 Okay, welcome back everybody, this is VMworld 2013. We are here live inside theCUBE. John Furrier, the founder of SiliconANGLE. I'm joined by co-host Dave Vellante. We're here for day two of coverage here at VMworld. And what it's all about here is about cloud. It's about what's happening at the end user computing. It's all about the news that's hitting. Yesterday was the big news day. Today's kind of the meaty day. A lot of sessions, all the one-on-ones with the executives. And we're going to get into talking about startups. We're going to talk about a lot of different things. I'm John Furrier, my co-host is obviously Dave Vellante as always with wikibon.org. Dave, want to add your take? What's your take on day two? What do you expect? And how was last night's networking? So last night, you know, they kick off a lot of parties and so forth. Tonight's the big night, right? Everybody's got something going on. A lot of the VCs have events and we're going to be at the AT&T park. EMC's got a big customer meetings, a pivotal event, et cetera. Rackspace I think is going on tonight or tomorrow. But so today in the keynote, we heard Carl Eschenbach, the president C.O.O. of VMware, really getting down meat and potatoes. You know, I said this yesterday, John, VMware is really coming from its position of strength in the data center, in the heart. To use a baseball analogy, it can hit the fastball, right? It's looking for fastball, middle-in, that's the data center for them. You know, the big question is going to hit the splitter, the slider, and the curveball, which is the cloud and to a certain extent end user computing. So what we're looking for today is, I expect we're going to see more proof points with vSphere in the sweet spot, and then hopefully we're going to start to see some proof points over the next 12 to 18 months in the cloud, and then some real use cases within user computing. Yeah, I mean, one of the things I'm thinking about here, Dave, is obviously we're going to talk to some VCs here. Jerry Chen from Greylock. Greylock is a tier one Silicon Valley VC firm. We're going to get the scoop from him. Now, yesterday we talked about the VCs and some of them being like a deer in the headlights, and we were talking to a bunch of entrepreneurs last night, and this morning we had kind of an entrepreneurial round table, you and I, getting the scoop from the startups. And there are still bets to be made, and that was our question yesterday, and we're going to continue to talk about that. Are there enough bets, Dave, in the startup space? Storage, networking, converging infrastructure? Will there be enough action for startups to do their thing? And the answer is yes. Now, it's very frothy on the flash side, and yesterday we compared that to the Winchester disk drive bubble, which is storage in the 80s, and for the folks who weren't around or old enough or even born at that time, what happened was the personal computer gave way to a massive tsunami of growth, the PC generation at the time. So everyone was investing in disk drives, 10 megabyte disk drives. And VCs were funding stuff at huge valuations. That bubble popped, and then obviously a few suppliers came out. But again, disk drives have always been important, and we're seeing that same phenomenon in the flash business. However, some of the smart monies looking at other areas, looking at automation appliances, and stuff up the stack, platform as a service. These are things that are emerging, and we're going to cover that with Jerry Chen. We're also going to talk to Carl Echenbach, who's the president of these running VMware. He appointed Robin Madlock as the new CMO. That's a new hire, that's news yesterday. But we're going to hear from Carl what his plan is, because when we talk to Pat Gelsinger on Wednesday at nine o'clock, Dave, I want to really get into what's going on operationally at VMware. The big news, obviously last year, was they spun out Pivotal, which Paul Moritz is running. That's the big story. What is going on with VMware? How are they going to organize? How are they going to go to market? How are they going to fill in the white spaces with the products? What's their product management strategy? What is the positioning with the ecosystem? These are all open questions, it's open book right now, and those are the things that we're going to get into. So I want to get your take on VMware's operations, what needs to happen. And I want you to just riff a little bit on your study on wikibon.org on the hypervisor. And what does that mean for VMware? Well, so a couple of things. VMware is going after what they think is a $50 billion TAM comprising the management, really, above the hypervisor. I mean, the hypervisor, as we all know, is getting commoditized. And as Microsoft gives it away for free, and it'll open source from Xan, et cetera, CloudStack and others. But so they're really, they're imperative is to get customers to go on that journey, beyond just straight consolidation. And by all accounts, to talk to customers, VMware clearly has a lead in terms of its ability to deliver