 live from Cube headquarters in Palo Alto, California. It's the Silicon Valley Friday Show with John Furrier. Hey, you're listening to the Silicon Valley Friday Show. I'm John Furrier, we're here on November 4th and I'm joined by Jeff Frick again and we have our new call-in box here. It's a blue cube for Collins. Last week we had Dave Vellante, we're going to try to bring in Dave Vellante and potentially some other guests. Jeff, big week this week. So going down the rundown, we're going to talk about, you know, the Cubs won the World Series Amazing. The election is right around the corner. It's the last show before the election, you know, four days away. I'm talking about Obama and his impact, I think to the social media, the social president, I'm calling him. First president to really have a Twitter social presence. That's going to be a big thing to analyze. Microsoft got big news this week and we got CubeCon next week. I'm going to try to see Andy Jassy in Seattle as well and tons of earnings. Facebook, Fitbit, GoPro, Twilio, Hortonworks, Tableau software, tons of earnings to digest in one M&A deal, you know, Broadcom, Bice, Brocade. And finally, we're introducing our new feature of the show as we experiment and iterate through the show. And that is every Friday, we're going to do a VC of the week where we spin the wheel and wherever it lands, we'll call on them and we will ask them questions. If they can't get on the phone, we're going to just pontificate and opine about our experiences with that VC. Good, bad, and the ugly all here on the Friday show. Maybe it could be good news for somebody in the morning meeting, whether they get financed or not. Well, you know, they all pay attention to each other, but it's important for entrepreneurs to know really who's really doing the work. I mean, to me, the reason why I want to do this one, we know these, I've been out here for 18 years. I've been working with the feature one this week, it's great, like I've known them for 20 years and dealing with them. But it's good for entrepreneurs in the industry to know who's actually doing the work, who's out on the streets, who's helping entrepreneurs, who do they work for? They work for the LPs, the limited partners. They won't work for the entrepreneur in some cases. So this is important and some VCs are certainly changing and we can talk about that. But Jeff, the number one story besides the election is the Cubs won the World Series. And being a Red Sox fan, I know how it feels. Congratulations to everyone in Chicago. But I gotta say, they stole from the Indians and all because of the TARP. Yeah, I was just saying, what do you think about the TARP? The TARP won the World Series and... So it was the TARP related to the lights at the Superdome. It was the same exact thing. The TARP was what killed the Indians and there was like five Twitter handles already up. As soon as the TARP came out, we were laughing. What about King LeBron? Do you think he's happy or sad? I think he's very sad. They blew the 3-1 lead. Oh, I don't know. He's the king. But it was very Red Sox-esque, that tagging up play from first to second really was the game changer in that game. But again, Cubs pull out a miracle. Theo Abstein for president. That's what I saw on Twitter, ex-Red Sox guy. So again, good to see Theo doing his thing in Boston in 04, doing his thing in Chi Town. The fun thing about October Baseball, or I guess November Baseball, is it's such a different game than any other game in that all the tension is actually between the action. You know, while you're waiting for that next pitch and they had so many great crowd shots in the back and forth where the Chicago guys were completely stressed and the Cleveland people were completely stressed and there was one crack of the bat, just a 180 degree flip on the emotions. It's like no other sport when every single pitch, every play means so much. And that's why October Baseball is so different than just one of 162 games. And really the tarp is all fun to talk about, but it really did kill the momentum that Cleveland had to put that game away. The jugular was exposed. Tarp comes out, they go back. Turns out the players huddled in the weight room. They regrouped as a team and kicked ass. Very Red Sox-like. Again, if you remember in 04, the Red Sox were down to one out and Robert stole second. They get a rally, they win four straight games against the Yankees. They were down 3-0, they win 4-3, then they swept everyone ever since. Let me ask you another question, John. You grew up on the East Coast. That game ended at 1 a.m. East Coast time on a Monday night or a Tuesday night. I mean, is that long-term hurting, you know, the continual fan base as these things go later? And it was late on the West Coast. I'm a huge person who believes that that is absolutely flawed. They should get the games out earlier. I mean, I think the East Coast, no kid's gonna stay up to one with their dad. I mean, that was what baseball was all about. You sit with your dad, you sit with your parents. You watch the game and you have a good time. And that's killing football too, by the way. You argue that football has also been so commercialized that it's not a family sport anymore. It's more promoted. It's really good. It's more ridiculous. Well, I mean, there was not a rigged World Series with the tar even though some