kind of changed the way that you had to do that and you have to think about it in a slightly different way. So clearly, NGWS is part of the solution to that. But when you have people who have a bit of data in both of those systems, how do you help them understand which techniques they should use for data which is in the cloud compared to data that's in their data center? Or am I able to just use the same techniques and just go, you know what? I'll take care of you and we'll just turn it on and it'll magically work for you. It's not the same techniques, but it's the same platform. And the reason I say that is in the cloud, if you're in AWS, for example, you don't have access to the hypervisor. So you can't do a snapshot of the hypervisor. You have to call an API and say, give me a copy of the data. If you're in your own data center, you say, take a snapshot at the storage level or at the hypervisor level. So there's different techniques, but at the end of the day, it's still data protection. And with a single platform, that's what's so exciting about this release back up in Recovery 2.4 is you have a single platform that you can manage data protection both on and off premises so that you can leverage where is the best place, location for this workload, and I can protect it across, no matter where it chooses to live. Yeah, that is something that we've been hearing all day today here at theCUBE is that people are talking about putting their data wherever they want it to live. It could be in the cloud. It could be on their own data site. Could be out at the edge. So what do you see as the vision, like where are customers going with this? Where do we want to put data? We heard for a long time that we should migrate all of our applications into the cloud. Clearly, there are a lot of organizations who are doing that. There are some who have put some things into the cloud and they're actually taking them back out again. Where are you seeing customers moving their data around? Well, the answer to that, of course, is it depends. There's no single answer for everything. What I say is that cloud is excellent for certain things like variable based workloads or you need a massive amount of compute for a certain amount of time. What people have tried to do sometimes is just lift and shift, take what's on premises and move it to the cloud. And sometimes what happens up happening is they put it back on premises because they realize, hey, the cloud's not a charity. They're actually putting in marriage in there for that workload. Really? Very good. So there's use cases for all of this. What I think actually what gets exciting is as people design for the cloud, use Lambda and serverless type functionality, that will become a lot more sticky. And so our focus is, wherever the customer chooses to run the workload, we're not going to dictate it one way or the other. In fact, one of the great things that we enable is this portability. If you choose to be in point A today, you can move it to point B and back again. So we give that portability that ultimately allows the customer to solve what their business need is. You mentioned the customer growth. I think it was like 189% USA. Is that net new customers to Veeam completely? Is that Veeam customers who are growing into using this new product and putting their data in the cloud? Where is that growth coming from? So that growth, that growth has been since we've been acquired by Veeam back in December. It's almost been a year now. We were acquired by Veeam and being acquired has allowed us to focus on the customer and innovation versus going out and raising money from investors as a small company, right? And so we've had 189% growth in our business in terms of revenue since we've been acquired. And it's really accelerating both on the growth side in all sizes of customers. We've got customers recently like Notre Dame and Cardinal Health. And then we have people getting into the cloud for the very first time. And they go to the Amazon Marketplace. They search for the catalog. They find the N2W product. They download it and well, they provision it and onward they go. Yeah, you mentioned Cardinal Health. Yeah. Let's talk about the sector in general. I mean, very unique concerns, obviously, when it comes to whether it's protecting imaging or patient information or whatever it might be. What have you seen in terms of addressing the needs of that sector? Because obviously this is an area that's growing. There's more capability than ever. And yet our concerns in it are growing with that. So I mean, what do you guys see in that space? Yeah, so I think in the health care sector in general, I think what they're really concerned about is the compliance requirements. It's not just backing up the data, but it's the requirement that you have a backup and can restore and you can recover from a disaster or from internal hacking or from whatever an outage or whatever it may be. And if they don't do it, the repercussions are very, very high. And I think that the whole world with GDAPRS and things like that are all coming together to dramatically raise the requirement to be more secure than ever. And your backup and disaster recovery strategy is paramount to them. They won't be talking about we're going to do that. Some customers say we're going to do this ourselves. We'll write our own code. You won't see that in the health care space or the financial space. So I see kind of three interesting areas. One is they typically will have very specific applications like Epic and Metatec that they need you to protect that are aware of that type of application. So that's one part of it. The second is there's a lot of certifications required to deliver health care services. So you have HIPAA and high tech and BAA certifications and all these things. And that certainly comes into play when you're talking about the cloud. So you need to have that conversation. Then lastly, ransomware comes up a lot because there's been a lot of ransomware attacks and malware attacks specifically directed at the health care industry. So those are the three kind of areas that we have probably the most conversations about. Right, malware has been the best advertisement for backup and recovery ever. It's a kind of fabulous in a way, a scary way. We don't actually want to encourage this kind of behavior. But for those of us who've lived and breathed backup for a while, it was like finally people can take this seriously. So that's something that people have realized that, okay, I need to have this. What are they looking at next? Where are customers looking to Veeam and to NTWS? What are they looking for you to add next? So I'd say the next kind of big step. So today we've been very much reactive as an industry, right? Help me protect my data. Let me get it back. Let me recover to the cloud or move from one cloud to another cloud. Now we're getting customers saying, you have all this data. You understand the context of everything that I own. Help me get smarter in my business so that I can drive the business to make decisions more quickly. So give developers a copy of the data so that they can iterate on it more quickly. Give a copy of the data to my GDPR experts because they need to analyze the data and do something with it. And so we're moving away from just being reactive to business need, to being proactive and driving the business forward. And I think work, it's really interesting. As we go down the road, and now this is Buzz words I admit, but around machine learning and artificial intelligence, we're actually, we leverage a lot of the algorithms that are existing in clouds like AWS to help analyze the data and make decisions that they don't even know that they need to make. And that decision could be, hey, you need to run this analysis at two in the morning because the instances are cheaper. That type of predictive analysis helps the customer reduce costs but also drive the business forward. Yeah, so how do you move into that kind of advisory space from a multi-traditionalist that will protect your data? It's like, how do the customers come to you and say, actually, you have our data anyway, why don't you do this for us? Or are you going to customers proactively and saying, hey, we can do this for you. We have access to this data and we can tell you that we can provide these insights to you. Would you like some more of this? Which way does that conversation tend to go? It's a bit of a mix. What I'd say is that the data protections face or the storage, you know, the traditional IT person becomes kind of the help desk. And then because they've enabled self-service, recovery, file level recovery, etymological recovery, these other areas of the business come in and say, hey, can I use that self-service to do X and Y? So it's a new buyer, it's a new constituent, but they're actually looking to IT to enable them to do more stuff with the data. Okay, so it's basically, I want to interact with you in a similar way than I'm already doing it and you've proven your worth in this area. It's like, maybe you could do it over here as well. Exactly. Sounds like a great opportunity for growth. And not just on legacy. I mean, one of the interesting things with the N2W software is we enabled, for example, data protection on DynamoDB. So people think of databases and I think SQL Server and Oracle, but we can do this even in cloud RDS type workloads with DynamoDB to help them drive cloud-hosted workloads faster for the business as well. Well, you mentioned Notre Dame. Can we have any connections on the playoff ticket situation? I wish. I wish. Just want to make sure. Gentlemen, thanks for being with us and let's get back and maybe three or four weeks we'll talk about that, okay? It's been great. Yeah, well, it's been interesting to see who the final four are going to be. Yeah, that's for sure. Thank you both. Thank you for your time and the information. We really enjoyed the conversation. Thanks. Back with more here from AWS ReInvent. We are live in Las Vegas, Nevada.