 Live from San Francisco, celebrating 10 years of high-tech coverage, it's theCUBE. Covering VMworld 2019. Brought to you by VMware and its ecosystem partners. Hello and welcome back to theCUBE's live coverage here in San Francisco for VMworld 2019. I'm John Furrier with my co-host Dave Vellante. Dave, 10 years of theCUBE covering VMworld. Lots changed, lots happening, 10 more years. Two great guests here from VM, Kerry Stanton's VP of Global Alliances and Kendrick Dahl, who's the VP of Globalized Architecture. Both with Veeam, love the green. Yes. Good to see you, Gents. At the party last night, you guys are known for the legendary party. Yes. Andy Rammer, did you, that was great. We had 2,500 people waving, shouting. Yeah, it was great. So welcome, welcome back to theCUBE. So what's the news for you guys? You're always popping some news out. What's going on here for you guys at VMworld 2019? Top story. Top story for us, I think, you know, is continuation of what we're doing with VMware on VMC and AWS, you know, great. We're continuing to be the number one data protection workload on VSAN, working with them on their new marketplace as a design partner that they just launched this week as well. So I would say that everything, we are always everything to VMware, and then we just continue to ratchet up with, you know, continuing to grow out their ACI platform with VSAN and the new marketplace, which is their VCVP, which is a big part of our business. And the cloud's certainly a big part of the equation for VMware this year. I mean, seeing them announce cloud native support, Kubernetes on vSphere. So it's starting to get their software mojo down on trying to build that next generation platform. You guys are kind of there with your solution. What's the big takeaway, technically, that's going on that customers should care about in your mind, Ken, what do you think? Yeah, you know, certainly there's a big push towards cloud. I think, you know, as Ratmir or our co-founder would tell you, hey, we track VMware. So when VMware started on prem, we would track along. They've now moved into the public cloud. You know, we're following along there. So whether it's VMC and AWS, the new relationships with Azure and Google, you know, are just goodness for us because we provide inherent support there. But you know, some of the next generation things, a lot of news about Project Pacific and Kubernetes and, you know, next generation cloud native applications. And yeah, I mean, we're here to support our customers. You know, we're looking at all the new things that are there. We've done a lot of things recently about adopting, you know, object storage for cloud storage, et cetera. A lot of things we're doing from a product and technology perspective. So Pat Gelsinger on theCUBE one time said, if you don't ride the waves, you're going to become driftwood. You guys have always been wave riders. When you see something like, you know, the Project Pacific, what does that mean to you? How do you respond to that? Do you talk to customers? Do you sort of huddle internally and start designing or? We do. I mean, we certainly take a lot of feedback. You know, as we all know in tech, you know, there's a lot of things that come and go. You know, some of these things are great ideas. And I mean, at VMware, you can look at V-Cloud Air, right? You know, it was great momentum for a while and VMware made a very good pivot, right? They understood that it's not, we shouldn't compete in this space. We should partner in this space. And so we do the same thing, right? We look at when we're evaluating new technologies, Kubernetes, et cetera. I mean, I think at this point we know Kubernetes is here to stay, right? That's not a fad, right? It's very clear. The adoption is clear. So we're evaluating how we participate there. Our customers are largely on-prem customers, but moving to the cloud, it's a real hybrid story. And so when we go in and implement our support and look at how we're going to integrate that, it's all about how we help our customers in that world. So when you see a new trend, you say, what, we can protect that, we can protect that, we can protect that, right? It's anything, everything needs to be protected. How do you think about protecting containers? Yeah, so we look at it and say, hey look, the way that containers are delivered is it's inside of a system regardless. So sometimes it's inside of VMs, sometimes it's inside of physical system. We can protect what supports there. And so we're looking at, hey, how can we help customers today? A lot of customers are moving their workloads. Similar to when server virtualization came up, it was a little bit of a lift and shift, right? I'm going to go and take what was working on physical, move it to virtual. A lot of customers today are moving what they have in legacy apps and they're just putting them into containers just to get there. And then they're building new applications, they're building in a more stateless fashion. We can support the customers today when they move to sort of a stateful system and we're evaluating how we support more the stateful long-term view of Kubernetes. Okay, so you obviously know VMware very well. Yes, sir. That's about some time there. When you think about how the ecosystem's evolving, you see VMware now is a networking company, they're a storage company, obviously they compute, but they haven't sort of aimed the candidate data protection, right? They've left that to the ecosystem. Your thoughts on how the ecosystem is evolving, your relationship with VMware and the broader? Yeah, I think it's not dissimilar to, I mean, if we just pick vSAN, right? Storage, primary