 From London, England, it's the Cube. Covering Discover 2016 London. Brought to you by Hewlett Packard Enterprise. Now, here's your host, Dave Vellante and Paul Gillis. Okay, we're back. Cube alum, Patrick Osborn is here. He's the Senior Director of Product Management and Marketing at Hewlett Packard Enterprise Storage and Doug Hazelman, who's the Vice President of Product Strategy at Veeam. Gentlemen, good to see you. Welcome to the Cube. Thank you. Thanks for having us. So, I've been watching Veeam for years now. You know, you go to these V-mugs and there's Veeam and you talk to the customers and what are you doing for backup? Veeam, Veeam, Veeam. And you guys have just done a phenomenal job of just growing your company, you know, building the brand and so congratulations on that. But how's it going at Discover? It's going great. You know, we've been a long-time partner with HPE definitely on, you know, especially on the storage side with integration with, you know, three-par and store virtual and store once. You know, I've been working with HPE for, I don't know, six, five or six years now and it's been a great partnership. And then, you know, be able to come here and showcase, you know, what we've got. We also made a bit of an announcement today too, so that's all good. All right, we'll unpack that a little bit, but so Patrick, can we come to you and just set the table for us? What are the big trends you're seeing? You know, give us the high-level perspective and it will dive in. Yeah, so one of the things that, you know, we made some announcements this week in the storage area. We are seeing, you know, this adoption of flashes, you know, through the roof, non-linear growth, you know, more than 50% of the systems that we ship from a three-par perspective are all flash and that's growing. What we see is that that is, it's good and bad, right? It's good for customers that obviously they're seeing a lot of savings from flash, certainly performance. What it's doing though is definitely introducing a lot more risk into their infrastructure. If you take a look at flash from a couple waves, right, people are starting to introduce a little bit of flash for performance, definitely starting to get the economics and check in wave two, you know, it's definitely more accessible for customers, especially in the mid-size enterprise to buy and deploy all flash. And then this sort of third wave, which is, you know, now it's your standard, now you need all the data services that go around it. What we've seen is that has basically increased your risk portfolio from an application density, right? So you can run a lot more stuff effectively on a terabyte of flash than you were able to in the past. So now you've got more volumes, more hosts, more hypervisors, therefore more applications running on that single piece of infrastructure. So what we've been talking about is the highly resilient all-flash data center, right? And it's technologies like three-par and all the data services that come with it, store ones, and then partnerships with, you know, our partners like Veeam that's going to provide that whole solution around availability really at the end of the day. So flash is great. I think a lot of people have used it for accelerating applications, and it's, you know, definitely in economics. You know, it's great economically for customers, but some of the, nobody loves data protection, right? Nobody likes to pay for it at the end of the day. But so now what we're seeing is that people are expecting that to be an endemic part of the infrastructure, and, you know, partnering with folks like Veeam has helped us do that. Are you surprised, are customers surprised when you tell them this, or when you go into customers who are adopting flash and tell them that they're taking a greater risk? You know, I think at the end of the day, people are always surprised when you point out their risk profile. So we have a number of tools and processes we go through to kind of show people what their risk profile is. At the end of the day, you're putting a lot of applications in one basket, right? Then you guys see that all the time. And that's basically kind of what it is. We saw it with virtualization too, right? Now all of a sudden you've got a lot more stuff running on a single piece of hardware. But once that hardware fails, right? So you saw the rise of things like backup and disaster recovery focused on virtualization because it was a different risk profile than running everything on physical servers. And same thing with flash. Well, you've got less copies too. You're sharing a single copy with many more constituents now than you ever had in the past. So, you know, good thing is copy creep maybe gets addressed, but sometimes it's good to have a copy around. Yeah, it's just a failure. And that's what customers, you know, they want to see at the end of the day. It's something that I don't want to go to four or five different tool sets to manage all those copies, right? I want to have an integrated experience, right? We talked about this before, in terms of customers want to buy a vertically oriented integrated system, right? That's going to run a set of applications for them. So they don't want to be messing around with snapshots and replication in another tool, backup in another tool, dev test and copy in yet another framework or UI. Being able to throw that into your storage layer to be able to do application consistent snaps, snap and replicate, offload for backup, offload for test and dev and making copies is definitely something that people are expecting now and we're providing it in our infrastructure. So how did this partnership come about? I mean, you know, it's interesting, actually the data protector, the group, product line, whatever's going to micro focus. But you guys have been partners in the field for a long time. Does that move, that spin merge with micro focus open up new partnership opportunities? This is an example. I mean, in the past you might not have