 Welcome back, Jeff Frick here at VMworld 2013, day four of our wall-to-wall-to-wall coverage. I think this might be a record in the number of assets that John and Dave and the crew have created, so a big shout out to the guys. But we're still here, they're breaking down things, but at theCUBE we just keep going, we keep trying to find the smartest people in the room, we try to get them on theCUBE, we ask them the questions that you want to ask them, and John Furrier's still hanging in after days and days of coverage. Yeah, I'm going to shout out to Jeremy Burgers, EVP at Marketing and Products at EMC. He loves to break records. Jeremy, we broke a record in 13 consecutive hours of live broadcasts by me and Dave on theCUBE, so put that on the record breaker, hashtag. Jeff, great event. I mean, we'd love to have Fujitsu on. Thanks for coming on, I really appreciate it. Richard McCormick from VP Marketing, Fujitsu. Thanks for having me, guys. I was just walking by outside on the street, didn't even know what was going on, saw you guys in here before. I'll come on down and join in the fun. Yeah, we'd love to have you guys a big name in tech, and we just had a packed schedule. Thanks for coming on. So give us the update. What's your take on you? I thought you were saving the best till last. That's what you were telling me earlier. We said, absolutely, Vanessa Alvarez, you're here. And come on, we have the highest concurrence today of anyone, because people are now back in the office. We're going to get the most hits. That's what we're always back in the office. Now they're all back trying to look up their own video event, and they keep finding me. There you go. Now, we're going to get some good content here. So just tell us your vibe on what's going on at VMworld today. So we've obviously been here at VMworld, along with everyone else for a number of days. We've got a good, big crew here. We're very, very tired. And of course, they have been in the booth, showing their stuff to the people. We've had speaking sessions. We've had some key announcements that we've launched. I'll tell you about those in a minute. And of course, we've had tons of our customers all over the floor. So it's great for them to get a chance to come and see us here, as well as physically in the booth. And did you guys go in there? Did you hear how noisy was that in there? Unbelievable. It was huge noise. I think that's got to be another record breaker for the noisiest show we've ever been in. I can't hear you. I might use a shot. Exactly, exactly. But seriously, there were two key things we really talked about to most people that came and visited with us. One of them that I actually spoke on in one of the solutions exchange sessions was our SAP HANA appliance. And that is a fully certified solution built on our hardware and consulting built with VMware's product inside of course, and then built to run SAP's in-memory appliance software HANA. And it can be delivered into a customer environment right away alongside their existing infrastructure as a kind of a side car, if you like that expression. Does that work here in America? Do we have side cars here in America? Yeah, we're using car analysis all week. Excellent. They're all going into the three-wheeled version of it. Down on the motorcycle. No motorcycles, we call them. So this can go in as a side car. It's a fully virtualized appliance that lets you do a really fast and smooth deployment of your SAP HANA environment. And of course VMware plays a key part of that in terms of virtualizing the appliance, letting it fit into the infrastructure. But the device itself is not enough. This is what we're telling customers about when they came and talked to us. No point just getting that device. You've got to also work with a company that can fully integrate that device into the environment, help you deploy it, help you get the best bang for the buck out of it. And a lot of Fujitsu's technology and revenue, of course, doesn't just come from the hardware side. It comes from the, thank you, sir. Let's talk about services. You're seeing two philosophies and they're not mutually exclusive. Point services and end-to-end. You're seeing with cloud, there is end-to-end desire to have an intelligent edge device. Have virtualization, Pat Gelsinger. So obviously put a priority on desktop. Take care of that first, check that. But, I mean, with mobile and everything else, it's just, it's a requirement. So what's your take on that end-to-end philosophy? So we have a lot of customers come and ask us how do they begin? What do they even do at the beginning of the story? How do they work it out? And of course, for a services company like us, that is music to our ears. How do we begin? Let's help you with that. Let's do some kind of an assessment about what your requirements are and let you know what's going on. And then, as a provider, of course, we do everything you said from the client side right into the data center, plus all the consulting services in that end-to-end offering that we've got. So we have a huge growth in our business of managed and hosted environments. Customers who, despite all the great efforts of VMware to make it easier to run, despite all the good efforts of companies to deploy the software, there are many organizations would still like to outsource and have hosted their environment. And so we provide a very strong managed services offering for an existing customer