workload, they don't play in the secondary, storage, they don't, and they just allow their customers to work with reference architectures that we create to say which data protection partner would you like to have? We're fortunate to be number one. If you look at HPE, right? Again, they have lots of partners, we're number one with them, NetApp, Cisco and the like. So VMware is not any dissimilar, so we're fortunate to have that tier one relationship with them that they're looking to us as serving their customers. And then we also have a very close working relation with them on the engineering side to ensure that we're always protecting their customers and we have lots of other great meetings this week and lots of other things to be announced in the weeks ahead with working with them and their customers. So we're very excited on what they're doing in that space and how we can solve their customers. It's interesting, none of the big platform players really have attacked ever historically back up. I mean, I guess IBM, you know, kind of, but that's for different reasons. You know, they probably say, okay, we replicate it and we're good. Yes. Why do you think that is? It's because it's so hard, you guys are just that far ahead, you guys are an industry, that far ahead of the functionality. It's a tough business. It's big, it's a large business. I think it is, it's a six plus billion dollar town, right? I think that it's also a legacy. I mean, if you look at where Veeam came in and we were disruptors when VMware was in and doing the virtualization, we were disrupting the legacy players without saying all the names, but we did. And I believe that just with the two decade plus world data protection's been in and the evolution, that it would take a lot of work on their part to want to come in and say that they're going to get into that space and try and have a solution that is as credible as Veeam is in the marketplace. So again, we're fortunate, we stay very close with them and we continue to see them as one of our, you know, tier one partners in the world. Talk about the integration aspect because if you're tier one, obviously you guys, number one, recommended these guys, relationship is strong. Integrations are key for you guys and with VMware, but also as customers, look at the cloud 2.0 world and you guys are following VMware with multi-cloud. You guys can play everywhere. You're going to be integrating a lot. So that's going to be a core competence for you guys. Can you just talk about how you guys view your integration with VMware and then from a customer standpoint, why is it important? I'll take the first crack and then pass it to Ken. But if you look at two years ago with VMC on AWS, when they made those announcements, we were a design partner in and then they started to evolve that and, you know, doing those pilot customers. We're starting to see those pilots turn into large enterprise deployments. You hear Pat and Sanjay talking about, you know, the evolution that they're having and we're seeing the result of that. The customer saying, I need what was using on-prem, right? And that's moving to the cloud and it just works. The Veeam slogan, it just works. So we're seeing a lot of those deployments for customers taking those enterprise solutions that they had on AWS and scaling them out and we're going to continue to do that across all of, you know, Ken was just talking about Kubernetes, you know, the Pacific project and others that were, again, we're at the table working with them but I don't think that Veeam is going to stay way we're only going to get closer as they go into new technologies. We have to and the tech's getting better too. Yeah, what I'll say also is, you know, Veeam, you know, when you look at the data protection landscape, we're a pure play ISV. That actually makes us pretty unique because all of our competitors either sell their software on a piece of hardware or it's at least an option. We have no Veeam white box option that you'll see a Veeam label on it and it really resonates with our partners. We're totally non-competitive or non-overlapping with our partners and so they welcome us with open arms as a result of that and it really helps us drive in but the integrations are critical and you know, just to quickly make a comment about the last question about, you know, sort of the point solutions and why doesn't the big platform players, you know, I'll give you two examples, two public cloud examples, Azure and AWS, the two primary cloud, hyperscale cloud vendors. They both have backup solutions, AWS has site recovery and, sorry, Azure has site recovery, AWS came out with AWS backup about a year ago, they announced that it reinvent. They need that for point solutions, for customers that are looking for a check box, right? Customers that really more the developer that just needs the base level protection but they partner with folks like ourselves for the broader support, for the hybrid support, right? Because, Silicon Angle, right? I just read an article yesterday or two days ago in Silicon Angle, it's a hybrid cloud world. You guys are talking all about it. That's where our strength is and that's why we have these partners coming to us. You know, they built point solutions on their own. Again, for that check box, we're not check box, we're deep integrations, we're hybrid cloud, portability, flexibility, reliability. And that's smart of the cloud guys to do that because some people want end to end or compliance reasons, they have to use the cloud's solution or it's a requirement. But look at cloud trail and the data is going public, you got New Relic. You got these companies that