 Live from Las Vegas, it's theCUBE. Covering Fortinet Accelerate 18, brought to you by Fortinet. Welcome to Fortinet Accelerate 2018. I'm Lisa Martin with theCUBE and we're excited to be here doing our second year of coverage of this long-standing event. My co-host for the day is Peter Burris, excited to be co-hosting with Peter again and we're very excited to be joined by the CEO, founder and chairman of Fortinet, Kenzie. Ken, welcome back to theCUBE. Thank you, Lisa, thank you, Peter. Happy to be here. It's great to be here for us as well and the title of your keynote was Leading the Change in Security Transformation, but something as a marketer geeked out on before that was the tagline of the event, strength in numbers. You shared some fantastic numbers that I'm sure you're quite proud of. In 2017, $1.8 in billing, huge growth in customer acquisition, 17.8,000 new customers acquired in 2017 alone, and you also shared that Fortinet protects around 90% of the global S&P 100. Great brands and logos you shared, Apple, Coca-Cola, Oracle. Tell us a little bit more and kind of as an extension of your keynote, this strength in numbers that you must be very proud of. Yeah, I'm an engineer by ground, always like the number and not only we become much bigger company, we actually has a 25 to 30% global deployment in the network security space. Let's give a huge customer base and last year sales grow 19% and we're keeping leading the space with a new product we just announced today, the 486,000 and also the 40OS 6.0. So all this change in the landscape and like I said last year, we believe the space in the transition now, they go to the new generation, infrastructure security. So we want to lead in again, like we started company 18 years ago to get into we call the UTM nitrogen and firewall space. So we feel the infrastructure security is very important now and we want to lead in the transition and leading the change. So growth was a big theme or is a big theme and some of the things that were also interesting is another theme of really this evolution, this landscape. I think you and Peter will probably get into more of the technology, but give our viewers a little bit of an extension of what you shared in your keynote about the evolution, these three generations of internet and network security. Yeah, when I first started my network security career the first company I was studying at Stanford University, I was in the 20s and it's very exciting. It's the space keeping changing and grow our fast. It's a, that's making me keeping, have to learn every day and that's I like. And then we started a company called Netscreen when I was early 30, that's my second company. We call the first generation network security which secured a connection into the trust company environment. And the Netscreen is a leader later being sold for four billion dollars. And then starting in 2000, we see the space changing. Basically you only secure the connection no longer enough. Just like today you only validate yourself, go to travel with a ticket no longer enough. Then you don't see what's your carry, what's the, what's the luggage had, right? So that's where we call the application and the content security. They call the UTM, Nigerian Firewall. That's how 14 nights started. That's the second generation starting replacing the first generation. But compared to 18 years ago, since changed again and nowadays the data no longer stay inside the company. They go to the mobile device, they go to the cloud, they go to all different application, go to the IoT is everywhere. So that's where the security also need to be changed and follow the important data, secure the whole infrastructure. So that's why keeping talking from last year this year is really the infrastructure security, the secure fabric is starting to get very important and we want to lead in this space again like we did 18 years ago, start the Fortinet. So can I like to tie that, what you just talked about back to this notion of strength numbers. Clearly the bad guys that would do a company harm are many and varied and sometimes they actually work together. So there's danger in numbers. Fortinet is trying to pull together utilizing advanced technologies, new ways of using data and AI and pattern recognition and a lot of other things to counter effect that. What does that say about the nature of the relationships that Fortinet is going to have to have with its customers going forward? How's that evolving? The idea of a deeper sharing. What do you think? Actually the good guy also started working together now. Sure. And we formed, they called a cyber threat alliance the CTA and the Fortinet is a one of the funding company with five other company including Palo Alto Network, Checkpoint and McAfee and also a Cisco, there's a few other company all working together now. And we also have, we call the fabric ready program which has a 42 big partner, including like IBM, Microsoft, Amazon, Google, all this bigger company. Because to defend the latest, the newest fabric threat you have to be working together and that's also protect the whole infrastructure. You also need a few company working together and it's because on average, every big enterprise they deploy 20 to 30 different product from different company. It's the management cost, the number one is the highest cost in the big enterprise security space because you have to learn so many different product from so many different vendor and most of them competitor and now even working together, not communicate together. So that's where we want to change the landscape. We want to provide all infrastructure security can working better and not only partner together but also share the data, share the information, share the intelligent. So fundamentally there's a, the relationship is changing very dramatically as a way of countering the bad actors by having the good actors work more closely together and that drives a degree of collaboration, coordination and a new sense of trust. But you also mentioned that the average enterprise is 20 to 30 broad based security products. Every time you introduce a new product you introduce some benefits, you introduce some costs, potentially some new threat surfaces. How is, how should enterprises think about what is too many, what is not enough when they start thinking about the partnerships they need to put together to sustain that secure profile? Like I said, in order