been aggressive about having a partner like Veeam on theCUBE. Was that just coincidence or is that a change because of that spin merge? I think, I mean, we've been working together for some time now. So for us, we've always had a very open ISV ecosystem in storage, right? So my personal belief is that you lower the barrier of entry and you lower the barrier of exit, right? I mean, so if you're open and you have the best product offerings out there, people will choose either breast and breed or a fully integrated stack. So for me, we've been partnering with all sorts of people and you know, obviously we work very closely with HPE Data Protector and Veeam Explorer and we have solutions with that team. Frankly, what we're seeing right now is a very high intersection rate of customers, right? So people that are, who are Veeam customers that are moving up into the mid-range and the enterprise that are using HPE servers, networking, storage, I mean, you guys see that all the time. Yeah, yeah, I mean, that's kind of where we're moving. But the other thing was, it was several years ago when it was actually the store once team, that came to us and said, look, we'd like to make sure that we work with you guys because we see your success when we want to be part of that, as part of that open ecosystem. So, and that obviously moved towards other things and now we have primary array support for three parts to our virtual, there were the first array supported on our platform. So it's just, like I said, it's been a great partnership. And you guys initiated that integration, is that right? On the primary storage we did, I mean, it was joint. We said, hey, we want to work with snapshots. And they said, great, here's how you do it. Yeah, and HPE was great to work with. I guess my point, Doug, is that you guys were small, but you're gaining share very rapidly. Now you've hit critical mass and it's like, boom, on the radar, because you've got others as well at that intersection. I mean, I'm sure Symantec pops up in your radar. I don't know. Keep in mind too that these guys sell where we don't, right, and we sell where they don't right now. So you guys are going to capture tens of thousands of new customer logos this year, right? And we obviously want to have an integrated solution so they choose HPE infrastructure. Double click on that. What's the, what are the swim lanes? Well, so what we, the announcement that we put out today was we're now part of the HPE complete program, which essentially means that HPE can now resell Beam Software to any of their customers or their partners. So it's essentially a reseller agreement. And it means that, you know, HPE sales can go out and offer, you know, a complete integrated bundle that includes Beam as part of that availability platform. What's different though? You were saying before, there's not a lot of channel conflicts. There's not a lot of what? Channel conflicts. You're saying you're selling different places. Absolutely. What are those places? How would you characterize where you typically sell and what the upside is for you with this announcement? Yeah, so I mean, so I think historically from an HPE perspective, right, you're seeing us in the fat part of the mid-market, especially enterprise and certainly large enterprise, right? I know that the Beam folks have been super successful in capturing hundreds of thousands of SMB customers, the customers that are likely to grow very quickly, you know, individually as well as a pool of customers, right? So your model on from a marketing and freemium and that conversion is very different from the way we go to market. So I think having those two engines working together is our, is our... Yeah, like I said, we, you know, we have over 200,000 customers, they're not the Fortune 200,000, you know. And that's a good thing. You're both getting access to new markets from this deal. But in the why of that is it's been, it's a channel issue, not a technology issue, correct? It's not even a channel issue. We've been working in the channel for several years. Well, I'm saying you don't have the channel to that Fortune 100 or Fortune 1,000. Oh, well, yeah, I mean the sales force and those types of things, yeah. It's not a direct sale, you're not a direct sales organization. But it's not the technology though, correct? Or I mean... No, it's not the technology, scale, performance. Yeah. The feature set, robustness, that's all there. Yes. I mean, we're not really digging into what all there means, but I'll take your word for it for now. Yeah, every release, you know, every release we see more and more enterprise customers joining on. And, you know, we get more scalable, you know, better performance, you know. We're protecting, you know, customers with tens of thousands of VMs and hosts. You don't hear... Veeam is a toy. Yeah. You don't. It's not like, you know, some examples of 1.0 products that, you know, don't have it. Who are you displacing? You must be displacing someone in those kinds of big customers. Yeah, typically we're displacing whoever the incumbent is or was. Whether that's, you know, Veritas, you know, sometimes it's Commvault, sometimes it's DMC, sometimes it's IBM or whatever they are now. Sometimes it's HPE. Sometimes it's HPE. But it's typically, you know, as they're modernizing the data center and retooling how they do things, they're looking at what's the best way to do the specific task. And they realize that maybe the tool that they currently have may not be the best and they go look for best of breed. For customers who are moving from an all-disk environment, investing heavily in Flash, how does that change their DR and their resiliency strategy? You know, from a Flash perspective, it doesn't really change much from our perspective. I mean, things are obviously faster in terms of, you know, being able to get offload the data, whether they're doing a backup or a replica. You know, and in the case of, you know, the snapshot integration, you know, being able to snap that