 from the Sands Convention Center, Las Vegas, Nevada. Extracting the signal from the noise. It's theCUBE, covering AWS re-invent 2015. Now your host, Stu Miniman and Brian Graceley. Hi, I'm Stu Miniman with wikibond.com. Here with SiliconANGLE TVs, live water well coverage from AWS re-invent 2015 here in Las Vegas. My co-host for this segment is Brian Graceley and we're happy to have back theCUBE alum, CEO of Zadara Storage, Nelson Nechum. Nelson, thank you so much for joining us again. Thank you, Stu, and I am for you. All right, yeah. So just a couple of weeks ago, we were with you in San Francisco at another big show around the same size in order of magnitude, VMworld. So bring us up to speed, you guys had a couple of announcements here leading up to the show, to tell stories as well. Yeah, actually this is how we position our company. We are enterprise storage as a service. So we are kind of the enterprise class storage that you will see in VMworld with the elasticity of AWS. So VMworld and AWS back-to-back is actually, is our sweet spot. And in terms of announcement, we did the automatic backup to Amazon S3. We are announcing the last week huge growth this year in terms of new customers. So it's going very well. All right, so we've talked with you for a few years and I think this show was one of the first that I spoke to you at. You guys are part of the Direct Connect offering. Yeah. And you work across lots of solutions. Can you just walk through how that works as to where you sit and what solutions you fit into? Yeah, so because we provide the SLAs like enterprise storage arrays, we run in basically a native hardware and we position, put this hardware in collocation facilities that have very close to AWS, actually in the same city if possible, and we use Direct Connect to connect to them. Typically, Equinix facilities here in US, in Australia, in Tokyo, and there are income in Ireland. And this gives us the possibility to be at very low latency from AWS and provide really good enterprise storage capabilities to AWS customers. AWS is a great partner. We were, I think, the first Direct Connect customer and probably we are the biggest one. And they adjusted even some of the Direct Connect capabilities to be able to have something provided like us that are multi-tenant to be able to connect in a multi-tenant fashion and still provide the security so every customer has their own VPC associated with the storage. So for the customer, the storage is completely private inside the VPC. So this magic is done by the Direct Connect folks and it is really good. Yeah, your solution actually fits into probably what Amazon would consider the hybrid story because it's something that lives outside of Amazon's purview but that they have services that kind of reach out and connect to that. Yeah, so we compliment Amazon in some of the workloads that are not possible today with Amazon like SMB, file storage, connection with Active Directory, remote replication, constant replication of the storage between East Coast and West Coast, on-premise to the cloud, cloud to cloud. There are multiple things that we do that Amazon doesn't do but this is why we are a good partner of Amazon and they basically recognize that we have a really good and strong storage offering and they allow us to connect to that cloud so any customer in Amazon can use us completely seamless. They don't need to deal with Direct Connect and collocation and anything like that for the customer is just to go to the console, provision the storage and use it. Yeah, so Nelson, you guys do a good job of positioning for the enterprise and your purchase like storage as opposed to most people when they consider there's lots of services from Amazon that are storage but I'm not, when I'm choosing storage, I don't say, oh, I'm going to go to Amazon instead of buying XYZ array. I'm curious, when you're talking to customers, what's the mindset of how the enterprise storage buyer thinks of the cloud? Yeah, so I think that in typical customers they want to move to Amazon and to other cloud providers they love the possibility to run workloads in the cloud. It is the fact that the traditional storage is so different than the cloud-based storage that make it complicated. And this is where we can come in and say, listen, with us, our storage service look like a traditional storage array for you. You can mount with iSCSI or NFS or SMB the storage array and you can do exactly the same thing that you will do with NetApp or EMC on-premise but you still pay per use and the same way per hour like Amazon. So that's the thing that complement Amazon offering especially on the storage that the storage in the cloud is radically different than on-premise. And we provide the same capabilities of enterprise storage on-premise, also in the cloud and on-premise. Yeah, so Stu was talking about earlier, you guys had a big presence a few weeks ago at VMworld, big presence here at AWS re-invent, very different audiences. Like, how do you shift your conversation between this audience, which tends to be more application, developer focused and a VMworld kind of on-premises, enterprise, you know, the capabilities are there but how do you shift the conversation so people understand what you're talking about? Yeah, so we are, in one case like here in Amazon we talk about enterprise storage capabilities, what you can do with our storage that you cannot do with Amazon. So all the snapshots and remote replication and the typical storage conversation we do here in AWS. In VMworld, we talk about the as a service, the paper use, the elasticity, so we talk in VMworld about the cloud part that is different than traditional storage. So when we talk to customers at VMworld, they are not looking for how our snapshots is different than NetApp snapshots, they are looking at us to be able to provision storage without the capex and completely elastic and maintain the enterprise class capabilities but without the need to pay upfront and you can expand and shrink. Here, everybody understand the paper use and the paper hour, we talk more about the enterprise storage capability. This is why it is a sweet spot in both of the shows. Right, right. So you spoke about the strong partnership you have with Amazon. How has that changed over the last couple of years if it has and as Amazon