to have the best protection today you need to secure the whole infrastructure, the whole cyber space and that will secure the still the biggest and also grow our fast and then there's the endpoint and there's like a cloud security, there's all different application, email, web and all the, all the cloud, all the IoT. So you really need to make sure all this different piece working together, communicate together and the best way is really they have a single panel of management service. They can look at them, they can make it integrate together, they can automate together because today's attack can happen within seconds when they get in the company network. It's very difficult for human to react on that. So that's where how to integrate, how to automate this different piece starting to get so important. That's where the fabric approach, the infrastructure approach starting to get very important. Otherwise you cannot react quick enough effectively defend yourself in a current environment. And on the other side for your question, how many vendor then you have, I feel the less the better so they can at least they have to work together. If they're not working together we're making even more difficult to defend because each part they not communicate they not react, they not automate will make the job very, very difficult. And that's where all this working together and the less vendor they can all responsible for all their security is better. So that's where we see some consolidation in the space. They do still have a lot of new company come up. Like you mentioned, there's a close to 2,000 separate security company and a lot of them try to address the point solution. So we're just enough to start with the idea of data integration, security integration amongst the security platform. So enough to do it as little as possible, as few as possible to do that, but enough to cover all the infrastructure. Yes, yes. Yeah, because the data is all in whole infrastructure now is no longer just have to trust environment. And you know, because even inside the company there's so many different way you can access to the outside, whether by your mobile device or there's a multiple way you can connect on the internet. And today in the enterprise, 90% connection goes to wifi now. It's not goes to the war network. That's also difficult to manage. So that's where how to tie this together and make it all working together is very important. So in the spirit of collaboration, collaborating with vendors, when you're talking with enterprises that have this myriad security solutions in place now, how are they helping to guide and really impact Fortinet's technologies to help them succeed? What's that kind of customer collaboration? Like, I know you meet with a lot of customers. How are they helping to influence the leading security technologies that you deliver? We always want to listen to the customer. They had the highest priority. They gave us the best feedback. And like the presentation, they talk about there's a case from Alarica, which is where they have a lot of branch office and that they want to use in the latest technology and networking technology, as you went and working together with security. That's really the new trend and how to make sure they have all the reliability, they have the flexibility, software defined networking there and also make sure the security also there handle the customer data. That's all very, very important. So that's why we're working very closely with the customer to response what they need. And that's where I'm still very proud to be. I'm no longer kind of engineer anymore, but we still try to build an engineer technology company lesson to the customer, react quick because to handle security space, cyber security, internet security, you have to be very quickly react for the change on the internet, on the application. So that's where follow the customer and give them the quick, best solution. It's very, very important. On the customer side in Amia, we talked about, that was talked a little bit about this morning. GDPR is around the corner, May 2018. Do you see your work, partner's work with customers in Amia as potentially being kind of leading edge to help customers in the Americas and Asia Pacific be more prepared for different types of compliance regulations? Yeah, we see that GDPR is an additional opportunity. It's an additional complement solution compared to all the new product technology will come up and they definitely gave us an additional business fit, additional opportunity to really helping customer protect the data, make the data stay in their own environment. And at the same time, internet is a world global sense and how to make sure different country, different region working together is also very important. And but I think it's a GDPR is a great opportunity to keep expanding the security space and make it safer for the consumer, for the end user. So in the last minute or so that we have here, one of the things that Patrice Peirce, your global sales leader said during his keynote this morning was that security transformation, this is the year for it. So in a minute or so, kind of what are some of the things besides fueling security transformation for your customers, do you see as priorities and exciting futures this year for Fordnet, including you talked about IoT, that is a $9 billion opportunity. We mentioned the security and the connected card, a very cool car in there. What are some of the things that are exciting to you as the leader of this company in 2018? So we hold some basic technology, none of the other company has like a building security into a single chip. I also mentioned like some other bigger company like a Google starting building their TPU for the cloud computing and NVIDIA the GPU. So we actually started this vision 18 years ago when we started the company and combined the best hardware and best technology with software, with service all together. So long-term you'll see the huge benefit. And that's also like a translate into today. You can see all this technology enable us to really provide a better product, better service to the customer, to the partner. And we all study benefit from all this investment right now. Well, Ken, thank you so much for joining us back on theCUBE. It's our pleasure to be here at the 16th year of the event or second time here. Thanks for sharing your insight and we're looking forward to a great show.