 2016. With over 120,000 members globally, the VMware user group connects VMware customers, partners, and employees to VMware information, resources, knowledge sharing, and networking. Visit the Vmug Lounge in VM Village to learn more. Become a part of the community today. Well tomorrow I hope it's towards us like a sunrise igniting us like here comes tomorrow amazing and delighting us. Tomorrow won't care about networks or protocols or architecture. In fact, tomorrow will probably have a serious freaking problem with authority. Tomorrow will not, not accept runs well and does the job as a priority. Tomorrow won't be customer obsessed, won't be trying to drive customer loyalty because tomorrow won't be about customers. It will be about people. That's us. People in work and dream. We mess up, mess around, dare, smile, dance, and love. We won't wait around for tomorrow to drop. So if you're standing in line for tomorrow, stop. You are tomorrow. You make this stuff. You cracked the code. You sculpt the scripts that the rest of us are riffing on. You are the ones with the soulful minds, the mindful souls, and the nimble fingers that do not stop when the sun goes down. Or sometimes even when it comes back up are the ones changing things. It's 904 Monday morning. This time tomorrow, tomorrow, tomorrow. What will be your rules? What will be your pace? Which way are you going to face? Ladies and gentlemen, please welcome Pat Gelsinger. What a provocative way to start. Which way will you face? Well, obvious, and the answer is simple. Together we face forward. In this greatest period of industry disruption in our history, it is also the greatest period of opportunity. And that's the essence of the M world. We have 23,000 of you with us. And on behalf of the 20,000 VMware employees, we are facing forward with you today, this week and every week with you to the future. This week, we are thrilled with the innovations that my teams and with you, our ecosystem partners are bringing forward to enable you to yet again face forward and change your business yet again. This is my fifth VM world as VMware CEO. I'm thrilled with the energy and many more to come. You might have noticed I'm moving a little bit slowly here. I had a foot injury and 10 weeks ago, I was playing racquetball with a few of my buddies and I jumped for a shot. I was behind in the game, but I made the point. I'll point out. I made the shot and I landed sort of on the toes of my foot and I broke the fourth and fifth metatarsal. I sort of stumble out of the court and sit down. It's like I have to go to the airport right after this to pick up my parents who are flying in the town. So I took a shower. By the time I got out of the shower, my foot looked like a sausage with five little sausages sticking out of it. Yeah, that's how it felt too. And I call up my wife and I say, honey, I don't think I'm going to make it to the airport. You got to go pick up mom and dad. My daughter runs me to the emergency room. They take X-rays and the emergency room doctor comes out and he says, spectacular spiral fractures. Yeah, if you hear spectacular in an emergency room, this is not good news. The next day is my son's wedding. I show up for Micah's wedding, right? And here I am and he says, dad, you'll do anything to be the center of attention. And then five weeks later is my daughter's wedding. We have four kids, two are married, two got married this summer. And so usually it's the dad walking the daughter down the aisle. This time it was the daughter walking the dad down the aisle. As I'll say, it was tears of joy and tears of pain, but she got married. I did the walk and did the dance and it was just spectacular despite my injury. So a little bit slow today, but we're going to have a great time together this morning. And in particular, I want to call out 21 people, the alumni elite. I think you're somewhere over here. If you could stand up, right, if we could put the lights on 21 people who have attended every single VM world. Let's just give them a round of applause. Thank you for your friendship. Thank you for your loyalty. And because of that, we're giving you lifetime passes to VM world for everyone in the future as long as you keep attending for you and your spouse and significant others. So thank you very much. You know, we hear this term a lot, digital transformation or digital business. According to Google, this is now one of the top rated search terms. You know, as a tech industry, we love hype, don't we? Right? You remember was words like the new economy? Right? Or, you know, words like a paradigm shift or e business. Remember when it was web 2.0? You know, by now, I think we're at web 37.0. And this idea of a new business, a digital business versus a traditional business, right? Are you part of that cool new digital stuff? Are you part of the old clunky traditional stuff? You know, and this philosophy is that these are two different worlds and you need to manage them differently. Our view is nonsense. In fact, all business is digital business. There is no longer a meaningful distinction. And every industry and every core business processes becoming driven by digital being driven by the cloud partners and customers want to engage with a mobile experience. And there is no longer a distinction from digital to traditional. And the real question to ask is what is your strategy in an all digital world? You know, one of the questions that we have to ask is is this for real? Right? And, you know, while there's lots of talk, right, can it really be executed effectively? And there's a couple of customer examples that to me are inspiring. GE in 1896, one founded one of the first 12 companies that were listed as part of the Dow Jones industrial average. Today, it is the only company that is still part of the Dow Jones and industrial average. Can you believe that? Exactly one company of those survived, GE, 12 decades later, and they are still innovating as part of their core business processes at a furious pace, launching new cloud platforms like Predex. They're applying analytics to real time data to allow for the optimization of machines in real time of their 200,000 pieces of heavy machinery optimizing their performance and behavior in real time innovating at the core today. Another well-known brand, CVS Pharmacy, your local pharmacy. Think about a person who might have a complex medical illness, maybe multiple sclerosis, rheumatoid arthritis, different forms of cancer. CVS has delivered a webby award winning mobile application to manage everything that does their scheduling of doctors appointments. Does their scheduling of taking medications that does bill paying interacting with insurance agents over secure device connection doing real time notifications, choice updates, refills, a game changing application for people with a lot to keep track of. They're going from being the pharmacy to an intimate relationship with their most valued and important customers. So this idea of digital adoption IDC says that about 20% of businesses today are leaders, companies that have been able to engage with customers in a new meaningful way that are creating measurable competitive advantage. But eight of 10 are still trying to figure it out or laggards. And what's the difference between those leaders and the laggers and we believe it sort of boils down to these two things. One is the culture of those companies and second is their technology strategy with culture. Are they rewriting the rules or are they optimizing today's systems to the next level and the technology are the relying on traditional IT and optimizing their client server or are they leaning forward with a mobile cloud architecture? You know, as we think about this, you know, since the late 1700s in England and the industrial revolution, it has all been the same thing. Optimization, optimization of resource delivery of supply chains of manufacturing processes like the famous Ford lines, you know, distribution and retail. What we're building now is as transformative as the industrial age, right, where we're creating fundamental new forms of competitive differentiation and customer engagement. And it's often thought that one is replacing the other and our view it is one builds on the other. And just like the GE example where they co-exist, new systems built on their existing business processes and end-to-end delivery mechanisms. And the cloud is the foundation of all of these. So let's go back to the year 2006 and look at some of the major events that happened in 2006. Now Pluto lost its status as a planet that year. Now I'm still not quite over the fact that we lost the planet in my lifetime. It was also arguably the, you know, a great soccer year. How many Italians are here? Right, you know, it's the year you beat Germany for the World Cup. Aren't you proud? Yeah, come on Italians, you're more walkers than that. Yeah, come on Maurizio. Right, it's also arguably the year the cloud was born. And that year, 10 years ago, almost to the day, in August of 2006, Eric Schmidt, a long time friend, I've known him from his days at Sun, you know, walked on stage at a search engine conference and he described Google's core vision and approach. Let's