 And I want to say a couple of words about compelling technologies in our partnership with them at VMware. They've been a great storage partner of ours, have a number of customers together, a number of partners, and we really like working with them to drive value to our overall customer solution set. The one that we announced yesterday at VMware, for every dollar of license revenue that VMware sells, our partners or our ecosystem is able to add on or to drag with that $15 of ecosystem revenue. And the Compellent folks are a great example of a partnership with VMware where our solutions work well together and we do some exciting things. We're gonna hear from the president and CEO of Compellent and one of their customers, but before we do, one of my favorite twists of this press conference is a differentiation of Compellent is the fluid data architecture. And I think it's somewhat ironic after last night's beer crawls at VMworld 2010 that Heineken happens to be the customer on stage. So I'm sure there's a story there and I would like to introduce Phil Soren, the president and CEO of Compellent to tell us about the company and about the Heineken beer crawls. Great, Todd, thanks a lot. We're just thrilled to be up here on stage with you, being participated in the fantastic show you have in operation here at Moscone in San Francisco and we're thrilled to have a joint announcement with our customer Heineken here and to have them come over from the Netherlands to share the excitement with us. But let me tell you a little bit about Compellent. We're a data storage company with the fluid data architecture. We've been really the innovator. If you look at primary storage innovation over the last decade, things like thin provisioning, sub-lun, automated tiered storage, tiering disc platters, flexible volumes, portable volumes, thin provisioning. If you look at all those types of innovations over the last decade that storage has come out in, Compellent has been the leader in that whole space and I think we've been able to get ahead of some of the incumbent vendors with our innovation and we're really fast growing. We grew about 38% year over year last year. We're one of the fastest growing sand vendors in the world and we're hoping to keep that growing. We have about 2,100 customers in 34 countries. Heineken being a good example in the Netherlands. Of those customers there, they're running their mission critical enterprise applications on us for their worldwide operations and I would say of the 2,100, about 2,090 of them are also running some form of VMware. So this partnership with VMware is very, very important to us and we're real excited about it. Talk a little bit about our patented technology. We call it the fluid data architecture and we thought no better customer to do a joint press conference with on our fluid data architecture than Heineken. So the ultimate fluid data architecture is the combination of Heineken and Compellant. And our system is so easy to use that you can actually enjoy a Heineken while you're a storage administrator. So we like that there. So Heineken Netherlands is our customer here. We have Mike Rovers and Lucien DeConic and we're real excited to hear about their story. They're part of a global enterprise of customers we talked about. We have customers in all industries, verticals, geographic areas. We're announcing actually this week, we're announcing our expansion of our Australian operations where we have dozens of customers already but we're announcing the expansion of our Australian operations. And now let's take it back to the Netherlands and let's hear a real customer story about how VMware, Compellant, can really cut the total cost of ownership in a data center by more than 50% for the combination of our two efforts and also improve the operational efficiency of those data centers. And let's hear Mike and Lucien to tell us a little bit about it. Thank you very much Phil. I guess I don't have to introduce Heineken as a company itself because we all know what the core business of our company is, brewing beer. Not only the beer, we brew great beers and great brands and that makes us the number one brewer in Europe and the number three in volume in the complete world wide. We have over 200 regional and local beers and ciders in total. And when we look at our breweries, we have almost in every country we have a brewery or it's Heineken is deliverable. When we look at the Heineken International, we're a very large company, almost in every country as I just said before, and we have 130, 140 breweries in more than 17 countries which is good for a group beer volume of 200 million hectoliters of beer a year. This includes the ciders. When we look at the Netherlands, we have only three breweries. That's where it all started. We have 18 million hectoliters of total supply, but we're not drinking at all ourselves. The domestic market is only about five million hectoliters and the rest of the volume is going to the USA. So it's all export for us and that's where all your beers coming from. A nice touch is that we've introduced Heineken Light several years ago. That's especially made for the USA market because we don't drink it. Okay, when you take a look at the virtualization roadmap for Heineken, we started about six years ago in 2004. VMware was the only real player in the market at the moment. We introduced it when we were consolidating our data centers in our main location, Zutowoude. We came from about 12 server rooms to one major data