 Amazon's web service, re-invent conference. This is theCUBE, exclusive coverage of all the action here about the cloud, DevOps, big data, you name it. Amazon is really kicking some serious butt out there in the marketplace in public cloud infrastructure as a service. And this is theCUBE. I'm John Furrier, the founder of SiliconANGLE. I'm Joe Michael, host of this segment. Jeff Kelly, big data analyst at wikibond.org. And our next guest is Nima Beatty with Cloud Foundry. Welcome to theCUBE. We love to get the perspectives. We've been talking about Pivotal yesterday with Cloud Foundry, obviously in context to Amazon. Cloud is the hot topic. Amazon has seven years of experience and getting the runway going for cloud. Still bumpy road, not a clean path to the enterprise, for sure. But we want to know what's going on with Pivotal. You guys had some news yesterday. And more importantly, let's break down the enterprise action. It's not that simple. We're offering some VDI and some compliance software is one step, but there's a lot more action. So let's talk about one, your announcement yesterday and what's up with Cloud Foundry and then let's take it to the enterprise. Perfect. So I brought a prop with me because props are great. So this is yesterday's Wall Street Journal. If you turn up page A7, you'll see our ad. So this is the Cloud Foundry platform ad. It's the first time we've actually publicly gone out of the camera, I put this in front of the camera. So the big announcement we had yesterday was really announcing Pivotal CF. So this is the Cloud Foundry product, but for the first time commercially available to enterprise with Fortune 5000 sold via VMware and EMC sales channels and through our direct sales force. It includes the elastic runtime service. So everything you know and love about Cloud Foundry including application scalability, load balancing, DNS, automatic health management, logging, auditing, a web management console, a command line interface and IDE plugins for your, you know, popular plugins like Eclipse or Spring STS. It includes the CF operations manager, which is basically a way for you to deploy on top of vSphere and automatically manage your Cloud Foundry installation. So no longer just scripts that are static, the very dynamic environment. The best example I can give you is it's kind of like a live virus that will go and deploy itself onto your vSphere infrastructure, but it's not a static deployment. It'll roll up VMs, roll down VMs as needed and deploy a stem cell on each virtual machine with a specific application. If you know anything about Cloud Foundry, it's basically an idempotent distributed set of loosely coupled services, which is how it operates in a very dynamic and scalable environment. And then the second part that we announced yesterday was the announcement of Pivotal 1. So this includes add-on services which can either sit on top of Cloud Foundry or be deployed adjacent to. So Pivotal HD, which is basically everything you know I love about Hadoop, includes HDFS, Hawk, which is our SQL interface and ingestion service, Yarn, Hive, all the things that you need for a big data deployment. It includes Pivotal AX, which is our analytic platform for collecting, storing, querying, visualizing and analyzing data, as well as RabbitMQ and MySQL. And over time we'll add additional services so you can run a fully functional platform as a service either deployed behind the firewall, on your infrastructure, on a managed service deployment, or even in the public cloud, including Amazon AWS. So we've been very complimentary of Pivotal but also critical because when you make a big splash in the pool, like with the article here and all the big logos on there, we want to just make sure the audience understands kind of where the action is. Pivotal is new. We've given you guys a big pass on that because really you got 1600 people as an instant startup. So you guys have made a lot of successes but let's break down kind of where you're at. So you guys are platform as a service, that's key initiative. Amazon owns infrastructure as a service, they got 36% roughly Dave Vellante thinks more but the action is in the software side, right? So let's go into the software conversation. Where are you guys at? What have you guys knocked down? You got Gemfire, you got Green Plum, Solid Anchor in the portfolio. What else is going on? Share with the folks what's happening because there's a lot of confusion around, okay, is it all fluff, a lot of big splash in the pool? Where's the meat on the bone? What do you guys, give us an update. So our focus is not infrastructure as a service. I think they're very competent companies doing that, Amazon AWS and the open source domain, there's open stack and then there's a very long tail of a lot of different providers. VMware kind of where my genealogy comes from as well. We focus principally at the intersection of applications, data and analytics. So you don't need one, you need kind of the consolidation of all three of them in one. So all the products that are in the portfolio, if you remember part of the launch in April 1st, one of the comments I got back about the formation of Pivotal was that it kind of feels like the island of misfit toys. And then you hear