listen to Eric. I don't think people have really understood how big this opportunity really is. It starts with a premise that the data services and architecture should be on servers. We call it cloud computing. They should be in a cloud somewhere. So think about that. It's amazing to consider, right? It should be in a cloud somewhere. And at that time, the idea of a cloud was a new concept. So let's look at what's happened over the last 10 years since then. So I've had my crack market and analytics and research team, you know, look at all of the data from all the different industry analysts combining that with our data. And remember with the huge penetration of the virtualization platform that we have, we have lots of real data ourselves that nobody else has. And try to come up with a detailed assessment of clouds. How big are they today? How big were they in the past? And predict how big they will be in the future. So 2006, 98% of workloads, right, the 29 million workloads at the time, workloads being an operating system instance, we're running in traditional IT. Just a few months after VMware was born, another company was born named salesforce.com by Mark Benioff. And the 2% in public cloud is largely a representation of salesforce.com. With you, we modernize the data center. At that same period in history, Mark Benioff and team were creating the enterprise sales market. So let's go fast forward five years. 2011, workloads have doubled. The cumulative annual growth rate, right, has now 22%, you know, private cloud. And our definition of private cloud is not a virtualized environment, but it's an automated provisioning operations and self service environment. Public and private cloud, both growing, running neck and neck. And that growth is you, this audience, this ecosystem, and still the vast majority of workloads managed virtually. Let's go five years forward to today. And here we are today at about 160 million workloads, public and private cloud sort of running neck and neck, you know, businesses excited about the agility and the flexibility and the benefits that cloud provide, but still 75% traditional IT. I asked my crack research team, when are we 50% in the cloud? And the answer is 2021 is when we hit that 50% mark. And I said, can you give me more precision? They said June 29th. And I said, can you give me more precision? And they said 357 p.m. on June 29th. We're 50-50 in the cloud. What do you think? Okay, as a bunch of geeks, maybe that's just too many significant digits of precision. So in 2021, 50-50. And you see that public cloud is now 30%, private cloud 20% is the public cloud racing ahead. Let's click a little bit more into that. And what you see is that it's about 50-50 of that public cloud between AS and SAS. About 20% private, 16% AS, and about 14% SAS. But you still see, even in 2021, we have a long way to go. I then asked them the question, when does public cloud become more than 50% of all workloads? And the answer is 2030. In this period, about 30% in private cloud. And at this point, just one in five still in traditional IT. 14 years for us to go to get to that point of 50% public cloud. A long way to go. We have much work to do. Now, let's look at this from a different perspective. As this pie is growing, there also is a shift in how people are running and where they're running their workloads. The hosting market today is about a $60 billion market. Customers increasingly say, I don't want to be running the hardware associated with that. And we'll call this a managed cloud services opportunity. 18% growth rate. The managed cloud services. And this is the space that a huge portion of our vCloud AI network partners who are here, 4,200 of you, are two thirds of that revenue is in this space. And it's growing rapidly. But that market is also going through a significant transition from traditional hosting to a cloud-centric hosting model with our vCloud AI partners. The geographic reach now 120 countries worldwide. A huge opportunity for geographic and vertical industry expertise for us as we go forward in this space. And this idea of hardware no longer being built and operated by enterprises. Because increasingly companies want to get out of the job of building their own data centers and operating their own data centers. Presenting a huge opportunity for service providers. Highly instrumented, modern, efficient cloud-scale data centers. And 2016 is the crossover year where that becomes the dominant way that data centers are built and operated. My private cloud running on somebody else's hardware and data center. So that gives a fairly comprehensive view of cloud infrastructure. What about the devices that connect to those clouds? And the growth of PCs followed by tablets and mobile phones has been well-critical. But we see here in 2016 that we're reaching saturation. And unfortunately, it's largely becoming a replacement market. We're not penetrating large portions that are under-satisfied. We're unevenly distributed, right, as we look to the future. But what about IoT and all the discussions that we have about machine-driven connectivity? You know, lots of hype and discussion in our industry. And after many years of hype and discussion, it's about to explode. Right, if you look at that data, four point, you know, four and a half times more devices over the next five years exploding, right, to 18 billion devices. And this is a rigorous definition of what a device is. Right, eliminates sensors, passive devices, that are IP connected, bi-directional connectivity, secured, managed devices. And in Q1 of 2019, my crack research team says is when we have more of those machine-enabled devices versus human driven devices connected to the internet. An enormous opportunity. Now, as we've looked at this environment, conventional wisdom has said that it could lead to a shrinking IT market. That overall, the market, as we move from private to public, will shrink. We believe that is fundamentally not the case. As cloud takes root, IT becomes more cost effective and more accessible. And we believe it expands the investment in IT as we look to the future. I remember when I was working as the architect in the 486, we were almost three times faster than the 386. And we had these debates where we're going to see the number of microprocessors decrease because we could easily replace several of the old microprocessors. Now, how many of you, was that a preposterous argument? But can you believe it that we had that? And in fact, as we made processing cheaper, what happened? The market for processing exploded. And we believe the same thing happens as we move to this cloud that computing and processing capabilities are like the gas law. They expand to fill the space available to them. IT is now leaving the nest of the technology department. And cloud and IT is now permeating every aspect of business. And with IoT, every aspect of the physical world as well. So with, we looked with IDC and we said which industry is embracing cloud most aggressively? And of course, you know, 50 plus industries, number 10, construction. That was pretty surprising. You know, number nine, professional services. Okay, the financial services, transportation at number six. That's impressive. Manufacturing at number five, resources, oil and gas. Number two, communications, service providers becoming cloud providers. Okay, that makes sense. We all love top 10 lists. So who is number one? You are right. This is not an industry, you know, story of the cobblers children having no shoes. We are embracing and changing everything about the way that we work. But it's not just that every industry is embracing cloud. Every function with every industry is embracing cloud. The story of marketing, grabbing a hold of IT and called shadow IT or self starting IT, you know, has now been told where the marketing department says I want to control the digital engagement with my customers. And, you know, 12% they're embracing and driving it. But the spectacular thing, the marketing story has been told over several years. But with the economists, the research showed a stunning story. Every other function is approaching it the same way. 24% average increase in IT investments by those non IT functional departments. Now, for us IT professionals, this could be a little scary. All these other portions of the business are now becoming their own IT department. Right? And we have to, you know, understand how to bring and manage those environments. But for you as individuals, such good news. Every skill that you've developed, every portion of the business wants you. The skills that you have mastered over the last decade or two is becoming mission critical to every part of the business. Now, with the economists, we also looked and said, what does that typical enterprise look like? And look through the macro view of the shift and we interviewed both business professionals as well as IT professionals and asked, what does your IT environment look like? And the picture was pretty scary, actually, when we saw this on average. And what we saw is that eight average cloud services, that there's 200 different internally developed applications, 200 external third party apps, 11 different