 and notify them that, listen, we're going to expand dramatically in this field, and we're going to expand on the Windows platform. So we began working with Microsoft and with AirWatch in order to control those devices. By introducing electronic manuals, now they just go into their secure content locker from AirWatch, and they tap and they get the updates. Putting these mobile devices on the aircraft has really opened all sorts of new capabilities in both the cabin and on the flight deck. Amazing what these customers are doing, and we're just excited about those leading brands like Home Depot and Delta that are transforming their business with Mobility and AirWatch, but also Southern New Hampshire University. That's just transforming lives. They're making lives different in terms of education and the use of our Horizon Air desktop as a service products. Now I come to the part that I'm personally very excited about. We have one of the best guests we could have from a partner on stage with us. And many of you I know were rumbling around what the secret was, and there was a Twitter rumor going around that Donald Trump was going to be on stage, okay? But I got to tell you that somebody even more important, and that's Microsoft, will be on stage. But before I bring our guests from Microsoft on stage, Pat Gelsinger and I have had a strong relationship with Satya Nadella, and it's very clear what Satya's doing at Microsoft is transforming the openness of Microsoft, the enterprise I've known Terry Myerson also from my SAP days who runs Windows. And we're just delighted to have here on stage with us this morning, Jim Malkov, who's Corporate Vice President and Head of Security and Management of Windows. Please join me in welcoming Jim from Microsoft. Jim, it's a pleasure to have you on stage. Just as I was coming on stage, people said, you have Microsoft, this is sort of like that Berlin Wall Gorbachev Reagan. I think you're the tall Reagan and I'm the Indian version of Gorbachev. But nonetheless, I'm excited because this is all about customers, and Windows 10 is the talk of what the summer has been around Microsoft. What's your vision of Windows 10? IT simplified. That's our vision for Windows 10. When I meet with CIOs, we talk about their constant challenges to contain costs and keep up with the pace of innovation that's required to drive their businesses forward. Windows 10 represents the first version of Windows that we've developed in tight partnership with our customers. Over 6 million people have signed up for the Windows Insiders program, and over 30% of those are IT professionals like many of you in the audience today. With Windows 10, we're bringing enterprise mobility management to the entire family of Windows devices, and we're simplifying deployment to put it into the days of wipe and reload. You know, every day I open the paper and I read about another company that's experienced another major security breach. And at Microsoft, we've taken a look at all of those breaches and designed Windows 10 to be a game changer in three key areas. Identity protection, protecting enterprise data wherever it may be, and protecting devices against advance and targeted attacks. You know, we're really excited about the opportunity with Windows 10. That's awesome, Jim. And you know, when you talked about enterprise management and security, which I know is really your core passion, we love Windows 10 because now you've opened up Windows 10 for an enterprise mobility management player like AirWatch to manage it, which is unprecedented. Tell us a little bit more about management security and the collaboration we've been having with AirWatch and Windows 10. Let me talk to you a little bit about security. You mentioned security, a topic near and dear to my heart. You know, the security threat landscape has evolved tremendously over the years, and it's more challenging for customers than it's ever been. And in order to address modern security threats, it's critical that hardware and software be designed to work together in tight partnership. Nowhere is that partnership more evident than in Xbox One, a Windows-powered device where hardware and software are designed to work from the beginning in partnership for security. With Windows 10, we're shining through that DNA to the rest of the Microsoft ecosystem through features like Device Guard and Credential Guard. We're protecting enterprise data wherever it may roam, including on non-Windows devices, and we're providing strong identity protection and bringing the simplicity of biometrics with Windows Hello. That's awesome. And as you look at these, you know, there's so many different customers now who can get the benefit of enterprise mobile management. We're doing this. We obviously saw the story of Delta Airlines, New York Police Departments, another story that's been talked about. You've got 23,000 customers plus here who are all interested in understanding how Windows 10 can be rolled out, how AirWatch is not going to be a key part of that ecosystem to manage it. Where do you believe this is going? Well, we see tremendous opportunity here. You know, the simplification of enterprise mobility management that they've been delivering in Windows 10, you know, that simplicity is nowhere is that more important than education. We're the teachers of the IT pros, and teachers aren't IT professionals. They're responsible for the education of our children. So by working tightly with the entire enterprise mobility management ecosystem, it's our goal to make Windows the most easily managed device on the market for teachers and IT pros. There you have it, ladies and gentlemen, and this is unprecedented in terms of the way in which for the first time on a VMworld stage. Jim, thank you very much for being here with us. And for your great partnership with us in this space. Give it up for Jim Alco from Microsoft. So folks, that is the spirit of the new world of enterprise IT where we work. There's overlap between our products, but that doesn't matter. We're working for you, our customers, to make sure that our products are optimized for the infrastructure that you have. For example, Windows 10, and we've worked very closely with Windows 10 and Office 365 and RDS and many components of the Microsoft stack to ensure that you, customers, all of you, get the benefits that you've been asking us for. Now, we get to the exciting part where we get to show you some of this stuff. And as you know, we've designed these keynotes to be sort of like TED Talks. So we've got 25 minutes, we've got to pack a lot in. But this part for me is most exciting because we get to show it. And to do that, please join me in welcoming Noah Wassimer, who's our head of products for mobile. Noah? Welcome, Noah. It's great to have you on stage with me. And we've been talking about this whole notion of any application and any device, right? And as you think about the world of any applications, really, we're talking about unified application delivery and management. Yeah. And the world of any device, we're talking about unified endpoint management. So the key goal here is for us to be able to showcase how this whole world of applications and devices comes together. So let's actually now walk through how this works and show us a little bit on the demo. Well, Sanjay, we have a ton to show you. So this is just one of the most exciting opportunities that we have to really showcase some of the power of bringing together Windows 10 as an example with VMware. So let me start with one of the most common scenarios, which is a home user that just bought this great Dell home PC. And what they want to do is they want to connect into work, right? And so just simply they just log into their home computer and now Windows 10 has made it easier than ever that I just go into settings and I click on accounts and all I have to do is say work access and join my workplace by simply connecting and tying in my email address. Again, VMware and Windows 10 coming together. What we're doing is setting all the configurations and policies to make sure that this device is ready and compliant for all of the different services to be delivered. Okay, just hold that thought. You said the word compliance and policy. That sounds like an enterprise mobile management and an EMM, a mobility kind of thing. Are you telling me that we can manage Windows 10 through AirWatch? That's exactly right, Sanjay. And in fact, what you're seeing on the screen is just that we've been able to now bring together the simplicity of management of iOS and Android now with Windows 10. So we can go look up Paul that user and see that all of those settings are adhering to corporate policy and so that we know now that this is ready to receive the applications. But what's even more interesting as was mentioned by Jim is that we have a new opportunity for real-time