 Live from the Mendeley Bay Convention Center in Las Vegas, it's theCUBE, covering VMworld 2016. Brought to you by VMware and its ecosystem sponsors. Now, here are your hosts, John Furrier and Peter Burris. Hey, welcome back everyone live here at VMworld 2016. This is theCUBE, our flagship program. I'm Silicon Angle. We go out to the events and extract the statement noise. I'm John Furrier with my co-host Peter Burris. Our next guest is Ratmir Timoshev and Doug Hazelman, Vice President of Product Strategy and Ratmir Kube alumni, co-founder, entrepreneur of Veeam, very big, successful product. Big party tonight, a legendary VMworld party you guys have. Some say it's almost too big to go. No one goes there anymore. It's too crowded. Welcome back to theCUBE. Thank you. Thanks for having us. Get the plug in for the party. You guys are doing extremely well. Interesting story, we talked in the past about your success in the VMware ecosystem. Primary show for you guys. But now as you guys are starting to grow, of course, now we're hearing from Pat Gelsinger. This is not your grandfather's VMware anymore. From a one product company to a multiple set of products. How are you guys navigating that landscape for Veeam? Yeah, I mean we see that this is also a very great opportunity for us to continue our innovation path. So over the last 10 years, Veeam has been known as the disruptor innovator. So going from backup to availability market, creating this new market where all the applications, all the data needs to be recovered within seconds and minutes. So we see as our customers are moving to hybrid cloud, there is more opportunity for us to innovate in this market. And today's announcement, or yesterday's announcement of VMware about the cloud foundation, we see the greatest opportunity for us. So take a minute guys to explain the disrupting, key disrupting enablement that you guys have built and what will be the next enabler for Veeam. So I mean if you go back to from a data protection perspective, when VMware first came out, people were using their legacy backup systems and doing it the way they always had. But they weren't leveraging the power of virtualization and snapshots and a number of different technologies. So we really came in and disrupted the entire market. If you look at what companies like Veritas were doing at the time, they were late to the virtualization game. We came in and we literally dominated in terms of the market. And we continued to bring in innovative features like instant VM recovery and sandboxing technologies and have just continued to grow. We have a huge customer base, over 200,000 customers. So and a lot of the incumbents have definitely taken notice and they've developed a lot of positioning against us and those types of things. But that's the idea of being a disruptor is when you come from nowhere in 10 years to all the top competitors having tear sheets on you, it's a pretty big deal. So VMware enabled you guys to be competitive with the virtualization. You guys took advantage of me, great utility and rose to dominance. Congratulations. But now we have cross cloud, which by the way, is kind of vaporware right now. But how do you guys fit into that? And how does that timing affect your business? Actually, we made an announcement last Tuesday in terms of the VM availability platform for the hybrid cloud, where we talked about the fact that customers have data in the private cloud, on-prem, they've got data in a managed cloud, maybe through a service provider, and they also have data then in the public cloud. And from an availability perspective, we want to be able to provide availability for the data, for the customer's data no matter where it's at. And just like VMware, we have also announced a number of new and additional products that fit into that platform that we'll be releasing over the next six, eight months. When you think about the challenges of availability, as we move from backup to availability, how has that changed the relationship between IT and business? I mean, it's IT showing how the business, you know, when you go to the business, you can say, well, how much the last downtime cost you? Right, you know, how often do you, it's not about how often do you back up, it's about, you know, what does downtime cost you? Does it, you know, there's a dollar amount, but there's also a loss of brand reputation, loss of confidence from your employees if you have downtime and those types of things. So from the business perspective, we can say, you know, you need availability. You know, you know that because, you know, you've had events or whatever, you've seen public events of companies going down. So how do you protect yourselves against that? And how do you make sure that you're available 24, 7, 365? But specifically when you say availability, you're talking about data availability, right? Right. So talk a little bit about this notion of an IT professional or someone in the VMware ecosystem now having a conversation with a business person about data as an asset that has to be kept available anytime regardless of the circumstances. Is that, are you training your customers to have it? Because that's still not something, that's still something that's not natural for a whole bunch of IT professionals. Oh yeah, yeah, absolutely right, yeah, so, but if you look at the evolution in the last 10 years, so, IT was very important. Now it's critically strategic to any business. So because most of the new products that businesses are releasing or providing to their customers are digital or have a very large digital component. That means they have to operate 24, 7, 365. 