devices, Windows, Android, iOS devices. And, you know, this picture is one of complexity, one of change. And traditional systems of IT are doomed to fail. Now, in that same survey, we asked, who is in charge of security? And the answer was two thirds of the time, you are IT. Make you feel good? 23% it's you and the business owner. So in other words, nine out of 10 say it's your responsibility. So you're feeling good? So in an environment where you no longer own the device, you no longer wrote the application, you no longer control the data centers, and you no longer control the networks that those applications are running on, you're still in charge. How do you feel? Woohoo, that's my job. I love it, right? I'm responsible for everything and I control nothing. Sound familiar? What this points to is an environment that sets up the fundamental dichotomy. Freedom versus control. How many of you are parents? Okay, what do your kids want? Freedom, right? You know, I want to stay up, I want to eat what I want, right? You know, I want to see my friends and so, you know, your kids want freedom. What do you want as a parent? Control, right? You know, I want you to do your homework, I want you to be in bed by nine o'clock, all of those kind of things. Freedom versus control. As a parent, you need some amount of control. And then in a period of great and massive change, like the teenage years, what happens? This tension is heightened. So here we are in this period of dramatic change and the tension is heightened. You and your users want the freedom to choose any cloud service, but you must maintain some level of security, compliance and control. And this is our focus at VMware. VMware is solving this dilemma, is offering freedom and control. And we've been working on that for some time. In fact, this is the hybrid world that we live in. Private clouds, public clouds, a hybrid environment. And looking at the data that we discussed before, this is our world for decades to come. You know, on the power of the software-defined data center, that all of you together have pioneered compute, network, storage, management and automation has been to solve these fundamental problems. And it was almost five years ago to this day when Raghu Raghuram, right, the GM of our software-defined data center division, I like to call him Professor Raghuram, walked on the stage of Copenhagen in 2011 and described this vision. If we could hear from Raghu now. Increasingly, all the infrastructure functions that we know of will be developed and deployed in software. And even more importantly, the control of this data center is entirely done by software. The data center is on its way to becoming programmable and automated. So we call this the software- driven data center. What a prophetic description that he had at the time. We call this the software-driven data center. The data center is on its way to becoming programmable and automated. So let's take a look at how we did from this prophetic vision. In the area of compute, 80% of all workloads are now virtualized. Right, compute has saved hundreds of billions of dollars in the industry. You know, we have been able to reduce dramatically the environmental footprint for 500,000 businesses. Management and automation, we realize, is now recognized clearly by all the industry analysts as the number one cloud management platform by a wide margin. In the area of networking, with the NYSERA acquisition, we declared a revolution in networking. And if you are followers of Jeffrey Moore and works like crossing the chasm, he describes this period where you go from early adopters to early market adoption as the tornado phase. NSX and vSAN are now in the tornado phase of industry adoption. 400% year-on-year growth in customers over the last 18 months for network virtualization. Tomorrow you will hear from Rajiv Ramaswamy, our EVP of network and security of NSX today and its strategy into the future. And storage with virtual sand now at 5,000 plus customers. The clear leader in software-defined storage and hyper-converged infrastructure. Tomorrow you hear from our SVP of storage, Yang Bin Lee, and the strategy that we have to even go faster in this space. Now it's great to hear from me. Let's hear from customers and how they are adopting the software-defined data center. You can play the video now. To seamlessly extend virtualized storage and network services, these innovative companies count on the software-defined data center. The California Natural Resource Agency is made up of about 33 different organizations whose mission is to protect and manage all the historical and natural resources of California. We've really been on the software-defined journey. We've been able to reduce CAPEX and OPEX cost by over 30%. There's so many different ways that you can apply a digital signature in the physical world, be it on an NFL player or a package that the United States Postal Service is moving. The VMware products allowed us to achieve a lot of scale very quickly that we couldn't have achieved without the automation and the orchestration of tools like VRealize. VSAN is a solution that I believe is applicable across the board. Storage requirements today continue to race. What used to be in the megabytes is now in the petabytes. To be able to take a technology that traditionally required racks of gear down to basically sharing resources that the servers provide. It's an amazing technology that has use in just about any industry. NSX gives our customers the ability to segment their network environments dynamically depending on the mission that they're required to go and execute. The measure of success for our integration of this generation of software-defined data center technologies from VMware was really around the speed to deliver the services that our internal customers needed. VMware technology will allow us to craft that next generation secure IT services that can be applied to our nation's hardest problems. Great, great customer examples from you and many others taking the SDDC and delivering the private cloud. But we didn't stop there. We set the standard for hybrid into cloud as well. Extending two different cloud resources, vCloud Air with use cases like data center extension and data center consolidation in DR. We continue to innovate there with services such as we're announcing today with our vCloud Air hybrid cloud manager zero downtime at migration to and from vCloud Air and amplifying that through 4200 vCloud Air network partners. Tremendous innovation across SDDC, vCloud Air and vCloud Air network. But we're not stopping there. We see that we must address the next industry challenge and in this world where clouds and devices and the complexity is accelerating and with that today it's my pleasure to introduce the cross-cloud architecture. The cross-cloud architecture enabling you to run, manage, connect and secure your apps across any cloud and any device using a common operating environment. And fundamentally at its core the cross-cloud architecture is providing freedom and control. It's like having a teenager that you both love and like. Within the vCloud, VMware cross-cloud architecture, there are really two components. The VMware cloud foundation and the cross-cloud services. Let's start by looking at the VMware cloud foundation a little bit more closely. With the VMware cloud foundation it's taking those components of the software-defined data center. Compute network and storage, bringing them together with the automated lifecycle manager capabilities and new set of capabilities that automates all aspects of installation, update and lifecycle management for that data center. Simply put we make the private cloud easy. And today we're announcing pricing package availability of the VMware cloud foundation. But we're taking it a step further as well. And a key aspect of the VMware cloud foundation is delivering it as a service as well. And we expect broad adoption of the VMware cloud foundation by the industry and our vCloud AIR partners globally. And today it's my pleasure to announce the first of those partnerships for cloud foundation as a service with IBM. Now before I bring our special guests from IBM on to stage with me, you know I wanted to just describe a little bit the IBM partnership. In February we announced the first phase of this partnership. We extended in the June with our end user computing and desktop, right, and delivering IBM's extraordinary focus on delivering clouds at scale. But I was with a customer in February just two weeks before the announcement. And I'm talking to it's a large medical services and hospital provider, you know, and I'm describing to Mike the CTO there what we're about to announce with IBM. And I get about 90 seconds into the description and Mike yells touchdown and throws his arms in the air. And for those of you not familiar with American football, that means score. Good, right? Stuff. So please join me in welcoming to the stage touchdown SVP of IBM Cloud Robert LeBlanc. Thank you, Pat. Great to be here with you. Oh, thank you, Robert. And tell me, you know, since February, you know, we've got a lot done, but how's customer response and industry response been since our