Paul give his speech and talk about why he built the company the way he did, why he decided that it was time to pull Cloud Foundry out of VMware, to pull the vFabric division out of VMware, to focus on applications, you grok the picture very, very quickly. Nobody has gone after this market with all three tools in one toolbox from one company. Let's just hold on, let's break that down because that's really important to share with the folks. The unbundling of VMware is really critical because it's not like you guys just had to get into the past business. There's some serious assets there. So drill down on specifically what was pulled out and plugged into the Cloud Foundry. So we started with Cloud Foundry. So that was an incubating product in the, what we used to call the Layer 2 division. vFabric, so that includes TC Serbert, RabbitMQ, Redis, Gemfire SQL Fire, and the Spring Development Framework. So that was all pulled into Pivotal as part of our application in Cloud Fabric products. From EMC, we inherited Pivotal Hadoop, Hock, the Green Plum database, as well as a very dynamic, competent, stellar team of data scientists who are excellent at just kind of jumping into an enterprise big data problem, doing enterprise transformational load, discovering where data is hidden, pulling it into a single source of truth and helping enterprises grapple with their data problem. Because most enterprises grew via M&A, so they have pockets of data everywhere but they don't know where it is. They can't audit it. They have no idea what they know. It's just that meta knowledge problem. I don't know what I don't know. And it helps them with that. And then layered on top of all this is an exceptional engineering services team out of Pivotal Labs and Extreme Labs out of Toronto. So what you have is a developer focus. What does a developer need to quickly build, experiment, deploy and scale applications? Without having to go through this old world, let me wait two months to provision of EM. We're fundamentally taking the unit of currency from the virtual machine to the application because that's what people work on. People don't work on virtual machines. They don't work on containers. They don't work on the REST stack. I have an application. Make it run for me. Don't make my life harder. Well, and so isn't one of the keys, of course, for a platform as a service is to you've got to track developers. I mean, that's obviously, it goes without saying. But in order to do that, developers want choice. Just what you said, they want to use the tools that make it easiest for them to build applications that are going to have an impact and do that quickly. Is there a tension in the Pivotal business model where you've got the data side, the big data side, the analytic side, and then you've got the platform side where, I mean, if I come to Cloud Foundry, am I going to be kind of pushed to start using some of the Pivotal big data products? And what if I want to use some of Oracle's products or an HP Vertica database? You've got to remain open on the platform side, but obviously you still want to grow the big data business. Is there a tension there? How are you guys handling that? If it's tension, it's creative tension, which is the kind of tension you really want. We look at it more upon the life cycle of data. So it starts with I have information, pull my data into a single source of truth, analyze it, allow me to learn from it. From that, I get my analytics. From that, I can take that information and use it to build new applications. And now I'm building my application. These applications then generate more data, which then go into this circle over and over again. We have access to a lot of data, but it's all static. You don't do anything with it. You don't really learn from it. Every device that we touch generates data. One of the examples was, I think, one of the folks at General Electric told me that their engines generate a terabyte of sensor data on a five-hour flight. What happens to that sensor data? Who uses it? Are automobiles generate data? How many apps have you installed on your car? Okay, this question seems silly today. In three years, it will not seem silly. I'll install my GPS application. I'll install Waze on my car. I'll install some sort of monitoring application that connects with the ODBC2 interface with my car. My car is rolling software. My car is 100-atom processors. My car is 30 million lines of code in the GPS and radiohead alone, whereas the Joint Strike Fighter has eight million lines of code in the Avionics. Software is eating the world. From our perspective, companies like, let me think about this, Square, Uber, Netflix, Airbnb, they have come into the established head-money of businesses and completely thrown everything around. Square, for example, how do they get a $3.5 billion valuation? Software. They innovated. They out-innovated their competition. They out-innovated a trillion-dollar industry and started to complete on its head. How can we enable companies to do that? How can we enable enterprises to put a defensive strategy so they can actually prevent the brain drain and the customer drain by being as innovative as these little small startups? So let's talk about that for a second. So there's two