 Live from Las Vegas, it's theCUBE. Covering AWS re-invent 2017, presented by AWS, Intel, and our ecosystem of partners. Good morning from AWS re-invent 2017. I'm Lisa Martin with theCUBE. This is our third day of coverage, wall-to-wall floor-to-ceiling. I'm with my great co-host, Stu Miniman, and we are excited to be joined by CUBE alumni, Paul Manis, the VP of the Global Cloud Group and that Veeam, welcome back to theCUBE. Hey, Lisa, thanks for having me. Great to have you. We're excited that you're here on day three. You look caffeinated, your feet are arrested. I am ready to go. And you have a voice, which is more than I think we can say for Stu. I can't, I don't know if it's going to be that way at the end of the day, but we'll see. Lisa, we're going to get somebody to do ASL for me. Oh, wow, that's interesting. So, one of the things that you said when you were on theCUBE back at Veeamon, which I love the name, by the way, was that in terms of how businesses should think of the cloud, they should think of it as a way to deliver business services and business results rather than a destination. Expand on that, and how does Veeam help customers and businesses understand and apply that? Sure, so I think a lot of customers talk about we have to get to the cloud. And I've talked with dozens of people here that said, I'm moving to the cloud and we ask why, we ask what they're doing. And they said, because we have to. And there's no, in a lot of cases, there's no real clear understanding of what's the value beyond things like cost efficiency, availability, those kinds of things. So, we'd like to talk to customers about saying, once you're there, focus on the business outcome. Why are you adopting a cloud infrastructure? What is that really going to do to drive a good, solid business outcome for you? And so, when you focus on, because at the end of the day, all technology in enterprises has to result in some sort of outcome for a business, right? It's there to serve a purpose. It's there to serve the business. And so, we really want to emphasize that with customers. And once you're there, you're not done, right? A lot of customers think, well, I'm in the cloud, I'm safe, I'm secure, I'm protected, things are geo-replicated. It's more complicated than that. It's more nuanced than that. And this is where we come in and we say, first, it's essential that you think about data protection and availability beyond architecting for high availability, but really have a data protection strategy to go along with that, because you'll hear us talk a lot about the always-on enterprise, right? Businesses, there's no allowance for downtime anymore. Imagine going to your phone and not having the app that you need, not having the dashboard that you need about where am I with my customers. You can't have that anymore. So what Veeam does is we say, great, let's work together, create a comprehensive data protection availability strategy based on what Veeam can provide because your business depends on it. Paul, it was interesting. Warner Vogel's keynote this morning, he went through a lot of this. He said, the way you used to think about things is very different, like security. Everybody should be thinking about security. Security is everybody's job, absolutely. And when you talk about availability, he went through this really rigorous, it's like it's not just one availability zone, it's multiple zones. Here's how you get to three nines, four nines. Walk us through a little bit of that journey. If somebody was building in their single data center, running virtualization versus, now we're going to the cloud. What does the cloud just do for me and where does Veeam come in and help complete some of those solutions that should be available and protected? Sure, so first of all, 81%, we did a recent survey, 81% of customers that we surveyed said we're going to use more than one cloud. Now I know that's a challenge and customers want to have to figure out how to have the right cloud infrastructure for the right workload. AWS is a phenomenal platform that provides an incredible number of services but customers may not be ready to make that move holistically. So what we talk about at Veeam is being able to provide data protection and availability for any data on any app on any cloud, whether that's a private cloud that you have on-prem, whether that's a managed cloud through a service provider, which we have 16,000 of those worldwide now, or whether that's a public cloud like AWS or even software as a service. That's another area of emphasis that we're drawing out with customers, thinking, well, I'm using Office 365, so I'm okay, not realizing that it's still their responsibility to provide data protection. And it's not about if Office 365 goes down, it's what if something gets deleted accidentally, maliciously, it's your responsibility to have that. And so that's why we have solutions to help with that. So that's the way, when we talk to customers, we think about looking across the span of, again, all in the context of what does your business need to do? Yeah, Paul, can you talk to us about what you're hearing from customers? Because, you know, but we say most companies have a cloud strategy today. 85% of companies say they have a cloud strategy. My discussion with customers, well, the ink's pretty dry, you know, pretty wet still on those, and it's changing. We say, you know, are they doing this? Of course, Office 365, Salesforce, all the above, they have all of these pieces. One of the big things they're trying to do is get their arms around it and justify. You know, what are the prevailing strategies out there? What are some of the challenges they're facing that you're seeing? Yeah, so I think a couple of things. It's a great question, and it's interesting because we've been talking about the cloud for, I don't know, since 2006, 2007. And despite the fact that I believe that this adoption is happening at a greater pace than we've ever seen of any wave of technology in history, customers are still struggling with it because it is such a paradigm shift. Virtualization was a shift, but it was kind of easy for customers to get their heads around. You could see the benefits. Cloud is a much more complicated, longer-term endeavor. What we're hearing from customers is they need help figuring out what I was talking about earlier, what do I do where, right? If I can go all in in Amazon Web Services and build everything, fantastic, I'm going to go do that. We hear that a lot from customers, that they have a, you know, not just an idea, but a mandate to say, I've got to go do this. The things that they think through is, do I lift and shift applications? Do I rewrite from the ground up? Do I just say anything new now is going to be cloud native? And I'm going to slowly sunset other things in my IT portfolio over time. They're struggling with how to do that. There's an education issue there to get really super smart about how you do that. Security is an overwhelming concern, as you heard this morning. But I think in the last four years, three, four years, you've seen amazing improvements in security in public cloud infrastructures and with managed cloud service providers as well. It's become such a focus. There's robust capabilities now, and I believe that in many cases, public data, public clouds like AWS, managed service