announcement? The response has been absolutely phenomenal. I really think we hit a nerve with the clients and I think we're absolutely solving together a fundamental problem they have. We have over 500 clients that are up and running on the public cloud, the IBM public cloud today. And we're seeing growth of 50% on a month to month basis, which is absolutely outstanding. But I think, you know, when you take a look at it, what we're really helping clients do is deal with the skills, the time, the customization to really build out these cloud data centers. And, you know, we've seen anywhere from eight to 10 weeks to stand up a software data center now being done in hours. Wow, that's impressive. That's real. I think that's value. So when you think about it, we can provide higher quality at a lower cost in less time and in a more secure environment. Yeah, of course, on global scale as well. And global scale. I think that's a winning play. Yeah. And, you know, so we extended the partnership with the DAAS announcement. How's that piece going? Again, I think it's going great. I think really what people are looking for is they really want as a service and they want to be able to utilize virtual desktops and apps to any device in any location without the cost and hassle of owning the underlying infrastructure. So our global set of capabilities really enables clients worldwide to take advantage. So what are your thoughts today? I described to the VMworld audience here, the VMware Cloud Foundation. What do you think about that? Well, you know what, we're really excited to be the first partner for the VMware Cloud Foundation. As you know, we've been working together on this and I think it's awesome. I think taking vSphere, vSAN, NSX, SDDC manager and making it available as a service really is going to enable all of you to really extend very quickly your environment and enable you to utilize IT as Pat said earlier to be a change agent and to provide more value. So I think this is ideal for hybrid environments. And on the plus side, you add security and compliance that you need. And I think that's an important thing that I hear from clients all the time. So I really believe what we've got here is something that's pretty compelling and will help all of you really accelerate your journey here to have IT be the change for your businesses. Yeah, thank you. Our engineers have been working double time to get that. They've been doing great. I'll tell you. Thank you. Now, you mentioned 500 plus customers on the platform and here's some of the sample brands, little companies, startup companies, but also some big global brands as well. Yeah, I think this really tells you that this is a set of capabilities that's for anyone who is going out there in a hybrid environment, utilizing the public cloud and traditional data centers. It doesn't matter if you're a small startup here or out in the valley or you're a large multinational company that goes across the world. There's real value here. So we're seeing a very good mix of clients and that says we're really providing value. Excellent. Now I think you have a special guest for us this morning. Yeah, absolutely. You know, they can sit and listen to the two of us, you know, espouse how great the vendors are, but it's always good to have a client. And one of the clients that we've been working very, very closely with is going to join us today. And that's Marriott. They're a world leader in hospitality and lodging. And it is my pleasure to have join us on stage here. Alan Rosa, who is the senior vice president of technology delivery and IT security at Marriott. Good. Good to see you. Great. Thank you, Alan. Well, Alan, I think most people in the audience know about Marriott, but tell us a little bit more about Marriott and your mission. Well, you know, we're one of the largest hospitality companies in the world, over 4,000 hotels, 19 brands, growing revenue base. We've been in the news recently for some of the things we're trying to do to continue to grow our business through acquisitions and integration. So I think it's an exciting time to be at Marriott. We're doing a lot of really good things. And more than anything else, what's impressed me about the way our business is growing is the global reach. Now, you know, technology is great, but technology really is an enabler. What are your top business challenges that you're trying to adjust here with the technology? Our changing customer demographic. Our guests today are more tech savvy than they've ever been. Millennials are becoming a larger base of customers for Marriott. And even our existing base have been loyal Marriott guests for years are changing the way they consume technology as well. The devices are coming at us in many forms, shapes and sizes, and the way they want to consume our services is adjusting as well. For sure, there's still folks that will use the traditional call center or some of the other traditional channels, but we find that revenue growth through digital is where it's at for us. Now, you know, we're making a set of announcements today, both VMware and IBM. From your perspective, why is that significant? What all starts with VMware Cloud Foundation and the work that we're doing with both IBM and VMware to bring that to life. And we have some of the most talented engineers anywhere. I'm very proud of the work the team has done, but our ability to take a piece of technology, a piece of automation, any set of capability, and then develop it one time and extend it both to the private and the public space is going to allow us to speed up our time to deliver, our time to market, and keep up with the rate of change. Well, that's great to hear, Alan. And what about the mobile aspects and the client interface pieces? We've made large investments in that space as well, starting with Horizon Air, as well as continue to proliferate our devices through AirWatch. Got over 20,000 devices on AirWatch today. But we're also not forgetting our traditional IT or on-prem solutions that are still changing are still evolving. Large investments in our hybrid cloud and Horizon emulating some of these applications and just continuing to adjust our reach globally, whether it be in Africa, the Middle East, or in the domestic U.S., it's a core foundational platform for us. And ultimately, it comes down to the customer experience and some examples of that, Alan? Two come to mind. One is Marriott reimagined. So the team has been hard at work at reinventing our digital platform to look and feel of it. We recently deployed new capabilities on Marriott dot com and our mobile app. In addition to that, we've deployed a new capability called age-based pricing, which allows us to vary our pricing based on the age of our guests. And that, of course, is very important to families on vacation or even business travelers who want to bring guests along with them. Well, very good. Well, Robert, thank you for the partnership, the engineering, the service. Alan, Marriott, what a great brand and thank you for joining us here on stage and telling about how you're using the stuff that we're working on together. Thank you so much. Very good. Thank you, Pat. Thank you. So we've described the VMware Cloud Foundation and how it's being delivered both on-premise and as a service. Now I'd like to switch gears and talk about the second big component of our cross-cloud architecture, cross-cloud services. And these are a new set of SaaS-based offerings that enable you to manage, govern, and secure applications that are running in private and in public clouds, including AWS and Azure, providing visibility into cloud usage and costs, consistent networking and security mechanisms and policies across clouds, automating the deployment, management, and migration of apps and data across vSphere and non-VSphere private and public clouds. Cross-cloud services are truly a breakthrough innovation that only this ecosystem could possibly deliver. What I'd like to do now is give you a deeper look into cross-cloud services and to do that, I ask you to welcome with me the CTO of our Network and Security Business Unit, Guido Appenzeller. Guido. Pat. Thank you. Take it away. All right. Good morning. Actually, I'm very excited to be here today. So you saw from Pat how, together with our partners and the VMware Cloud Foundation, we can deliver to you the complete SDDC experience, either on-premise or with part-lies like IBM up in the cloud. It's a great product. So over the last year, I had conversations with many of you here in the audience, in fact, over 100 of you about how you're using the public cloud. And there was one message that came back very, very clearly, which is everything we've shown you so far with Cloud Foundation by itself that is not enough. And it's not enough because many of you today have developers that have started building applications on the big mega clouds, on Amazon, on Azure, on Google. They're using the native APIs of these clouds, using services like EC2, like S3. And going back to all your developers and telling them, look, stop using that, go back to a pure SDDC environment, that would not only be very, very unpopular I would argue it would be bad for business. These