are winning just adding value with their product's leadership. Not necessarily Amazon's got a solution out there but they're not really going down that road. And John, I would say is also, they see the number of customers and the size of the petabytes that we're driving on the respective clouds. Again, back to Ken's point on AWS and Azure. I mean, that business for us is growing 30 to 35% month over month and so they understand the number of customers and they see that this is a hybrid play, right? The customer is tearing off data to the cloud but their primary workload is on-prem. And then- They'll do more EC2 cycles. I mean, rank up the EC2 baby. And they know that we're coming out with cloud-native solutions as well. So I mean, we're doing all the heavy R&D and investment solving their customer problems. So again, reason number 452 is why would they want to be disruptive to that? As you guys do these integrations, a lot of cloud action. You got VMC on AWS, cloud tier with AWS and Azure. You got a bunch of stuff going on with VMware solution with cloud simple. As you work in this cloud multi-cloud world, how are you changing your licensing and pricing models to adapt? Yeah, I think Ratmir and Danny were on this week and talking about, you know, instances. So we're moving the portability of the license no longer, you know, making the customer have to make a hard decision on the day of licensing with Veeam is, you know, we're saying, hey, the license, it's an instance, it's instance on-prem. It's an instance in the cloud. You determine what's right for your business and move those licenses. So we were the first to really make that giant leap and we're going to continue to evolve that solution to make it even easier for them to do that. And then there's another thing that Veeam is, we don't charge, there's no tax, right? We don't charge the customer any money if you want to move that, you know, those data environments up into the public cloud. And again, that's Veeam differentiating is that we're, you know, that customer company, we're always focused on which right for the customer from the product right down to the licensing model. Yeah, I mean, your tagline is, it just works. And I don't know if that's the tagline, but that's what customers always say. It was for many years. And it's more than just a product, it's the business model. You guys have always been pretty innovative in that regard. And especially with partners. I mean, you and I have talked about this in terms of how you make it transparent for the partner, for the sales reps on the partner side to not care whether it's they're selling, you know, on-prem or it's a cloud solution. And it's been well-received. As you know, we have, you know, global resell agreements with the Cisco's and HP's and NetApps of the world. And they are very appreciative to the way that we make it easy for them to sell to their customers and allow them to have that portability of the licenses. It's been great following you guys and your events and getting to see you guys be successful. You know, product does the talk and customers are the references. I mean, they vote with their wallets, you know. And you guys are a tier one partner. Congratulations. Yeah, thank you very much. Final question for you. Is the event successful in your mind for you guys? What do you think is happening here? What's the top story coming out of the event? Overall for the folks that didn't make it here. First and foremost, huge success. We're trying to, you know, we're 100% back here next year trying to make it even bigger. And I would say that what's coming out of it is just the success that our customers show by coming to our booth and showing us that they're looking to keep with Veeam on the journey as they go with VMware and can touch on Kubernetes and look at all the new solutions. And so we have an overwhelming support to customers saying, hey, I've been with you for the last decade. I want to be with you on the journey. And so that's, we've heard that over and over again this week, so very strong. Yeah, I think I'll second what Carrie said and maybe I'll give you maybe a broader picture. I mean, if you look at what VMware has done over the last 12 to 15 months, right? They did the, at last year at VMworld, they announced the Cloud Health Acquisition. You know, they acquired Security Company, Pivotal. You know, they're really broadening and they're seeing, you know, that, hey, look, it's not just about on-prem server virtualization. We need to have a very broad story. We need to have, we need to be relevant in the public cloud. We need to provide some management and multi-cloud capabilities. We're doing the same, but I think VMware is clearly in a period of transition and figuring out, you know, I think VMC and AWS is a great step, you know, having the cloud simple relationship and virtual stream for Azure, you know, running VMware and Azure in Google. But I think you'll continue to see that evolve. And I think they've laid, they've put the breadcrumbs down so that as, you know, as we go forward here in the coming months, weeks and next year when we're here at VMworld, you'll see that continue. And it's certainly a great growth in terms of infrastructure as code. You're starting to see the enterprise cloud start to stand up a little bit. Hybrid cloud's got visibility. It's not as easy as doing stuff in the cloud, getting the enterprise to work. You guys know that firsthand. Thank you, congratulations. Thanks for coming on theCUBE. Thanks to you guys. VMworld 2019 CUBE coverage here live in San Francisco. I'm John Furrier with Dave Vellante. We'll be back with more after this short break.