compliance, right? As the system changes, if it's the password or if it's the encryption being turned off that in real-time we can actually adjust that device. You got all your policy there. You can check compliance devices that are not into all your apps. But listen, it would be great of all the apps for the new world of apps. I've got a whole legacy set of Windows applications that I want to move into this Windows 10 environment. How can we help our products be optimized for that Windows 10 environment? So what we know is that enterprises have made massive investments in applications through traditional technologies. And what we're doing today is introducing our way of helping to extend those applications in brand new ways. So we can help an administrator by tapping into a system center application repository. And right now you can see it's automatically uploading those applications. And in fact what it's doing is converting them to app volume Sanjay. It's really a powerful story. And if you think about it, what we're going to do now is create an application service that we can deploy all of these different application types down to the user. I know last year at VMworld, big stage. Okay, hold that for a second. This is huge. Last year at VMworld, we showed app volumes in a virtual context deploying hundreds of applications into a VDI context. Are you telling me now we brought the combination of AirWatch and app volumes to deploy those same hundreds of applications into a physical context? Let me show you Sanjay. So watch this as simply as powering up that desktop and knowing it's compliant. All you're going to see is that the end user at home. Boom. All of the applications being delivered. Now we see this as just- What do you guys think? Isn't that incredible? I mean this is the part of the demonstration last year that got like standing applause when we showed app volumes in the physical world, sorry in the virtual world and now you've got these two coming together. So this sounds like the A for AirWatch and the A for App Volumes. What are we announcing today? So today we are just thrilled to introduce Project A squared which is a tech preview of bringing this application management of app volumes to not just the virtual world Sanjay but the physical as well. That is incredible. I think that now you can see how we're optimizing our entire stack for the virtual and the physical and for Windows 10 and I think many of you customers will benefit. Now we live in a very heterogeneous world. So we've got Windows 10 that's going to be a big factor in the enterprise. But people have got Samsung phones, they've got iPads, the whole world of any device. How are we going to take these benefits of applications and deployment of them to a Samsung phone and an iPad? You're spot on. So we've just shown you unified employee management but now how do we deliver on that vision of any application to any device? So if I look at a Samsung device what we've done is said let's make it incredibly simple that all I have to do is go into one centralized app catalog is an intuitive experience for the end user. I select all the different app types whether they're SaaS applications, native mobile apps or even those traditional remote published apps all just turnkey simple. And now I want you to watch something Sanjay with Android for work. I'm going to launch Salesforce. And did you see anything? Any logins or configurations? That was just automatically done. Wow. So we've got AirWatch near automatically configured natively through this standard we announced called app config to all the best applications you'd want in a mobile cloud era like Salesforce is one of them and you've got lots of other apps that we build integration into. Yeah, exactly. And let's you know it's not just on Samsung of course it's also you know we see iOS just absolutely exploding in the enterprise. And so we've done that same thing created that user experience that end users now know what applications they want to download to that device and so social cast really helpful for team collaboration right single sign on ease of access docuSign right a really powerful application. Again, it's actually even simpler than your consumer lives right this is this is what I can just get in get that document in a secured way sign I'll do a little smile. So what we've done ladies and gentlemen is we've picked all the top apps in the mobile cloud era that you would want and auto configured them to AirWatch single sign on one touch and now you have access to all of them. This is for example you saw docuSign here is a very very compelling collaboration application called blue jeans. We expect that to be 50 to 100 of these top applications and we're working with every one of those top app vendors to ensure the integration is seamless for you on any of these devices. You saw Windows 10 and iPad and Samsung but I'm not done and you know I'm demanding and I you know still pay your bonus so you know last time I checked so I've still got some you know sort of these legacy applications sophisticated you know Acme Airlines we've got 3D graphics applications for engine parts. Can you deliver the old school applications all turned to these devices. Absolutely Sanjay. So let's go ahead and pull up a sale surface device and now let's take one of those applications that is needing and requiring high performance computing you know and use the technology that we've been working on with Nvidia right that now we can deliver real time 3D intensive graphics applications you know get the get the employees getting this information in their hands no matter where they are. I mean you can see how fluid the motion is. Man what a great experience. I don't think everyone fully realizes this is an older legacy Windows application running through virtualization of the desktop or virtualization of app delivered onto any of those devices using the power of virtualization so you've really brought Horizon the BDI technologies and AirWatch together here in the context of an identity management kind of context single sign on all these apps is that what we're seeing? That's exactly right Sanjay. This is business mobility right giving the power of this type of workload in the user's hands you know we think this is what makes people ready to go and at the end of the day. It's awesome. So we've seen a Windows 10 laptop we saw a Samsung Android phone we saw an iPad and iOS device and we saw a Surface Tablet okay but now all of this can't be possible if we don't also care immensely about security. Security is huge in fact security is the top priority for many of you CIOs and IT professionals. We've found a way now to be able to connect both AirWatch and Horizon into NSX seamlessly so you get the benefits of mobile and end user security seamlessly tied into that micro segmentation view of NSX so you can pick any application any database and we've connected these two together. This is the ultimate form of mobile and network security coming together. So let's actually show that. Absolutely Sanjay one of the use cases that you often bring to us is that you want to balance scorecard. I love a balance scorecard. You want to see information simple so all my mind can digest. So you got a balance scorecard here and oftentimes what you'll find about these scorecards is that they're tapping into multiple different databases all throughout the enterprise. Yep. What we want to do is now tie this into compliance right if this device all of a sudden shows up in an untrusted location or becomes out of compliance we want to actually have the intelligence through our tunneling technology now tied into AirWatch and tied into the tied into the NSX technology that we can simply change those network connections in real time. Let me show you how simple this is. So watch I just simply go into the NSX console and I set a new rule of micro segmentation so that I say if the device is out of compliance only allow that single app to get access to a limited set of data. And so watch now if that device goes out of compliance it couldn't be simpler all of a sudden as soon as it switches that access now is denied based on true network real time compliance. So wait this is huge you're telling me that based on a particular set of users who don't have access to that or who they're outside the firewall you just through a very simple switch a policy switch was able to do it without having to touch any of the hardware level just simply connected NSX's policy engine to the AirWatch policy engine. Exactly and as soon as they come back into compliance all of that access is reinvigorated. But if I'm a Pat Gelsinger who's got the CEO view of everything I can re-enable that simple switch you're back up and running. This is truly delivering on this vision Sanjay of consumer simple enterprise security. What do you guys think? Isn't