 Live from San Francisco, it's theCUBE, covering Pure Accelerate 2017, brought to you by Pure Storage. Welcome back to Pure 70 in San Francisco, everybody. This is theCUBE, the leader in live tech coverage. I'm Dave Vellante with Stu Miniman. Scott Deetson is the CEO of Pure Storage. Hot off the keynote. Scott, great to see you. Great to be back on theCUBE. So I love the nickname. I grew up in a town where everybody had a nickname. We got Deets, we got Hat, we got Danzy, we got Kicks, I don't know, you can call me Vee. Vee. He's, I guess, just that Stu. That's it, you know, so again, great show here. Love the venue. How'd you guys pick this place? So I can't say I was involved in the choice, and this place has a really illustrative history. I mean, it goes back to the 1800s, and actually they manufactured steel here during World War II. I think they were turning out two battleships a week. But another piece of history that maybe is nice is this is the last time this venue's going to be used. So it is scheduled to be brought down to make way for new condos, I guess. So we really wanted to celebrate the venue and its history, just a great industrial feel to it. They're tearing down a bunch here. The new warrior facility is going to be in dog battle. Yes. And so yeah, we can't feel too bad about it because we are indeed celebrating the warrior's success. We needed a bigger house for all those trophies. I think they're poised to have a really good run, but I think Cleveland's going to be there contending with them for the next several years to come, and it's really exciting. Well, hopefully my Celtics will get there in the next four or five years with some draft picks. So I want to talk about sort of the ascendancy of Pure. When we first met you, you had a pretty simple message. It was like, look, we think we can deliver way better performance for lower cost. I mean, boom, it wasn't the same cost. I remember you were very forced. I said about the same, right? You said, no, no, lower. We have the best data reduction technology in the business. I remember talking to you at Oracle Open World about that, and that's fundamentally what happened. And you attacked the legacy install base, and you won that game, but you're not resting on that. You've got to take it now to a next level. Talk about that next level of, well, talk about where you came from and the next level of data, and beyond just sort of public cloud. You guys have talked about this too, right? If you look at the curve of Moore's Law, I mean, mechanical diss doesn't follow Moore's Law. And so the cost reduction curves, we did the math and we said, look, we're going to be able to drive down the cost of storage. We're going to be able to drive up the density and power cooling space, simplistically can dramatically reduce the cost of storage. But Flash is going to help us, right? We've gotten to the point where Flash is, even with a tighter component market, it's cheaper to buy raw than fast disk and way cheaper to deploy. So we save, World Bank talked about saving millions of dollars by deploying pure storage and getting a 5x performance boost at the same time. So if we can help customers pay for their storage, both, you know, in terms of cost savings, as well as new business value, that's a great outcome. Last thing, I mean, you know, Wikibon's been on the right side of that prediction since early on. That's very true. I've used your data. I've been very aggressive about that. But the thing that excited us most was the second thing you said, which was the business impact, the business value. So I want to come back a little bit again to history, it used to be, I would buy EMC for block and NetApp for file. You're sort of attacking that premise. Talk about that. So we started in the performance end of the storage market, which is dominated by block because we knew that one was going to be the first to shift to all flash. And, you know, we've already seen that play out. I mean, even the legacy vendors in their install base are inclined to use flash because it's actually cheaper than 15K disk to put in. But one of the, you know, that tech is about to hit a wall because as SSDs get bigger, you know, we've grown SSDs almost 400 fold since Pure got started, but we haven't changed the pipe, right? So if you make a vessel 400 times larger, but you have the same pipe going in and out of it, you're losing a lot of access to data. This is this new sea change to new protocols where we're shedding all of the disk. And I think the second big change is we're bringing this same wave to big data, right? So we've been playing in the block market now, we're playing in the file and object market because big data workloads, especially those that require deep learning, you just need massively parallel storage and you're never going to be able to get that with 20 plus year old storage designs. So Scott, when you talk to your customers, especially when you're talking to C-suite, how does storage fit into that discussion? I loved in the keynote, there's a lot of discussion of next generation applications, everything from the buzzwords of the AI and ML type pieces out there. But what are the big challenges that your customer's facing and how much is it a storage discussion? How much is it kind of that digital transformation? Yeah, I think we see all of it. We'll talk to customers that find, they can't innovate quickly, right? And they want to get so much more value from their data. One of the studies we cited in the keynote today was 80% of companies think they could make 20% more on the top line if they could just get insights out of their current data. I mean, that's a staggering statistic, 20% top line for every company if they could just get more out of their data. We want to make that possible, right? They're constrained with very expensive legacy technologies that they simply can't give them the access to the data. They don't have the performance to mine those insights. And the infrastructure is so cumbersome, they just can't evolve and move their business forward. And so providing that recipe, giving customers the ability to get dramatically more value out of their data and do it for lower cost is working. Yeah, and it's been interesting to watch kind of the data center to the cloud and now cloud to the edge and you've got solutions that are spanning across them. How do you see that maturing and really the vision to expand where it pure fits in the discussion? So from early on, we targeted the cloud market because we knew that this is where the future lies, right? Even traditional enterprises still want all the benefits of the cloud inside of their own IT environment. And when you say cloud, you mean it's SaaS providers, service