that. The real question, John, is can it access and tap the other parts of that total available market? In particular, that hybrid cloud. It's putting forth the vision of hybrid cloud. We were talking to some folks last night, cloud service providers at a dinner we were at. And they were telling us virtually every deal they do is some type of hybrid. And the data governance discussions are substantial. Now you won't necessarily have that kind of in-depth data discussion, data governance discussion with Amazon. So VMware's bet is that they can have that discussion, they and their partners, with the CIOs, and that the CIO will own the data governance within the organization. And they'll be able to essentially block Amazon from the enterprise. So that's their big bet. And then, of course, there's the post-PC era piece. But John, you've been watching the evolution of VMware. We were here in 2010 saying, look, VMware is the new IT economy. We made that call. You actually made that statement on theCUBE. What do you see? Since we've been here since 2010, how do you see it evolving? Well, Dave, good question. I think, for me, from my personal standpoint, obviously I'm in Silicon Valley, so I'm close to VMware, I'm close to Google, close to Facebook, a lot of these companies that are innovating, that are the new generation. VMware has really kind of stepped into virtualization, kind of by accident and on purpose, with the original VMware, Diane Green, the original team. And we know a lot of those original VMware folks, guys at Cloudera, Eli Collins, Jerry Chen, a bunch of folks, there's a VMware mafia out there now from the original VMware, and it really morphed from just a tech product to a full-blown, you know, the next Oracle. And that's kind of how I see the trajectory of VMware. But really what's happened has been interesting. Over the past four years, the cloud, mobile, and social vision that we started SiliconANGLE around, has exploded. But what's happened is, Paul Moritz laid out in 2010 the stack. And it was, you and I talked about, it was like the modern day OSI stack, infrastructure, middleware, and then apps. And it was the software mainframe, some called it, essentially the cloud mainframe. The issue is that the market shifted. The market shifted around virtualization, network virtualization, and IT wanted hybrid cloud. That was a critical piece. And what happened was that stalled VMware's march to the enterprise at the end user computing. VMware has had misfire after misfire at the end user computing layer. And they've had some good stuff. They've bought dynamic ops, which we like. We know Leslie Mueller's been on theCUBE. They have some serious tech chops at the top of the stack. The problem is they tried to roll out applications for the enterprise prematurely. That was a misfire. Now they've retooled, they've moved down into the data fabric, and you're seeing storage with Pat Gelsinger and Chuck Hollis moving to VMware. This is a signal that EMC's influence on VMware is going to make them a cloud player. And if you look at the tea leaves of VMware, they're all about small, medium-sized enterprises all the way up to the full-blown, full-scale, hyperscale enterprises. And that's going to be their magic. IT data centers and cloud migration. So multiple architectures in the cloud via hybrid and the availability of some public cloud here and there. And the public cloud will be non-security-intensive applications, general applications that they can run like a website on or other kind of non-mission critical. So that's the key, Dave, as I see, is that UCVM, we're going directly back to the data center. It's basically the IT playbook, but it's all about cloud. But they want the SMB and above. And it's expanding beyond vSphere to really tap that $50 billion term. And we're going to be covering that all day. Jim McBride is coming up. He's the Chief Cloud Architect at Express Scripts. Really interesting company. Actually massive in terms of that industry. We'll be talking about what they're doing, their business model, how they're building the cloud. Chuck Hollis is coming on. Chuck is now with VMware, so we'll get his excellent perspectives. And we'll be going all day. So, looking forward to it, John. This is day two. Wall-to-wall coverage is live at VMworld. This is live in San Francisco, Moscone, South Lobby. Follow us on siliconangle.com, siliconangle.tv. And we're trying out a new experiment with CrowdChat.net slash VMworld. It's an open, 12-hour chat room. Go in, put your comments down. It's a new application we built. It's like live Quora meets live Twitter. It's basically a thought leadership chat room on Twitter and everything goes to Twitter. Go to crowdchat.net slash VMworld and be part of the conversation. If you're not here and you're watching remotely, get on your web browser, go to that URL. Go to wikibon.org. They got a great survey out on Hypervisor that came out that's brand new research and follow us on siliconangle. This is theCUBE here all day. We'll be right back with our next first guest of the day, right after this short break.