that huge? I mean this is security all the way from the data center to the desktop of device and this can be applied by the way for both AirWatch or the Horizon VDI products we think this is huge. So listen folks as we wrap this up we talked a lot about any application any device this is you've hopefully saw this in the plethora of devices we showed you in all the applications. The goal is a delightful user experience. Think again consumer simple meets enterprise secure on top of that trusted infrastructure and as we do that our goal is to ensure that every one of you have your workplaces digitized. That's what's happening. Paper is moving away into tablets like you saw in the cockpit. Manual processes are moving over with automated processes and in doing that we can transform the business. Sesame Street simple customer consumer simplicity meets enterprise security. No, it's been a pleasure Thank you sir. to have you on stage here. Have a great conference everybody. Ladies and gentlemen please welcome senior vice president and general manager networking and security Martin Casado. Good morning. Did you guys notice Carl's jacket yesterday? It's kind of hard to miss, huh? So I thought that'd be I thought it'd be difficult to beat so I'm actually going to go for kind of the best liner. How's that? All right. So the application has changed. For those of you now on Twitter Sanjay think about how many different components are required to get a transaction done. It's literally dozens of compute nodes networking L4 through 7 services firewalls load balancer switches and routers and all of these have to work in tandem to create a result. You know what you've said for so long that the network is the computer. But I would like to turn that around and say, you know the application has become a network and I don't mean that in some marketing way. I mean very concretely it's become a distributed system and that distribution that complexity underlies so much of the problems we see in IT today. So I know many of these problems are known to you so I only want to highlight a few of them that I find to be particularly illustrative. Let's take for example the simple act of provisioning. I mean provisioning app is like the most basic requirement for IT. Yet because of the complexity of the application today this is like passing legislation right requires tremendous amount of configuration of a lot of components communicating across silos. It's a very manual effort. It takes a lot of time and it's very brittle. These are shared infrastructures that we're working on. So if you make a mistake you may not only impact the application that you're working on but many others. That brings us to the second challenge. Consider troubleshooting. Two words. Root. Canal. Honestly infrastructure materializes through the lens of an application. You've got a user who has a problem. You get a call and without end to end visibility it's very difficult to know what's going on but because of the distribution of components it's hard to even know where to start looking. Finally let's consider security. So I've been in security for a long time. The landscape is evolving so quickly we've got new defenses new threats new best practices and they come out all the time and in order to keep pace IT has to be able to adopt them. So if change is hard you're dead. But because of the complexity of applications once we deploy we don't want to touch them it's like we're pausing the network and as a result over time organizations become uncompliant or worse insecure. So the application has evolved into a network and over the last couple of years the infrastructure has evolved into a software layer a major part of which is network virtualization that accumulates all of the pieces together so that you can configure secure and troubleshoot the application as a whole. So in a moment I'm going to talk about how that works but first let's hear it from a customer. With a total of 42 owned or operated broadcast stations across the U.S. Tribune media has become one of the nation's largest independent broadcasters and as it continues to transform its content service and delivery data center security has become priority one. I've lived the world as a C.S.O. Chief Security Officer I've also been a C.I.O. and I've been a C.T.O. So there's not many things I've gotten excited about where I could have all three hats. When I saw NSX and I went to my team everybody kind of had their different viewpoints I'm like you don't understand. This isn't a step this is an evolutionary leap in capability around operations around security. We needed a platform to absorb SaaS applications and we needed to have a platform that would change the security geometry that there was today. The answer was pretty simple for us. It was VMware with the hypervisor and NSX. So we set up a pilot we put NSX in and the bell went off. We can do this in five months we moved 141 apps onto the infrastructure and we had nine help desk calls. So guess what? It works with the NSX platform I can move networks I can move everything so I'm getting attacked I'm just gonna move it. So if I have something on my internal cloud and I want to move it to an external cloud all of my security moves with it. And that's awesome. I'm here to help the business units and I'm here to keep it secure. But you step back a little and you look at literally where you've gone from the Flintstones to the Jetsons in less than 18 months. Seriously guys I think that's so awesome. So David said we've gone from the Flintstones to the Jetsons. Let's talk about how that happens. Okay so what is network virtualization? It's very very akin to compute virtualization. It's a non-disruptive software install that installs on the servers it runs in the hypervisor and it creates what you can think of as a network hypervisor that aggregates all components of an application so that you can do the troubling and the provisioning and the configuration through the lens of an application. So provisioning is a single click process. Network virtualization virtualizes all services of a network switching, routing and L4 through 7 services but the services are reimagined so they're fully distributed. So they're running the kernel they're fully distributed so in some ways they scale infinitely. I like to call them infinite services for that reason. So you can apply security throughout the data center. So you can provision each application with its own configuration complex topologies with a single click. Let's talk about troubleshooting. So there's two advantages that STDC network virtualization have in troubleshooting. The first one is like I mentioned you have all components of the application so you can troubleshoot end to end. The second is and I think this one's often lost virtualization is necessarily at the hardware software boundary. So it's like in this perfect position to do complex debugging of both and over the last year we've seen an evolution in the tools to take advantage of this power to offer very sophisticated troubleshooting. So you can start for example at a very high level application view and drill all the way down to things like physical link failures in the network and we'll be demonstrating this in a little bit. Now yesterday we announced NSX 6.2 it is actually the most feature rich release we've ever done. There are many features that are released. I'm just going to touch on a few of them but I encourage you to learn more about it here. Go do the hands on labs. So there's a lot of work for multi data center type stuff so HA and DR multi VC integration with top of rack switches so hardware integration provisioning and physical hardware a lot of operational work. We even have a sneak preview of a distributed load balancer dropped all the way into the kernel. Now NSX has been on the market for about two years now and we've seen tremendous growth in that time. I mean the last we have announced we had over 700 customers hundreds in production just at this VMworld alone. I believe we have 25 customers doing sessions and as you saw in the day one keynote we had direct TV talking about how NSX helped them with one of the largest paper view events ever. So we're seeing a lot of traction and as interesting as the amount of progress we're having is the fact that if you look across the customers there's no adherence to a certain vertical there's no adherence to a customer size and this is just generally adopted and I think the reason is is because app complexity is a fundamental issue in IT and it addresses that. At the same time the partner ecosystem continues to grow if on the technical side if there's something available in the physical we want it to run seamless in the virtual and many of our partners in addition are also taking advantage of the platform to add new types of services that aren't even available in the physical