center, which we used storage from HP at the moment and we used the HP Blades infrastructure and we decided to go with VMware for all our DTA environments so the test and acceptance environment. After several years, we outgrew our storage capacity and we needed to upgrade so we changed the EVA with a fork lift upgrade so to another EVA. We also introduced a new version of VMware. Again, a year later, we thought everybody was ready to go to use production. So everyone used the DTA and everyone was confident it should work on production also. So we started with the bronze servers that the servers are not mission-critical for us. Those were great success. And last year, we started a new project to virtualize every gold and silver system we have. That means every mission-critical and priority system we use for brewing, packaging and distribution. Just the latest news is that last weekend, we migrated one of the last warehouse management systems that's also virtualized now and is running perfectly. Where are we going? We are looking at the end of the year. We're going to vSphere 4, of course. That's the main thing. And last year, we decided to choose for another storage solution. And we chose Compellent. Well, this is something where Lucien comes in. He can tell about the storage we made and why we did it. Okay, Mike. Thank you. Well, we'll tell you something about the project itself, the whole migration and why we choose Compellent in the first place. Well, we really needed to look for other solutions because especially in the two main sites, Zutowada and DeMos, we had some serious problems, especially the support costs. Because after three years, you pay an enormous amount of money for support from HP. Also, we had our capacity problems and also experienced severe performance issues in Zutowada. So that meant that we had to take action fast. Also, we were stuck on the EVA 5000, which didn't allow us to upgrade to a newer version of VMware. And also, we couldn't use WinnerServe 2008, which was very high on our priority list. Furthermore, business continuity is on the plan for early next year. So we wanted to have a solution which could provide us that. And also, because Heineken has got a new, but it's not really a project, but the hunt for cash within I.T. Heineken and Lent meant that we want to reduce I.T. costs as much as possible. So, and another point, problem was that we had a major issue with reporting from our current Zen infrastructure. Why did we choose for Compellent? Well, it operates with every operating system. That's very important. It's one solution that fits really everything. That's what we experienced as well, during the migration. We could start with replication early next year. That's also very important. And we needed a high-performance solution. What it eventually meant, why we chose for Compellent, that it's excellent value for money. The fluid data concept really was concept that what we can use and give us high flexibility. And one of the major pros is that the excellent reporting facilities is, well, I've never seen a better reporting functionality inside a project such as Compellent. And what is also very important that we got 24-7 proactive support. And that's something you never get for free. So, okay? Well, as a result, we have at least 60% virtualized. And actually, like Mike said, last week we went to 61% because we virtualized two more machines. And the speed we are going now, it really looks that we are in 2012, we are going to for 90%. And I think it's really feasible. The number of disks significantly reduced, which meant lower, how do you say that? Lower on power, lower on cooling, lower on the rack space. For example, the EVA 5000 costs us 1.5, 19 inch rack. And right now it's about 12 views. So, it's a real big difference. The performance we see on all layers, not only on the Windows servers, but also on the AEX systems, we see an enormous improvement regarding performance. We did have to do some optimization, but with the support of co-pilot in the last months, we had an excellent result and we even have a much better performance than we ever had. So, and because, yeah, we are finally using solid state drives because we really needed that for a SQL reporting server which is very business critical. And on the old EVA, we reached performance for about 25 minutes for a report which needed to be ready before a certain time. And now we even got times under 20 minutes. So, let's see how fast it really is. So, we are next week actually, the final virtual machine will be migrated on the old EVA to a component and that will finalize our migration on both breweries. And so far, no disruption whatsoever. So, we're very pleased. Perfect. So, that's our part of the presentation. Thank you. Somebody talks out of the sky now, right? Any questions? Well. The question was, with all the savings he's got in his data center, can he lower the cost of Heineken beer for everyone? A new kind of Heineken light, right? Yeah. Yeah, we could do that. But it's not up to me. We really want to thank you guys for sharing that story. I mean, it just hit all our bullets about, you know, the future built in, performance, flexibility, fluid data, VMware, compelling working together. And we're just really, really excited and we appreciate you sharing your story with our viewers and our customers and our prospects out in the audience here. Thank you very much. Thank you. Thank you guys. Yeah. Okay. Good. Todd, thanks a lot. It's really fun to meet you guys. Let me