speculators said it was rigged. But certainly the people that was talking about the election being rigged, when WikiLeaks were gonna talk about the impact of WikiLeaks on this election. And you know, this is really an interesting concept, Jeff, because this to me exposes the impact of transparency. And what the WikiLeaks points to is that what's gonna happen, I think in the tech business, certainly we'll do these VC segments, but it opens up the inner workings of how things get done. And they now have a new level of access to information. And I think this is gonna impact the every industry, including tech. It's gonna be going to see how decisions are made. They're gonna see how people are thinking and it's certainly gonna change the culture. So I'm expecting the WikiLeaks impact to go way beyond the election. And we're already seeing it in Silicon Valley where people are getting exposed to the inside the baseball or ropes, if you will. Most kitchens are not very clean, John. You don't wanna go into the kitchen. The sausage factory, enjoy the sausage, have a good barat, but you don't wanna go back in there. And I think it is exposing it. And I think it's a good thing because there is no cleanliness. These are regular people, real people. It's political, it's ugly. It is what it is. But I do, and I wore my shirt today because it's our last Friday show before the election. And I do just wanna reinforce a couple of messages. One is get out and vote. Whatever you feel about the presidential piece, there's a lot of local stuff that happens, school board stuff, local laws. It's very important to get out and do your vote. And the other thing is I was having an exchange with Rebecca Knight and we were talking about politics because she's very into this season. But I wanted to- Rebecca Knight, one of our co-hosts. But we talked about some things I wanna recommend to people to go read. The problem I think in politics today is it's so polarizing. You can't have a conversation with different points of view. And there's two really great books by Doris Kearns Goodwell, team of rivals of political genius of Abraham Lincoln where he specifically brought people together, John, that didn't like each other and learned from them all. He forced them to work together. And Joseph L is founding brothers, the founding generation. These are really great books in this ugly, dirty, nasty time. Go read, kind of reset on what's going on. Jeff's got a soapbox. Absolutely. Put that away and let's get back down to business here. In the tech business, obviously the Obama thing also is something I wanna talk about because Obama has become the first social president. First one with a Twitter handle, first one on Facebook. And I think it doesn't get enough credit and certainly around the world around being a tech-oriented president. My son, Alex, took his hand when he was at an elevation as part of the video crew at Palo Alto High School. But he's open, he's open president and he's brought Silicon Valley closer to Washington. I think for the first time in my life I've seen the tech industry actually become more policy-driven. And I think this is gonna affect people's lives more. And it's a good thing. I think Obama doesn't get enough credit for that. You're seeing the CTO, Megan Smith, she was at Grace Hopper. Again, that's a positive thing. I don't think Obama gets the credit for that. Not sure Hillary or Trump is gonna support that. I'll see Hillary is big time supported here. So she would be a better president for Silicon Valley. I think people forget the huge impact that Washington has on what goes on out here. I mean, Intel got really rolling because of Sputnik. They would do anything to get a lower weight horsepower to get a satellite in to chase a Russian. So huge spins in DARPA and other federal programs. Well, the cyber security thing is the WikiLeaks again. The hacks on WikiLeaks points to the fact that the tech business, tech industry is actually instrumental in protecting our freedoms because you think of the cyber security just the hacks alone are impacting the election. But even other liberties are at risk. So we've talked about that before. Other big news, Microsoft had a big announcement. We're gonna talk into our in-depth segment down in the next segment. The impact of Microsoft's announcement with this team product and the impact to the leader in the area, Slack and others. And there was an article in the full page you had in the New York Times, we're gonna talk about. We have KubeCon next week in Seattle. That's Kubernetes conference. It's a big geek conference around containers and the impact of containers as well as we're trying to get a one-off with Andy Jassy, the CEO of Amazon Web Services next week to get more data for you. So you look for theCUBE to be there. And then finally, the earnings. Jeff, Facebook had good earnings, all on mobile ad revenue. Fitbit had below earnings. They didn't meet their earnings. GoPro lost half their revenue and half their earnings. They're plummeting. And that was a huge hit. Their stock's down big time. Twilio is a cloud services company no one's ever heard of. But they're Silicon Valley based but points to the cloud as a disruptor. We'll analyze that in the next segment and finally Tableau Software not hitting their expectations. So you're starting to see the earnings, the scoreboard, if