 SiliconANGLE.com, SiliconANGLE.tv's flagship program. We go out to the events, extract a student from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm joined by my co-host. I'm Dave Vellante of Wikibon.org, and we're here with good friend Tarkin Maynard, who runs the cloud computing business here, former CEO of Hawaii's Cube alum. Great to see you again. Great to see you. Great to see you. John, good to see you. All right, always dynamic, Tarkin Maynard. We love having you in the Cube because, one, you're dynamic. You talk faster than I do. Okay, which is amazing for Cube, you're getting the most content. Also, you're a content machine. You're the GM of the cloud computing with Dell. So my first question for you is, also, you were in charge of why as it was acquired by Dell. We've talked about it on the Cube before. But I want to ask you a question. Just about what's going on at Dell World, and specifically, Michael Dell. We've had access to Michael Dell twice. You introduced us at VMworld. He saw the Cube. He saw the magic of the Cube. Wanted it here. We came here. We're excited to be here. But he's accessible. He was out, pounded in the flesh with the people, his customers. He was at the concert. Kicked off the concert. He's a founder. He's 47, 48 years old. And, you know, the founder. Younger than you are. Yeah, he was with the same, graduate of high school, same year. But, you know, he's the founder. And he's still here. And he's making it happen. And he's not going anywhere. He hasn't even gone anywhere. He's been around. Yeah, yeah. You know, come back. He's always been there. So what's it like inside Dell with Michael Dell to helm as, you know, still the young founder and making these moves? Yeah, great question, man. I'll tell you, have you talked about this last time at the VMworld, right? It's been a few months. August, September. So that was a great event as well. This event is going nuts. It's fantastic in Austin for Dell world. I'll tell you, Michael has been, you know, great, fantastic. You know, acquisitions are usually difficult, right? You know, you're buying a small company. In this case, why is it was a small company? Dell bought us cultural differences and so on. You know, different size. And Michael has been a force. He's been fantastic to work with. I've known him for, you know, some time. But I'll tell you within Dell, like you said, his humility, the way he does business with the customers and partners talks to anyone. He's part of the business. He's not necessarily, you know, on a big ivory tower. Makes a big difference. And that's part of reason, you know, myself, my team, we're welcome here. And then we like that kind of a culture. That's kind of a startup mentality in a 60 plus billion dollar business. Makes a big difference with the customers and partners. So we're enjoying that. And I can tell you, even though Dell is big and in this size of a company, when you look at the IBM, you know, Cisco, HP, Oracle, Sun, you know, all end-to-end solution providers, I feel Dell is the most startup you want. You know, fastest one, more agile. And partially because of the chairman, CEO, the founder and executive management team who keep things, you know, fluid, who keep things basically fast and moving like a startup environment. And that goes a long way. And you can feel that in the event. Yeah, and he does it right. He had a great musical venue last night. The band was fantastic. Better than any event I've seen in terms of events. Bill Clinton on stage with his keynote. So great. Wasn't he great? Bill Clinton was amazing. That guy under some blue. You could take notes fast enough. Absolutely. And he's so, you know, at this age, so coherent. You know, it was a great presentation. And Bill Clinton really made the internet happen. I mean, the joke about Al Gore saying he invented the internet, but the reality was that the internet in the 90s, under his tutelage, you know, the domain name system wanted to go under UN control. The Department of Commerce kept ICANN was a domain name system. And that fostered the web and innovation behind it. So he had a great tech policy. So props to Bill Clinton. We can get more into that. But what are you working on now? So you're now in Dell. So you're running the cloud, GM of cloud. What does that mean? So bottom line is, you know, as wise we, at that time, before the acquisition of global leaders in cloud-client computing, basically providing a secure, manageable environment for any kind of a thin, zero-client device. Also managing mobile devices, thin-client, zero-client cloud pieces from the cloud, security, manageability, overall network management, cost control, service-level management part of the story. Now as Dell, we have this conceptual reverse integration. We're building a lot of additional IP around what was dead with additional capabilities with the back-end. In the back-end, you know, the big story is convergence. But let's step back for one second. We talked about this, you know, six months ago. I will, you know, stick