data today. I think a good example of that is Palo Alto Networks. So let me take a moment to talk about the use cases that are driving adoption. So it turns out across most of our customers there's three primary drivers security. Again, we have infinite services so you can apply security policy to every flow, every packet in the data center. Automation. The ability to automate provisioning and configuration to reduce operational times to zero and application continuity which is kind of a fancy way of saying doing HA and DR across data centers. So we have actually a customer that uses all three of them to drive their business. This is Global Speech Networks. They're the one of the largest call center clubs in Australia and New Zealand so we can hear from them. The benefits of server virtualization have been huge for us. Now with VMware NSX it allows us to accelerate that deployment because there's no longer a requirement to do a lot of physical configuration. We template a very complex tenant environment and then we can scale that again and again and again. So today when customers come to us and they want a custom solution that integrates deeply into their network instead of having to buy physical equipment and integrated that into our environment today we rolled that out with a templated approach from VMware NSX driving down the total cost of ownership for our end customers providing greater flexibility to them providing greater security to them and ultimately differentiating ourselves in the market so that we can win more business. VMware NSX and F5's advanced load balancing allowed us to provide a highly available resilient solution to the front end of our network so that when our customers connect to us we can ensure that there's zero downtime if the end event is a disaster. Today we do that across two data centers within Australia within the coming months we will have that available across data centers in New Zealand as well providing an active, active solution across both countries. I think if we look 10 years from now and we look backwards network virtualization will be seen as just an ordinary way of doing business and something that is readily adopted. All right, great. So GSN has integrated NSX and their day-to-day IT operations as have many of our customers. Operations has a big focus of ours over the last year because so many customers are going into production. So we want to give you a glimpse at what that looks like and to help me do that I've got Jacob Rackle on stage. Jacob, thanks for being here. So you go ahead and go ahead and roll the demo. All right, so Jacob is a network operator and you're operating on kind of what looks like a creepy sea creature. Yeah, this creepy sea creature is actually our dev cloud and this is where we deploy thousands of applications using our in-house tool and they're kind of spun up and down constantly. That's right. So we've got a dev cloud, multiple applications, different topologies. Now I've mentioned before that traditionally it's difficult to deploy and configure apps but with SDC it's much easier. So maybe go ahead and step through that process. Sure, so on the left we have a set of templates. So let's dive into our three tier app. This is our kind of a classical three tier application web app and database. On the right we have some predefined security policies that are applied uniquely per the different tiers. On the web tier we also have that distributed low balancer you talked about and on the database tier we actually have physical and virtual assets that we're extending security and the logical networking too. Great, so I'm glad in this example we do have physical workloads. Like many of our customers have physical workloads that they want to extend NSX control over for provisioning and managing the security. So it's good we demonstrate that. So go ahead and let's go ahead and provision this. All right, we just have to click deploy and we're all set. All right, great. So now our dev cloud has a new application it's running. So let's assume a user is using this. A problem happens. You get a phone call. Basically the only information you know the application isn't working. How would you then go ahead and debug it? Sure, we can switch over to our VBL as operation manager where we have a custom dashboard with all the applications. The one in orange is actually one of the applications is experiencing a problem. So as we click in that application we can see that full kind of three tier topology that we saw with our deployment tool. And to be very clear, this includes compute networking storage all aspects of the application, correct? Yeah, all aspects. So if we take a look at this three tier we can actually see that the web tier is having a problem. Click on that web VM that's experiencing a problem and we can scroll down to see what could be the problem in all the networking components that that VM is connected to. Right, so this is a networking talk. Clearly the problem is going to be in the network. So here you've got both the logical view and the physical view. And I believe this is actually a Cisco topology. This is a link level topology. Yeah, we actually have a Cisco Nexus spine leaf topology here with the spine and the leaf top of rack switches. But on the left we can actually take a look at all the NSX components that are in this topology and they're all green. They all appear to be functioning correctly. But on the right we have a problem with one of our top of rack switches. So we can drill down and see what and we can see that that's actually causing some packet loss. So we drill down from the VM all the way down to packet loss on the top of rack switch. All right, perfect. So from an application level view we're able to drill all the way down and we find the physical link. We fix it, everything's fine. Then let's say you get a phone call the next day. It's your security guy who says, you know, we're probably not compliant but if we put an Apollo Alto Networks next generation firewall in we will be. How would you go ahead and do that? Sure, so that's actually really easy. We can hop back in our deployment tool and refresh our security groups to pick up that change and we refresh. We see that next gen firewall tool that we need to apply to our web tier. We drag it over and republish those changes and we're all done. Super, thanks so much. Jacob, I appreciate it. Thank you. Let's go ahead and give it up for Jacob. So I know we don't have a lot of time to show a lot of the features so I really do encourage you to go out and see them. So this grainy iPhone photo I actually took this weekend out of my window of my kitchen and the reason I wanted to show it is because just like you can see a glimpse of the bridge you know there's so much more to be uncovered and that's the same with network virtualization. I mean if you think about compute virtualization early on during the adoption the use cases were very simple, powerful, but simple. But after that after adoption after understanding it captured the imagination and things like vMotion and cloud rushered in and we're at the stage when network virtualization that now the platform has been adopted that we can drive a lot of very fundamental changes and new services on top that change the paradigm. So we've been working on some of these. I want to give you for the first time a glimpse into what we're working on the security side and to help me do that we have Tom Korn so I can welcome Tom Korn to the stage. How are you? I'm Grace. So Tom Korn runs security. We've been working together for couple years now. Two years now. Super. All right. So I'm super jazzed about this. I really love the work that we're doing. I think it has the potential to really change things. So perhaps tee it up for us. Sure. So we're starting to work on a whole series of new advanced services for security and one of the first ones coming out is around network encryption and it's a great example of all the things that you've been describing. You know taking something that was once a point product and turning it into a distributed service or what you sometimes call an infinite service and it's everywhere and maybe more importantly it changes how you implement policy from thinking about it through the physical infrastructure how you route data etc. to through the lens of the application which is ultimately what you're trying to protect and it eventually becomes really a checkbox and an application. Yeah. Now I love this idea. So basically the application and attribute a fundamental attribute is encryption. So as long as it has that attribute any packet will be encrypted. So you and I have been in security for a while. It's easy for us to geek out about this but maybe not office to everybody the context which this is so provide some background. Sure. Well look we live in this hyper connected world