over and replicate that across platforms, you know, it just makes things, you know, from our standpoint, it's faster. Well, I mean, virtualization was a huge tailwind for Veeam. I mean, that really was what put you guys on the map. I mean, it seems like all Flash, let's think about this for a second. I guess synchronous replication at a modest distance starts to make less sense, makes sense on site. But then putting it across the Hudson River, what's the point of that? The expectations and the techniques are changing, right? When Doug talked about modernizing the data center and modernizing some specific processes, what I'm seeing is that there's no more backup window, right? So you've got this huge fan-in of applications on specific infrastructure. So at the end of the day, nobody's processing for eight hours and then backing up for eight hours, right? That just doesn't exist anymore. So as much as you can unload onto the infrastructure, so I can take course from a dataset perspective, but very granular from a time perspective, I can do that over and over and over, right? And then I can do things like selective restore, right? Through RMC or through Veeam Explorer. And what we're seeing as customers, their expectation is that they're checkpointing and backing up and replicating all day long every day. Yeah, so I'm making a copy on site. I'm getting it off site as fast as I can, maybe to a store once or some other purpose-built backup appliance. And I'm trying to minimize my RPO as best I can. Exactly. And get as close to zero RPO as possible, which is impossible. What you're seeing now is that that granular level now is at the VM, right? Or at a much larger dataset, even at a VM data store, as opposed to in the past, it was I'm going to back up and I'm going to go and index a bunch of file systems and people aren't really doing that anymore. Does containerization change the game at all? I think now that you start, so we have a strategy around containers from a storage perspective. What we're starting to see more customers ask for persistent storage options for containers, right? So what we see now is that storage from a container perspective is ephemeral, right? But people that want to have persistent storage options, it'll be either in a software-defined nature or we have a bunch of things like plug-ins with Docker and Flocker and things we do is store virtual and three-par. I think that from a data protection standpoint, it even creates more of a fan-in and fan-out in terms of the number of items that you have to be responsible for. So, and I know you guys have some plans on the container side, so I don't know if you guys want to address that role. Obviously it depends, like you said, how the customer is planning on using containers. But typically where we want to be is we want to provide the availability for the data behind them. So that's kind of our strategy is, maybe not look at containerization support individually, but definitely have that support for the infrastructure behind the containers and have all the data that they're accessing, utilize it. Because your point is most containers you're going to throw away anyway. So if you've got 10,999 don't need backup, but the infrastructure supporting that obviously does for whatever it is you want to persist. You kind of container agnostic is what you're saying there. Right? Okay. A lot of people are running containers in VMs right now. Yeah. Right, because you're in a test dev, kick the tires type of mode. So it fits into the model that we have going on right now. I mean, it pretty much everywhere now with Linux. Yep. I bet it. So, okay, what's next for you guys? Well, for us, we're trying to get everyone on all flash as fast as possible. And the way we're doing that is, we just announced a program called Flash Now. You're bombing prices. We are now bombing prices. We are passing on the value to our customers. Okay. So we announced Flash Now, so you can get an all flash system for three cents a gig per month and then you can actually get integrated data protection into that for additional penny. So we're making it, we're providing the technology, the capabilities from Flash. You see, we actually have a tech preview for 3D crosspoint. So NVMe in three part, we got it running on the show floor today. So you're starting to see new media being introduced, for storage class memory. So all that, we're trying to customers in a consumption model. So maybe the public cloud is good for you for some workloads. Maybe it's not, but you really like that consumption model. We can provide that to you for your storage. Tony O'Neary said you've got 100 customers who are in preview mode on that service right now. What kind of volumes are they working with? In terms of capacity? In terms of the, yeah, the amount of capacity they're buying from you on this pay-as-you-go basis. Yeah, I mean, so it's all across the board. I mean, we're shipping eight and 16 terabyte flash drives now. So if you're configuring 32, 64 drives, you're talking 100 to terabytes on an individual frame, the systems scale up to petabytes, so we can provide that type of scale. Just to clarify, Patrick, what you said, it's four cents a gigabyte per month for all flash and a fully backed up volume. It's completely integrated. And that's a Veeam integration? No, no, they can provide, I'm not going to talk pricing for that. So we're not talking capacity on demand for Veeam yet. This is physical infrastructure. So flash for your primary storage, store once for your secondary storage. Great, okay, and then Veeam license on top of that. Yep, got it. And you get it all through HPE now. Awesome, all right, well listen, congratulations on the partnership and the growth of Veeam and love it. We'll see you guys tonight, I hope. Absolutely. Thanks for having us here. Thanks for having us here on theCUBE again. You're welcome, all right, keep it right there, everybody, we'll be back. This is theCUBE, we're live from the Docks of London. Right back.