environment that we can move into our hosted data center, a brand new environment, of course, that can go in there, or any combination there in. In fact, you can choose from a menu, if you like, from a smorgasbord of different offerings of how much management you want to do. From next to nothing, simply buy the solution from us buy the appliance ready to run, put it in your own data center, or outsource the entire thing into our data center and let us run everything from soup to nuts all the way down. This is our fourth VMworld doing the queue where we started in 2010. And we're like a tick that's embedded into this conference. We love it. I'm an avid watcher. We love the tech athletes here. But the VDI conversation has been interesting over four years. A lot of change, right? And a lot of stuff has happened. We had flash, new hardware, software accelerations, a lot of stuff going on. The end user computing side of the stack has been kind of waiting for that, that enablement. So what's your take on what's happened over the past four years with VDI? And what do people need to know about what's going on with virtualization at that segment? So I would say the biggest change, and you almost nailed it, was four years ago, people wanted to get their IT department and build it themselves. There were a lot of good tech heads in the IT department. They would put that solution together between the IT department, build all the various components and then deploy it internally as I look what we can do. And now we've got medium businesses looking at VDI and saying, can we not just get something that works? Can we not just get something ready to run in that environment? So second thing that we have, that we were showing off in the last couple of days has been both our ready VDI environment with VMware included. Pick it up as a smaller medium business, put it in your environment and run it. And then of course link that into our thin client and zero client technology which moves even more of the management and the work effort back to IT, back to the headquarter organization and away from the client devices. And this I think is just a great link into another trend going on around VDI which is a very strong link around bring your own device. So as more companies want to offer that BYOD experience to their users they find the easiest way to enable themselves to do that virtualize their client experience, virtualize the desktop. And then anyone that brings a non-standard bring your own device into their IT can get that virtual appliance up and running on it and then easily deploy it on the VDI server back end. So that virtualization front end is a good change. I think that's killer trend. I think that's, everyone's talking about it but it's really hard enough to crack but that's a great use of virtualization. But you also said in there I want to drill down on and I wanted to ask Pathos, I forgot to ask the question but they're not amplifying it but the small medium size enterprise is huge opportunity, huge with virtualization some of the things you're talking about. Cloud can do turnkey in a way there's not a lot of legacy. A lot of these technologies in the past were out of reach have huge IT. So one of the things that no one's been talking about here is that medium size enterprise. What's your experience there and if you can give some examples of what customers are thinking about in that mindset usually thin IT and now no IT. No IT, yeah. I mean there is a trend now to not just make it thin but to reduce it to a small amount as you possibly can. So they're in a perfect position. They have no IT, there's been reduced enough everyone's trying to be like this. I think if any IT people are watching he didn't mean that there's no IT needed. Don't get us going on DevOps again please. I still might flip my mouth with Pat Gelsinger. So no but that slimming down is the trend make the footprint smaller on premise that's just power and cooling and footprint and facilities issue but that's really the trend simplifying and reducing a lot of the manual but small means that enterprise have a revenue opportunity so they're in position to take their, they've been consolidated, they've never had anything to cloud. Cloud they can turn on IT and start doing things. What is that market? But the trend has not been I think to reduce the number of IT staff but to change what they do. Yes, yes. So previously as I said you were building your own VDI infrastructure internally you had guys in who knew how to do that. These days you can buy from companies I may add like us like Fujitsu you can buy a ready VDI appliance that doesn't need those tech heads to do that anymore but you still need the guys to now deploy on the front end side to handle the nuances of bring your own device to take into account the new capabilities that are coming out not just that basic VDI appliance so you still need unfortunately for small and medium business owners you still need that IT team you still need that cost and skill set there it has just changed over the last few years in terms of what it did. So Richard I want to change gears and ask you a couple of questions around VM you guys have a full set of VMware-enabled products and we had Steve Herrod on former CTO now at General Calus, big time VC mostly East Coast but now moving to the West I asked him kind of off camera what he misses the most about VMware and being the tech geek, alpha geek that