 theCUBE at EMC World 2014 is brought to you by EMC. Redefine VCE, innovating the world's first converged infrastructure solution for private cloud computing. Brocade, say goodbye to the status quo and hello to Brocade. Okay, welcome back everyone. This is day two of EMC World 2014. This is theCUBE, our flagship program. We go out to the events, extract a signal from the noise. I'm John Furrier, the founder of SiliconANGLE. Jill, my co is Dave Vellante of wikibon.org. And again, we're live in Las Vegas for EMC World. Day two of three days of wall-to-wall coverage. Dave, day two is about Pat Gelsinger. It's about EMC federations, about VMware, Pivotal. And all the action continues as EMC World, pretty much all the pomp and circumstance we expect from Jeremy Burton with a lot of meat on the bone. We obviously have a huge deal yesterday with the SSD, Amazon comparison, re-invent, redefine, you see the parallels and you're looking at the enterprise being software-defined, software-defined, everything. And again, on cadence with yesterday, you're hearing the VMware story, you're hearing the Pivotal story, Paul Moritz, big gun up on stage, Pat Gelsinger who was on theCUBE yesterday, gives a little bit of a teaser about what he gave on the keynote this morning. But a lot of great news. We've seen cloud foundry support on the cloud hybrid services, SAP HANA being virtualized and just the continuation of this modern architecture. You know, I watching Paul Moritz on his keynote and Pat Gelsinger, I felt like I was transported back into a time machine to 2010 when Paul Moritz was the CEO of VMware and he laid out that initial architecture at VMware. A lot of the same stuff, repositioned, a lot of architectural shifts in terms of where things sit, but ultimately it's the same game, Dave. Different day, same game, different elements. What's your take on the morning keynotes? Well, so today is Federation Day, but before we leave yesterday, I want to go back to DSSD, John. I was snooping around last night. My sources indicate to me that EMC was an early investor in DSSD, so we had Pat Gelsinger on yesterday and I would suspect that, you know, perhaps Pat even made that investment. You know, he didn't admit it but he said, yeah, I was very heavily involved. I also heard, John, that SAP was an early investor in DSSD and EMC bought out SAP share as part of that. So the key is that SAP has the inside track now on DSSD and vice versa. The key to that deal, John, is that SAP and EMC announced that SAP would write to that standard. I think that's a huge move. The only thing out there close to it is FusionIO and Prokona, my SQL Prokona is writing to it, but that's a small ISV, SAP, the big whale ISV writing to that standard. In my opinion, as David Floyer said in his piece yesterday, EMC should open source that. So that's really sort of close to the loop on yesterday. Today is all about federation. We heard this morning from Pat Gelsinger and we heard from Paul Moritz, big pieces of the federation. I thought Tim Crawford's tweet in the crowd chat summed it up, he said, the real question is, is VMware relevant? And of course, my response and your response is yes, VMware is absolutely relevant. What I said, John, I wonder if we can get your take on this, is the big question is, is VMware relevant in a disruptive way or is VMware relevant the way Microsoft is relevant? That's a good question. I mean, I think the relevancy is there for sure for VMware. No question. But I think that's a good question. Are they in a position to be a disruptor? And I would say yes, and I'll tell you why. On one hand, you look at VMware and you're saying, okay, they're an incumbent, but there's two levels of incumbency. There's the incumbents who are being disrupted and then there's the incumbents who are being a disruptor. And then there's obviously the startups like Docker we talked about yesterday with Pat Gelsinger with the container, a lot of traction. They're a pure startup. They're disrupting, trying to disrupt the incumbents that are disrupting and then ultimately the slow guys will all wither away as Joe Tucci would say. And that's the key. But Pat Gelsinger clearly said yesterday that VMware is not a hobby. Okay, VMware is taking an offensive position. Joe Tucci used the word offense, sports metaphor, which we like. And clearly that's the case. So to me, just on the mojo and the orientation towards offensive, I see VMware still disrupting. But I just don't see them having the big bullets like they used to. I think Docker is a threat to VMware. Pat Gelsinger tried to laugh that away and kind of wave that away. I think they got to pay attention to Docker. I think Red Hat is something that they have to watch for. What Red Hat's doing right now in the most parts of the stack. With Gloucester and Seth, right? It's significant in one, if Linux is going to be the cloud, if Linux for the cloud is pivotal strategy and VMware, you got to look at the major Linux player like Red Hat. So again, this is the orbit of the disruptive ecosystem. And I think VMware is at the center of it. They have huge install base and VMs are still a great container. Virtualization is not going away. And I think as Pat Gelsinger focuses the sword of VMware, now a pivotal focused with Maritz's leadership, you're seeing kind of that software focus, the DevOps focus, the agile enterprise. That is clearly a differentiation and separation. So VMware and Pivotal in the Federation, two decoupled entities, so to speak, but highly cohesive. So I think that's a good architecture. Now, it looks good on paper. Can they execute? That's what I'm going to be looking for today. To me, here's the key. Pat Gelsinger talked about a quote that Ken Olson made. He showed the clock tower at the mill. He gave a quote from Ken Olson saying, you know, something the effect of PCs will never make it in business. I tweeted out Unix's snake oil, which was another famous Ken Olson quote. The point is that the Federation is EMC's prescription to cross the chasm. So if you look at the numbers, Pivotal's growing at 80% from a very small base, a few hundred million. VMware is growing at 15 to 20% and EMC is growing in single digits. So that is the prescription for EMC to remain agile, John. And you know, I think it's a unique business model and one that I applaud, it's masterful move by Tucci. I know we got to jump, we got our next guest, but I'll talk about it. Okay, so that's the intro. A lot of action here. We got David Goulden, two notable EMC executives, but one's the president of products, the other one's the CEO of EMC too. Both CUBE alumni should be a very engaging conversation. If you want to ask questions and put out some commentary, go to crowdchat.net slash emcworld. We have an open thought leadership documented on the record, public chat on the EMCworld hashtag. Go there, if you're watching theCUBE right now, go to crowdchat.net slash emcworld. Sign in, everything goes to the hashtag, but we are threading the conversations. We are capturing the conversations and recording it. So you're on the record on crowdchat. We'll be right back, day two of EMCworld 2014, right after the short break.