know when you come to Minneapolis. Yeah, we can eat a dinner or something like that. Thanks very much. Thanks very much. Thanks for your much good job. Really good. Great story. Okay, so we're going to go back to siliconangle.com's coverage, continuous coverage live here at VMworld at theCUBE. That's a great story. Thank you guys for sharing that with us. So we're back live. This is Dave Vellante from wikibon.org and we've got SiliconANGLE's continuous coverage. Thanks to the SiliconANGLE team for allowing us to use this great space. Have this press conference live. So I had some follow-up if we could. You know, Phil, you and I have known each other a little bit. You are the legend in the storage business now. So great job. A legend in my own mind, right? Putting compelling and some others. So putting compelling together. So some follow-up questions for the Heineken folks, if I could. So you talked about the migration from the EVA to the compelling. Migration is a real pain point for a lot of the customers that we talked to in the wikibon community and I suspect you're no different. How do you expect migration going forward once you're sort of migrated to the thin provisioning, that environment that Phil described, the virtualized thin provisioning environment? How will migration change going forward? Well, because right now you're migrating a lot of physical machines to the fluid data storage. And in the future, yeah, it will be 90%, at least for us, will be virtualized. And if we would ever migrate, I don't know if we should because we were told that propellant lasts for at least a decade. The future's built in with compelling. So even migrating from one array to another, right? I mean, at some point, you know, you're going to replace arrays that Phil's going to build and Larry Azman going to build more efficient storage. So when you migrate to that, those new systems, what do you expect to be different, if anything? Well, the experience you have right now is that migration is really easy. I mean, the compatibility with all operating systems works very nice. So we have clients that tell us that it costs them $50,000 to migrate. Now, I don't know if you've ever quantified anything like that. Does that sound reasonable to you? I don't trust you. No. When you take planning and everything else, these are guys using traditional arrays. When you take planning into consideration, takes a long time, six months. You know, what you've seen, if I understand it, is much faster, much simpler, much more cost-effective. Yeah, we're, sorry. Yeah, when we look at our plant in Den Bosch, we migrated in total in three weeks. That includes the planning and all the process for migrating to the new component storage system. Yeah, so our data, like I say, suggests that it takes about six months on average for a traditional array. Another question is, That doesn't sound very fluid, does it, Dave? No, it's not. This is the next gen, I guess they call it, Phil. So the other question is, what are you guys doing in terms of DR? I know, Phil, you guys have some innovative technologies there. Have you guys started to take advantage of those? Can you talk about that a little bit? Not right now. One of the enablers we had for Compellent was to use Compellent for disaster recovery. What we were planning to do in the end of the year is to create a business continuity for our two major plants, the primary and sort of out and the secondary in the Bosch. Both sites already have the Compellent storage system and our planning is in the first quarter of next year to introduce the DR between the two sites. So if you had to do it over again, would you do anything differently in terms of this project? Not really, I mean the strategy will be the same. Because we chose for offline migrating because we really need to have consistency of the data and the highest performance available during migration. And that meant that we shut down every VM or a physical node before migration. And that assured us that we could migrate all machines without any flaw. And that's what happened. You have to keep in mind that Heineck is a 24-7 business. So asking for a maintenance slot is only for twice a year. So we can only use twice a year a maintenance slot. And one of these slots we used for migrating the suit about the storage. Can you talk a little bit more about that 24-7? I mean, what are the real business drivers that are sort of mandates for you from an IT organization standpoint? Well, when we look at the brewery process itself, it's something that you cannot stop. So all our automated systems are driven by our IT infrastructure from the Windows servers normally spoken. They have to be kept up for 24-7. When you interrupt the process, the beer goes bad. Let's say something like that. It's the same goes for all our packaging and all our distribution processes. When our system goes down, that means that one packaging line cannot run. It costs us 12,000 euros an hour. When one line is down, so. And we have 12. And we have 12 is about only. A very competitive business you're in. Yeah, absolutely. Phil, I want to, if you can talk about this a little bit and then I have a follow-up for the folks from Heineken. There's a lot of talk today about big data, right? Data warehousing and business intelligence. And we're seeing the analytics side of a lot of organizations really gaining influence in terms of decision-making. Are you seeing that in your customer base that the whole data warehouse, data mart, is that starting