he is he said I miss the deep integration conversations with partners. So share some insight what it's like to be a partner with VMware and some of the integration opportunities and challenges and how you work with that because we're talking about the NetApp for instance on the storage side they have deep integration and there are big time benefits as you have good integration with VMware so talk a little bit about the products I would say any customer who is going to a vendor and buying a solution built out of multiple products has to make a demand of their vendor partners that they are deeply integrated together you do not want to buy a kit bag of parts that have never touched each other until it gets live on site so a lot of the deep integration work we do in our Munich facility with Fujitsu of course in our Tokyo facility around the corner from where we are here in San Francisco down and Sunnyvale right next to VMware just across the road from Intel that is where we do a lot of the integration work and making sure that those appliances and applications are built both on the hardware side such as the ready VMware appliance we were showing before in the software side in terms of making sure that our software stack is properly integrated on the server side and the client side you've got to have that integration in there not looking just six months out that's nice that's like the announcement always the announcement I think on Monday around a new level of certification that VMware has done a partner like us, fabulous we can now get more of our guys certified all over the world in that deeper level of certification we can get more of these guys ready to go to deploy VMware solutions but most customers are looking for us to be doing integration work a year or a year and a half ahead of where VMware is and that means as a vendor we need to be sharing our roadmaps together on a regular basis we both need to have excuse my Japanese expression opening the kimono together for what we're doing in that environment and making sure that the two engineering teams are working and that is a very rich and fun thing to experience so if he's missing that I totally understand to be in a room with German guys, with Japanese guys, with Brits and with Americans it's fun, it's like working on a car engine or just having fun Exactly, what's the commonality between those guys? Football, soccer, I would say we always say, what's your favorite football team? Excellent, we can get that little conversation going That's our next Twitter project, we're talking about that now let's go back and talk about the HANA because HANA is the same equation, right? You guys, you mentioned that earlier in the interview you're saying, hey, HANA has exploded on the scene we've been doing Sapphire for four years as well with theCUBE and I watched that launch and at that time HANA was baked out over multiple, multiple years by the founder but big data in Hadoop hit the scene earlier but then HANA just came in and it's just been exploding in growth so what's some of the HANA experiences that you have? So, you cannot fail to have missed at Sapphire the HANA story, it was very, very obvious what they're trying to do in that space and for a vendor like us it really gives us a chance to go into both a major data center who need multiple HANA power appliances, multi-node, multi-terabyte support, eight terabytes support of memory and make eight terabytes of memory do you know how long it actually takes to boot a server with that much memory? I don't, but it takes a long time. A long time. It takes a long time. But it's getting faster. Exactly. That was a lot of briefings, quick booting. So, just a demo here? Yes, but just one more thing on the HANA, on the HANA so in the data center very big and then back to the medium business so that's an important point and appliance for HANA in a medium business is also key to get that simple to deploy take away that myth that any HANA deployment is going to cost you what did Steve Lucas say the other day a million bucks to install, no way we can get an installation in much cheaper than that these days much more cost effective, that's true. That's the back end. Let's do the front end. Well, just for the folks out there we're going to see some HANA stuff on Silicon Angle. I talked to some of the folks here in the VMware community we're going to put together a crowd chat around some of the thought leaders in Germany and in the U.S. Real technical kind of chalk talk so we're big in HANA so great job there. Let's see the demo. Sure, so switching back from HANA onto VDI in a VDI environment you've got bring your own device this means employees of your company are going to bring cool things in. May I suggest this is one of the cool things they could bring in. This is our new Fujitsu stylistic Q702 it's a hybrid tablet. You say hybrid? What the heck's hybrid about a tablet? Well you open a little door here and there's a normal looks like a standard clamshell notebook very similar to your, what's that device you got there? It's a MacBook Air. Not even sure what it is and you've got something else from some other vendor. Some other, some other way. Who knows what it is? This device gives you the best of both worlds. Here it is, I simply press this little button and I can whip my fully functional tablet piece away from the keyboard. The keyboard has extra battery inside it has extra longevity and then now you've