to the story. The five big areas that we see from the customers are social, mobile, virtual, converged, contextual in the cloud. Social, mobile, virtual, converged, contextual in the cloud. Everybody's going social. We're all going mobile in some shape or form. You cannot deny it. Look at the numbers. What's Apple doing with the iPhone? What's going on with Android, Galaxy numbers? They're going crazy. I mean, we were expecting 600 million smartphones. That number is going to one to two billion units in the next few years. The game is changing fast. Yes, we're shipping 400 million PCs. PC is still valid. We're still shipping that. There are 1.5 billion PCs out in the market. But I haven't said that. The growth of mobility is a reality. Mobile security, mobile management. And tying that to virtual. To go to cloud, we need to have that path through virtualization, desktop and server. And the big piece of that continuum is the convergence. How do we converge in the back, in the data center, server network, and the storage with an active integrated system managing all the workloads through VDI or ERP, whatever that means. And also, at the end user point with voice data video, convergence is going to be a big deal with big data, with contextual intelligence. So having said all that, now as the Dell-wise business unit within Dell corporate, we're bringing all these pieces under this business unit that we call Cloud Client Compute Business Unit. I'm running that business unit with my team. And the team is psyched. We brought in some amazing people from Dell corporate and Dell Core. And now we have an end-to-end solution portfolio. Includes server, the storage, the network, the active integration, the active system, and tying that through software for security and manageability with zero clients and thin clients. So, my sales organization today within Dell sell all those components from the data center to the network, to the software, services and end user clients. Look, you guys know this is public information. Last year, we finished less than $400 million in revenue as Y's individual company. We're growing nearly to 300% level this year, the first fiscal year. We just had a $300 million quarter, last quarter. In one quarter. So it's dropping it on. It's dropping it on. It's the over a billion dollar. This is a billion dollar plus round-rate business for us. And I'm just very public about that because I want to make sure the customers understand. Some people are going around and saying, oh, they stopped virtualization. I'm not sure what's going on. It's happening. It's happening. I just got back from New York City with our top financial institutions. The numbers used to be 10,000 units a year, 15,000 units a year. Now we're talking about 80%, 90% of the entire user population in the largest banks in the world happening today. It's going to happen in a big way. Tarkin, so when we first met you at, I think it was Citrix Synergy, we were very, very impressed with your vision around, well, among other things, but your vision around this edge of the network, the thin client, the no-PC. The zero client, yeah. The zero client, yeah. And so that was awesome. But now let's go look at Dell, the messaging. From the core of the network, to data center, to the network to the cloud, and you're hearing Dell say words like edge, the edge of the network. That is what you were doing. So what does Dell have? Do they really have that nice edge? What is going on at the edge of the network? And what does that mean? Is it mobile? I mean, mobile business is hurting right now like Dell on the numbers. An area of improvement. What do they have for the products right now? So a very good question. So look, at the end of the day, there are current challenges and trends in the marketplace. From the economic downturn, compliance, emerging markets, obviously, corporate social responsibility is a big deal. Some people are overlooking this thing. There's private public partnerships in the economy, going to education, healthcare, doing things with governments. It's a big deal, a lot of opportunity there. With the economic downturn, there's a lot of money going on right now. Money doesn't go away, money's still there. How do we extract that money for the right solution, for the right benefit of the humankind? So there's a lot of deals going on with innovation and obviously shareholder value. They're all part of the ecosystem of these trends and challenges and opportunity. Within that context, with the social, mobile, virtual, converges contextual in the cloud, now we have a solution portfolio end to end that I did not have advice and no other company has. I really believe that. It's not a BS. It's not necessarily that typical marketing talk. No other company has all these components coming together and customers are realizing that. Yes, some people have servers. Some people are storage. Some people are networking but bringing all these things together in a unified computing and actively integrated computing infrastructure. Secure