 Live from Orlando, Florida, it's theCUBE. Covering Accelerate 19, brought to you by Fortinet. Welcome back to theCUBE. We are live in Orlando, Florida at Fortinet Accelerate 2019. Lisa Martin with Peter Burris. Very pleased to welcome back one of our alumni, only the CEO and founder of Fortinet, Ken Z. Ken. Thank you so much for joining Peter and me on theCUBE, and thanks for having theCUBE back at Accelerate. Yeah, love to be here again. Yeah, thank you. So, so quick by the numbers, Ken. Keynote this morning was awesome. Love the music and all the lights to start. About 4,000 attendees from 40 countries. You guys now have about 385,000 customers globally. Your revenue and FY18 was up 20% year on year. I could go on and on, lots of partners, lots of academies, tremendous growth. Talk to us about, in the evolution of security, where are we today and why is Fortinet so well positioned to help customers dramatically transform security? Yeah, first it's very happy to see all the partner, all the customer come here, and also we keep in like every year we're in this program, also it's a great program. And on the other side, like I said, security is a very, very dynamic space. You need to keep in learning and we see more and more people come here. So that's why we're happy to discuss in the new technology, the new market opportunity, and also the new trend. And also what we see is the space is so dynamic and also we see a lot of people keeping come here for the training, for all the scenes. And also I love the music, make us feel young again. So. But I think one of the reasons why security is so dynamic is you don't, for example, in the server world, you don't have gangs of bad guys running around with baseball bats trying to hit your servers. In the security world, you have people trying to enable the business to be able to do more, but also people constantly trying to tear the business down. And that tension drives a lot of invention and requires a lot of innovation. How is that changing or driving some of the key trends in networks and network security? Yeah, that's where, like I presented this morning, we do see with more device connected, actually even more device than people being connected today. And then eventually in a few years will be 10 times more device than people. And then also with all the 5G or S1 technology, you can make this connection faster, more broadly reached. And then there's more application, more data also come to the internet. So that's all increased attack surface, right? There's all additional risk. We don't have all this connection, we don't have all this data transfer to all these different devices between people. So that's all security business, right? Because security have to address where the networking cannot really address. It's above the connection, above the speed. So we have to address in a content layer, application layer, the device user layer, or region layer, country layer. So that's making the security always keeping growing faster than the networking and IT spending. And the starting to become the biggest sector in the IT spending environment. That's also one trend we just feel security also need to start emerging, convert together with networking. Because no longer all networking only handle the speed or connectivity, security handle anything above. They have to be working together to smartly routing the data to the low risk area to avoid all the polluted like transfer, all these kinds of things. And that's what we see is the two industries that emerging together. That's what we call the security driven network. The other thing about all this kind of, we see today the mobile and the cloud starting to replace the traditional PC, right? So, but going forward, the wearable device, all your glass or your watch starting to replace the mobile, you don't have to hold the mobile phone the things will apply pop-up in your eyes. And at the same time, all the smart car, the smart home device, everything all connected. Wherever you're working, like if I work in here, all the things related my information are pop-up for me, so I don't have to carry anything. So that's going for in a few years will be happening and how security will be applied to this space, how this will be going forward compared to today the mobile, the cloud. We also have some discussion about that one. So we need to prepare for all this because that's how food and that's being funded. That's how our culture about innovation about long-term investment. So that's what we want to make sure the technology, the product already for this change. That's what gave the user the best benefit of leveraging connection and same time lower the risk. Fortinet has taken an approach in the marketplace of, let me step back a little bit and put it this way. We all talk about software to find everything in virtualization and that's clearly an important technology and important trend and Fortinet's taken advantage of that as well. But the stuff doesn't run, all that software stuff doesn't run on hamsters. It runs in hardware and Fortinet has made, taken a strategic position and it's been a feature of your nearly 20 year history to continuously invest in hardware and open up the performance aperture, increase the size of the bucket of that hardware. How has that both altered your ability to add additional functionality, get ahead of the curve relative to the competition but also enabled your ecosystem to do a lot of new and interesting things that we're not seeing on other network security companies? Yeah, that's what I totally agree with you. It's really how to enable the best ecosystem for everybody playing the space for the partner, service provider, carrier enterprise and then how to leverage technology to benefit more broadly customer base. It's very, very important. That's where we feel like a software cloud, they do starting kind of a change a lot of things but you also need a balance among, cloud software is very, very important but also the hardware also very important, right? So that's the hybrid mode. Both the hardware and the software, both the cloud at the age, both have equal weight, equal important going forward. How to leverage all these both is also kind of very important for the future growth or future trend. On the other side, you also can see, like you mentioned, when you have the immersive device, when you have some like security applied into storage in networking, smart city, you also need to embed, like security be part of it, not just security add on top as a cost or additional whatever process or things but once you're making security be part of it, like we mentioned, the security driven networking, the security driven like the future like a wearable device or the other things. So that will be huge ecosystem going forward. That's where with the chip technology, you can embed with the software with also additional service, you can all work in together. So that's where we want to look at the whole spectrum there and make sure different part all can work in together and also different technology, not just limited some part of it but make sure the whole technology space, the whole attack surface can be a part again also we can leverage all the security to enable additional business in all this connected world. And this is what you're calling the third generation of security? Yes, it's more infrastructure security, that's the whole security compared to the first generation, second generation, it's not security, it's just security themself, right? So you don't involve with other networking, storage, other infrastructure. Now because they view everything inside the company is secure, you only need to go out of the door, you need to say, hey, who is coming in? Anything inside is all fine. But with today all the mobile bring your own device, all the data everywhere, go outside the company, you need to make sure security follow the data. So that's the new trend. So now the border disappeared. So doesn't matter inside the company or not, you're no longer secure anymore because you can't use immobile