to explode for you? Oh, absolutely. If you look at the growth in data, it's happening in multiple ways. One is not only collecting all the data, but then having ways to analyze it and make business decisions on it. And I would say by far, the majority of our customers, that's a major initiative, is to do the whole data warehousing and make something out of that data that they're keeping in their storage system. So how are the, to the folks at Heineken, how are you using business analytics, data warehousing, data mart, how does that fit into the whole infrastructure here? Good question. Well, it's a difficult question for me to answer. Yeah. So it's not something that you guys have visibility on? Is that right? Not your areas? I'm sorry. Okay. There's a lot of discussion around that, as you know, Phil. And I'm sort of curious as to whether or not clients are going to actually virtualize that big data, because it's very performance intensive. And so we've got some more sessions this afternoon. Another question is maybe anybody who wants to jump in here, what do you guys see as the big disruptive technologies on the horizon? I mean, you're seeing things like flash, obviously thin provisioning and other simplification technologies. Phil, maybe start with you. What do you see as the big disruptors that people should be focused on? Yeah, I think on the, I kind of look at two different areas. If you look at kind of the hardware side there, there's a revolution going on. The whole connectivity side with, you know, 10 gig ice guzzly, FCOE, 8 gig fiber, Infiniband, you got a lot of choices coming there, a lot of flexibility. On the drive side, you're going to see smaller disc technologies, SAS technology taking over, and then solid state. And that's one of the core concepts of compelling is to try to have an architecture that will be able to incorporate all those technologies as they come out without having to throw away your old models. So for instance, our customer Heineken Yerfnau and those new technologies come out, they're going to be able to insert that new technology side by side with what they bought this year from us. And now I have to worry about throwing things away or starting over or doing a forklift upgrade. And we get a lot of customers that at those insertion points where they have to do those upgrades to take advantage of that technology, we'll grab the compelling technology and insert us in there and so they're an incumbent vendor. On the software side, I'll tell you there's just a, you're going to have to manage the data much, much differently here. And it's got to be much more flexible to fit into cloud type architectures, provide quality of service. You're going to need to have things like automated tiering. You're going to need to do it at a block level, we really believe it to get the efficiencies. You get to find ways to eliminate all the waste that people have there. I was kind of interested to see if they had any data on their migration, but we usually see customers when they migrate from legacy systems to us, they will reclaim with our thin import here, you know, 60 to 70% of their space that was wasted before they're able to reclaim it and have it for use there. But just a lot of innovation on the whole cloud and continuous operations and those types of flexibility options. Well, how about that? When you guys migrated from traditional arrays, did you, I know Compellent has what we call a Wikibon the hero report. Yes. And I think you guys may use that term as well. I think we might have stole it from you. But you know what I'm talking about, the hero report which shows like allocated versus written storage, which shows you how much storage you reclaim. And did you take a look at those metrics? Absolutely, because one of the major things we had in our previous storage is that we had no reporting possibilities at all, no facilities at all. We constantly had to rely back on other parties to investigate and analyze our data or performance issues. What we can do now with Compellent is we look at their progression reports and all the other data we have available so we can make our own decisions and analyze where the problems may lie over where we may have to expand in the future. So are you finding that your storage utilization, you know, increased dramatically? Can you talk about that a little bit? What we have seen is that because of the thin provisioning, we have saved about 30 to 40% of our disk space. What Duchenne told us before, we decreased about 60% of our physical disks in total. So what does that mean for you? It means you have to buy less storage, right? So it lowers your CAPEX. And I know there's all these other OPEX savings, but right off the bat, you're saving, right? Well, not only the less storage we have to buy, so the cost, but we also are looking at the green IT for our data centers itself. We look at the less machines or hardware we have, the less energy we have to consume and the less cooling we need. So this is one of our neighbors. So what did you do with that savings? Do you find new applications to buy more storage or do you put it elsewhere? Or where's that money go? No, no, right? The bonus pool for IT, right? Yeah, sure. Those were commercials, no, I don't have an idea, sorry. You gotta give it back to the business, is that okay? Totally true, we are a non-profit IT organization within Heineck itself. That means that we charge the customers exactly what we pay for everything, so. You do charge backs? Absolutely. Can