categories. What I just heard you say is there's green field opportunities. So if I'm Uber and you start up, I'm going to be disruptive and Amazon was put trumpeting out all their success, the same thing. That's easy, right? I mean, I'm not easy, but like, okay, I don't have any legacy. So, okay, start from scratch. Cloud makes perfect sense. But what about the legacy enterprises? Because now it's a whole different ballgame, right? I mean, Cloud looks great on paper, but I'm an enterprise. I got to have compliance. There's certain table stakes. And I got slammed on Twitter for saying this, but it's like going through TSA at the airport. You know, you got to get inspected. Everything's going to be certified. So the enterprise is not that easy to roll out. So what's your guys take on that? You guys have a unique positioning with VMware and the install base of Green Plum and Gempire. You have installed base. So how are you guys handling that enterprise story? So it's a great question. So one of the ways we're going to go to market is using the established VMware sales channel. So VMware has a great relationship with all of their customers. This would be an additive story. So now it's no longer about just basic virtualization. That was the story 10 years ago. If you listen to Paul tell the story, you'll talk about how mainframes emerge into virtual machines. The new unit of currency is really the application. And that's what enterprises are starting to care about. And the key actors in the enterprise are no longer the CTO or the VP of ops. It's the business unit owners who if their own internal IT departments don't offer what they want, they will do an end run around and obviate them and go straight to Amazon, go straight to Verizon, go straight to AT&T, go straight to whoever is there that will give them exactly what they want. They're under fire. They have to deliver application. They have to deliver business value. And you cannot wait two weeks to have a virtual machine provision for you or six weeks to have a server. A developer using Cloud Foundry can push an application in under five minutes. They can scale from one instance to 100 instances in 30 seconds by giving a one line command. You put the power in the developer's hands. They then become responsible for writing good code for developing unit tests for their code. They're the throat to choke if something doesn't work correctly in production. What about OpenStack? So obviously OpenStack, you guys play with OpenStack. How is that changing the game? Obviously it's a standard, it's open. Some say that this is locking with Amazon. We're more like, it's more like the iPhone. But Android kind of metaphor would be OpenStack. Jerry Chen was poo-pooing that by saying there's no Google behind OpenStack. I would argue that EMC, VMware, IBM or HP could be that force. One of those companies can step up. Mirac Space is just too small to carry the industry on their back at this point in my opinion. No offense to Rick down at Rackspace but it's still a small company. So where's OpenStack going? So patterns, right? We talk about patterns. One of my favorite quotes is, here, Pivotal stands out, not this one. There's a much better one. Here we go. Claude Foundry has progressed from a promising collection of early movers to the dominant pattern for enterprise paths today. Someone talked about that, patterns, right? What are the patterns we see emerging? In the hallway, you hear a lot of, is it AWS and or OpenStack? I think the conversation should be and. Everything is completely additive. From a Pivotal perspective, we are agnostic to the underlying infrastructure whether it's AWS or vSphere or OpenStack. We play equally well with all three of them. Last week at the OpenStack conference in Hong Kong, Mark Shuttleworth from Canonical stated that we've launched a partnership with Canonical to have a distribution of Claude Foundry on top of OpenStack. So now you can have a Claude Foundry instance on your OpenStack behind the firewall or on your OpenStack in the public domain, as well as on AWS. And if you have vSphere infrastructure on vSphere as well, you don't have to go buy all this additional software and hardware. You already have what you need to run an enterprise grade pass. So we are truly agnostic to the underlying infrastructure. It's market expansion for you guys, really. I mean, it's not necessarily. It really is. It's not about picking a horse. It's knowing, being ubiquitous across all potential patterns that are emerging. The three principal patterns are AWS, OpenStack, and vSphere. There's still CloudStack, for example, and it's through other infrastructures, the service providers, and technologies. All we need are the 14 primitives that define the cloud provider interface and we can deploy on them as well. So what was your take on Andy Jassy's keynote this morning when he talked about the private cloud? And he was really down on the private cloud. It doesn't offer the shift from the CapEx to OpEx. It doesn't offer some of the agility you need. It doesn't offer some of the, you know, you still got to pay for it. You've got to do a lot of the work yourself still. It sounds like you're saying, almost doesn't matter to Pivotal because you'll deploy wherever