you will, start to tease out some of the indicators in the business. And that's going to be the subject of our next segment. And of course, we've got the Greylock VC of the week. We're going to go in there. I got a note from Jerry Chen last night. What do you need? Obviously a big fan for Jerry. Shout out to Greylock. I'm going to go in depth on that. So we're going to hear the changes in tech next segment. You're listening to the Silicon Valley Friday show. I'm John Furrier with Jeff Frick. Be right back with more after this short break. Since the dawn of big data, the Cube has been there. Connected with executives, practitioners, entrepreneurs, thought leaders. But you're not a thought leader anymore. You're a futurist. That's the new trend. Futurist is the buzzword. No, I'm not. I'm very much living in the past. I don't like the future. And I don't think much of the present. And John Cleese. There's a lot of people out there who have no idea what they're doing, but they have absolutely no idea that they have no idea what they're doing. And those are the ones with the confidence of stupidity who finish up in power. That's why the planet doesn't work. Knowledgeable, insightful, and a true gentleman. And the guy at the counter recognized me and said, are you listening? Yes, I'm tweeting away. I'm tweeting. I'm tweeting away. He just got rude that way. F***ing keyboard. John Cleese joins the Cube alumni. Welcome, John. You got any phone calls you need to answer? Let me check. The Cube is a comfortable place. You come inside the Cube, and we have a conversation. Almost as if it were a chance meeting. And we have a discussion about a particular topic. Our philosophy is everybody's expert at something. Everybody's passionate about something and has real deep knowledge about that something. Well, we want to focus in on that area and extract that knowledge and share with our communities. Folks who have never heard of it before come in the Cube and say, well, this is really cool what you guys are doing. It's unique. It adds value to the community. And it adds value by really sharing information. I can't tell you how many people stop me at conferences or on the streets, on our airport, say, hey, I love your show. People that I've never met before, they say to me, I know you. You don't know me. I watch the Cube. I queue up your videos. I listen to them while I'm on the treadmill. It helps me learn, expands my knowledge. Thank you. So it's really an honor to be part of that community. This is Dave Vellante. Thanks for watching the Cube. You're listening to the Silicon Valley Friday show with John Furrier. OK, we're back. You're listening to the Silicon Valley Friday show. I'm John Furrier. Joining me today is Jeff Frick. And we're on segment number two. We're going to a little bit more depth. And the topic here, Jeff, is really more of the impact of the changing landscape of the tech business and how it affects society. Some interesting news hit this week. The mobile usage surpasses web usage for the first time ever, meaning the mobile first, the mobile revolution, the iPhone. Go back to your point in history, whether it's 2007 or not, the iPhone and everything else is changing the game. Mobile usage by consumers and business users have surpassed the web browser usage for the first time, which is a huge tell sign, which means everything's going mobile as predicted by all the pundits. And also, everyone's investing in mobile. That is a huge, huge deal, which means, what does it mean? It means that the expectations of the users are completely changed, and the disruption opportunities are massive. And the opportunity, there's a couple things there, too. The way you interact with a phone app is completely different than when you sit down at your computer. It's not a session. It's a grab a few minutes. So the way the apps works very different. You're in line at Safeway. You're in line at Pete's. You're in line at wherever you're driving to the kids game. Don't check your phone then. So that's a big one. The other thing is there's a lot of native stuff in the phone that gives the app so much more information than you get in your desktop browser, where you are, how fast you're moving. You can put all kinds of things on the phone that they don't necessarily put in the browser. The phone has native capabilities, like the camera. That's where Snapchat came from, Uber, ordering cars. I mean, this is the thing. Right now, people always ask why the Cube makes certain selections of where we go. We're going to be at KubeCon, KubernetesCon next week. Really just reinforces that whole point that the application developers, people who build apps for phones are developing new technologies, like Kubernetes, like containers, and wearing my Docker con shirt from Docker, makes containers. Jerry Chen's an investor from Grayluck, ironically. No coincidence there. But again, this is changing the business model. You're seeing the developers on the front lines making apps, as you mentioned, whether it's shopping at Safeway, getting stuff delivered to your home, or changing the consumer experience with their life. And this absolutely is highlighted by things like Uber and Airbnb, social networks like Facebook. And this is the disruption of innovation happening right now. So, I mean, just look at the seed change. We were talking before