 Welcome back. I'm John MacArthur, President of Walden Technology Partners. We're here at IBM Storage Edge 2012. I'm joined with David Fleuer, co-founder of Wikibon here on SiliconANGLE TV. And our guest now for this segment is Tim Harvey. Tim, you are the CEO of Perimeter E Security. So tell us a little bit about Perimeter. Well, Perimeter is a leading provider of cloud-based security solutions and managed services to mid to large enterprises. We provide a complete set of services around secure email. So we actually will host your mailbox, a combination of either our own commercial messaging technology or hosted exchange. And we surround that mailbox with a complete set of security solutions from email hygiene, encrypted email solutions. We have a product that's one of the leading products in the market for compliance archival solution. And then on the other side of our business, we focus on really secure communications, providing that mail infrastructure in the cloud for customers that want to get out of their own infrastructure, move it to the cloud. Our value prop is pretty simple. We can offer a more secure, reliable email box and security around it at 50% less the cost of what a customer can do at in-house. And who's your target customer? So these are mid to large enterprises, compliance oriented businesses. We have customers like United Airlines, Farmers Insurance, all the way down to retail customers like Chick-fil-A. The government, are you doing any government work? We do some state and local, not on the federal side. The state of Oregon is a large customer of ours, so we would manage up to 58,000 employees for the state of Oregon. And what brought you to IBM Edge? We really have made a big investment in IBM infrastructure technology, specifically on the storage side. We use a combination of the N series as well as the new store-wise V7000 product. In fact, I spoke yesterday in the main tent on some of the benefits that we're seeing as a result of that implementation. Yes, I was there in the presentation. Very good presentation, very interesting. So can you say the reasons, you did some of the work on compression in particular with the V7000. Can you say what you found for the audience with your implementation? Yes, so we when you look at our storage requirements, the mailbox and then the compliance archival associated, today we're over two petabytes of data that we're managing, and that's growing at a rate of almost two terabytes a day. And so us, the ability to offer that value proposition that I talked about earlier about being able to do this at 50% of the cost that a customer can do it, we're looking for something that would give us reliability and compliance, but do it at a cost and price point. We think that when we fully implement the V7000 store-wise, we're looking at almost 50% savings over any other technology out there because of things like the deduplication, the management capabilities, the replication facilities that we can go to as a result of that. So we're pretty excited about the technology. That's fantastic. So were you a beta customer of the technology? Well I think we're not necessarily a beta but we are certainly an early adopter when we look at some specific software around the management of the product line and how we're implementing it with an active passive orientation replicating data centers. We have our major data center which is in Denver, Colorado and then our backup facility is in Jersey City and so with some of the replication capabilities that we're implementing around the Tivoli product line, again the savings not just in the raw storage but in the operational overhead associated with managing what is a pretty complex environment. So this is an active active implementation? That's right. What's the topology there and how does that benefit your customers? So one of the things that our customers are counting on, we deliver one of the most mission critical applications that a customer has today. Man, it's got to be available 24 hours a day, 7 days a week, 365 days a year. The CEO is the first to know. Absolutely and he will. And so 100% reliability and 100% uptime is something that we actually have to guarantee to these customers and it's not only security but it's reliability and to be able to implement an active active or an active passive based on those requirements is critical to the success that we've had to date. And you use the SCC for that or you use the NetApp, how do you implement that? Yeah, so it's a fairly complex implementation of the environments that we're using. We have our compliance archival solution where we actually have the capability of archiving mail anywhere and being able to access that mail. So depending on a customer's implementation, we can do a combination NetApp with our archival and series stuff or we can use the active active with the V7000 and so we want to give our customers flexibility to offer both of those solutions. And what's the business benefit to your customers of the active active solution? Again it's an uptime guarantee, 100% failover type of thing. So regardless again we get the redundancy both from our MPLS network and actually being able to run mail active active with virtually no interruption. What are the performance implications of that for your customers? How does it turn out for them? Yeah, no, it's actually mail the 2010 environment in particular is a pretty stable environment today. So while there are always issues associated with that again having this active active implementation we virtually can guarantee 100% uptime. That's fantastic. So what were the main reasons that you've picked IBM as a partner in all of this? Well I think the first part was the infrastructure solution set. I think the second part was their services offering around that and again being able to work with us to basically in this topology and architecture and to be able to provide the flexibility of different options and utilization. How we implement the technology and giving us the opportunity to have a lot more flexibility than we think we can get with the other vendors that we looked at. So what are your future plans with IBM? What's the next challenge down the line that you're working on to reduce costs? Right, so we're looking at the pure systems implementation we think that really has a lot of opportunity for a customer like ours a rapidly growing managed cloud based security managed service provider and the ability to put bundled together hardware storage and software and be able to ship that that we could then move into our cloud and be able to provision very quickly has a lot of attractiveness to us. So we're going to follow that development