now and in this world the perimeter is far too porous. The attack surface is really simply too wide and as a result we live in a state of compromise. So the challenge in the coming decade is going to be how do we create trusted services even on physical infrastructure we don't always trust and in the context of an application becoming a distributed service that means protecting the confidentiality of the date and integrity of the data as it moves across the network between these components no eavesdropping systems can't pretend to be other systems and what I get is really what was sent and encryption is a great way of solving these kinds of problems. Yeah. That's right. And so now encryption has been around for a long time certainly I've been using it for decades I know you have it's probably also worth going into like why hasn't it made its way into the data center like why hasn't this happened yet. Two words root canal troubleshooting. I use that it's operationally complex right it is a terrible experience dealing with network encryption and the complexity comes from how you manage keys it comes from the bottlenecks that you create with dealing with appliances and agents of different kinds and it breaks visibility for things that legitimately need visibility of application of course ironically also a lot of the security controls that you're placing on the network it often breaks those controls they have to see the traffic that's right. So massive kind of user management problem key management problem distribution problem you have network virtualization which is basically a distribution platform how does that change the game. Well I mean the laws of gravity change it opens the door to make encryption incredibly simple to deploy to scale and to align to ultimately what you're trying to protect it's built in processing is distributed you take advantage of crypto acceleration and sort of Intel chipsets and suddenly you don't have bottlenecks you're encrypting and decrypting on the VM boundary at the VNIC level the application doesn't even know that it's happening under the hood and here's what's really compelling you're leveraging the virtual network controller and micro segmentation that exposes the whole structural context of the application. So now we know these are the pieces that should talk to each other these are the security services including from our partners that need to legitimately see the traffic so you turn it on and it just works it even works site to site and it's aligned to the application the application just works security just works. I love it. I mean I just love this idea you have a VM it sends a packet it hits a VNIC at that moment it's encrypted until exactly where it needs to go unless there's a security service where it becomes visible. So I'm a networking guy this is a networking talk we're talking about encryption in flight but that's not the entire picture. So there's more work going on including some work on the encrypting data at rest particularly the VMDK and this is also very very very compelling it's the same issue protecting data at rest at one point used to be protecting against the hard drive being stolen physically out of a data center but in this new world these things are just files these things are just data and so it becomes a security imperative and not just a compliance checkbox again the challenges of dealing with point products with agents the complexity of managing those things when you start building this into the virtual fabric those things start to disappear right you can leverage it becomes a native service it's guest agnostic you can encrypt once and run it anywhere and that becomes ultimately very similar to a distributed service very very compelling stuff we're exciting about awesome so then you're working on a lot of cool stuff this is just a sneak peek you're gonna be talking later on yeah one o'clock today we have a session in 104 in north which I'm called security for the new battlefield and anyone who's interested in understanding our vision strategy direction and security 45 minutes it's a great place to be awesome thank you so much Tom thank you next alright so this marks actually for me 10 years since I started on this journey so 10 years ago I was at Stanford I was actually working with Mendel Rosenblum who's one of the founders of vmware and we were doing a research project that underlight a lot of what became sdn and network virtualization so it really is meaningful for me to be up here talking to you about all of the progress all of the adoption all of the innovation all of the understanding of the use cases but I realized that the reason this happened is because of you the community and the partner ecosystem so I really encourage you as you walk around and you interact with your tears you realize your peers you realize how rare it is to have a community that will adopt this really disruptive stuff and change in industry so that I want to say thank you very much I'm very humbled to be on this journey with you and I appreciate it have enjoyed the show in today's business world planning for tomorrow isn't good enough the most innovative companies need to see around corners anticipate trends and set their sights further in the future technology is driving change is driving change in the way services are delivered it's driving change in business strategy it's driving change in the way customers are engaged the future of hospitality is the end game the winners are going to be those are able to leverage this technology to enable a better guest experience it's hard to overstate the central role of technology in higher education we're going to see more sophisticated assessment platforms we're going to see more sophisticated adaptive learning platforms we're going to have more algorithmically driven analysis of student performance so if you really want to make a difference you need large scale analytic compute to find the information out of that data this is why everybody is so excited about cloud native apps because we want to leverage all this compute to answer things we've never answered before technology is a big driver of change within the healthcare industry all of these things play into the mobile applications that we're developing for health and wellness it's our responsibility to continue to innovate to make sure that we are the better value provider driving change everybody wants to be innovative innovative is hard I would argue that what's way harder is maintaining innovation and the discipline that needs to do it it's no longer the big beat in the small it's the fast beat in the slow and as CIOs we need to find a way to accelerate the speed of execution ladies and gentlemen please welcome VMware's chief executive officer Pat Gelsinger good morning good morning what a great video summarizing some of the key customers and what they're doing with the technologies that we're describing today this is my sixth VM world my fourth as CEO I'll tell you everyone gets better the energy the innovation just great my job now is to sort of pull these threads together of conversation that we've been having this morning and also giving a point of view and taking what is the path forward that we're pursuing but before we look forward let's look back a little bit and see some of the things that we've accomplished now you know this is the internet and the connectivity of the internet in 1995 how many of you remember your first Mozilla experience in 95 yeah you are not the general population yeah you are the extreme you know it's less than half of 1% was connected at that point in time yeah you're our folk right you know we were connected then I remember my first email right that I did I thought I was so cool right and you know think about how far we have come from those first days of connectivity and it's just incredible so here we stand in 2015 mobile cloud has now connected 3 billion people across the planet and our estimates would say Q3 of 19 we will cross half the population of the planet is connected and think about that if you think about the connectivity across humanity this is as connected as we've been since the Roman roads in the time of Christ that we will cross half the world being connected you know I've just had the Cinderella career participating with the x86 the foundations PC technologies Wi-Fi USB and I have this vision I've always said for my career that I want to participate in the creation of a piece of technology that touches every human on earth in every modality of their life and maybe in the next five years we'll get halfway there and to me this is such a powerful time for us as a technology community to literally changing the earth now when we think about connectivity though it's not uniformly distributed North America 9 out of 10 connected Asia 1 out of 3 of China 600 million people being the largest