10 years ago, 5% of our applications and data was mission critical. Now 50, sometimes 100% because our business relies on data and applications running in this hybrid cloud. So this morning you probably woke up and used already 10, 20 services from your company starting from email, tickets, weather, your calendar and so on. So you are using IT services. So you have to have access to this data and services 24, 7, 365. What used to be hours and days now requires seconds and minutes of recovery, right? And that's where the biggest difference between the traditional legacy approach to data and applications. And by the way, also the amount of data and number of applications grew not just 10 fold in the last 10 years, but 100 or 1,000. So we're using 100 times more applications or 1,000 more applications and 1,000 more sources of data. And it's that much more deeply embedded in the business, the result of that data. And one of the things I really like about your story is that it does have IT moving above the notion of technology availability, which increasingly is well understood and not as big an issue to data availability, which is really the asset that the business is focused on and always was even if technology people thought about the hardware or the storage, whatever else it might be. Is that something, again, going back to what I said before, is that conversation becoming more natural as you not only work with IT people, but business people as well? That's an excellent question. So we at our company, we define our core customer. Our core customer is somebody who understands deeply the technology, the virtualization technology, the modern storage technologies, the modern networking technology, the modern software defined technologies. And that person is responsible to build a new modern hybrid cloud. But that person has a business person to report to. Maybe it's CIO, maybe it's CIO. So our core customer is this technical person. We are helping that technical person to have this conversation with his CEO, CIO, or CIO, or this C-level people. Yes, this is our job to help him or her to have this, to translate the IT benefits into the business benefits. Guys, I'd love to get your perspective because one, you've been successful as a company, certainly growing and ramping up in the new cloud models of perfectly positioned for what you guys are trying to do. So congratulations on that. But given the fact that you've been in the ecosystem for so long and been such an integral part of not only creating disruptive value, as you said, but being a witness and being a participant in the ecosystem, can you share your opinion on the number one question I get all the time with respect to VMworld is, what's going on in the ecosystem? We need kind of a weather report. What's going on? I mean, obviously it's changing, it's shifting, it's growing, multiple products I mentioned earlier. It wasn't just the one guy anymore, one persona they were targeting, there's now multiple aspects of the ecosystem. What's going on? Is it growing? Is it shrinking? Is it consolidating? Is it shifting? What is the state of the ecosystem? Well, I mean, it's always kind of influx a little bit. You've got old technologies that move out, new technologies that move in, and you can see it on the show floor every year with how big is that vendor's booth or vendors that used to be there, but aren't there anymore, and it is that shifting landscape of the ecosystem. But I think the nice thing from a VMworld perspective is they've built a very good ecosystem. There's a lot of partners, a lot of great partners down there that work within that ecosystem and continue to help make it grow. So it's going to shift year after year. Robust, so it's healthy? Yeah, I think it is. If you just look down on the Solutions Exchange floor, it gets bigger every year. So it's not getting smaller. Ravi, what's your thoughts? Where's it going? Where's it going to? Let's skate where the fuck is going to be, so to speak. We're trying to understand that. I think as companies matured, they learned to work in a competition, right? So the competition is the word in this industry. So everybody's trying to compete, but also partner with each other. So maybe EMC and Dell were competitors. Now they're one company, right? So, and so on. So VMware is trying to find also other partners. And Cloud's on stage. That's a big, that's shocking. Sales force on the screen. IBM, and I wouldn't be surprised if they announced similar partnership with another. Azure. Yeah, maybe, we'll see. Maybe, I know, I wouldn't be surprised, because yeah, this is- They have to. Kelsinger's Planet Plan means mandates, multiple clouds means relationships. Exactly. At least through APIs. I mean, I mean, it was kind of lightweight, but. So final question to wrap up. What's your walk away take away from VMworld this year? What do you take back and share with your colleagues? What would you tweet on Twitter? What was your big, what's the big takeaway this year? What's the theme? What's your, what's your notes say? To me, this is exactly what we just discussed. VMware is moving to a new world and opening more opportunities for us as the ecosystem partner. And again, they're partnering with more partners such as IBM, which by the way, we also, Veeam was also part of that big announcement. One of the four vendors mentioned in the IBM slash VMware press release. So, as VMware- The lucrative business opportunities for you guys, you see that. Yes, absolutely. As VMware is maturing as the company and moving into new partnerships, it opens more and more opportunities for us to innovate, to deliver together with VMware and the ecosystem of partners, the solutions that our customers are needing. And I think, you know, from my standpoint, it validates this idea of cross cloud, right? I mean, we talked about it last week at a big event that we had, you know, and then we come here and VMware is saying, you know, essentially the same thing. Obviously, different perspective in terms of what they do, but it really validates kind of what we said. And so, you know, it is hyper cloud, it's cross cloud. And I think the good thing is we're locked step in with them. Guys, thanks so much. Everything's clicking together. Big opportunities. Good opportunities to create value and make money, but also create new technologies disrupting. So that's the state of the ecosystem. Thanks for sharing. Veeam here inside theCUBE, of course, at the big party tonight. Club for that if you're watching and you're here on site. Check it out. This is theCUBE. I'm John Furrier with Peter Burris. We'll be right back with more after this short break from day two coverage here at the Hang Space at Veeamworld 2016.