 from our studios in the heart of Silicon Valley, Palo Alto, California, this is a CUBE Conversation. Okay, welcome back everyone. We're here at the CUBE Studios in Palo Alto for a special CUBE Conversation, talking security, talking about the internet and cloud computing. Martin Bosshart is the CEO of Open Systems. Martin, great to see you. Last time we chatted was in December, you were in Vegas, we had a little on the ground. Great to meet your team. Welcome back to theCUBE. Thank you so much. It's great to be here. So exciting things going on. We want to get a state of the open systems in the industry. Obviously, security's really a big thing. A lot of stuff going on in the industry. Black Hat, Def Con, Amazon had a big event called Reinforced, which is really kind of the first cloud security show, which brings the whole, your kind of value proposition to the table. But you guys have a new office here in Silicon Valley. I saw a video on the internet trending. Yeah. Pretty nice place to work. Give us the update on the current office and Silicon Valley presence. Yeah, we are really happy to be now here and US headquarters in Redwood City in Silicon Valley. So this really helps us also to be closer to the talents, to be closer to all the going to market activities and also to understand the market better. So it's really exciting to be here. And obviously also our, I mean, the people love to work here in Silicon Valley. Better is always great. Yeah. Well, that's always great. And the office has got that good, good working vibe there. Take a minute to explain open systems real quick for the folks not familiar with the videos we did in last December in Vegas with your team. Tell them what your company's value proposition is and some of the growth you're experiencing. Right. So open systems really is, is a, you know, we operate SDUN in a secure way for our customers. So it's really focusing on making a relatively complicated technology from operational point of view, very easy to consume for our customers. So this is, I think something we started more than 15 years ago in Europe. And I would say open systems is very much comparable or at least the going to market parties very much comparable to an organic form. So we have a wonderful ecosystems in Switzerland, especially in the financial services industry. And our customers just love the way we provided those services and told their neighbors and friends. And this is really how we grew on a global scale. Currently open systems is operating more than 180 countries, SDUN and security infrastructure for customers and we protect approximately 2.5 to 3 million end users globally. And when we started to enter the US market, we learned that the way we provide SDUN in a secure way really resonates a lot with the US market because we can make complex infrastructure, especially projects going to the cloud very easy to consume for our customers. So we are really exciting on the growth side right now. We grow super fast in the US. We have been very successful in latest customers. We won cameras, we won a KAMMIT. So you're winning a lot of business. Winning a lot of business. And what's exciting about it is those customers give us really very valuable feedback on the difference how we provide that service. It's really exciting. You know, Martin, I was observing and I am talking to your team in December when we first met you guys for the first time. And you just briefly touched on it on your description of the company's success. A lot of the early success and continued success has been word of mouth with the organic, not like big marketing splash in the pool, kind of like banging the drum hard although you're doing some marketing now but in being in the US. That word of mouth has been really a testament to the quality of the product. So I got to ask you, what are they happy about? What's the problem that you're solving? What's the big buzz? Why are they so excited to share to their peers and colleagues about open systems? What's the big revelation? Yeah, thank you for the credit. I think everybody goes to the cloud and what you really need is an SDU to access the cloud. What that also means for all those companies, they have to rethink their security posture. So if you add now all those products and then you try to operate those products, it turns out it's relatively complicated compared to an old school MPLS network we used to operate in the past. So this is really where open systems comes in and helps customers to operate that in a very easy way. So we integrate all those products needed to operate the global SDU in a secure way on a single delivery platform and that allows customers to consume that entire suite in a very, very easy way. I want to get your vision on the future of open systems. I know you guys call it secure SD-WAN. I'm a little bit more radical and controversial in the sense of I think SD-WAN is kind of past a term. I think it's really cloud connectivity work anywhere. People are working at home more than ever. Cloud computing is brought in essentially enterprise cloud we're calling it cloud 2.0 where it's not just public cloud and having workloads in there taking advantage of the greatest of cloud 1.0. It's enterprises, it's hybrid, it's multi-cloud. You're seeing a really a distributed computing, a networking problem and a security problem being at the center of this new work environment. Essentially people connected to something. It's cloud, right? I mean, that's called SD-WAN because it used to be an office, campus, remote office, very static, dynamic. You're absolutely right. I mean, this is really very, very old goes. Let's say a network was a network and it was very clear what a network does. Right now it's more like we want to just connect users to cloud services. And it's not so clear where those services are coming from and it's not so clear where those users are sitting, where you consume from and it results in a phenomenal opportunity to be much more agile, much more, much faster also to set up new services. But it also is a challenge for IT operations because you might have a group of users saying, well, this in this service doesn't work well. And now you have to debug. Why is it not performing? Why is in Germany maybe a service coming from the US not performing well? Or you have an IoT device suddenly not really collecting data in the right way. And this is really where SD-WAN becomes an orchestration layer. SD-WAN really helps you to orchestrate all those services and make sure you have the SLA available at