providers as well as- So we talk about the model that the big three are using, but this is very popular in many other clouds. The world is not moving to three data centers. Companies like Apple and Facebook are very committed to their own data center investment. And we seek to be a supplier to that consumer internet. The software as a service and infrastructure as a service of providers because that's where the data center is going. But what we've seen recently with the proliferation of internet of things and sensor data is customers are just growing these huge data footprints that are just too big to move across public networks. So we talked about in the keynote in three years, only one out of every 20 bytes that's generated can fit on the internet that year, right? So- 2.5 out of 50, I think- 2.5 out of 50 set of bytes, 50 set of bytes will be produced that year, but only 2.5 is going to be transferred across the internet for the entire year. So we've got to get better. As an industry, helping customers capture that data where it's generated, right? So that's what we call that edge. Sometimes it'll be on the devices or it'll be in data centers that are close to the edge. And they've got to mine insights from it right there. You know, one of the- Absolutely. One of the exciting demos we're showing here is actually AI coprocessing with the public cloud. So we've got an edge data center that we're running deep learning in, but then we're selecting particular data sets through that deep learning to transfer it up to the public cloud for more machine learning. Those key nuggets, the needles may be a transfer because otherwise it's too expensive to transfer all the data. You can't transfer all of it. So if it's a self-driving car, you know, if I'm just routinely driving along, no big deal, you keep the data. But if I slam on the brakes because the dog's in the crosswalk, that's the thing you want to do the training on. That can't be an asynchronous operation, right? So, okay, you're already getting the hook. I can't believe it. He just got here, but we got some, Qib was a comfortable place, we got to throw some hard questions at you. So Stu asked me the other day, or actually today, who's going to reach a billion dollars first? And you don't have to predict, you can leave that to us. Nutanix or Pure? Okay, so talk about HCI. You made some comments up on stage about hyperconverged. Said, you know, it's good for its own specific use cases. What's your point of view on that? Oh, so first of all, Nutanix has built a great business. Awesome, yeah, sure. And we're absolutely fans. I will say in the markets, those two new markets that we're playing in, in the cloud market, and in the next gen applications and deep learning, we don't see hyperconverged infrastructure. We do see hyperconverged in business and enterprises, but it's usually the smaller scale deployments. The reason is, at scale, you don't want to co-locate applications, data and storage all in a single tier. It limits the ability to easily scale independently. You know, if you need more capacity, you need more application compute versus data compute. You want to be able to flex those independently, which is why all the big clouds and enterprise data centers run converged rather than hyperconverged. But the change that's coming is fast networks are changing this even more, right? So what I believe going to turn hyperconverged inside out is it's now more efficient to access remote storage than it is the same, the storage on your local chassis. And that's because we're offloading compute to the server NIC cards on there. So these new protocols, NVME over fabrics, are actually making the network finally really the computer. There's no longer a chassis that's even meaning... Big fan of that infrastructure and NVME over fabric. Okay, next tough question is, the narrative is it from the big guy, EMC in particular, pure small, they're losing money. And your return narrative is Dell EMC, they're large, they're slow, they're outdated and confused. Okay, we love that. You know, it gets a little juices flowing. But here's my question. A lot of customers are large and slow and outdated and confused. So how do you get that fat middle to move faster and become a tailwind for you guys? So I think it's happening. I mean, customers just want technology to be made easily. I mean, one of the disruptors that's really helped is the AWS user experience, right? AWS has reset the bar for IT everywhere because people are like, why am I paying for consultants to visit my data center and take care of this mainframe or client server error technology that used to be so expensive, you know, consultants coming along with it and permanently staying with it was okay. That's not okay, right? The world needs to move to self-driving infrastructure and they need radically better performance if they're going to use these new techniques. And so I think the key motivation is, customers need to get more value from their data and they need to drive down cost. And we're in this sweet spot of being able to provide it and these 20 plus year old designs can't, there's no way. So it's inevitable is really what I'm taking away from that and you've got a lead that you can sustain in your view. You know, it's been very interesting to watch our competitors talk about, you know, the new Flash Array X with all NVMe and the new Flash Blade. They've said these are science projects that won't be real for three years. And yet we've won one of the biggest AI platforms in the world, you know, where 25% or more of our business is coming from cloud customers. So, you know, from where we sit, things are going exactly as we'd hoped. Love it, love it. We're talking about the edge, you're pushing the envelope at the edge. All right, Scott, we'll give you last word. I know you're super busy but give us the wrap up, the bumper sticker on Accelerate 2017. Oh, it's such a phenomenal group coming together to talk about innovation. You know, we've already shipped the hardware form factors this year with our new Flash Array and the new Flash Blade. But the thing that I'm so excited about is we've got more than two years of software innovation teed up, right? That we've not, we've been very quiet about. So, you know, when you can bring two years of innovation and pack it into six months like we have this year, it makes things really exciting. Well, congratulations at getting to this point. We're really excited about the future. Scott Deetson, thanks for coming on theCUBE. Great to see you again. Thank you, always good to be on theCUBE. All right, keep it right there, buddy. We're back with our next guest. This is Pure Accelerate live from San Francisco. Right back.