mega clouds, they're a great opportunity and we should embrace and use them. So what does it mean to be an IT department in the age of mega cloud? Because you currently have this narrative in the press where basically people are saying, in the age of mega clouds, we don't need IT anymore. It's now the business unit that's driving all the decisions. You know, the CIO is dead, you know, long live the chief development officer. So do we still need IT if we're going to Amazon and Google and Azure? So I can, I mean, tell I can tell you one thing, this idea that IT is no longer necessary is completely crazy. I mean, think about it, right? You're taking an application from on premise, you're moving it up to the cloud. Do you still have to worry about security? There's a big data breach. Does it still have major companies for your company? You know, of course, right? What about compliance? Do you still have to be compliant if you're running the public cloud? Yes, you do. What about cost management? You have, you're spending millions of dollars on these clouds and somebody has to control cost. And as these systems age and mature, there's legacy applications that need to be supported. So even at an age of mega clouds, we still need IT. What does change is how we're doing IT. That's different with mega clouds. And to talk about how it is different, I'd like to welcome someone from one of my favorite banks then innovator on Wall Street where they're really changing how IT is done in the financial sector. Please welcome Moti Finkelstein from Citibank. I agree. No, I agree. Moti, it's great to have you here today. So you've been on one of the leading banks when it comes to building on-prem data centers. You also now leading the charge when it comes to adopting the cloud. Tell me a little bit. How are you thinking about the cloud? Is this one cloud? Is it multiple clouds? Is it just private? Is it public and private? I think the key is to focus on what we're trying to achieve. What we're trying to achieve is what our customers need to address their needs. So can a self-service automated environment actually enable rapid development providing security for our customers' information? And yes, we want resiliency, reliability, security. Did I say security? I said security. And we have to make sure that we can do with commodity components. And the bottom line is we can create those environments internally. And we can also have use cases where we can use external cloud providers. Again, provided the right security is there. But I really think that the key would be to use a hybrid model. That hybrid model wouldn't enable us to really address those peaks and valleys, those ups and downs. How do we ramp up resources and ramp them down when the need arises? And that is really the key why we would want to have multiple cloud providers address this hybrid model need. Okay, so that makes a lot of sense. So if you're thinking about multiple clouds, are you worried about at all about the complexity? You know, you have your Amazon silo, your Azure silo, you have your on-prem. Is that how do you want to tackle that? So it's a challenge. First, you have to have the applications architected even for your own internal PAS environment in such a way that they enable that bursting capability. The other item is you have to address the APIs. You have to address the various services. And the more complex APIs and services you want to use, you of course have to make sure that you can do that across multiple cloud providers. That makes a lot of sense. So you manage this idea of bursting, right, that, you know, for let's say summer interns or your once a week big Monte Carlo simulation, right? You would be great if you don't have to build the capacity online, sorry, on-premise, but you could use the cloud instead. Can you talk a little bit more about that? Sure. So in reality is for your baseline needs, it is probably can be optimally done within your own data center. But all those peaks and valleys I discussed before is where you really want to arbitrate between different cloud providers. You want to make sure that you get the best for capacity, resources, and availability that those cloud providers have to offer. But for that, you have to be able to bifurcate the workloads to the various cloud providers and that's not simple enough choice. That makes sense. So my last question here, I think one of the biggest challenge we all see when moving to the cloud is like security and compliance. And you're in banking which makes this particularly hard, right? How are you going to tackle that? So security is that I say secure. How many times did I say secure? Many, but the bottom line is security is critical. Customer data is critical. We have to make sure that we protect our customers data. We have to make sure we know where the data is, where it resides, who's accessing it, who's allowed to access it, from where they're allowed to access it, how the data is stored, how the data is transferred. All those different items are items we have to keep track and make sure they're done in a secure fashion and we have to make sure that they're done in a multi-jurisdictional compliant, legal, regulatory, legal approval. All those items are things that we have to address. In addition to that, we also have to segregate employee and customer data. We have to make sure that no one can skip that authorization between employee and customer data. So security is incredibly important. Fantastic. Well, thank you so much, Marty, for sharing that with us today here. I really appreciate it. Thank you. What do you think, Steve? So talking to people like Marty really made us think, right? Going up to the cloud comes with a whole new set of challenges. Why can't we, as VMware, build a new set of tools that allow you to manage across cloud, across Amazon, Azure, Google, and, of course, all vSphere-based clouds? Because if you think about it for a second, right, today, you can use VMware to migrate a workload from an HP server to a Dell server to an IBM server. Or you can use NSX to spend a network across a Cisco switch, an Arista switch, and a Rokate switch. Why can't we do the same thing for public clouds? Create a layer that spans across an Amazon, an Azure, and a Google. And it turns out, we can. And that is cross-cloud services. It's a set of SaaS services that allows you to manage across all clouds. And I can show you a lot more slides about this, but I also have a demo. Does anybody here want to see a demo? All right. So can we cut over to the demo? And the first thing I want to show you is actually management and automation. So cross-cloud services is a set of SaaS services. That means you don't have to install anything on-premise. What we're showing you today is an early tech preview, right? So the first thing you do is log in. You just saw that here. At the top level, you see a suite of services. You can use them individually or you can mix and match, but they also all work together really well. And the first thing we're going to do here, we're going to show you, is we're going to take an application that one of our developers built for the public cloud Classic Shadow IT, we're going to onboard it. And to do this, I'm going to go here to my cloud credentials. And on the cloud credentials, I'm going to add, so I can have different account types and I'm going to add the credentials for Zoe that she gave me. And once I'm done entering these credentials, what's going to happen is that cross-cloud services is going to go and siphon up all the information about Zoe's workloads, the services she uses, all the other information from the cloud that she has been using. This happens in the background. And we can then pretty quickly go to our dashboard and take a look what we found. So this was instead of Amazon credentials, we'll click on Amazon here. We can see in the data center, this was US West, we saw 28, we're seeing 28 workloads. So that's all the things that she built. We can take a closer look by showing the instances and actually searching for Zoe's instances that are running on Amazon. And so here you get a more detailed view that shows you cost and which account runs under and so on. But by far, the more interesting view is to look at this by application. So here you can see how we discovered that just three applications running in the public cloud. And if we actually click on one of them, we can also see the tiers of the application. So this application is a web tier an app tier and a database tier. So this all looks pretty good so far. Let's take a quick look at what the cost is. So the cross-cloud service can also tell me what is the cost, how much will the cost be over a certain period of time? What's utilization these instances? Are we using them efficiently? So everything I see so far, I'm actually pretty happy about. But as Motty just said before, security and compliance is a big topic as you move into the public cloud. So I'm going to use another service here which is Security Insights and take a close look at the network traffic and the network settings for this particular application. So I'm in the search bar here and typing in, you know, the name of the VPC that's the Amazon