Iceland right a highest rate of connectivity yet 98% I guess if you're in Iceland what else do you do if you're not connected so right got a long way to go in Africa just 1 out of 4 connected and of course for our friends down under 88% any Aussies and Kiwis out there yeah that wasn't very I heard you guys are pretty rambunctious that wasn't very impressive I'll tell you Aussies and Kiwis out there much better much better and as we think about that rate of connectivity across the planet the benefits that it brings in terms of education job creation health improvements and as we see what's happening across the world very much like when mobile telephony emerged it leapfrogged wired telephony right and what we saw in countries like China was they never built a wired infrastructure they went straight to a wireless infrastructure and similarly as we move to the mobile web we're seeing emerging countries leap over an entire generation of technology and as we see that in the countries on the left this is becoming their modality of connecting to the internet is through a wireless and a mobile experience you know in terms of connected devices per person in 1995 .1 so one out of ten and today here we are in 2015 right where we're averaging three three devices per person being connected and the next five years this will double again isn't this really cool I could be working on my Mac I can get a message interrupting me on my iPad right that gets interrupted by a phone call on my iPhone and I get a new service on my iWatch interrupting me as well we have made huge progress haven't we but my favorite one as we look at some of these trends is actually this one where if we just look at iOS app revenue it has now passed the entirety of the US film industry revenues and I've never been a fan of the cultural impact of Hollywood and now I'm delighted because we're seeing that you know the impacts of the tech community is driving this and if we add on top of this the impact of Android and other platform it clearly blows away literally off the chart right the economic impact that's occurring and the social right and cultural transformation and if we look at this in the context of maybe right the Academy Awards this last year right Birdman maybe the most influential film of the last year dominated by angry birds yeah Geeks rule but it's also IT in the stratosphere and if we zoom out to a satellite view of the earth and this is actually didn't realize this before we started preparing the speech for today there's a UN organization that tracks the register of objects launched into space right and this is actually their picture of all the objects that are in space and who knew we now have 7200 objects orbiting earth and beyond today the vast majority of those are to bring connectivity to connect us up even further but it's not just IT in the stratosphere and in the atmosphere it's also IT in your bloodstream right and this is some research that occurred at the Children's Hospital of Boston and University of Houston where actually we have many magnetic Miller Robo robots that they're injecting into bloodstreams that can be self-formed and create little guns to inject treatment at just the right spot in the body isn't that just amazing right so we've gone from the stratosphere all the way to our bloodstream and if we project this forward even further 10 years from now estimated that will have 5 billion people connected and our estimates to say about 2029 2030 will hit 80% connectivity across the planet you know literally I think at that point you'd say at 80% we're globally connected right we've now connected the planet you know in our careers in our lifetime we will have connected the planet this of course is having huge economic impacts the mobile cloud has transformed business today you know about 8 trillion dollars is flowing through internet commerce right and that is now representing the growth of that is 21% of global GDP growth so this is every form of GDP growth is now being dominated by that of the internet economy now of some of these trends and as we look at these trends powerful trends emerging you know from these you know synthesized 5 imperatives for digital business that we want to look at in a bit more detail in the time that we have today you know and these are 5 things that we think all of us need to think about if not must do's for business and IT leaders today so the first of these is what we'll call asymmetry in business now how do you define asymmetry you know unequal or unbalanced the idea of power between two opponents where one clearly is dominating or able to overcome the other and maybe before we look at asymmetry let's look at symmetry throughout the 1700s right Britain and France we would call those symmetric forces sophisticated weapons huge armies you know large fleets similar boats or similar technology and they sort of fought with each other all over the planet right developed economies that supported those battles and you know some would win this battle some would win this that battle because they had sort of you know whoever had the better strategy and the better tactics in the day would been the war and it was a symmetric game and that same time period though we saw an asymmetric battle this tiny upstart nation of America right and basically they resorted to unconventional tactics hit and run small but fast ships to win they had to change the rules of the game and that's exactly what we see in business today people are changing rules of the game and you know this is right incumbents and this includes VMware we're one of those incumbents as well and they are these new startups with nothing to lose that are embracing new models who are attacking and threatening the incumbents now this idea of startups isn't particularly new it's existed for decades if not hundreds of years but what has changed is that mobile cloud technology has enabled a vast set of shared resources to create a asymmetric battle and if we think about the internet unlimited reach if we think about these mobile phones that we carry we now have unlimited access and if we think about cloud we have unlimited scale and we throw in some crazy venture capitalist and unlimited capital as well so literally we're able to have essentially unlimited resources to reach a three billion market with smartphone and time this is the best time in history to be a challenger versus the status quo and as a result of this we're seeing vertical industries changed all over the planet every one of these is being attacked by a new model a new asymmetric approach whether it's mobile health or online healthcare being changed in my spare time I sit on the board of a university and we're looking at what the impact of massive online education is and looking at smart grids or maybe custom manufacturing and 3D printing some believe that this will allow the resurgence of mature markets and mature economies to bring back manufacturing onto their shores because it's now much about robotics and automation and customization and no longer just low cost wage and access changing industries and maybe one customer example of that that we've engaged with a great VMware partner has been progressive and the insurance industry has clearly been one of the oldest and substantial industries but it is being forced to change very rapidly and progressive today views themselves as both an insurance provider but also a tech company and they are making a massive shift to an online market and online selling and they have to distribute a workforce and enable a distributed workforce beyond just where their buildings and locations are to be able to access workers across the globe and they are putting mobility at the center of their business model and operations and what is the most important part of the insurance industry? It's the car, right and how they ensure the car industry and similarly the auto sector is undergoing radical changes as well now the first statistic on this page I think is the most significant what's the utilization of your car? Industry estimates are 4% I travel a lot mine is maybe 1% right and the view of as the shift as we go to fleets of shared autonomous subscription self-driving vehicles is maybe that goes from 4% to 75% can you imagine that? Right and does that have an impact on the automobile industry over the next 10 to 20 years? If we go from 4% to 75% utilization I mean it's dramatic right the shift in cost from capex to opex the decrease in number of cars drop in accidents that results you know it's estimated that 500 billion hours are spent in the United States alone commuting imagine if that became productive time estimated half a trillion dollars of economic benefit and think about that how who becomes the leader and the driver of the automotive industry in such a scenario? You know is it upstarts? Is it traditional companies? Is