it, manage it, connect it with the right networking and software glue with the best, best end user platform portfolio which includes PCs for those people who's still going to buy PCs. We're still shipping 400 million PCs but also zero clients and also think clients and also mobile devices acting like PCs with all the things that we've done, with Pocket Cloud. Why is Pocket Cloud becoming a receiver on an Android device, on an iOS device or in a Windows 8 device? Connecting you to your virtual machine resources in the backend changes the game. So in a sense, our story has been not a device. Device is not a big deal. Any user, any content type, voice data video from any type of app, legacy, Windows, web or a native app and for any time, anywhere but also on any device. So as part of that story, PC is part of the continuum and as a company we have all those pieces. IBM doesn't have the PCs. Cisco doesn't have the PCs. HBS some of these things but they don't have the zero clients. But Dell's not a zero client coming. They're like a big client coming. They sell a lot of notebooks, a lot of tablets, they have Windows 8. That is totally true to that. But I'll tell you, do we have a position, John? Dell is not a client company. At the end of the day, the Dell's vision is as you heard from Michael. It's a B2B market. It's an end-to-end solution portfolio. It's an IT solution provider. At the end of the day, people tell me, are you a PC company, are you a server company, are you a thing company? You know what, in a sense, you heard from Michael literally 50% of the organization is all in services. Services, maybe it's our people. I mean, this is a big deal. It's a service company. So, and as you know, technology, you heard from Bill Clinton, from the president. IT is a service-centric solution. It's a means to an end. At the end of the day, we have all those components in terms of hardware, software and services together. Yes, the origins of the business is a thick PC, fat PC story from 1984, 85 timeframe. And that gave us our foundation. But now, when you look at the organization, look at the investment for the past two, three years, the last 12 months, five billion dollar investment. They're all data center services and virtualization and cloud computing. Nothing is PC related. So, we're building around the PC. We've been building that and the transformation is going very well. So, I want to drill into that a little bit. So, when we first met you at Citrix Synergy, you had one of your devices, make a fun of our dinosaurs for the laptops, right? Now, people think of you, think of Y's at the time as a hardware company, but there's a lot of software in there. I want to understand that a little bit. You talked about 400 million now growing in a rocket ship beyond a billion at some point in time. Talk about the software components and specifically what Dell has brought to the table, what being integrated with Dell has brought to the table. As it relates to software. So, from a software perspective, as desktop virtualization as a path, as a medium for ultimate open cloud computing is all about software. You know, the devices, I mean, you know, the white box phenomenon. I mean, a lot of these cloud service providers are buying white boxes now. Is the box by itself is not the differentiator as you know. You know, look, three of us after this, let's go fly to Taiwan in Taipei. We can start a new white box company in about 13 minutes. You know, the bottom line is the differentiation is the firmware, securely manageable, the availability and reliability and doing it, you know, nice TCO level, nice TCO way and doing it with the right software. And that software comes in terms of security, manageability, availability, reliable and scale. Our software that user optimization, our software that security, our software that management and doing that from the cloud is a big differentiator. You know, doing that in a client server mode like the companies that in 1980s and 90s is a one way of doing it. But as Dell now, we're putting everything in the cloud both into your private cloud but also from ourselves with our public cloud. Today I spent some time at Verizon, some time at AT&T. We're doing deals right now with SoftBank, with NTT in Japan. There are tons of things doing with, we're doing with Siviskam, MTS in Russia. All these telco service providers are looking at our software and saying, look, I'm going to use my own cloud infrastructure. I have all these data centers as a telco. It's in a liability column today. All that investment. I'm going to move that data center from the liability column to an asset column to balance it for the CEO. Not for the CIO, for the CEO, for the shareholders and the technology to do that is our software. Some of our gear, some of our hardware but most of our software and services and that's the, I believe, the multiplier value effect. So as we move forward, you're going to see more client software, more networking software and more data center software coming together for