the pattern takes you, wherever our customers are going. Exactly. But at the same time I've heard from Pivotal that we are focused primarily on the private cloud. Maybe I'm mishearing that, but is that inaccurate? How do you view that evolution? And do you agree with what Andy Jassy said about that? So the announcement yesterday was more about the availability of cloud foundry on top of vSphere for specifically the private cloud. There's also for public cloud. If you want it on top of OpenSack, you want it on top of AWS, we have, I see emerging and dominant patterns in both. I think the hybrid conversation is moving away from private versus public and more about the way I deploy. What does hybrid mean to me? Hybrid means I use a mishmash of these services and those services for me to globally deploy my application to all my customers. So I think the conversation is really changing. Andy has a very peculiar and specific perspective from Amazon. And I think if you take a look at the world from his view, he's absolutely correct. If you take a look from our view, the only care that we have is what the developer wants. So what does the developer want? They want ubiquity. They want to be able to move their application from one cloud to the next because they want to grow globally or grow in capacity. Underlying infrastructure should be relevant, unimportant, where the values really added from the underlying infrastructure are the additive services they bring on to bear. So I can definitely see a combination of vSphere and OpenSack and AWS where each one offers different capabilities and customers will naturally gravitate towards those capabilities. You will always have customers who just want to be in their defined data center. You'll have customers who want managed services but on a particular stack. And those are completely comfortable living 100% in the cloud. If you give them choice and give them a chance to try everything out, they will naturally gravitate towards it and you'll see different types of workloads. So a company like, let's say LinkedIn might have everything that's core, you see on the left-hand side of their nav screen running on their infrastructure because that's really important to them. They want to run on bare metal. And everything that's experimental, it's on the right-hand side of the LinkedIn navigation screen might be on the public cloud. So companies will really be able to very quickly iterate, experiment, try new things, learn from those failures and course correct in a very meaningful way as opposed to building these monolithic stacks and monolithic software. I think those days were gone. There are very few people who can do that anymore, the sites of Google and the Facebooks and I think that's kind of a dying breed. The new emerging pattern is rapid iteration, fast deployment, hyperscale ability and the ability to deploy upon multiple different infrastructure. I don't care that my computer plugs into the wall. I don't care what shape the plug should be, right? You're still delivering electricity to me. I'll build an adapter, I plug it in, I can go anywhere. That's how software should be. So we got a break here on our next segment, we got a hard stop. I want to ask you a final word. What's your take on the show here, the positioning of Amazon? What's the bumper sticker for the show here? What's the focus? I'm really proud to see one of the emerging themes here being more services so that the cloud becomes much more and more attractive. We wait once a year for these great announcements coming out of Amazon. What I see is a growing tool chest of services that I can use to build things with and whether I'm building an application with it or I'm using them to consume for a platform that I then build applications on top of. Ubiquity seems to be kind of the prevailing wisdom here but also a greater extension of services. So I don't have to worry about wrapping software, provisioning software, deploying software anymore. I just buy everything as a service. I think that is becoming the dominant factor in everything that I see here, even a lot of the partners that we see. Well that's great, congratulations. You got the big splash on the pool yesterday. We call it the cannon ball, big splash. Now that the splash has kind of died down, I want to, what's next for, what's the, as you guys get down to business, rubber beasts in the road, what's next for you guys Cloud Foundry? What's going to roll out? We spend very little on marketing. We spend a lot on engineering. So just keep building great product. That's all we care about. Any specific white spaces you guys are focused on right now that you're jamming on? Well, we're going to put the product out into the public and see how they use it, which is what we did with the open source version about 18 months ago. Awesome, Cloud Foundry, again, amazing setup from EMC Federation. And breaking away from VMware is a good call. We were, nothing really changed with VMware other than taking all the big data software assets out and letting VMware do their business and you guys got a good road ahead. Again, congratulations. We're here live exclusive coverage of Amazon Reinventus, theCUBE, we'll be right back with our next guest at this short break.