network that Zoe was using. And this shows me a view where I can see the different tiers of the application and how communication is flowing between them. So first I'm going to take a look at my web tier and I can see there's traffic coming in from the internet going to the web tier then going to the application tier. That looks pretty good. About as expected. Let's take a closer look at the application tier. So this is a little odd. There's traffic coming from the internet directly to the application tier and our policy that usually shouldn't happen. Let's do, check one more thing how we're doing on the database here. So for the database as well we have traffic coming from the internet hitting the database directly. So that worries me a bit, right? That's usually not what I expect. So I can drill down here. I can look individual flows. I can see how much traffic is flowing. That's probably not a good configuration. So that's something we need to change. All right, let's go back to the slides here. So we showed you how to do discovery, cost analysis and monitoring of applications running on Amazon or another cloud using the Ember across cloud services. Now as part of this I found out that my security settings aren't quite up to sniff so I need to improve them. So the next thing I want to show you is how we can do networking and security. And actually I want to invite another customer on stage to help me with this. They're one of the innovators in the retail space. They're running one of the best software-defined data centers I've ever seen. Please welcome on stage John Spiegel from Columbia Sportswear. You know how you're doing. John, it's great to have you on stage here. Thanks for coming. So John, I'm a huge fan of your data center architecture. Learning something every time I look at it. But I'm actually also a big fan of Columbia Sportswear and we got some proof of that. So I was on a camping trip a few weeks ago in Eastern Utah and you can see our kids here fully decked out in Columbia gear. I think I was wearing some Sierra pants and some Grand Canyon hiking shoes. Nice, nice. It's great to see this. I mean we want to keep our customers warm, dry and cool. But one thing I want to point out Columbia Sportswear is much more than just Columbia Sportswear. We're actually a family of brands. In fact, what I'm wearing today I've got Sorrel boots on Prana pants, a Columbia shirt and then this jacket is from Mount Hardware. It's using our innovative dry queue fabric. Stands up to just about anything Mother Nature will throw at it. All right, perfectly decked out here. So let's come back to IT. Columbia is one of the most innovative companies I think the retail sector I've seen. You managed to do a transition from what I would call a classic traditional data center to a modern private cloud. Can you share with us some of the experiences from that? Was it easy? You know really it's not the answer you'd say is the technology hard and it's really not. It really comes down to culture. Building the proper culture within your teams and your infrastructure groups. And for us a really easy way of doing that is book club have people read books. One of the books we focused on was the Phoenix Project. If you haven't read it highly recommend it. The big analogy of the Phoenix Project is to treat IT as a factory. So focusing on efficiencies, optimizations and I think it's a really good approach. But when we see things like what you showed on stage this shadow IT challenge or disruptive applications being brought into the enterprise I don't know if it always holds up. Another book we've been reading is a book by Stanley McChrystal General Stanley McChrystal who ran Special Forces in the Middle East. He came up against a very difficult enemy and it required him to look a little differently. They realized that efficiency wouldn't work for them and so they had to focus on greater communication, robustness and resiliency. Very insightful book I encourage you guys to read it. Awesome. So you've also been one of the I think earliest developers are maybe the first customer even right of what we just saw as the security analytics service which is based on the ARKIN acquisition. Yes. And you are actually using that today as a SaaS service in the cloud to do network analytics for your on-prem software-defined data centers. Is that correct? Exactly. The ARKIN tool is amazing. Very simple to use. The interface is very GUI-like. Google for network operations or security operations. It's been very helpful for us. Gives us great insight into security. Network, NSX, hardware but it really comes down to how easy is it to use and one of the ways that we innovated with this and we innovated with the ARKIN team is on firewall rules. How do you, you know, determine what's going on in a network when you have say a virtual layer of hardware layer multiple firewalls, NSX, Palo Alto and the ARKIN tool has that ability. We were able to work with them and take what essentially was a 45-minute process and get it down to five minutes very easily through ARKIN. Fantastic. All the SaaS. So you saw my network configuration here for my app. What do you think? Is that kosher? We have a term at Columbia Sports World called Tested Tough and I think your database is going to get tested tough if you leave it that way. You just leave it access to the app. All right. So here's the good news and can we switch back to the demo? The part of the Ember cross-cloud services is essentially a SaaS version of NSX that allows you to do networking for public clouds. So what we're going to do and what you can help me with here is we're going to first onboard this application that's a new process and then we're going to secure with the NSX that you know already. So if you look at the screen the first thing we see is all the networks we found on Amazon and for one of them we have NSX deployed already but for the other ones are not controlled by NSX today. So we're going to onboard this we're going to pick the network and before we do this let's switch over quickly to the instance view here. So here you can see all the instances running on Amazon so the normal Amazon console. We'll go back and then start the the deployment process here. We got a quick question old IP space or new IP space we have a lot more flexibility with cross-cloud services than we have with the native networking here and then we're going to start deploying NSX and onboarding this with NSX. And the first thing that's going to happen actually we're going to spin up a gateway this sort of serves as the perimeter defense for my cloud network and makes sure that everything is going in and out you know will is protected with NSX. The we also have an agent that's already baked into our image here so we don't have to do anything there and if we refresh this we can see how all the all the instances have come up the gateway is spinning up here if we go back let's have a look if they've all connected to NSX and yep we hit refresh you can see here NSX cloud agents available everywhere. So John from this point on you can use NSX exactly the NSX you have on-premise to control all of these workloads in the public cloud. That's great stuff. Good. So the next thing we want to do is actually secure this particular application. We're going to do this with a with a new policy template editor where basically we have a predefined policy template that lays out firewall settings that and also encryption settings in this particular case to show you that the encryption is actually real let's go back to the app for a second and you know we'll we'll run a little sniffer here that actually sniffs network traffic and if you look at the output of the sniffer in the right column here you can see how there's basically the the actual request in the clear right so if you can break into this network you can see the traffic between my web tier and my app tier now let's change this so we're going back to NSX here's our policy template the little lock icon means that all the traffic inside this application will be encrypted this is independent of amazon so even somebody breaks into the amazon network they couldn't see it and we also have some very restrictive firewall settings of the the you know minimum a minimum trust principle right that you really locked on everything except the one port that needs to be open all right we're now applying the policy and let's switch over to the firewall and see if the settings actually worked and you know probably no NSX better than I do so what do you think here does that look reasonable looks good yeah so we have you know lots of deny only a few ports open now let's go over the encryption settings so for encryption we just have one very simple rule here that says any traffic from the app to the app encrypt all right this distributed network encryption very simple very powerful and let me show you that actually worked so we're going back to our CLI here and running the same same sniffer and that's not going to work because we can't see the port number anymore yep so here we go and as you can see on the right side here there's no more legible text this is all just encrypted data all right so basically if somebody breaks