we came on about, you know, Uber drivers not getting health insurance, should they be classified as employees? Kind of goes back to that whole government thing. Ultimately, I think the government is going to redefine some of these new ways to work when they're not hitting their tax money. Just a quick note, I think I saw a tweet too, that Jim McClucky from Google, who named Kubernetes, gave a story, or Craig, excuse me, is leaving Google. So, it'll be interesting to see where he shows up next. He's going to go do a startup from his tweet. But again, this brings up the whole point. It's not just Uber. Think about like the conversations we had about Twitter in the past, and the media during this election, we just talked about WikiLeaks. This new real-time environment, access to the data, is absolutely changing. People are connected. Now you've got wearables. We wrote a story on SiliconANGLE, that there's now bras that have health monitors in them. You know, for women, something. I mean, everything's changing, right? The whole consumerization. This is huge deal, huge deal. And then we're seeing that in the earnings this week. We saw Facebook, we saw Tableau, we saw Twilio, Cloud Company. And the impact of the earnings, to me, is that it's the scoreboard of the health of the company. And then you look at them, you say, hmm, what's going on? And ultimately it points down to obviously the mobile we just talked about, but the cloud computing is changing the game. And that ultimately is the thing. And you know, when I walk around Silicon Valley and Palo Alto and around town, it's clear that the venture capitalists are not investing in infrastructure. They look at the cloud game and saying, wow, this thing is disrupting. And we talked about it a little bit last week. The bets might not come home. So people don't know what to bet on yet. So the game is changing. You know, one quote I heard last week was from a venture capitalist, is that the plumbers, if you will, plumbers in the technology parlance means guys who set up servers and networks, you know, called plumbers, because they make the plumbing work for the bits, are being turned into machinists. What that means is, in an industrial revolution way, the game's changing. So their jobs are changing. The economics are changing. So this is a huge deal. The cloud is turning plumbers into machinists. This is a transformation. Yeah, absolutely. And there's a lot of talk about how there's going to be a huge change in the jobs. Computers are going to take jobs. Yeah, they're going to take a lot of jobs, but there'll be new jobs. You got to figure out new places to play. And there'll be new ways. So we're interested in a new segment on the show called Venture Capitalists of the Week, VC Firm of the Week. And the reason why is, one, we live here, so we see all and we know all of them. We talk to them intimately. We know their secrets. We know their trade secrets. We know what's going on behind closed doors. And we talk to people on the streets. And here's what I'm hearing. The number one question I get, and the reason why we're doing this is, I get asked all the time, who's the best VC? Who should I go to for cash? And that's ultimately a decision entrepreneurs are making when they look at growing their business. They want to pick a partner. And picking a VC is like getting married. Once you pick a VC, you're in. And it's really a partnership. So that is probably the most important decision an entrepreneur makes, whether they bootstrapped to financing or they started with an idea that needs capital, they got to go to the bank, if you will. And the bank here in Silicon Valley is the venture capital business. So that is a natural question. So we want to do that and highlight that. And our first inaugural pick of the week or discussion of the week is Greylock. Greylock venture capital. So Jeff, thoughts on Greylock are pretty clear to me. And the reason why I picked them first is I like the firm a lot. I think this firm has transformed from an East Coast firm. My first experience with them was 20 years ago when they were on the East Coast, mainly in Boston and then moved out to the West Coast as a small satellite office. And the West Coast has become just a powerhouse. They've really done amazing deals. If you look at what they've done here in Silicon Valley, they've invested in Facebook Series B, LinkedIn Series B, Airbnb. One of some of the best consumer hits in the industry that are changing the game. Cloudera and the Enterprise, Pure Storage, Workday. They have partners like Anil over there who's the CEO of Workday. Jerry Chan has been on theCUBE many times as a young partner. So they have a great consumer focus as well as an enterprise focus. So they got a new blood in the firm. They got the new partners coming in. They just hired a female partner who from Pinterest, amazing person. She's got experience in consumer. But here's what I like about Greylock. I have some weaknesses too, I will highlight in a second. But the strengths for Greylock are they focus on scale. They want to create billion dollar companies. So they're very clear in what they do. They say to entrepreneurs, if you want cash from us, we want a billion dollar plus venture. Not a mom and pop, not a lifestyle business. We're going to billion dollars and they focus all their energy on scale. And the partners