continues to add functionality, is there, people I guess are always asking, is that that tension, how do you manage that relationship? Yeah, so I must say that Amazon is an amazing partner because I think that a big part of it is how they are structured. The storage team probably don't like us but the networking team and the EC2 team, they like us more. So and as we talk to different groups in Amazon, there are different reactions to what we do. Some will feel that we are competing some not. Regarding the question about Amazon releasing new features, yes, they are releasing new features. We also release new features. My view is that because Amazon is a top innovator in the cloud, if we have a product that is better than Amazon in the storage side, we can not only attract Amazon customer but also the rest of the world. The rest of the cloud provider, service provider, they don't have the deep pockets that Amazon has to develop everything. So we are basically proving that our storage is really good in the, let's say, the most difficult field that is Amazon itself competing in innovation with Amazon and this means that everybody else is a potential customer for us. We want to maintain the leading edge and the best way to maintain the leading edge is to be ahead of the leader, that's it. So actually one of the things Andy Jassy said in his keynote is that customers are looking for it to be easier to get their information into the cloud. They had both the Kinesis fire hose that they did for real-time data and the new snowball, which is I'm going to send this box two-day shipping, get it to you, load it up and ship it back. You had some interesting points as to how you get data into the cloud and how you make that easy for customers. First of all, we have been doing this kind of snowball forever and for free, not for $200. So this is one of the ways that we inject data to the cloud. This is good for migration, but also there is a second place where because we are on-premise and in the cloud, a customer of us can have our system on-premise as a storage system, this is not a gateway, it's the full storage, consume paper use and can replicate into Amazon, constantly replication. And this means that they can move data to the cloud, they can move from the cloud back on-premise. It's not only one way, sometimes it's both ways. So this will be the second way that we can do that. So this week, Andy's been talking quite a bit, he's been saying, look, there's never been a better time to store more data. It's getting cheaper, there's services around it for analysis. That model tends to resonate very well with people that want to do analytics, right? The more data I have, the better my data sets. Does that resonate as well with the storage audience who's sort of been conditioned over time to say like, hey, be careful of quotas on how much you store, how much you back up, or do you find that they're going, it's cheaper, it's easier, let's just keep throwing, store more, keep it longer? Yeah, we find that the customer wants to store more and keep it longer and do analytics. Even the people that will not do analytics before, they want to get and do analytics. Definitely we see a big move to our storing more and more. And this is, I think that this is one of the things that allow us to provide on-premise a really good service. We have been working with body-worn cameras. For example, the small cities may need a petabyte of storage just to store the- Every day, every hour. Every day, every hour of every and this need a lot of storage, need to be on-premise and a lot of storage mean huge capex and also you need to have a team of administrators. So we're completely removed that people can say, okay, no capex, you grow gradually as you bring more data and also because we do remote management and it is fully as a service, the customer can have our storage on-premise but they don't need to manage the storage. It's managing a one petabyte of storage, it's take time and take resources that we completely remove. So in our case, it's zero capex and reduce it, OPEX. So Nelson, the storage industry has been measured by how many gigabytes, terabytes, exabytes are out there and revenue that I can look at from either disk in a server or external storage arrays. One of the things we've been looking at is look at how much storage revenue does Amazon do? Microsoft, look at all the SaaS vendors, I mean Salesforce and everybody, maybe Salesforce doesn't have huge amount of data but if you add all of them up, it's growing very fast and it's very different, you're part of this trend. How do you look at that? Where do you see the storage industry going over the next couple of years and how do you kind of measure that? Do you measure that against the traditional storage industry or what metrics do you use? Yeah, so I think that what I see is that and related to the previous question, people want to store more, store faster, access more frequently, do more thing with the data. So the trend is to definitely keep storing more and more of the data and do more and more analytics. It's not only writing more, it's also reading more. And in terms of, so capacities, we are seeing all the time growing and growing at very, very fast rate. We see the drives are growing, the flash are growing. In terms of capacity, everything is growing. So, and the other thing I want to mention here is that it is a really good opportunity to provide additional services and this is why we are a service provider and not a product provider. We don't provide just the storage. We provide additional services like backup and disaster recovery. We do have, for example, a feature that you can have our storage in two data centers and stretch and be able to do, transplant and failover, have zero RTO, zero RPO. Once you put a lot of data, it's good, but you need to protect the data and this is the additional services that we provide. Yeah, I guess my final comment is at VMworld, there was a huge amount of storage there and really saw an increase this year at this show here. So thank you so much, Nelson, for joining us. Storage, a critical component of IT in general and growing very much in the cloud. So Nelson Ehum, CEO of Zadar Storage, thanks so much for joining us. We'll be right back with lots more coverage here from ReInvent 2015. Thank you.