 Okay, we're back here at EMC World for SiliconANGLE and Wikibon's exclusive coverage of EMC World. We'd like to extract the signal from the noise, wall-to-wall coverage, over 60 interviews over the three days. It's our day three, and we're going to try to keep the energy up. We'd love to get the entrepreneurs, the practitioners, the channel partners, the solution architects, the customers, but also we'd love to get the EMC executives, presidents, and all the top guys to hear what they have to say. And this is what we do at theCUBE and extract that signal from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm joined by co-host. I'm Dave Vellante at wikibon.org. Brian Gallagher is here. He's the president of EMC's Enterprise Storage Division, the high-end, the mission-critical customers, running the world's most sensitive and important information. Brian, you guys are under fire, the walls are caving in, the sky is falling, block-based flash storage is going to take over the world. How the hell'd you grow 10% last quarter? With all that bad news. That's a great question. Actually, great question. We've had a big strategy around growth in the Enterprise Storage Division. Obviously, we've been in a well-established market for years, well-established markets like the high-end and the Enterprise Storage, IDC and others, projected to be slower growth, low single digits, but clearly we've been outperforming the market. And if you look at the business overall, it's on an uptick. We've had net new customer acquisitions. And that was really about a strategy around expanding our TAM, total addressable market. How do we do that? How do we get new customers into the portfolio? How do we reach different parts of the globe with a value proposition that matters in the data center or the service providers? So, things that have helped. The entry of the 10K last year, so that increased the customer base. We expanded that with the 40K as well. It's been the top of the line in terms of data consolidation. Then you look at the other parts of the portfolio around Vplex, compelling technology, differentiated, game changer, door opener. And it's just been tremendous. It's really making people rethink their data center strategy. And then RecoverPoint having that ability to replicate between our platforms, it's also helped to grow the portfolio and acquire new customers. Right, I got to ask you, because obviously everyone talks about EMC, the big honkin' drive that's going down, scale out open source commodity gear, it's going to be cannibalizing into the business. The messaging here is more choice, more open. And so that's kind of what people are kind of trying to say and kind of build that narrative. So I want to ask you, the transformation message is about the customers. Right. And what you guys are doing with the customers. You guys are on a start of your huge install base. But talk about how do you expand your TAM when you have this transformation? And obviously the growth of storage isn't going away. So is it one of those phenomena where the growth is so massive where there really might be some kind of oppositions flowing into other groups of EMC, but you're still growing? How does that, how do you do that? What is the strategy and why the growth? Right. And one trend that has been consistent is data growth. Right, that has not slowed down. It's just one of these, you know, Moore's law of information. And you look at the data growth rate 60% and we see that in all of our businesses. Things that are driving that data growth have traditionally been the enterprise data sources, but then more recently over the past four or five years, richer content that occurred five, six years ago. And then with telemetry data, Joe talked about that yesterday in his talk. That's really driving the growth of information. We see that across those businesses. And so when we look at kind of the disruption that's occurring, it's occurring in all the markets. Right to the traditional markets, it's occurring with new business models. And what we try to do in the enterprise storage division is make sure that we are ahead of these trends, make sure that we're disrupting ourself, you know, as we see these trends occur and make sure that we're helping to lead some of these changes. In fact, we started working on Flash in 2006. In the enterprise division, it was a project that we're doing with the Department of Defense. And we looked at the technology and said, you know what, this is relevant to all the data centers across the globe, not just for this project, but across the globe. How can we use it? How can it be discovered? So are you saying, is it the case where you have all these new variety of use cases? So the use cases, so it's not so much cannibalization, it's net new use cases. Is that what you're seeing? Yeah, we see obviously the components to growth are the underlying data growth that we see, as well as where we're expanding our TAM. The other addition to the family was cloud edition, right, VMAX cloud edition, relevant to the service providers, but also opening up some new doors, you know, in there. In terms of application growth, we do see net new applications in the enterprise. We've done a lot of studies around this in traditional enterprise. We expect applications to grow by 70% between now and 2016. And, you know, the bigger opportunity is in net new big data applications that will grow by, we estimate, along with others, about 700% between now and 2016. So we got product, so talk about TAM expansion. Product, you got function, deplex, recover point, you got geographies, and you mentioned cloud, and you see that, let me ask you a question about cloud. Is that net new in your opinion, or is that cannibalizing existing IT customers spend? I would say it this way. There is a TAM shift that's occurring from the data center to the service provider. It's occurring obviously in mid-tier environments, small to medium business today. We know that, we do see that, and there are projections around that TAM shift, but in terms of the service provider growth, that growth, if you just take out the TAM shift, that's expected to grow higher at a higher rate in high QOS environments than the traditional data center growth rate. So still single digit, but still significant in terms of the growth. So we will see, in enhanced growth, and we've been all about share. How do we get share? How do we innovate? How do we differentiate? How we can create that value proposition, and if you look at our share gains, they've been outstanding in the enterprise. Yeah, and if you can figure out how to sell to those cloud service providers efficiently and use them as a channel, you get a more operating leverage, presumably. I want to ask you about, help us unpack the whole software-defined storage piece of it, which is this horizontal play. And you guys, if you talk East-West, you guys are in North-South play, you like to go North-South. You got open stack, open source, all this function, trying to be developed by the community, and here you are with the industry's highest end, most functional storage stack. How do you play into the software-defined storage world, and then let's drill down into that a little bit? Yeah, there's two high-level threads, right? The highest-level thread about software-defined storage is