it people that aren't even listed on this page yet? What does the rental car industry look like 10 years out the manufacturing industry? How much will those industries change as a result? But it's not just the direct impact on the auto industry but think of all the downstream implications as well you know the insurance industry that we already touched on you know what about you know real estate? Well if commuting became pretty easy maybe I wouldn't mind moving out of the city and into the expirbs as they're called maybe it changes every aspect of the distribution and support network around truck routes that we would progress you know simply put it changes everything about one of the oldest aspects of our economy today and as we think about that we'll simply summarize imperative number one into elephants must learn to dance or maybe state and then more business terms where we have to innovate like a startup and deliver like an enterprise imperative number one now when we thought about that you know as we described the three things of reach of the internet economy we said right the scale of the cloud the reach of mobility right and the effects of the internet and those three let's look a little bit deeper at the cloud because we think that cloud has been such a fabulous driving force of the changes underway but we're now entering the professional era of the cloud leaving the experimental era and if we maybe had a visual image of the cloud that we've constructed so far it maybe looks like this and you might be able to get across the river but you know it's a pretty inefficient way to get there limited connectivity and capability to get across you know and what's led to this we have you know the private cloud we've been building which is largely focused on IT as we know it today where it's a cost-driven and we're pulling out costs and it's you know slow and complex applications that are being driven but it has powerful governance and does what I need it to do where I need it for compliance purposes and on the other side we have public cloud which is fast and you know is able to scale effectively but it has weak governance it doesn't meet many of the requirements of performance a disconnected and disjointed picture we have today and as we look to the future we need to go to the professional era where we've built an environment that is and that enables efficiency governance speed and growth and we'll simply call that and this is what Carl was describing on Monday with a unified hybrid cloud where applications are launched to the span not to the silo and you know the example of that that we had in our video was the intercontinental hotel group and this is just great I thought this quote from Eric just captured it so well it's not the big beating the slow the small e.g. it's not the symmetric it's the fast beating the slow right and this is the largest hotel group in the world 700,000 guest rooms 150,000,000 guests yearly and they are eliminating the gap between their on and off-premise IT they're re-engineering their entire guest experience in the process and at the center of it is vCloud Air and the hybrid cloud experience they are building to the span and the idea of building to the span is simply what we would call hybrid applications and this is what Ragu was talking about that an application is built realizing that there are components of it in the public cloud pieces of it in the private cloud and we bring those together through common networking management and security a seamless experience across the two now if we look forward to a couple of years each of your businesses is going to be taking advantage of a range of cloud capabilities you'll have your private cloud you'll have one maybe two we expect a small number of IaaS providers maybe a major and a minor one and then you'll be picking a PaaS layer how am I going to do my next generation development and then of course you're going to have a set of SaaS providers as well my work days my Salesforce com you know so at best case you know I have maybe eight or nine clouds I'm taking advantage of but then this happened love him or hate him he has changed the trajectory of IT and I've gone on record of saying of the last decade I believe this is the most significant impact that will occur to the technology this decade when I'm in Germany China France it is very clear that they are going to demand that their data their capabilities are within their sovereign borders right they are going to insist on governance of their critical infrastructure so if we go back to this picture that we were just describing it gets a lot worse right because now they're going to say yeah you can run your private cloud it's going to be in my country yes you can use that IaaS provider it's going to be in my country and it's going to have my governance requirements and thus it's not just going to be six or eight of these all of sudden a large enterprise is going to have 20 or 25 of these services available local clouds local versions of global clouds regional private clouds SaaS hosted locally public services that are using private data and this is what the unified hybrid cloud is all about it's about enabling a global point of view across multiple clouds and that's what we think is so powerful about the position that VMware is pursuing and working with you and created is that they're all connected an operating model of a single cloud across these many instances and this is the essence of what the unified hybrid cloud is all about and the demonstration that we showed yesterday wasn't that cool right you know we're able to do public private you know cross-country cross-cloud vMotion how many of you enjoyed that right I mean I certainly did that was way cool Ragu and Yang Bin and I remember the first time that I was meeting with Mendel and he was describing right we were together in Beijing and he was presenting with me at an Intel developer forum and he described to me the first vMotion that VMware had just completed and we just spent time you know to brainstorming all of the use cases well you just saw the first cross-cloud vMotion and this too will open up an extraordinary amount of innovation and new use cases as we reach across multiple clouds a key aspect of this is that we have had to go on a journey as a company as well and VMware you know we were building the complete stack why would we worry about working with somebody else because our technology was clearly everything that you required was done by what we did and we as a company over the last three years have gone on a journey to open where we've opened up our management we've opened up our networking committed to heterogeneity and the announcements that we've laid out here in vMworld 2015 you know this isn't just lip service this is substantive moves right for us to be open to create interoperability and interoperation across multiple clouds and help our customers to span these complex environments simply put the unified cloud is the unified hybrid cloud is the future and maybe just a bit tongue-in-cheek can't my clouds just get along and this is the future that we see that we need to pursue the third imperative is security and following martin and his conversation you know security challenges about protecting people apps and data and this we believe is the core of what we need to accomplish as an industry and we don't do security to protect a particular server to just hold an edge of a data center or to protect a specific router or infrastructure component security's purpose is to protect people to protect apps to protect data you know this hit home for me personally because remember the big U.S. government OPM breach my data was part of that right so I had to replace a couple of credit cards and there was a false 1040 or that's for those foreigners that's a U.S. tax return that was electronically filed on my behalf so that was very exciting I never had one of those before so I had to go through that whole process but this is all about protecting people apps and data and simply put the security industry has been challenged it's been messy, it's been complicated and we spend the bulk of our dollars on products that we know don't really solve the problem and it's defeated just because this is a safety blanket but it simply isn't working and there never has been before a time in history where we've had more security innovation tremendous innovation occurring by these key companies in security but it's also an incredible number of startups that have occurred in fact you can just have investment portfolios no category in tech today has a higher P.E. ratios than the security companies I mean extraordinary investments that are occurring there so security spend is growing fast I was with the CIO of a major U.S. bank his budget year on year was going down approximately 5% his spend on security was