 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017, presented by AWS, Intel, and our ecosystem of partners. Welcome back here on theCUBE, we are live at re-invented. AWS is big show, and I mean big show here in Las Vegas, spanning some four hotels, hundreds of thousands of exhibit space, and nearly 50,000 attendees. It's going to be a great three days, and we're glad you're with us here on theCUBE. I'm John Walls, along with Lisa Martin. Again, glad to have you here, and we're now joined by Paul Beavers, who's the VP of Products. He specializes on the R and D in the product management side of the house at BMC, and Paul, glad to have you with us. Say, Cube, first timer, right? Yes, I am. All right, well, we'll go easy on you. Okay, good. Anna Bronco. Yeah. UCO, since Oklahoma. Yes, absolutely. I'm an old Tulsa guy, so I know a lot about UCO, yeah. My wife's the UT grad. All right, good. We'll keep it all in the house here. Tell us about BMC first. Company's been around for nearly, what, almost some 40 years. So you've gone through multiple iterations, so how'd you get to the point to where you are now, and what are you doing now? You know, the way that I like to think about BMC is, while the technology, underlying technology has changed a lot over the years, we started off with our roots and mainframe. We supported many different Unix platforms, Linux platforms, different types of databases, but one theme that's always been the same is BMC has one overarching goal, which is to help our customers succeed with IT, regardless of what the platform is. So as the industry has transitioned, I've been in the industry about 30 years, and over the last 30 years, as the industry's transitioned, there has always been a need for a large enterprise, as insurance companies, finance companies, to be successful with their IT. And there's always a gap to be filled around making IT better and making IT functional, making it perform, and most importantly, making sure that it's supporting the business and the business is continuing. And that kind of, previous a question that I wanted to ask you is, as you've seen massive technology shifts since 1981, what are some of the trends that you're seeing that the business is really leading with, the business outcomes that IT has to facilitate? You know, I think that, so obviously there's been lots of different transitions in the business and the technology over the years since 81, I think the last five years have been the most pivotal. And the reason is because, not because there's a change in the IT or the technology, but because of all of the different technology and opportunities that are out there, businesses are now leveraging IT to be the business, as opposed to support the business, right? So if you take things like Uber, Netflix, Airbnb, even banks today, the IT is the business, right? So if you think back about five or 10 years ago, IT, a mobile app for the bank was a convenience. Now if you're a member of a bank and the mobile app doesn't work, you're going to find a new bank. That's all there is to it. It is now critical. That's what digital transformation really means. It's not a buzzword, it's real. And all of the businesses that surround us, we're at Amazon's event, right? Amazon is one of the biggest digital businesses there is. All of those businesses have a new dependency on IT. And so that change has created opportunities for companies like BMC to ensure that IT works because then we ensure that the digital businesses are working. And you say, you know, not a buzzword, a reality, but yet there's still a lot of people on the other side of that fence, right? And they haven't made that transformation yet or they're in the process of doing it. That's what you're all about, right? Facilitating that. So what are you talking to those who may be a little bit of a foot-drager, you might say, and they've got to make some different decisions now. So how are you coaxing those folks along and what's your primary messaging on that? There's kind of two different aspects to that. So one is from a business perspective, we really want to see that if they don't digitally transform, they won't exist in five years. And I think they know that. So I think the situation's becoming more and more dire or urgent for them. One of the things that has helped them is things like AWS, Amazon Web Services, in the cloud makes it much easier to digitally transform, right? And because it's so readily available, and actually there's whole businesses that are growing up on AWS. And so what we do at BMC is help those customers that are on the edge, they're about to make a decision around cloud. We help them ensure that they're going to be okay when they go to the cloud, right? An example would be, we've been with them now, some of these companies, large insurance company in the Midwest, we've been with them for 30 years as a customer and we're still going to be there and we're still going to help them on their cloud journey. And that story gets repeated time and time again across our customer base. One of the interesting things that was in the news, John Furrier wrote a great article that was published on Forbes the other day. He did an exclusive interview with Andy Jassy, the CEO of AWS, who talked about AWS $18 billion run rate, 42% growth a year. He said, you know, we haven't gotten here by working with Startup Salon. We're at the precipice of this mass enterprise migration. You guys have been a partner with AWS for a while, you're an ISV. What are some of the new things that you really hear at AWS reinvent to reinforce with respect to your strategic partnership with AWS? You know, I can break that down into kind of three simple ways, right? So when you think about a cloud migration, customers are typically