abstract, pull, and automate, right? Abstract the intelligence from the underlying infrastructure. Aggregate and pull, so we're providing pulled services to the application, and then automate a lot of the challenges that you see in data centers. There are challenges around deployment, provisioning, data migration, tech refresh, data mobility backup, all that stuff that drives IT cost. It drives cost, it drives time, complexity, challenges. There's moving parts. When people are involved, things can break more frequently than they can break when you're doing it through automation. So the top-level strategy is abstract, pull, and automate. The next part of the strategy is leverage, right? Because the storage industry is going to spend billions of dollars per year in innovation at the data layer. And our strategy is not to commoditize or devalue that innovation, because there's still a lot of innovation that's occurring in data storage. In our own products across the board, primary, secondary technologies backup archive flash file object, all the components of it. So when we look at software-defined data center, our strategy is to abstract and leverage, simplify it, but take advantage of differentiation. When we look at Viper, think of it as software-defined storage that enables us to do that. It's got southbound interfaces to the storage, whether it's EMC storage or non-EMC storage, or commodity storage. And then it's got northbound APIs into frameworks that are either open frameworks like OpenStack, they could be vendor frameworks from Microsoft, vCloud director being able to plug in to orchestration layers that add that higher-level differentiation and value proposition as well as automation of the server and application space. Okay, so you've got this horizontal platform. It seems like you're pointing to a new direction. I remember, Brian, I'm sure you do too well. John's been talking about this all week, the notion of multi-vendor. That was the open back in the 80s and 90s, and EMC and storage actually created the multi-vendor product. Remember the charts you'd have a box and you'd have connecting to mainframe and Unix and Windows. All the various operators. You guys sort of popularized that. It was table stakes back then. Well, it's become table stakes, but back then it was quite new and innovative. Now, you've got this new sort of openness. You're talking about open APIs and connections to frameworks. And you've also got a very rich north-south to use the VMAX, sort of example, data management, storage management, and volume management stack. So, help us understand this. Is that redundant? Is there some redundant code within the horizontal piece that is volume management and the control plane and storage management? How do those interact? You've obviously got greater capabilities in your stack than in OpenStack or in the ViperStack. So, how do they inter-relate and play together? Help us understand that. Yeah, great question. So, clearly rich data services, copy services, local remote replication, automation services, volume management, all that stuff. Hardness, I mean really hard. Hardness, data center proven, tried and true. And so, we'll continue to innovate. In fact, over the next several years, you'll see even greater capabilities that enable better operations in data management and also data center management, if you will. Our strategy around that is when we look at environments, it's a matter of scale. In some environments, especially like when we introduced the 10K, we were going into IT shops that had four people. That did everything, network server, application, storage, everything. So, they go into four shops. So, in those environments, and we talked about this yesterday, is that the element management of the systems is good enough. In fact, they don't necessarily have the ability to really orchestrate and manage a lot with small IT shops. When we look at some of the larger enterprises, it's more about heterogeneity. There's a lot more complexity, there's a lot more scale. So, in those environments, this is where Viper is essential. And the openness of that and the diversity of that is critical, we're enabling an ecosystem around it for our partners to help us with this journey. But what you'll see from the product is more integration this way that allows for seamless IT operations and workflow. And you'll have Viper above that, that allows for the orchestration of the data framework, both from a control plane and then ultimately from a data plane. Being able to provide up object services, file and block services on top. How long in your estimation would it take an open source community to develop a reasonably comparable and competitive stack to what you have with VMAX? Yeah, so great question there. We've invested tens of thousands of man years into the stack. So, it's a daunting task. But with open communities, you do leverage the scale in the industry. So, now it's years. It's years, we're going to continue to invest heavily in all of our core platforms. So, it's a matter of the robustness. When we look at the future, you will see our technology virtualized. You see that today with virtual recovery point. People can load that on their own infrastructure. Rich talked today about a virtual VMAX. All of our products will be virtualized and run on infrastructure that the customer procures. That will be a model. However, EMC will continue to manufacture, sell high-rell, well-manufactured products out of the stack. And my last question is this vision that you guys are putting forth with Viper, this horizontal layer, essentially connecting through an API. Does it mean that going forward, I won't have to buy a new controller every time there's a new API that I could, in theory, connect through that horizontal layer and then get to your services, if there was North-South services, if I need them, if I don't, and it's good enough, that's cool. But that's a whole different model of storage delivery. And it does, you're absolutely right. That's a model that we're pursuing. And it does simplify it. It abstracts the complexity. At the end of the day, our customers have a lot of other challenges than the fundamental tasks of pulling and automating and managing storage. Yeah, so that's big. I mean, you guys gave, Dave Golden says, we got 30% market share, we're not happy. You know, we've got 70% to go. This is the face of, you know, non-happiness. Yeah. All right, Brian, really appreciate you coming on. One other thing, too. Check out Brian's keynote from yesterday. You really, it's a phenomenal keynote that you did. Great little surprise that you did with the V-Plex demo. Using humans, you know, as the example, teleportation, we've seen it all. Star Trek, like magic. It was magic. It takes a random night to check that out. Definitely check that out. Okay, Brian, thanks for coming inside the Cube. We really appreciate it. You've been a great guest. You've been on every... Almost every year. Almost every year, so thanks for coming on. Appreciate it. All right, thank you. This is the Cube. We talked to all the execs. We talked to all the customers. We extract the ceiling from noise. We're getting the data. We're talking to everyone we possibly can. We go where the action is. This is the Cube. SiliconANGLE will keep on right back after this short break.