got a fully functional windows tablet full VMware support in there of course. So as a user you can now bring that tablet device in when you run out of power let me try and bring it up and demonstrate it for the camera if they can see it, yes they can. Flood it straight back into the slot here and then shut that guy down and carry on while he gets some power. So this kind of, please hang on to the device. I'll have it. You can have it for a small fee. I think I've just shut down the credit card number but for you on line there are two available only for the next 15 minutes, if you order one you can get it with free shipping. I didn't win the Audi R10 but so may I, this is great, this is beautiful. Like the Delft Sputnik, we had a little demo of that. Oh did you have a demo already? I looked last night at how many people had done show and tell and I thought hardly anyone had done it so I was going to be first up. How disappointing. So Richard, I want to shift gears a little bit. Talk about you doing work for- I've almost done a demo here on the Cube this week. Oh they haven't? Oh we had Sputnik on, remember at OpenSax on- Oh not here, no not this week. No, first demo here. First demo, live exclusive demo. You saw it, if you missed it, it'll be on demand. Now I was going to ask you kind of about being, you know, representing a big Japanese company here in Silicon Valley, Tech Innovation. I think you guys have been, I think our representation probably on the Cube of Japanese companies is probably not giant. So what is it like in terms of dealing with the cultural differences and then the innovation which, you know, usually comes out of the startup world and then a lot of these guys get purchased by the bigger folks. How do you, as the guy on the ground here in the middle of all this innovation really integrate that back in and make sure you guys are staying, not necessarily on the bleeding edge, you don't want to be in the bleeding edge but certainly on the cutting edge and making sure that you're part of this big wave. So the bleeding edge is where we want to be, where you have to be as a vendor, you have to embrace change in your organization and yes, we're a 50 billion plus dollar company so that's pretty big. We've got 170 odd thousand employees, that's a lot. They're spread all over the world but as part of that, we have deployed fantastic IT system to let those guys collaborate, multiple labs environments around the world so they can share ideas, make no mistake, we're a Japanese company, Tokyo is where a lot of our employees are, of course but being able to have labs here in Silicon Valley, they're actually in the same campus as me down in Sunnyvale, have them on the East Coast, have them in multiple locations in Europe and then be able to have a research and an R&D and lab environment that gathers information from around the world. That is definitely bleeding edge and I try to remember my exact stat, I really should know this off the top of my head but I think we are one of the leading companies in terms of percentage of revenue investment in R&D. We just did our new annual report and I should know that number off the top of my head and I'm going to be shot when I get back to the office. But it only function at 50 billion is a big number, right? It's a huge number and then we put a very reasonable percentage of money into R&D, it's a core part of our heritage. We're one of the leading patent holders in the world both in Japan and here in North America so we're very proud of our innovation. We're very proud of the technology we can release not just simple laptop devices but data centers and deployment services as well. It's key that we listen to our customers. We have formal programs. We were talking a little bit earlier on about something we call field innovation internally. That's a way we go out to our end users and gather from our field experiences around the world what they're doing in innovation environments and then bring that back into headquarters. Can we replicate it? Can we deploy it with other customers? Can we learn from that in our own environment? And if the answer is yes, we're then able to roll that solution out to other people. It makes a very exciting environment to be in and for a Brit working for a Japanese company sitting in America. That's a pretty cool place to be. Yeah, here, having fun. Exactly. Well, we certainly really appreciate you coming on theCUBE and I'll see you with the cool tech there with the product and we'll keep an eye on you guys. What's next for you guys? Our events, what's your marketing plan for the next six months? We are going to be back here in San Francisco at IDF. We're going to be back here in San Francisco at Oracle Open World. We're going to be back here in San Francisco at Dreamforce, so good job. We love this place. Yeah, brilliant friends at MasterMoney. Just get an apartment. We're talking about, let's just get an apartment here. Let me hear some of your time. Richard, thanks for coming on theCUBE. It's Fujitsu, we're watching these guys. Great products, deep integrations. The key to success for everyone up and down the stack. So, whether you're STDC, hybrid cloud, or end user computing in between all deep integrations is critical. Thanks for sharing the update. We'll be right back with our next guest. Day four of our special extended coverage of theCUBE here at VMworld, 2013, I'm John Furrier with Jeff Furrier, right back.