looking to do three different things, right? They're either looking to save money by lifting and shifting existing workloads and putting them into the cloud. And Amazon, that's a sweet spot for them, they've been doing that for a while. But that's kind of the entry level. What we're seeing is leveraging the native services that AWS provides, not only make it cheaper for the customer, but it makes it much faster to develop apps and to succeed with digital transformation. Matter of fact, the application development within enterprises are now becoming more integrators of different cloud services and technologies as opposed to building applications from scratch. So it becomes an arms race, if you will, for the different vendors, right? The first bank to get to a mobile app, the first insurance company to do everything online, all of these different needs and capabilities around digital transformation, AWS facilitates that and they do it, they have some competition but they're really leading the path. And speaking of that leadership that I was talking about their growth rate earlier and they are in the clear lead and they have a very consistent message coming from Andy Jassy. We're not looking in the rear view mirror. I'm curious, you mentioned application development a minute ago, who's your conversation with in organizations, whether it's a bank or an insurance company, AWS has done a great job of attracting developers. Are you seeing the shift in terms of your conversations up the chain of command to the CEO, the corporate board? So you know, I'll answer that in two different ways. So first of all, if you think about IT operations, right, so IT operations are the guys within these enterprises that typically make sure that IT runs, right? It's all the monitoring and provisioning, the work to make IT run. That is BMC's sweet spot. And what you find in these companies is they start small with a cloud strategy and then at some point they reach critical mass and the CEOs and the CIOs get nervous about okay, what if the cloud breaks, right? And so they want to manage that with the rigor and discipline that they manage typical IT operations. That's a real sweet spot for BMC, right? Because we can manage AWS and monitor all the applications running in AWS and give those CEOs and CIOs and CFOs the comfort that their applications are going to be there when they need to. And as we already said earlier, those applications now are the business so the cost of an outage is way more significant than it was even five years ago. You mentioned four or five year trend, right? This has been going on for a little bit now. So just as capabilities have changed, I'm sure the questions coming in are changing too, right? So what's kind of leapfrog to the head of the pack in terms of when people come in and say, hey, you know, I need help, but this is what's worrying me today as opposed to what was answered yesterday. You know, the way that I would answer that is scalability, right? So when applications go outside the enterprise out into the consumer world, right? Everybody's got the app on their mobile phone. You go from tens of thousands of users to millions of users, right? And so the performance metrics and the data that you generate goes into very, very large amounts of data and in order to understand performance, you have to have a new technique, right? And so understanding performance in modern times is really the problem at hand. And that's where you start to hear about things like big data and the ability to store petabytes of data and the ability to search and analyze that data very quickly, leveraging machine learning and analytics. That's where the big need is today and that's where companies like BMC are rotating to be able to support that massive scale, that volume of information, because it's no longer about 1,000 users of an internal app. It's about, we were talking to a grocery store the other day, they have a loyalty app with two and a half million users. And then by the way, if the loyalty app doesn't work, they go to a different grocery store, right? So it's a completely different model but it's really this, I would say the number one concern right now is the scale. And then second to that is in order to achieve scale, enterprises are leveraging much more modern technology, both in the cloud and on-premises, but that modern technology, you have to be able to monitor and understand the performance of that modern technology. One more question for you, Paul. What are you most excited to hear from AWS this week? We've seen a couple of announcements that hit the wire Monday morning at midnight about AI, for example. What are some of the things that you and BMC are excited to hear from your partner AWS? You know, actually today I was in the partner keynote summit and I'm excited about the way that AWS is rotating from a DevOps motion to enterprise, right? So they announced this week that there's actually going to be the ability for ISVs like BMC to sell product in the AWS marketplace, but do it in a way that you can price it and consume it as an enterprise, right? So that's actually news to me at this event is that they're really uplifting this approach around sort of smaller groups and targeting big enterprises and for us at BMC selfishly giving us the ability to deliver on AWS to very, very large enterprises which is our customer base. We support the global 2000. That's why you're licking your chops this week, right? Absolutely, absolutely, absolutely. Thanks for the time. Glad to have you on theCUBE and look forward to the next time down the road too. Absolutely, anytime. All right, Paul Bangers, join us from BMC. Back with more here from ReInvent. We're live in Las Vegas and you are watching our coverage here on theCUBE.