 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017, presented by AWS, Intel and our ecosystem of partners. Live here in Las Vegas is theCUBE's exclusive coverage of AWS re-invent 2017, our fifth year covering the massive growth of Amazon web services. I'm John Furrier, co-founder of SiliconANGLE Media Inc with my co-host Keith Townsend, CTO advisor. We've got two amazing guests here from Druva, hot startup, hot company. Gus Gustafson is executive chairman of the board, and Matt Morgan is the chief marketing officer at Druva. Been on theCUBE many times, had you in the studio. You're doing extremely well. Always got some news for us, always executing. You like the Amazon of your sector. You always got new stuff going on. What's up? Tell us, share the news. Super excited about announcing a new technology, a new product line, it's called Druva Apollo. And Druva Apollo basically completes the cloud data protection story. So as you guys know, we've wrapped endpoints with data protection and data management, and we call it data management as a service. We've wrapped servers with data management as a service. We took the data, we protected it within the cloud. But with Druva Apollo, what we've announced is cloud to cloud data protection, meaning that data that's born inside an EC2 instance, for example, can be wrapped with the same data protection and management as we do for endpoints and servers. It really is an extension of the platform. Now you can start looking at data holistically. Any data, no matter if it's on the endpoint, the server or now within the cloud, can be protected within the same controlled data set, getting the full global Ddupe technology, plus the governance and intelligence capability. Really excited about this announcement. Matt, I want to ask you a question on that, because one of the things we talked in the past on is the cloud has changed the game around perimeter, no more perimeter, there's no walls in the cloud, a lot of holes to get in there, you're a hacker. But you got a product leadership, you have ease of use. One of the things with the cloud is the ability to acquire the resources, right? And so serverless is out there, how do you guys compete in this now potentially data protectionless world? Or is that a term? I mean, you got to be seamless, but you got to have good tech. So how do you guys do both of those? I think you actually just underscore the paradigm shift that's happening, right? We used to think of data being localized to a server, to a machine, and you had to protect that machine. You wanted to quote back up the hard drive, if you will, right? Well, data is now in a serverless environment. It's in the air, it's in the cloud, it's tied to applications that may or may not be running within a specific instance, you don't have the control factors, right? That's exactly right. All the databases now. That's exactly the point, right? So what we're doing is because we are stateless, because we exist on these multiple planes, you can have a much more universal conversation around data protection and management. But there's another big aha about moving to the cloud for data protection and management, and it's all about ease of use and simplicity. I now, with a single login, with a single set of credentials, I can access and search across massive data sets that could contain all my endpoints, or contain multiple servers, or now it could contain cloud-to-cloud data protectance instances, right? And this is a very big deal. Think about the past, right? If I was a classic hardware acquisition play where I purchased specific silos of data storage for secondary storage, I needed to manage each and every one, and there could be hundreds. I needed to manage hundreds of logins. I had to keep them all up to date. All of that's gone with Druva. So let's talk about user experience. You know, this is a developer-focused conference. Totally. I'm amazed that the number of shorts and hoodies I've seen at a proper enterprise conference. It's a developer conference turned enterprise. Yes, developer enterprise conference. Well, it's time to be hoody. Unlike everybody else. Yeah, yeah, the infrastructure company having a hackathon, for example. But developers don't care about servers. They care about data and interacting with that data. That's right. What's the developer experience for recovering and protecting data within Druva? Do they have to go through some backup, grandfather, son, son, father, set up to backup data? What's the experience? There are some vendors that actually still require that. Some of them have acted like it's a breakthrough to put it in an appliance. But at the end of the day, it's the same conversation. It's just a localized piece of hardware. Druva's conversation is very different. Data protection is all about where that data is going to be managed and stored and how you connect it up to the service. By being stateless, we've created an entire architecture that allows all of that data to be collected centrally. Once it's there, the developer has the capability to access it, but the real value comes on the governance side, right? And on the legal side. So if I'm in a situation where I need to manage critical corporate IP and know it's protected and know I have an audit trail on that data, who's touched it, what they did with it, where it was copied, I have that information. I could search for that information. So it moves a little bit beyond a classic developer point of view and extends that data control to the other players. Goss, I want to get your take on this because you're the chairman of the board, but also you have a lot of industry experience. We're seeing a shift in the business