security, manageability, availability, reliable and more scale for more users. Look, are you guys going to be at CES? At CES? You guys got to come. You guys got to be there with theCUBE. I'll tell you. I will get theCUBE. Generous 7th, 9th time frame. Generous 7th, 9th time frame. I'm just doing this formally here. We're going to show some amazing new technology. Some amazing new software and form factor technology is going to change, in my opinion, the way we do client computing from the cloud. You know, some of the technology we've been working on for the past 12, 18 months and that technology is going to be all security, all open management and giving more resources and capabilities for the users. At home, at work, on the go. At home, at work, on the go. Not only at a consumer level, but also at the end as well. So obviously, Michael Dell is up there. It's no surprise to us to bring your own device to work world. BYOD, they say, bring your own device to work. We're in that world. No brain, we talked about it on theCUBE earlier. He also talked about the converging infrastructure. You mentioned that. It's active, he calls it active infrastructure. What is active infrastructure? Because obviously, you're playing at the edge, the client software side of a really beautiful edge. The edge is very important. Core the network to the edge. Marius Haas answered that in my question yesterday. Core to the edges, their strategy. But what is this active infrastructure? Is it enabling new services? So, very good question. So first of all, let me clarify one thing. Convergence is not only in the back end. I'm still talking about some of our customers about this misnomer, misconception. Convergence is only in the back end. Convergence is entirely from the back end to the front end, from the end user data center. So in the data center with your storage server networking and all the glue, bringing these things together with the active infrastructure, basically the systems management tool, a systems management framework that managing the workloads throughout all those layers. Today, when you look in the past, you know, you're buying service from vendor A, storage from vendor B, networking from vendor C. Every single topic, every single layer comes with its own systems management, security, asset management, all these utilities. It's a nightmare for the data center. It's a nightmare for the CIO. You know what so many CIOs tell me, Tarkyan, please stop selling me one more systems management tool. They have a systems management tool, inflation. You know, I just saw the CIO. I just saw the CIO. I'm telling you, they're managers or managers. Systems management inflation. You know, in these people. Systems management, a cliff. A cliff. Another cliff for you. Speed of the cliff. But I'll tell you, they don't have enough people to train on these type of software. So with active infrastructure, with the active system, our goal is the framework is to manage all those layers, all those workloads from one location with a simple GUI. And by the way, one other thing people don't talk about in the industry. Data visualization and beautiful GUI. Simple user interfaces. You know, when you buy a new car now, the entire system is all touch. Everything is simple, fewer buttons. That's the goal. So when you look at the new solution that we have called Project Stratos, now it's a GA, is our new systems management tool from the club at Dell Wise as part of the overall systems management solution, which we call Cloud Client Manager. It just went GA. When you look at the GUI as an administrator, you don't see buttons. Everything's simple, touch screen, few buttons, few directives, and you can manage a user from anywhere you want to. So having said all this. Any user. Anybody's infrastructure. Any user in the infrastructure. And you know what? You have your iPhone, you have your, you know, tablet of choice, Windows 8, whatever that might be. You're traveling to Japan. You're sleeping. The system is intelligent enough. Context ever enough of the location and time. Turns off your roaming. When you're sleeping. Because as you're roaming at night, you're not doing roaming and you're just being charged all that money. So think about the new contextual intelligence built in the systems management with simple GUI. So anything. iOS, Android, Windows. Any, any open. And by the way, when we talk about the converges going back, that's the backend service story. Now tie that to the front end. With voice data video. Now think about platforms are going to be almost free. Delivering you phone, video, and data services through virtualization under 200 bucks or free and as a service. This is happening today. This is going to be happening today. So we're getting the, we're getting the, almost a hook here. So you wanted to bring up a CIO to chat with us. Yes, I have one of my good friends, Maj Mayer, who has been, Maj, where are you? Come over here. Maj has been the chief innovation officer. Hi, Maj. Good to see you. Maj is with us in Austin. Maj is a friend