going up 50% year on year and nothing is growing faster than this the only thing growing faster than the spend on security is the cost of security breaches something is wrong and inside of that we believe that virtualization provides the fundamental requirement allowing us to architect for security virtualization provides that Rosetta stone that sits between the people the apps the data the computer network and the infrastructure and the devices that connect to it it is the thing that sits in the middle that fundamentally allows two things that we didn't have before the first is it allows alignment precise dynamic binding of the security functions and services from the applications to the apps the data and the users exactly what you need a web search application doesn't require the same security as a core banking and transaction engine does it allows for that alignment of services to the place where they need to be delivered and secondly virtualization allows for ubiquity this is what you've created this is what we have done together it enables this end-to-end building allows us to deliver trusted services on untrusted environments we cannot guarantee the edge the device the infrastructure we need to guarantee the delivery of the service it assures the right people the right applications and data through an untrusted set of services can be delivered simply put it enables an architecture for security to be developed and as we think about this you know the place is enormous opportunity for industry innovation inside of a context and architecture a framework for the industry to built on speaking of built on how many of you have heard this phrase built in versus bolted on none of you I mean you know we've heard this for years about security haven't we you know we got to build it in versus bolting it on and truth is it was all nonsense the problem was we didn't have a place to bolted in we couldn't build it in we were sort of patching it on to this router this switch or this edge it was patched on to each application and server and switch and simply put we need to put an end to that thinking because it didn't work and what we now can do for the first time we truly can architect in security and virtualization enables that layer of alignment and ubiquity and making a bold proclamation today we firmly believe that architected in security allows us to be twice as secure at half the cost and this we believe is a fundamental game changer in accomplishing a secure infrastructure for the future a customer example of this is maybe marathon oil hundred twenty five-year-old company number twenty five in the fortune five hundred of companies part of the critical infrastructure of the united states today from reserves through refineries to gas stations and delivery systems and their priority was to simplify unify their security architecture end to end and they have done that through nsx delivering secure controls architected end to end through a broad deployment of nsx we believe right a time for renaissance and security has begun maybe tongue in cheek fries with your burger security renaissance has now begun sees the day if we ponder and look forward a bit what is the next wave of innovation and i t what is that next big thing beyond what we've done so far how many of you remember some of those early days of artificial intelligence about thirty years ago you remember some of the hype and stuff that was going on yeah and i remember i was architecting the forty six right and i'm you know working on the forty six and i had some you know marketing manager from running into my office who his job was to help me get the forty six right right you sort of say i didn't start with a high view of marketing at the time but he says ai is really important you must make sure the forty six is a great chip for ai so being the good engineer i was i went and said okay so what does ai require of a microprocessor so i ran a whole bunch of traces and looked at different languages and so on and you know what the findings were make jumps faster right and if you're a microprocessor architecture you know you always make jumps faster anyway so after all that work it was like do what you're already doing but we declared it a great ai processor at the time as a result tonight was pretty happy in the marketing guy went away without adding any value and the forty six was a great chip and simply put that period of ai was a failure it didn't live up anywhere near to the hype last year we had a major campus opening for a vmware we had john hennessey the president of stanford come and join us at the time and when he was asked what is the most important technology that will emerge over the next several years he said ai takes about thirty years for these fundamental core technologies to emerge to gestate and i agree with him this is the heart of the next wave of innovation and we'll see this ushering in an age that we go from being reactive to being proactive we're on this cusp of an era where software agents and capabilities working on our behalf will simply change human experiences and as we think about some of these crude early examples there you know convenience they're starting to help but they're starting to paint the picture of where we're going to go and you know maybe right some of the life-changing aspects were literally software plus injectables inside of people you know will literally change when you know they start to sense the constriction of airways then in fact we'll start administering uh... the right medications for things like asthma predicting it as it occurs and obviously these ideas of proactive technologies of implications right the creepy verses the convenience and software has to get to know you things like security that we just discussed are critical and generationally you know if you think about it you know some of these things we might feel uncomfortable with our kids are just fine you know the things they put up on facebook just amaze me sometimes i joined facebook to me it's five walk just to find out what they're doing and what we might feel is invasive today becomes invaluable tomorrow and if we look under the hood right of this proactive technology era where it's going to be enabled by big data and if we think about big data these enormous repositories of both real time data as well as large repositories of historical data being combined with analytics and algorithms that have been matured over that last thirty years and real-time application development and i like this because i think about you remember donald canoes fundamental uh... sequence on computer science you know algorithms plus data structures equal programs the same basic supply simply put the scale now is so much bigger that it can be applied against and we think about the scale of clouds software defined anywhere where software is now writing software and the telemetry in the data that's being generated by iot devices being inserted into everything we truly are entering an age of proactive technologies and maybe picking on the famous line from star wars how might i serve you automate everything rule one of building the cloud ruthlessly automate everything collect every piece of data keep it forever and that will allow us to predict almost everything going into the future and the final one is we are entering the decade of the greatest change that has ever occurred in industry and in it prediction by the washington university is forty percent of the s and p will disappear in the next ten years and i believe that that change will be even more traumatic for the it industry and i'll go out on the limit saying of the top hundred i t companies fifty of them will disappear in the next decade and the benefits of the company are declining this was a study from the kinsy you know how many years does a company stay in the s and p five hundred look at this ninety years right back in nineteen thirty five today seventeen years and that continues to decline and you're off the rest simply put pair to five is welcome to the age of rattling the cage or maybe in business terms taking risks becomes the lowest you must break out to stay relevant in this future now how does this pertain you know we've looked at these five imperatives and how does it pertain to each one of you the relationship that we've had over the years together as vmware and you are faithful participants are partners in our customers you are almost always the smartest tech person inside of your company right they are looking for you and you have an opportunity to lead as you never have before your responsibility as that tech expert this is your day carpet the um... sees the day in your environment be that entrepreneur and that innovator for your respective businesses and our commitment from vmware is we're going to be your best partner to navigate this world together thank you very much