into the network they still can sniff our traffic big step forward last but not least let's go back to our security analytic service and have a look if now the connections actually flow the right way and you know we get the same display we have the same search query then we get the same display that we had before and we get the same sort of wheel visualization if you now click on the database here we're seeing the only traffic to the database here now comes from the database load balancer is that better that's much better I think we're going to be happy all right do a pass here with my my congratulations all right pass nice job perfect so you're one of the innovators in in IT what's next for so really next is taking NSX which you know is really known for being in the data center and extending it out to the branch we have a session tomorrow at 12 30 we've got an all-star team with us Bruce Davey we've got an engineer for a network engineer from the the Blackstone group and then also Auto Desk is going to be with us and then Jim Duffy is going to be the moderator the theme is Walking Dead so sounds awesome welcome you to join us super thank you very much thank you very much for being here if you're interested in S2M so we showed you how to do network virtualization microsegmentation and encryption in public clouds using VMware cross cloud services very simple very very powerful now the last demo I want to show you is about data and governance and for that again I want to welcome a customer on stage here they were probably one of the earliest adopters of any company that I know of the public cloud they've been very vocal about it you know they've been pioneers of both both Amazon and Azure please welcome on stage Josh Warsaw from J&J you know her Josh thanks for making it really appreciated absolutely so Johnson's is a huge company over 100,000 employees right you have billion-dollar business units you run both one of the most modern on-prem private clouds as well as you've been one of the pioneers with with Amazon and Azure what does it take to drive such a transformation yeah so these types of large-scale enterprise transformations as everyone knows is very difficult and to go back to some of the opening comments that Pat was making around culture and technology being really two key enablers to decompose that a little bit and really get to how I think of it it starts first with leadership you need top-down executive support oftentimes to tackle some of these very large-scale initiatives that are going to do things like change reporting lines or change the way that that IT does business and interacts with the enterprise the the second piece to that and perhaps the most important is actually the organizational transformation where in in these types of large-scale cloud transformations you're going to be asking folks to do their jobs differently and you know we we have a saying that's we say antibodies right so is there someone that's being an antibody to the change the third and fourth piece being technology and the fourth being the application transformation it's nice to build a on-prem solution or have infrastructure workloads hosted at an Amazon but if your applications are not ready for that that can be perhaps the most uphill battle because you are dealing with business requirements budgets all these kinds of realities all about the app right at the end no absolutely no question so so as Matty earlier the same question if you think about clouds do you think about one cloud what multiple clouds about hybrid clouds what's your what's your strategy yeah from our perspective and to really zero in on the promise of a borderless data center you know we do firmly believe that that it isn't one size fits all or one solution fits all we are very strong with our on-prem as you'd highlighted on the intro cloud deployment on-premise STDC environment we also realize and need burst capabilities that in Amazon or Azure some other parties provide in certain industries finance pharmaceutical health care those kinds of things there are regulatory requirements you know that will require things to be hosted in certain locations so I do firmly believe that it is going to be a many to many situation and not so much it's only on-prem or or only public cloud hosted so so IOT is a big topic for you we heard it this morning from Pat you know you have manufacturing you have the whole consumer side where you're building connected devices what what does that mean for your data center yeah so the the IOT topic is you know it's obviously been been around a number of years here and there's some early consumer products like Nest thermostats and things like that but it's really starting to pick up speed in the enterprise space and in the enterprise space that's going to mean a couple of things you're going to have businesses that will want to sell and service product to a consumer so consumer enabled IOT devices but then I think the the overlooked piece is actually the internal facing that helps those products get to market so if you're a manufacturing company and you're a huge manufacturer yeah yeah yeah exactly so are you going to be able to put sensors on manufacturing lines to better predict if you're going to have a manufacturing issue if you let's say for example you're a car manufacturer and you had a run of automobiles with bad paint well if you had the proper sensors was humidity off that day was there some kind of issue and that's really how I believe the use cases will will split in half so you know we decided to jump on the bandwagon of IOT as well and you know the connected car apparently so 2015 so we want one step further and we built the first connected unicycle well you don't have the real product yet but it looks like the next unicorn here we go and but we already built the application for it and maybe I can show the application architecture you can tell me if this is a good idea so we have a developer and and he built the whole stack it in Ireland you know we want to sell this in Europe and the US so we thought it's somewhere in between we have a web tier an app tier that aggregates all the data and then we have the database underneath where we you know sort of store it long term is that a good IOT architecture what do you think it looks like you may want some variability in geodeversity and try to scale things a little differently express especially if you think it's going to be the next unicorn the next unicorn here we go so so okay that's a good point actually probably latency on the west coast going to be pretty high and the devices may not like this so we need to actually clone this to multiple data centers now what about the database same for the database so oftentimes especially in the IOT examples it'll end up being perhaps some things hosted publicly in the public cloud as well as things hosted internally to help better run analytics and inform some other perfect chain issues so here's what we're going to do and can we switch back to the demo we're actually going to take this application and we're going to migrate it we're going to do two things we're going to migrate the database here from the amazon public cloud to on-prem so that's our crown jewels we want to protect these a little more more tightly but then the weapon application here we're actually going to clone so we're going to move them from amazon ireland to amazon on the west coast and azure on the east coast that way we have multiple vendors so even if one cloud goes down we still have the others and at any time we have redundancy built in here and we have short latency and what's happening in the background here is that we're setting up these migrations and these migrations take a fairly long time just the sheer bandwidth you can get from the public clouds is still fairly low so migrating a workload is something that takes hours the way we do this is a set of continuous replication so once you start it it just keeps the running instance in sync with an image that's sitting on another cloud in your next maintenance window you can just do the switch over now we don't want to have you wait here for a couple of hours while we do this so we actually have a second application prepared where we've done this migration we just want to show you how this looks afterwards so this is Bob's app clone our cloned application and as you can see here we have the database now running in the private cloud so we move that back on premise and then we have our AWS workload still running in ireland but now additionally it's running on azure and on the US east data center of AWS is this looking better absolutely perfect thank you so much for being here Josh great really enjoyed the conversation appreciate it thanks so that was very cool migration of workloads between public and private clouds and cloning them to deploy them elsewhere very very simple very very powerful all done with VMware cross cloud services so this is really it right this was a tech preview of VMware cross cloud services a set of SaaS services that allows you to manage applications across clouds it's kind of funny what we're doing here is the same thing we've done on premise for a long time the same way how VMware