very keenly. So can you talk a little bit more about the attractiveness? I think the combination of the ability to implement quickly is probably one of the things. So we're adding customers at a rate of we'll add 100,000 users this year so call it 10,000 a month. To be able to scale that as we go and provision those customers and to do it basically almost in real time. We can place an order and have it shipped to us in a week or two where all's we're doing at that port is loading our applications onto a completely preconfigured hardware, software storage environment. Again we think that is tremendous value. So where does that save you? We have yet to calculate that savings but it's certainly in terms of time it's certainly seems to be a big impact to us. We haven't gone down that path yet but again we think that's very attractive. We're following very closely the roll out of the pure systems. So you base the whole system on 2010 instead is another benefit that they can get to the latest version of the software? Yeah and again we're working closely with the pure systems group to look at what that configuration exactly would look like. The other opportunity that we're looking at is the IBM smart cloud and an implementation of that we think has a lot of opportunities for us potentially. And again not only do we leverage IBM infrastructure IBM actually also resells our solution set. It's a win-win type opportunity for us because obviously as IBM sells more of our stuff it requires to purchase more from IBM. It's funny how that works. That sounds like a tremendous business relationship Absolutely. So again looking ahead what are the things that you've learned from Edge and what are the things that you really would like IBM to be working on over the next couple of years to keep you competitive? Well I think this conference has been very good for us because it gives us an opportunity to talk to other customers first and foremost. It also gives us the opportunity to look at where IBM is going and quite frankly we've been able to work very closely with them and have some influence on that roadmap. So that's also important to us that they understand our requirements and again we view this as really a strategic partnership that offers us and our customers a competitive advantage in the marketplace. So I think this has been a great opportunity. Specific things that you would really like to see out there Well I think the pure systems opportunity this concept of bundling hardware, software and storage pre-configuring it. Again we think that is a home run for both IBM and for a company like ours. Could you see yourself as 100% in that type of scenario or won't it fit everything? You know again and certainly if we can look at things like operational overhead we do some floor density in our data centers and the price performance that we think it has it could be again a very attractive opportunity for us as we go forward. And again one of the things that's important to us is security and compliance because in addition to our customer base that we talked about earlier we also support about 1,800 banks and credit units and as a result we're actually supervised or regularly reviewed by the FFIC and so security compliance being able to document and adhere to strict processes and controls the more simplified that is it's easier for the auditors to come in and validate our environment so that also the pure system concept around simplicity that IBM talked a lot about over the last couple of days is very attractive to us. So who gets the compliance is that IBM or you the combination? So the environment that validated is our environment. Right. But by having a simplified easy to use single pane of glass configuration that we can validate it allows us to reduce our work load and as a result prove to our regulators that the environment is secure and the processes for updates patching are all in place in simple way. So today it is a multi-million dollar effort for us overhead associated with that regulatory supervision that if we could reduce that that also has value to us. Are there other application areas that just sort of look interesting to you places where you think you might be able to play? Yes. So the whole one of the if you look at the applications that are moving to the clouds the first one of the first applications has to be cloud-based and if you look at the biggest hindrance to people moving to the cloud especially as you go up into the enterprise stack security and then the tie in with mobile obviously is an important part. So how do you provide more security around these cloud-based concepts whether you be in a shared or public or private environment and then this whole communications infrastructure how do you secure it from the device discovery through device management all the way up to the mail. So and then the whole social media stuff. Again compliance is a big part of what we do. So how do you archive instant messaging? How do you archive your social media communications with your customer? We're doing a lot of work in that area as well. We had an interesting discussion yesterday about cleaning up from a data spillage. That's a great phrase. I love that phrase actually. I really like that. So I don't know if you have a practice area we do. In fact we're developing it's a great point. We're developing application taking a lot of our email security technology and adapting it into we call it data loss prevention. So everybody talks about data loss prevention that's sort of locking down the borders. But once that DLP misses how do you do the cleanup and that was the interesting angle for me. Do you see an opportunity for you there? We do and again without going too far down the pike we can talk more about that in the future but we're going to make some announcements over the next couple of months that again is going to extend how you think about DLP. So for those of you who haven't sort of heard that phrase before data spillage is when that leak of your data happens in an internet environment. How do you bring that? How do you, you'll probably never eliminate all of these spillage but you'll at least want to clean up to the 80% level at least to the BP standard. You'll want to at least do some nice press releases regarding how clean the Florida beaches are now. So we are here in Florida we're at IBM Edge 2012. I'm John MacArthur president of Walden Technology Partners. I'm here with David Floyer and our guest is Tim Harvey and we're talking about compliance and email and as a service and I appreciate you joining us today. Thank you very much. We're going to take a short break and we'll be right back. Great. Thank you. Thank you.