you talk a little bit about that? Have you been doing it for a while? I mean, many customers don't because it's a pain, but. No, what we do is, when we charge customers on a yearly basis for the number of servers they have, the number of storage they're utilizing, we're not so far that we are also charging for the processor power of the utilization of the VMware environment. It's something that could be enabled in the next years. So we only charge them for the normal maintenance and the hardware investment. And how long you've been doing the charge backs for a while? I think about five years now. Okay, yeah. Was that a difficult process to put that in? Was it organizationally a pain or you just sort of did it and? No, it went just fluidly, they all accepted it. How have things changed since you put in the charge backs? Have you seen any impact or, you know, in perception from the business? Well, what you can see is normally they would ask, for example, for a simple non-mission critical server, they ask for a, not only the production server, but also a developmental testing acceptance server. And what you see because they are charged for the servers now, they're very reluctant to see if it's really necessary. And with VMware, for us it's now possible that we have just the production environment and when they use a development test or acceptance environment, we just clone or create the one so they can use it. You know, maybe one last question for the folks from Heineken and then maybe Phil, you and I could stay on and talk a little bit about compelence business and share with our audience some of the business aspects, the guys that are out there and maybe don't know as much about the company. But the question I have for Heineken is, what would you say is on compelence to-do list? You know, what are the kinds of things or even just the industry in general? What do you want to see out of the industry or generally, or maybe out of compelence specifically that would help your business? That's a good question. Lower prices? Yeah, that's always the price. Not a quick story. Come on, these guys, all they do it is lower in prices, right? What industry lowers prices faster than storage? No, I have no idea, sorry. Yeah, so things are good. Everything's very good for us. Yeah. It's so boring sometimes talking to customers. They don't have problems and I get the same theme. That's true with compelling customers, yeah. We do have problems, but all of them have been solved by compelence very adequately, so. Really? Okay, so just more performance, more capacity. Yeah, more capacity. What we can see is we're growing on the SATA tier at the moment and that's exactly what compelence also promised us. So in the future I see that we are going to expand on the SATA disks. What we're also looking for is some of our high-performance systems could be using the SSD tier we have at the moment. We use it only for one of our systems that is very high IO intensive. So in the near future, I think we could also upgrade or implement more of the SSD technology. Actually, maybe another follow-up on that. So do you see that, a lot of customers I talk to and people in the Wikibon community are talking about a two-tier, sort of tier zero and then tier three bit bucket, they call it. Yeah, we have three tiers. And so do you see those tiers collapsing into two or do you see that three tiers continuing? No, when I look at our own situation, I think the three tiers will continue to exist, especially because the high-performance tier is a very expensive one, the SSD tier. We only use it for the real high-performance applications and not for all the other applications. And the fiber channel, we just need it for all the business applications itself. And it drips down to the SATA disk for the storage. We actually, sorry, we actually don't use the data percussion on the highest tier, only between the fiber channel and the SATA tier. Yeah. Okay, so how does data get on that highest tier? It's just... We put it on and it stays on. You migrated to the tier. You deliberately migrated to... Exactly, man. How do you determine what to migrate there? How do you... You just know? No, we... You mean access patterns? I mean, how do you determine what to place there? What to place there? Well, that's the measurements they were taken before we had to migrate and that we found out that the load on that specific server was so high that we couldn't put it on the fiber channel layer because that meant a number of extra potential disks and the solid state drives would give us and the performance and the number of disk space. So... Yeah, that solid state, really, if you want sub millisecond response time, you gotta do solid state to do it. And that's what they did for that one big application. Yeah, so it's okay. So if I could summarize, you see the multiple tiers staying for a while and maybe even getting more granular. We haven't talked much about the cloud. Are you consider that maybe potentially for a backup or disaster recovery as yet another tier? It could be a possibility. Yeah. We're not looking at it at the moment, but it's gonna be a possibility. All right, well, I want to thank the folks from Heineken for coming on and the folks from Compellent for hosting that. Phil, you and I are gonna stay if that's okay. Talk a little bit. So you guys, you know, free to go. Enjoy the show. Thank you very much. Appreciate it. And I want to thank you guys, too. Thanks a lot. Thank you very much. Thank you. Thank you. Great stuff.