now where scale of the cloud is causing a lot of disruptions. You guys are taking advantage of it at Druva, but also you're seeing some even in Silicon Valley in our backyard, you know, you got startups that were born before 2012 with the go bigger, go home attitude. Andreessen Horowitz, Sequoia writing big fat checks, 100 million, they can't scale up to compete against this other scale. They got outscaled. So they end up getting acquired, you know, accu-hired. Barracuda's going private, a gem in the valley, great company, no cloud strategy. So scale is decimating and creating value at the same time. How should businesses look at this business model paradigm shift where it's not go big or go home, it's find a spot in the ecosystem and milk it or get a position. You can't compete. It's hard to compete against scale. Well, scale, scale, you're right. I mean, the whole scale paradigm has now gone from, you know, it's beyond comprehension, to be honest with you. And I think the other thing that we've learned, and this is how Druva looks at this, you can't compress experience. You can't compress learning and application of learning. And so for eight years plus, we've been at this game thinking about scale. And in some cases to be quite one, we experience it with our customers because there's no pre-determined path in a lot of these things. But for companies of scale today, I think you have to have a cloud-first mentality. That's what Druva brought to the party. I think we're seeing a lot of people that have looked at this and said, how do I actually get all the way over here? Our message is really simple. Let's just get started, right? Whatever applications or use cases it is to get started, whether it's endpoint, whether it's server, cloud apps. But we've thought about and built the vision around the entire end-to-end strategy. So we'll bump into things at scale, right? We'll figure out how to handle those. We recently brought on board a customer with 75,000 employees, another one with another 50,000. And we've done this before, but those are new layers of scale. You guys are taking a pragmatic approach. So you say, you guys aren't trying to overbuild, get over your skis or whatever people call it, but don't create a situation where there's diseconomies. Leverage what you got and know your place in the world. And I think, if you don't mind, I'll just make a comment on the funding round we just received. We just received 80 million in net new funds. It was a preemptive interest in investing in the company. Quite honestly, we could have potentially taken more, but the focus is around executing what we know we can actually do today. More discipline too, less capital you take. There is that, there is that. But you know, when you think about the growth and the opportunity, in large part for us, it's all about staying pragmatic, focused and executing well on what's ahead of us. So product market fit is always one that talk about with the funding, but also it's the sales channels, right? If you try to compete with sales, say Amazon for instance, others have tried, it's hard, right? I mean, I know a few companies getting bought up by private equity left and right because they just size-wise can never get there. You guys are inside the tornado, as Jeffrey Moore would say, which is kind of the strategy for you guys. You get in the cloud, you got product discipline. How's it going on the sales side? What are some of the metrics you see? Any success metrics you could share on the customer success? Absolutely, and you know, for us, AWS is a strategic partner and a great partner in terms of the alliance that we have around bringing net new customers to the cloud, working with them, et cetera. So in the last six months, we've added 300 net new enterprise customers. That brings our total of well over 4,000 enterprise customers and we've done that by again, staying very focused around that first bite. A very simple approach and then once people start, they see how simple it is. So you would ask about the developer experience, Keith. It is so simple. In some cases, what we say in their actual experience is it has to, they don't believe us. So when Matt was talking about the aha moment, once they experience it, they just continue to build and build and build. So developers, again, we've talked about this because we're at a developer conference. They just want to solve problems. One of the things that we've always kind of harped on developers about, Matt, you talked about this a little bit with governance, with data governance. GDPR is coming to be fully enforced May of next year. That's right. Very serious consequences for companies that don't kind of handle that. Have you guys seen an uptick in conversations around GDPR with customers and how Druva helps to mitigate some of the challenges around GDPR? So Keith, you know, one of the most amazing thing that's come out of GDPR is the rise of this new executive persona, the chief data protection officer. Oh, another one. I mean, for a vendor that's in the data protection business, it is wonderful to have a C level executive responsible for the value that we deliver, right? How many chiefs will there be these days? Well, that's true. There's a lot of chiefs. There's a lot of chiefs in the kitchen. There's a lot of chiefs. Are you guys ready? Yeah, well, I'm going to defend the chief data protection officer. Yeah, we'll keep that one. Now Keith, you keep in mind the data risks that people are dealing with. And GDPR is an extension of extending individual rights to the data sets that are collected on them, right? The idea of the right to be forgotten, right? Yeah, you guys have challenges not even within the