are approachable. John Lilly many times responds on text and Facebook and email. Jerry Chan is super awesome on theCUBE. And they have a lot of other young partners that are coming up. So again, super good people, great positioning. And they've just done a lot of great deals and they have a great network. Obviously Reid Hoffman founder of LinkedIn. Now the other thing about Greylock is that they kind of got this society changing game going on where they're actually interested in changing the society and changing the world. Which I would say is an authentic mission but it's not the primary. Some people do it as kind of like a promotional thing but Greylock I think has an authentic action on, hey, we want to make money but we also want to change society. So that's my take. Yeah, I think what's the really important take-aways for entrepreneurs is the company and it used to be a relatively short list of the 18 back 20 years ago as Clenna Perkins, it was Sequoia, it was Excel, there was just a couple. But more important than the company and the company's important is your individual partner. Because as you said, it is like a marriage. It's a very intimate relationship. You're together at the hip for a very, very long time. You need someone that's going to help you scale your business. And so I think it's really the individuals that make the difference and the specific individual who's got experience connections going to help you as an entrepreneur grow your business. Yeah, I mean I think, you know, if I had to like put a critique on Greylock and I think the thing that they should work on in my opinion, again this is my opinion, they seem very weak on series A deals. And everyone says, oh no, we do series A deals. If you look at their track record, they have, you know, do a lot of series B's. And I think that's interesting and smart because the entrepreneurial game's changing. It used to be series A was where you got your cash, but now there's kind of what I call a blue collar effect going on in the entrepreneurial worlds where, you know, people are, the smart entrepreneurs are actually getting stuff off the ground quickly. So series B is kind of like the new series A. So, you know, my only ding on Greylock on that area is they don't do a lot of seed. Now there's micro VCs out there, but, you know, that could be a strength. You can look at that strength, but I think, you know, they should put a little bit more cash out there for some of the seed deals there. And the other one is that they're, it seems like a white boys club, right? I mean, to me, it's like that's, you worry about the VCs being like monolithic and monotone. And I think, you know, Greylock has been trying to hire more diversity and that's just a critique on all VCs, but, you know, you worry that it is a, with VCs it's an elite factor. I went to Harvard, I went to Stanford, I think that's the one critique I'd say on Greylock is they got to get outside that, you know, elite bubble and get down on the trenches a little bit more. They do probably better than everyone else. I see Jerry Chen out there. He's one partner that I think is always out in the trenches. The other partners I don't see much out there. So, you know, that would be my only critique on Greylock. Other than that, they're a damn good firm. I think they're tier one all the way, but I think they got some work to do on that. So that's Greylock, it's my take on Greylock. A lot of more strengths than weaknesses. And Jeff, what do you hear? I mean, you hear anything about those guys? What's your take on that? You know, again, as you said, what's fun is when you see them at the shows, right? When they're out working the booths, literally working up and down the lines at the booths, you'll see a ton of them at Reinvent here in a couple of weeks, you know, getting it done versus being kind of on the hallowed halls on Sand Hill where nobody can get to them. And you got to go through three people that, you know, a friend of a friend of a friend of a friend to maybe get an audience. And that's not how you get the great deals because it isn't just go to KP, go to client or go to Excel anymore. That's just not the way that it works. I mean, I think the one of the things I like about Greylock is they do authentically like the entrepreneurs and they have a good enterprise piece. So most people mail it in on the enterprise side. If you look at the tier one VC, Sequoias and we'll get to them in another week, but Greylock has a great enterprise group. I mean, they actually do great deals and they have great successes under their belt and they are, we do see them out in the trenches. The thing I worry about the VC's, and this is one thing entrepreneurs should always be aware of is that, you know, it's like a realtor, who do they work for? They work for the buyer, right? So the VC business is about they work for the returns. So, you know, I think that's something that's always being mindful is that the VC's work for the limited partners, they got to produce a return. They're not in, it's not philanthropy. They're not just given cash to entrepreneurs. They need to make money. So timing of investment is critical. You got to understand that once you go down that VC road, you have to go down that path. You got to produce a return. So it's pressure. The other thing is, VC's have a portfolio and most