providers, they're more secure than maybe a typical enterprise data center is. One of the things I'm interested in is healthcare. That's been a historically slow vertical to move to cloud for obvious reasons. HIPAA in the US, a lot of retention, but there's a massive amount of potential that can benefit so many people, whether it's getting faster to diagnoses, being able to collaborate across university organizations or whatnot. But in terms of security and data protection and privacy and retention, what are you seeing in terms of maturation in healthcare? Are you seeing more of a readiness to start shifting certain workloads to cloud? Yeah, so I spent probably 19 years of my career in healthcare, both in the provider community and in pharmaceutical and life sciences development. And I think there's two things happening, Lisa, right now. There's, the capabilities have been improved dramatically to accommodate and meet HIPAA requirements, meet regulatory requirements over in EMEA and over APJ. And now there's more of a willingness to do this. I think we're starting to see a bit of a generational shift, if you will, in healthcare where there's an expectation that when I'm in the healthcare system, I'll have access to the same kind of information I have about my bank account, my checking, you know, my portfolio. And so there's a maturity in the IT assets and there's a willingness now to go do it. And I believe there is probably more than any other industry. This is that place where you can, the cloud can have a massive, massive impact. Like you saw in Werner's keynote this morning, bringing Alexa into the workplace. I think that's going to be a trend we're going to continue to see. AI voice enabled apps moving in healthcare. Imagine, you know, having a dashboard in front of a healthcare worker where they have all the access and they can use natural language queries to talk about a patient and get access and analysis to data in an instant. It's going to happen and I think it's going to happen faster now that we are where we are. Yeah, Paul, these modern applications are a big discussion at a show like this. You know, everything from microservices, architectures, you know, no sequel. You mentioned, you know, IoT and AI and everything. How does data protection change for some of these kind of cloud native environments? Yeah, it gets trickier in cloud native. The trick there is figuring out what I need to protect when, right? I think we're seeing what we've had some conversations about is not backing up, you know, backing up the entire app, backing up all that, but backing up the configuration. So at the end of the day, maybe the configuration becomes the thing that you focus on protecting because if everything else goes out, you can just rehydrate that configuration, get everything back up online and go. So it's more complicated. These large scale databases present some interesting challenges. We are working through some roadmap items now that I think will be pretty interesting and then not too just in future to help address this because I think it's still early days in terms of serverless and containerization, but we want to be on the front end of that because, again, you can't ignore the idea of data protection or availability just because you have a different development paradigm now. Paul, please go ahead, Lisa. I was going to say, beam availability for AWS. What are the differentiators? What are the benefits? Yeah, so, beam availability for AWS, we announced a little while ago. It's going to be coming out probably in early 2018. This is in the idea of when we talk about data protection and availability, our cloud strategy is predicated on three pillars. We talk about to the cloud, from the cloud, and within the cloud. So to the cloud is where everybody's sort of moving to now. That's following what we call the 3-2-1 rule, three copies of your data, two different media, one of which is stored somewhere else. Customers are now saying that should just all be in the cloud. I heard a quote from a customer that said, your capital budget for disaster recovery and backup should be zero. All of that stuff should be in the cloud and on an OPEX model. And then from the cloud is what I talked about earlier, Office 365 backing up SaaS applications. And then within the cloud is I want to be able to, I want to be able to back up everything inside of AWS. I don't want any on-prem infrastructure. I don't want anything. I want to be able to have my whole data protection strategy played out in the cloud infrastructure. What availability for AWS will provide is the ability to manage EC2 instances to provide beam availability for EC2 instances at a fine level of granularity. And that can be either within EC2, within AWS itself, or if we have actually a surprising number of customers said, I'd like to bring that out of the data center. Now, it remains to be seen if that's a thing that takes, has a great deal of acceleration and growth, but we're going to allow customer flexibility. If a customer wants to do that, fantastic. If they want to manage it all within AWS, fantastic. We're going to let them do that. Paul, the VMware on AWS solution, something that gets talked to a lot of that show, seems like something that'd be a natural fit for a beam to get involved in. Can you bring us a feed on that? And are there any other announcements this week that are relevant to kind of your ecosystem? Yeah, so no other announcements from us right now. The things that we're talking about in the booth while we're here, one of which is beam backup and replication for VMC on AWS. We think that that- That's not a mouthful or anything, right? There's a lot of Vs in there. We think that that could be a game changer. We really do. I think that was a very good strategic move by both VMware and AWS to allow customers to do this. And so we are, we're excited coming out in version 9.5 update three, which I believe is going to go GA here in the next couple of days. Customers will be able to use their Veeam infrastructure to provide data protection for those VMware environments on AWS just as they would anywhere else in their data center. Sounds like you're getting a lot of demand from customers. Are they excited for that? I've heard pricing sometimes a concern. What are you hearing from customers about that solution? I think customers are still trying to figure out sizing. I think there's still some things to come in terms of how that's going to roll out over time. I know VMware has promised to make quarterly updates. I know they've delivered some things this week. We have a fantastic relationship with VMware. We've been partners for over a dozen years now and we will continue to engineer our solution and our solution with them together so that we can provide the optimal performance for customers. We do think there's going to be a lot of demand for it. We think it could be big. Well, we know how fast AWS is growing. We know that Veeam is adding 4,000 customers a month. You guys are approaching the $1 billion mark in revenue and accelerating very quickly. So Paul, thanks again for joining us on theCUBE. We appreciate your insight. Thank you so much. It was great being here. Excellent. And for my co-host, Stu Miniman, I'm Lisa Martin. You are watching theCUBE live from AWS ReInvent 2017. In Las Vegas, stick around. We'll be right back.