today manages networks controls your applications on heterogeneous networking storage and compute hardware the same way we can do this on top of the public clouds in the future for you this means you can leverage all of your VMware training all your certifications all your experience to help your organization to move into the public cloud and also to help with your career no matter if it's Amazon Azure Google an on-prem vSphere deployment a soft defined data center vCloud Air the vCAN network or partners like IBM we want to be your friend as you move to the public cloud and with that I have one last customer for you please direct your attention to GE thank you the digital industrial revolution call it the next wave to stay on the crest GE turns to VMware's innovative cross-cloud architecture when I look at where we're using VMware it's definitely within our data center we use it for virtualization we use it on the network side and how we start to virtualize networks across locations and out into the cloud but specifically we built an operating system called Predex and it will become the de facto standard for what companies in the IoT space use to really optimize the way those assets run it has some very special characteristics that require some very unique infrastructure requirements that VMware has been able to help us with the first is this idea of a cross-cloud infrastructure we're going to run Predex in some of the largest cloud providers in the world and we've got places that has got to also run in local data centers in more than 180 countries around the world so VMware has really helped us figure that out this cross-cloud componentry of being able to push and manage and think about it as one large component the second part though is security and really helping us understand how do you then secure the platform and the operating system in a way that the world's most important and critical assets are going to run the way we intend them to and be safe and secure so when we are working on some of these tough problems about a hybrid cloud approach VMware brings the right people to the table who really understand our problems VMware has been inside GE since I've been inside GE so this is coming up on my 16th year we've been a long time fan and a long time customer Ladies and gentlemen welcome back Pat Gelsinger so thank you Guido what do you think of cross-cloud services and action yeah very cool stuff very cool stuff giving you the cloud freedom and control like a teenager that you both love and like you know we've seen this cross-cloud in action this ability to manage to secure to govern to move to run private and public clouds including Amazon AWS IBM vCloud Air vCloud Air Network and your on-premise environment and you know this gives you a picture of how this whole cross-cloud architecture comes together the combination of VMware cloud foundation a fully integrated STDC available both on-premise and as a service making private cloud easy making it available anywhere and combine that with the cross-cloud services new SaaS-based offerings that deliver security and compliance and capabilities across any public cloud as well extending the hybrid cloud architecture in a profound and significant way that only you can do truly enabling an any cloud architecture and on top of that any application traditional applications cloud native applications SaaS applications and tomorrow you'll hear more from Kit Colbert describing our VMware integrated containers how we're embracing container-oriented environments and delivering capabilities that allow you to say yes to IT firm your IT as well as your development groups to container architectures and tomorrow you'll also hear from Sanjay Poonan in the description of our any device strategy and in the device world solving this fundamental problem that there's expectation set that it has to be consumer simple just like my Android or Apple experience I want that but it has to be enterprise secure as well and Sanjay will describe our EVP of end-use computing tomorrow will give you a picture of how we bring those worlds together now as we look at this broad vision any cloud any application any device there's one more person I'd like to discuss with you this morning and bring to the stage please join me in welcoming Chairman and CEO of Dell Technologies Michael Dell Michael Michael Michael thank you for joining us you know thank you it's great to be with you yeah me and 23,000 my closest friends welcome you to VMworld thank you absolutely thank you and you know this is a big ecosystem Michael and you know a broad set of VMworld and give me your thoughts on the ecosystem and how this might change right as we move forward together you know it's always fun to come to VMworld because you see the vibrancy and the breath and depth of the ecosystem and the passion of all of the folks that are here is really tremendous and certainly for us as we said when we announced the formation of Dell Technologies you know 10 months ago bringing together EMC and VMware and VirtuaStream and RSA and Pivotal and SecureWorks and Dell everything we're doing the open ecosystem of VMware is absolutely critical to its success and so we're only going to continue and encourage that and that hasn't changed and won't change well thank you and you know clearly for you know our friends and ecosystem partner here it's a great confirmation of the path that we're on now you know today we announced the extension of our hybrid cloud strategy and these new cross-cloud services what do you think you know we've we've been very focused as VMware has on how do you make it easier for customers to adopt a cloud architecture right and what you're doing with VMware cross-cloud and what we saw in those incredible demos that Guido showed right with Citibank with Columbia with J&J show kind of a preview of the power that this is going to offer customers so I'm quite excited about that we've been very focused on how do you make this easier and more deployable and I think it's great progress well you know it really is just a statement of you know the unique things that we can do together and what this community is going to be able to you know deliver working together you know we also describe this VMware cloud foundation and how's Dell technology is going to take advantage of that you know our our a big priority for us is making private clouds easy and certainly with VxRail you know the effort that has been going on with EMC and VMware together in hyperconverged and certainly as we joined together with Dell you know making private clouds easy and everything you're doing around VMware cloud foundations to be able to offer that service and accelerate the adoption of these easy to to deploy private clouds is absolutely what we need and I think look there's been tremendous growth in converged and hyperconverged exactly for the reason that customers want that easy to adopt model so this plays very much into what we see as big you know pockets of market demand yeah yeah we're quite excited about the engineer and we're going to do together and as you've said hey you're going to go faster with us and you want all of the others to go faster than even you yeah and I think there's another point here which is you know coming back to the ecosystem right you know VMware has always had this incredibly vibrant ecosystem and if you look at what you're doing with the cross cloud architecture with VMware cloud foundation I think only an ecosystem of this size and this power could really pull this off yeah yeah Michael you and I've been at this a while you know it's 30 plus years for both of us you know since I was building processors and you were putting PCs together in the early years let's imagine we're now here looking forward and we're on the stage in 2018 right what's the picture then going to look like look I think the ecosystem only gets stronger I think the level of innovation that you know our customers are able to bring as against what you were talking about earlier with this digital transformation the fourth industrial revolution the explosion the number of devices all the data that's out there applying analytics to that data in real time with deep learning with machine learning I think we're really at the beginning of a whole another wave of excitement you know and growth in our industry and really are you know all these technologies we're talking about are right at the fulcrum of human progress in the world so that's incredibly exciting and I think you know we'll be well further along on our journey in 2018 and I'm certainly looking forward to it yeah the fulcrum of human progress I like that statement ladies and gentlemen Michael Dell thank you very much thank you we've covered a lot this morning right in the last 90 minutes we've talked about cross-cloud architecture VMware cloud foundation the new set of cross-cloud services our goal is empower you by giving you freedom and control to navigate in this period of profound and exciting change in our industry unquestioned challenges extraordinary opportunities only you have the passion the expertise and the will to make cross-cloud happen engage learn and enjoy VMworld 2016 thank you very much