entrepreneurs do not. I think that's the other big thing that separates the two in terms of you're all in. If you're an entrepreneur, you are all in on your business. Potentially you're mortgaging your house, your kids are wearing old shoes, you're all in. VC's got a portfolio plays that he's betting on and he doesn't need them all to come home. So I think that's another huge distinction between a venture capitalist and you on your board. Yeah, the relevance to what you're saying really comes down to this. The VC's is about the partner you mentioned, but what you're talking about now is, they have business to run, they got to produce returns. So that's their primary goal. But how I judge the VC's is by the people that they have in the firm and two, are they adding value? I mean, some VC's actually don't even try to add value. They give it the cash, they sit back and let that horse run. Some VC's are more hands-on. Greylock is definitely more hands-on with entrepreneurs. They actually add value. One of the things about Greylock, giving them a quick plug here, is that they did this awesome blitz scaling program at Stanford, free content. They went out there and they share, they share information, they blog a lot. So they're out there helping. So I think at the end of the day, added value becomes second, getting the return so they add value to get the returns. And a lot of VC's mail in the quote value add and I call that a value subtract. Most entrepreneurs don't want, don't want meddling in their business, but they want value add. So Greylock, great tier one. First VC featured here on Silicon Valley Friday show. I'm John Furrier. Joining me today is Jeff Frick. We'll be back with more in the thinking out loud segment. We're going to talk in depth about Microsoft and Slack, some of the competitive strategy going on in this transformation market. What it means for you as a buyer of software and what it means to the companies, how to compete in the world as it's changing so fast. We'll be right back. I remember when I had such a fantastic batting practice, I walked by a couple of sportswriters in that era. Paul of Famer, Reggie Jackson. It was like, you can rock at it out there. I kind of hope I didn't leave it out here. Reggie Jackson. When the game started, I got back in that moment. I got back in what was live, what was now. Goodbye. I went and did a, something was ESPN earlier this year. What's Steffen Curry? They said, Reggie, we want you to come up and watch his practice, his pre-game. You know, it was very similar to your batting practice where people come out and watch, et cetera. And I watched the dribbling exhibition. I watched the going between the legs and the behind the back and the fancy passing, et cetera. And I watched the shots. And the guy asked me what I thought of the show. And I said, well, it's a cool show, but I'm going to see all that tonight. He does all that. He put it into the game. I said, so it's not a show, but that's his game. Mr. October. I think our world now with the instant gratification of sending out a message or tweeting to someone or whatever, certainly in the moment is about what our youth is and who we are today as a country, as a university. Congratulations, Reggie Jackson. You are CUBE alumni. Hi, I'm Stu Miniman. I've been an analyst with Wikibon and a co-host of the CUBE since 2010. It's been an exciting journey working with the CUBE. We get to go out to so many shows, help extract the signal from the noise, interact with such a wide variety of clientele, both practitioners, thought leaders, the big-name industry people. And we've helped some people raise their profiles in there, especially love working with those practitioners. We've seen them move their careers forward and move their businesses forward as they take advantage of technologies and practices that they've learned, talking with us, working with our research people and working with their peers. This is Stu Miniman. Thanks for watching the CUBE. You're listening to the Silicon Valley Friday Show with John Furrier. All right, we're going to go live. Okay, you're listening to the Silicon Valley Friday Show. I'm John Furrier. You're joining me today is Jeff Frick and we have on the line Jerry Chen, one of the partners at Grey Luck who we were just talking about behind your back. If you're not watching live, Jerry, how are you? So we were just giving props to Grey Luck about how good you guys are. I guess we had some critique in there, but I don't think it was, we were stretching in there, but you're a partner over there. Give us what's going on inside Grey Luck. What's happening? What are you guys doing for deals? How big is the fund? What's happening? We've been saying that 51 years and 15 funds was a billion dollars we started investing in 2017. And we're just going to do what we've always done is try to find great founders, great entrepreneurs and our two core areas, which would be enterprise software and consumer enterprise software. There's a couple of new things that I think as you rethink that definition like self-driving cars or AI and other technologies out there. But I think the core is still software, consumer enterprise, but as software to speak, we'll see technology permeate every single vertical and every single use case. So we're excited. We're looking forward to keep investing. Yeah, that's