all times everywhere. And also understand if it's not delivering right. And this is really where I believe yeah, we need new solutions to make this easy. Because of that. You know a lot of companies talk about digital transformation that becomes the office, the top CEO board conversation as transform be digital. But the underlying infrastructure which is very complex. We talk about distributed computing. You got networking, all these things in place. And old, new, all kind of mashed together with cloud. It's easy to say digital transformation but you're talking about digital transformation of the business on top of existing complex hardware which comes out to networking, moving packets from A to B, storing it on drives. And now you have people working at home. So you have people working globally. It's not that simple. No. It's complicated. It's not just the U.S. problem. It's like I have a team and an engineering team in the U.K., in Germany, wherever. So it's a global problem. Exactly. And also it's about how do you process all the data in an efficient way. And where we see a lot of innovation power released is right now in the cloud. It's really exciting how easy it gets to consume all that computing power out of the cloud. But you need to make sure it is available and you need to understand what is happening if it's not available and how to fix that. And this is really where I think networking became more demanding, more challenging but also obviously offers a tremendous opportunity for in a way. And I think the security industry has got much broader scope to it. It used to be, hey, you know, I'm a nerd, I'm a black hat, I'm a blue team, red team, secure the environment, you got a perimeter, and okay, that's gone, we'll take care of threats, malware, all this stuff's going on. But when you think about like Cloud 2.0, Cloud 1.0 is compute storage, great applications can load up on the cloud, all this great stuff's happening, Ray, yeah, rah, rah. Now Cloud 2.0 is networking and security. Independent of everything, right? So what's your take on that? How is open systems helping companies? And what do you say to your customers when you say, hey, you know, compute networking, the storage is good, your cloud on premise, no problem, there's operating models for that, but you got networking and you got security to deal with on top of all the complexity. What's your story? I think the most important thing is, you know, we have to live with the fact that some devices, some tools are not secure. So I think IoT is a very good example. If you want to have all those sensors out there and be close to the customer, be close to some business processes, you need IoT. But it's just not possible to have these very cheap devices building a secure way. So it's a lot about how do you design a network to design it in a resilient, secure way. And that means that you have to think in zones, you have to think in compartments. And that makes it relatively easy secure again, but it is from operational point, if you're quite a challenge, because you do not operate anymore one network, you suddenly operate maybe any network. On that point, just to kind of wrap up here, the security challenge around IoT, machine learning and AI, which is clearly becoming part of the fabric of how companies are going to leverage that. Right. What are some of the big challenges that companies are having, and what do you do to solve them? You know, in the old network world, you had a network where everything was connected based on one network. So when you introduce SD-WAN and you introduce all these capabilities, it is very dangerous if you think just in the old school of one network, because suddenly you have IoT working on the same network as maybe your finance department, or you have productivity facilities working on the same network as your finance department. So it just doesn't make sense to have those very different functionalities on exactly the same network. Because if you have a compromised situation, you suddenly have your entire company compromised. And this is really where compartments become very, very important. I think this is also something you see in every industry, historically as well, that security and safety starts also with compartments. So if you think fire, fire security, it has a lot to do with fire compartments. That in case you have a fire, you don't lose the entire building. Or the same goes with ship building. I mean, Titanic was the last very big ship that sunk, but the reason was the compartments haven't been pressurized. A modern ship doesn't sink anymore. And I think this is really what we have to do now also in IoT. We have to think in compartments. We have to think in layers. And that's easy to do with SD-WAN, but it's not so easy to operate. Final question for you real quick. People talk about hybrid cloud, multi-cloud. That's the big conversation in this cloud 2.0. But you guys as being successful in outside the United States and now in the US, there's also a multi-geo environment. What should people think about when they kind of want to frame that debate or conversation? I'm a multinational, I'm operating in the US. Now I have regions, clouds have regions. There's also all kinds of now regulatory pressure coming across those areas. I would say around 2000 companies really started to globalize their value chains. You know, in the past maybe you had a production facility in one country and then you sold your products globally. But if you want to be competitive, you have to globalize your value chain. So it doesn't make sense to produce everything in one place. Your product usually or your service is produced on a global scale. And that means that networks also have to help you to really produce that global value chain. But it means also that you are operating in different jurisdictions, in different regions, and you have to respect those different regulations and laws. And this is obviously then also a challenge for network operators because privacy in Germany is different than privacy in the US. Access rights are different. China is again very different. With all those multinationals, we operate in all those countries and we have to respect the local law. And provide the security they need. Exactly. Martin, thanks for coming in and sharing your insights. Appreciate it. Great to see you. We'll follow up with and keep track of the progress. Thanks for coming in. Thank you so much. Okay, I'm John Furrier here for CUBE Conversation with Palo Alto at theCUBE Studios. Thanks for watching.