of Tarkin's. Tarkin has many good friends, of course. He's a friend of ours. And this is theCUBE, our flagship program. We've got the events, a lot of extraction of the signal from the noise that's happening here. But also a lot of friendships, a lot of smiley faces, a lot of good times. Absolutely, absolutely. So Maj, tell us. Okay, we saw the CIOs up there with the case studies. We saw Michael Dell talking about Barclays. But I found the two lane conversation interesting how after Katrina, they had all this work, legacy projects lined up like airplanes and IT and all of a sudden, boom, disaster hits. Clean sheet of paper in a way. What is the challenge of the CIO today? Because they have that legacy and they wish they had a clean sheet of paper. How do you innovate with the legacy like you had a clean sheet of paper? Okay, let me back off a little bit first. My CIO is not abbreviated. It's a chief innovation officer. It's not chief information officer. And why I worked for State Street Bank for many years, more than 10 years. And when I started, I did the infrastructure. Now you're talking about hurricane, all these natural disasters. For a bank, we cannot even afford to lose a millisecond or all that. So what I have done, that's how I joined State Street. First thing is disaster recovery, business continuity. That's a huge focus. For bank, Sandy just went to the East Coast. It wasn't an issue at all because we got the whole system set up, recovering under the region so that nobody was nervous about it. So you live by high availability. Absolutely. You cannot have downtime. I call continuous availability. High availability is not even good enough. As soon as it's low, it's always continuous. Exactly, because we cannot have interruption at all. So what our future, Tucker was talking about cloud computing is we will have the active, active, active model, I call three locations or running the same thing, same time. And then you have a low balance to send information transaction to different locations based on where the availability is. So that will be seamless. So Tucker mentions that you're writing a book right now. Is that true? Yes, I am. Can you share us a little bit of a taste of what's coming? Absolutely. Thank you, Tucker, for giving me a chance to share that. I was very fortunate when I was a Chief Innovation Officer for Safety. I was giving a lot of speeches. At the end of one speech, one of the publishers offered me a contract to write a book about innovation. And so the innovation really about how can company make innovation not an event, not an initiative. It's a business as usual because without innovation, you're never good again. It has to be a part of the company culture to allow people to innovate all the time. What do you need to do as an individual, as a team, as a corporation? And I also talk about eight different skills you need, like listen, lead, connect, commit, right? Promote, you got to promote your idea. Provoke, you got to challenge people, right? Get ready. And execute. You know, vision without execution really is hero's nation. And the last 30 seconds before we're getting the hook, big time getting the signal. In the last 30 seconds, just explain to people, why the book, what's the main message of the book? The message of the book really teaches all the top executive, including CEOs and all the new young people, how the innovation should be a part of your responsibility every single day. Not an event, it should be a corporate goal and a tool that you can execute. Let me add one last thing to this, this is hugely important. When you talk to any CIO, any CEO, there is this imaginary virtual line, below the line, above the line, below the line, all these things you have to do just to run the business, keep the lights on, right? And above the line, all those innovative new ideas, new applications, and new opportunities to grow the business. Unfortunately, for the past three decades, all the CIOs, all the CEOs focus, how can we keep the lights on? And 80% of all budgets are focused on that, only 20% or less, is all about innovation. What Matt is doing with this book and with the ideas around the book and talking with other executives and we have a lot of conversations, how can we move that line from here to here so more and more activity is on the above the line, there is more activity on innovation and revenue generation rather than just cost control, rather than just keeping the lights on. Keeping the lights on should be the minimum of the business. Innovation bubble right now in a good way, real build out on the enterprise, you're seeing people focusing on top line revenue generation. I love CIO with the chief innovation officer because at the end of the day, big data is everywhere, innovation is a standard. It's making use of that data and infrastructure to create innovation. Thank you so much, Maj, appreciate it. Tarkin, great to see you. John, great to see you. We'll rather our next guest get to this short break. Thank you. Thank you. Good to see you. Thank you.