customers, external customers, but an organization with 75,000 users. Yeah, absolutely. They have rights in themselves. So there's this differentiation between protecting internal corporate data and that policy in keeping that data. And if I'm a developer, I search for data, I'm just searching for data. That's right. So how do I control what's the controls available for making sure that I don't go afoul of GDPR? So absolutely. So we have phenomenal security capabilities that are built into our product, both from an identification point of view, giving rights and privileges, as well as protecting that data from any third-party access. All of this information is going to be compliant with these regulations beyond GDPR. There's enormous regulations around data that require us to keep our security levels as high as we go. In fact, we would argue that AWS itself is now typically more secure, more secure than your classic data center. They've done the work. So we're building on top of the AWS security framework, which gives you even better security. And because this is important, it's off-site, logically, by conception of the cloud, we also add immutability, right? So if you think about ransomware, ransomware's not going to crawl up to the cloud in the classic way that you'd have the type of infections that have happened. Dhruva's going to give you the capability to ensure that that data is whole and you can recover from those types of malware attacks. It's a little bit of a pivot from GDPR, but I think all of this stuff around data risks are related. Tell me about the government public sector market. You guys just got FedRAMP approved. It's a big certification. Congratulations. Thank you. What does that mean for your business, more customers coming in on the public sector side? So the public sector is off the charts for us. The FedRAMP ATO certification, we're the only data protection vendor that has that. And it gives us the capability to qualify for data protection possibilities within the public sector. I don't know if, Gus, you want to comment. Theresa Cross is going to love that. It's a massive market opportunity. It's also put you at a higher level in terms of obviously the security capabilities that they went through and tested to give us the ATO, which is the authority to operate in the FedRAMP sector, opens up a tremendous amount of opportunity. If you look at kind of the Fortune One, as far as US government, this is a massive opportunity for us. We'll save the date in Washington, D.C. This morning they announced the AWS Public Sector Summit on June 20th and 21st. The queue will be there. I got the verbal, and we already have the deal with Theresa Carlson. The queue will be there probably with two sets too. That's turned into a reinvent. It grew from a hotel room two years ago, to a ballroom, to now the convention center, and they're expecting again this year in D.C., Amazon Public Sector Summit. It's everything, nonprofits, GovCloud, huge. Yeah, it's amazing. AWS has become the 21st century operating system. And at first it was for individuals or small businesses, but now it's the enterprise, look around, right? We're all re-platforming, if you will, to be able to provide this architecture as the best possibility. And in the Gov, that's- So you're betting on Amazon? Absolutely. Of the clouds? Yeah, so we're a multi-cloud provider. We have a solution that also runs on Microsoft Azure. Lots of customers that choose Azure. They're Microsoft customers. They're customers that enjoy the different data centers that Microsoft offers. But the vast majority of our customers really embrace the AWS- We'll protect whatever the customer needs. Whatever environment they have, you'll support the major platforms. We're going to support either one. And you've got to realize the idea of different data centers that are localized to different countries, give you different sovereignty options with Microsoft you may not get with AWS, at least not today. Yeah, and same with Google too. Google has not a big presence outside the US. So they're limited. So data protection is starting to become a catch-all term. What, 80 million in funding? The last round? It's not just about data protection, but now multi-cloud, data, mobility, being able to take my data, my hybrid IT data and move it to where I need to move it to. Can you talk about Druvitz capability when it comes to data mobility? One of the most popular use cases of the acquisition of the Druvitz technology is all around M&A. The opportunity to bring in data from a variety of different endpoints and bring their customers new companies that are being acquired into the fold. And you have all kinds of governance capabilities you could do on that data. And you could prevent the typical data leakage, right? The employee turnover where people will basically walk out the door, they take their hard drive with them, take the computer, it's not being tracked. And you don't know what data was there and you can't track it. With Druvitz, you have that data. They can take the hard drive. You know exactly what they took, right? You have the information and you have saved that IP for the company and you gain that. If I'm acquiring a company, that information obviously is important to me. Matt Guss, thanks for coming on theCUBE. Thanks for the update. Congratulations on all the business success and public sectors right around the corner as well. Another growing market. Backup and recovery, data protection is hot in the cloud. It's hard to do. These guys got a great solution at Druva. It's theCUBE bringing you more live coverage. If you've been taking a short break, we'll be right back with our next guest. Stay with us.