access, right? So outside all people can also come in and the data also go out. So that's where the infrastructure security need to involve in both the networking side, the end point side and the cloud, the age and all this different device and the immersive device or even your mobile phone has to work in together. So it's a much bigger infrastructure, much bigger addressable space now and that's making security more exciting. Well, we have gotten used over the past 20 years of building applications that operate on somebody else's device, typically a PC or mobile phone we've learned how to deal with that. You're suggesting that we're actually going to be integrating our systems with somebody else's systems at their edge or our edge at a deeply intimate level and life and death level sometimes. And that obviously places a real premium on security and networking and whatnot. So how does the edge and the cloud together inform changes in how we think about security and how we think about networking? Yeah, that's where, like, I think age and the cloud they each can play a different role because the architecture, so the cloud has a good, see all the bigger picture. They're very good on the provisioning, they're good on archiving, but cloud also relatively slow and also you can see most of the data all generated at the edge. That's where whether your immersive device or your mobile, whatever, the edge is where we call the digital made physical. And that's all these people and device connect, right? So that's where like a 70, 80% data generated at the edge probably never travel to the cloud. They need to process locally. They also need to have the privacy and autonomy locally and also even interactive without the edge device locally there. So that's where we see it's very important both the cloud and the edge security can be addressed together and also leverage different architecture. As I say, the cloud is good for detection. So you can see, hey, something wrong, you can collect the information, but then age need to work it on the prevention because prevention need to be real time, need to be act very, very quickly because a lot of application, they cannot afford a latency. Like when you do the VR IR, even you slow down in two microseconds, physical disease, they feel sickness. You also see the auto driver car. If you react too slow, then you may hear something, right? The same thing for a lot of other, even e-commerce, whatever, if you're not response quick enough within half second, people may drop the connection, they may move somewhere else. So that's where the latency, the speed and that's making the cloud play their role into all this management and the edge play their role in the real time and the very low latency, real time reaction there. So that's where we see that both side need to play their role and important to address both market instead of just one cloud, which I feel a little bit too hard right now. So try to cool down a little bit at the same time, the age also we see it very important. Even going forward, a lot of embedded security in the age. So with this massive evolution that you've witnessed for a very long time as the head of 49, the last nearly 20 years, edge cloud, how dramatically technology changes in such a short period of time. I'm curious Ken, how has your customer conversations evolved in terms of, you know, 10 years ago, were you talking more to security professionals and now are you talking more to the C-suite as security is fundamental to digital transformation and unlocking tremendous value in both dollars and society impact, has that conversation elevated as security has changed and the threat landscape has changed? Yeah, they do go to the board level, the CEO level now, right, compared to like 10, 20 years ago, probably the IT people or maybe the CISO level because security become probably the most important part of IT now and they keep getting a high percentage of IT spending there and because when we connect everything together, when we connect all the people, all these things together, through beyond the connection, that's where security handled up, right? So that's where we see security starting kind of more important now, but on the other side, also the space also changing over quick, right? So that's where we always have to learn it. When we engage with the customer partner here, that's where this event is about. We keep in lesson to what's the issue they have, how we can help address all this security related issue. Sometimes even beyond security, go to like a connection infrastructure, some other like architecture to design, whatever their business model there. So that's all very, very important. And like I said, security space, we need to keep in learning every day. Even I spend a few hours a day to learning, I still don't feel really can catch up. All this is- I said it's a very dynamic world in the security world. Yeah, very dynamic, the knowledge base, the technology refresh so quickly and we always had to be lend happy training. That's where we also see, I've tried to position foot in as a lending company. So that's where we offer the biggest training program and all the training is free for partner, for customers, all this kind of Israeli, it's a big investment. That's where a lot of people say, oh, how can you invest more in the training instead of a competitor invest more in marketing? I said training is a very, very long-term benefit. When people get trained, they also say, hey, what's the best technology? So that's where a lot of our decision, a lot of our investment, really looking for how five-year, 10-year can benefit the space, can benefit the customer and the partner. So that's all we see. The training is a very long-term investment. Let's say model technology. So Ken, you've talked in the keynote, you've talked in theCUBE about how networking security come together and how, as they move forward, they're going to inform or they'll have an impact on business and have an impact on other technologies. There's a lot of technology change. When you talk to a networking professional or even your own employees, what technologies out there do you think are going to start impacting how security works? Microservices, containers, are there any technologies that Fortnets looking at and saying we got to watch that really closely and that networking professionals have to pay more attention to? I have to say pretty much all of them, right? So all this micro, all this container technology, micro segmentation, the quantum computing, the AI machine learning, all this is all very, very important because security has to deal with all this different new technology application. And like with all this huge competing power, race and cost lower or quantum computing, maybe some of the old technology may not really working anymore or has some additional risks like whether the encryption can be break by quantum computing or some other AI eventually can also kind of take over all these kinds of things. It's all we try to learn, try to catch up every day. That's what I say, it's so exciting. Keep you, wake up, keep you learning every day which I enjoy, but at the same time, there's a lot of young people, they're probably even better than us who catch up the new technology. Oh no, oh no, no, no. Yeah, sometimes my kids can play the phone much better than me, that's always the case. Well, Ken, we want to thank you so much for joining Peter and me on theCUBE this afternoon for having theCUBE back at Fortinet Accelerate and really kind of talking about how you guys are leading in this space and we're going to be having more guests on from Fortinet and your partners today, talking about Educate Ecosystem and Technology that you talked about in your keynote. So we thank you again for your time and we look forward to a very successful day here. Oh, thank you, thank you very much. You enjoy all this program for many years, yes, thank you. Excellent, we'd love to hear that. We want to thank you for watching theCUBE for Peter Burris. I'm Lisa Martin, you're watching theCUBE. Thank you.