awesome, Jerry. You know, we're going to see you on theCUBE at Amazon re-invent. That's going to be awesome. I'm wearing actually my DockerCon shirt today. So ironic, and I actually didn't think about it when I put it on, but it's so comfortable. CubeCon is next week. So a lot of stuff's happening. We just talked about the mobile usage surpassing web for the first time. You mentioned self-driving cars. It's a software business right now, certainly on the enterprise, converging with consumers. So I got to ask you, with all the earnings reports coming out, it seems like the seed change is happening. So the question is, who's disrupting who out there right now? I mean, you saw Microsoft come out, Slack puts in a kind of a feeble full-page ad saying, we're afraid, don't take us out, but yet gets their attention. I mean, that's, is that a good competitive strategy? Who's disrupting who in this market? You know, what waves disrupting, like the PC wave disrupted many computers' name frames, and the cloud mobile was disrupted, you know, on-premise software. So I think the question is, what's the next wave? So mobile is clearly a wave that's been driving technology for the past three, four, five years, and it's been 10 years since the iPhone came out for really the past five years since. Smart phone penetration, as people are looking now at what's the next wave, the reason why VCs and entrepreneurs are excited about things like VR or conversational platforms like Amazon Echo or Google Home, or even cloud-connected homes, computers, cloud-connected industrial devices, be it the jet engines and factories. Those are new nodes. Those are new distribution points to get software to the end user. And so I think that wave of where now, software doesn't go just the phone, but it goes everywhere. Your glasses, your watch, your car, your jet engine, your, because all of a sudden, it references a new channel from the technology provider to the end user, be it an enterprise or consumer, and all of a sudden every incumbent that made the business on PCs, which was rocked by the phone, that every incumbent is making a business on a phone, and as you think about how the software you've re-rated for this totally distributed generation. You're listening to Jerry Chen, partner at Greylock. Jeff, you have a question for? Yeah, Jerry, Jeff Rick here, how you doing? Quick question. Great, Jeff. Good to hear from you too. You go through all those different devices, you just listed off from light bulbs to GE jet engines, a huge attack area for cyber crime. We just had the big DDOS out just a couple of weeks ago. How much more investment needs to be made in security around all this new software that's distributed and connected everywhere? Could be a ton of new investments in security around all this new software for all this reasons. A, all the new endpoints that are connected to the internet. B, every single year, day in, day out. So I think this could be a lot more investment security because I think the innovation required by crime clearly hasn't worked the past few years, right? People are still breaking through the current barriers. So I think more has to be done. So I think what we're actually bullish for the next cycle around security investments, both classical security around enterprise software, but all security things like your car, your home, your light bulb, your jet engine. Security's huge. Definitely totally agree, totally bullish in terms of the opportunity. It's really not a good environment right now with all these hacks, WikiLeaks, everything else going on. But Jerry, the thing I want to ask you because you're part of the VMware mafia, you were ran cloud at VMware. You know that business you invested in Docker. You're always out in the trenches which we gave you a lot of props for and you've got great hustle. You're seeing a lot of things. What's going on in the infrastructure market right now? We're hearing that there's a cold freeze going on on investment in servers and storage companies. You guys do have an investment in pure storage which was years ago and they're doing very well. But people are saying that the plumbers are turning into machinists, right? So what is happening with cloud is completely putting a wet blanket of on the infrastructure business. Where is it going? So I think Mark, that's the thing that enables you to build things for the cloud, the technologies, I mean, as a plumber and a machinist, I think I do code, I'm still focused on infrastructure going forward. But I think what you're seeing is a cyclical trend of infrastructure evolving from on premise to cloud. And so if you think about the cloud, Amazon has been that giant 800 pound gorilla for the past two years. It's only recently since Azure and Google have really become a scene become more relevant. So I think the past few years has been tough because unless you had a good cloud story as an infrastructure company, you really, really struggled to kind of tell your story to the best of your customers. But I think companies are figuring out like technology like Docker, like you mentioned, doctors will become the platform for cloud portability for applications across Google, Azure, Amazon and VMware. And so I think in that world where now you're seeing on premise to on premise, infrastructure gets a lot more interesting now especially A, as Jeff points out, secure it better. And B, you have a multi-cloud story that enables you to build all these next gen applications. You listen to Jerry Chen, he'll be out on theCUBE at Amazon re-invent. So look for him on the first day. So look for Jerry Chen. Jerry, just quickly, just final point. I want to get your thoughts on obviously Microsoft announced Teams and all Windows 10s are on the corner but specifically Slack, the leader at the top of the hill. They have the high ground certainly in that messaging area and chat. Kind of put an ad out there and said kind of snarky at Microsoft saying I'll get their attention. How does a startup compete? Because great luck, you guys have successfully invested in disruptors like Facebook on the Series B, LinkedIn on the Series B, Airbnb and the list goes on and on and very successful startups that have turned into billion dollar companies. So how do companies today compete either existing Series B or Series C companies or even Series A companies as the rich get richer like Oracle and Microsoft and try to come in and muscle in and take territory from the startups. What's your advice? You guys are all about scale. Give us your thoughts. Yeah, I do startup and third technology. The incumbents like Microsoft have better distribution, Salesforce, channel. It's really a race. You come to like a gray lock in a great VC because they're gonna help you A, build a product, recruit the team. But also we think a lot about distribution on the consumer side of our reality and social connectivity on the enterprise side to figure out what's your best distribution? Your best go to market. Your best good distribution could be viral. What's last viral? It could be find the right partners in the cloud or with different software vendors but trying to build that distribution channels with your better technology before the incumbents like Marcus either way into your market have 40 years technology and I think they're gonna keep playing out and we're so bullish on startups because the ability for them to out execute and out innovate has been proven over the past two, three decades. So the game is still the same. Be nimble and take them down. David and Goliath's story continues. All right, Jerry, thanks so much. I wanna ask one final question. You guys in the partnership at gray lock. I just sit around the conference room table among partners. What's the thing that you guys talk about that you self reflect on yourselves and say we have to work better on as a VC firm? What do you guys say is your needs improvement area for a VC firm? As I think we need to talk about if we can work better together which basically, I think individually we're all great investors but I think as a team when we come together we're unbeatable as a team. And so we always talk about how we just can work better together. And I think that's an ongoing journey like all great teams are from the warriors to think of their sports franchise like any company, any teams no different. So we just wanna work better together. I think that's really internally what we think about. More series A's on the horizon or series B's pretty much? Billions, a lot of money to work. I think a lot, it's about going early. The last couple of projects I've worked on personally were series A's and C deals. So even earlier than a series A, like one to two million dollar checks. So I think you're gonna see us go super early in some cases. All right, Sherry, Chen. Partner at Greylock, great friend of the cube and always great someone to grab. Thanks for picking up the phone. We're just doing a little randomly dialing the VCs. Ironically, we talked about Greylock today. Congratulations, great to see you and hear from you and we'll see you at AWS re-enter. Yeah, that's what we're doing. We're crank calling people. Can't wait to do it for Mark Andreessen. Mark Andreessen? Crank calling on the Friday show with John Furrier. Yeah, we're gonna call in. Can Mark Andreessen, please? Nice next. All right, Sherry, thanks so much. Talk to you later. Sherry Chen, a great VC. And you know what I love about Sherry Chen? He works hard. He's in the trenches. He's transparent. He's put it out there. I would say, VC Greylock certainly has gotta do better on gender partnership. They gotta have better, more women in the partnership. They need to have more diversity. But, you know, great for him. I'm nitpicking there. All right, that's the Silicon Valley Friday show. And, you know, next week, we're gonna be in KubeCon and we're gonna be here in the studio for Friday. And of course, congratulations to the Cubs who won the World Series. And potentially we could have the Cubs winning a World Series for the first time since, what, 1908, was it? Long time. And then maybe we might have our first president, female president by next Friday. Next Friday show. Get out and vote. Get out and vote and we'll see how this election comes down. Man, either way, our world will be completely different as of Wednesday morning, you know. Hopefully they won't have the hanging chad problem in Florida. You're listening to the Silicon Valley Friday show. I'm John Furrier, Jeff Frick, and we had Jerry Chen randomly dialing in. We're calling him up. And maybe we should do a crank call series on the VC. So, good stuff. I'm John Furrier, Jeff Frick. Thanks for listening to the Silicon Valley Friday show.