 From theCUBE Studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. Hey, welcome back, everybody. Jeff Frick here with theCUBE. We have a CUBE Conversation today, talking about an exciting announcement coming out of our friends over at VMware. It's the second generation VMware cloud on Dell EMC. And to tell us more about it, we've got a couple of CUBE alumni that we're always happy to have on. First off, we're joined by Matt Morgan. He is the VP of Marketing at VMware. Matt, great to see you. Great to see you too, Jeff. And then, Wei Wong, she's the Director of Product Marketing at VMware. Wei, great to see you as well. Nice to see you, Jeff. So first off, hope you guys are getting through the stay at home and work from home and family, everything good? Yes. These are unprecedented times for sure, but we're fortunate and we're doing fine. I hope everything's going well with you and your family. Yeah, thank you. I mean, we are lucky to be in the IT space so we can flip the digital much easier than some industries. But let's jump into this announcement. Second generation VMware cloud on Dell EMC. You guys only announced this in production like a year ago. So Matt, what kind of drove a second generation already? What were some of the drivers and what is the essence of this second generation? Yeah, this space is moving really fast. As you know, public cloud has captured the imagination of practically every IT organization on the planet because the public cloud provides a new way of doing business. It allows you to consume technology on demand. It allows you to have elasticity. It allows you to have OPEX financial treatment. But more importantly, it takes you out of the core management business. No more hardware refreshes, no more operational control of the core infrastructure. This is all delivered as a service. The problem is in order to get this value, you had to turn to the public cloud. You had to actually place your workload in a data center that someone else managed. And that data center might be far away from the data that is being generated. And so in many cases, it's just simply non-practical to move all of your workloads there. So on-premise technology is still going to be important. What VMware announced way back in 2018, I think it was August 2018 at VMware was project dimension. And the whole concept was about delivering the cloud to the data center, but truly allowing you to run your data center or data center infrastructure in a truly managed cloud-centric way. We then commercialized it when we announced VMware cloud on Dell EMC the product and the uptake's been off the hook. We've seen industry analysts like you saw with Rick, we've seen our customers really embrace this technology and we've gotten enormous feedback. And that feedback has also driven a new set of requirements. And the truth is, while we envisioned this technology to clearly be an edge play, our customers are telling us it's a data center play. They believe that they can reimagine their data center to operate just like a cloud. And by deploying VMware cloud on Dell EMC, this facilitates their needs to do that. But they needed a new class of systems, something a lot more powerful than our first generation, something that could take on all of the workloads. In fact, there's a slide, if you want to pull it up, we can kind of illustrate this. This second generation solution is all about turning the volume up to 11. We are enabling organizations to put two times as many VMs on this technology. An effect can run twice as many workloads. More importantly, for an IT architect, they can design a system that will take on the most demanding, most complex, business critical applications with the largest set of data and be able to manage that as a entity, but in a cloud model on premises. Now, Matt, I'm struck a little bit because first off, you talked about Edge, and this was really kind of a response to growth of the Edge and the anticipated growth of Edge and IoT. And then at the, now you're saying really, there's this great opportunity in the data center. And I think we had Rick on from IDC, talked about local cloud as a service. So that's spanning a pretty wide range of environments, workloads, all types of demands. So what are the real critical functional capabilities of a local cloud as a service and specifically VMware cloud? So we partnered with Rick when he was defining this category. And if you look at Rick's research, he sees this category growing, I think to close to $5 billion all in revenue. That all in revenue is coming in the next two and a half years. That's a faster scale out than we saw HCI. And in his research, he's finding the same information that we found when we did our early customer surveys. We have identified a real need at the Edge. But let's not underplay that. If you look at a 5G cell tower, typically they need compute that's local. There are gonna be tons of these erected over the next few years. And they don't have on-premise IT infrastructure people to manage that technology. So there's an opportunity to have a managed approach where the compute is local, but it's managed as a cloud. Clearly the solution is custom designed for that. But I can look at a dozen other IoT centric opportunity. Let's talk about energy production, an offshore oil rig. Again, no IT staff, the need for compute lots of sensor data. The opportunity to deliver a managed approach gives you that capacity. Let's look at agriculture. Again, pushing out compute to the Edge. So this Edge component is another hyper growth area for information technology. And we have a great solution custom built for that. However, as I had mentioned, right? The growth of use cases includes the most important, the most significant business critical apps that are really big apps that live in the data center. This can include a variety of different use cases. Think about a hospital. They have data centers in each of the regions. That's a perfect fit for this. Talk about a technology base for virtualized desktop infrastructure. Think about having to deploy an SAP application. There's a dozen more I can think of right off the top of my head. But what we did with the second generation is we listened to the customer. The customers wanted more power. They wanted more capacity. They wanted the opportunity to have a full rack that could beat their expectations on the capacity and power side so that they can fulfill their requirements. And that's what this is all about. So that's great, Matt. So, Wei, you're a little bit more in the weeds and the product development. What are some of the things that you're excited about in this second gen offering that maybe people aren't as aware of or maybe is a little bit below the radar? Right, okay. So let me first and talk about that this is truly, as Matt pointed out, not an insignificant release, right? This is not incremental. We, for example, that our customer were rolling out a full 42RU rack that is support to traditional use cases and also the modern use cases. And thinking about also a brand new instant type that we call internal M1D medium that in which we doubled not the socket count but also the CPU moving from a 24 CPUs to a 48 total and double our RAM from a 368 to 764 and also doubling to introducing all flash like NVMB based flash to secondary storage from 11.5 to 23 terabytes. And all these is really to honing in what Matt had pointed out, that enterprise class, the high workloads, very density workloads, where you can put into literally 12 to 15 this kind of a nodes over development and allows you to have that in the data center and to making sure that you have that kind of a capacity for performance. We have that. The second thing I want to mention as you can imagine is the VDI. I think virtual desktop infrastructure cannot be more important at this environment. Everybody is looking at it and especially for the highly regulated industries like healthcare. So VMware, right? We are the market leader with our offerings as a VMware horizon solution. So what happens in this release is we actually certified fully certified on the VMware horizon solution to making sure that we offer that enterprise distributed capacity to the industry that will really want to ramp up fast and also to making sure that they obviously cannot have extra IT support to have that capacity to offer the remote workers the frontline healthcare workers and other business continuity type of use cases to that capacity for VDI. The last one is actually, as you can imagine also in this environment is data backup and recovery, right? The enterprises are looking for a solution that in which they can not only backup, protect and also search for the things that they can actually search for historical reasons. So in this release, we are actually certifying two solutions for backup. The first one, of course, with our friends at Dell, right? Dell Data Protection Solution. The second one is that's an industry leading solution right there. And the second one is actually the Beam. So with both solutions now we can truly offer our customers who are looking for enterprise strength, backup and solution for the continuity and also for this to continue to operate in this environment. So I'm just curious before we let you go, you talked about this being a pretty significant release and we've talked about market spaces from Edge back into the data center and really kind of enterprise class, heavy workloads, critical workloads, applications running this. So as you look forward, not giving any secrets out in terms of roadmap but where do you see this class of application evolving? So I think that you can imagine that we talk to a variety of customers. There are different ways we can actually expand this. Many of our retail customers has talked about their suggestions and 5G towers. Not only we can expand it to a data center, we probably will can actually offer this type of solutions into, for example, a substantial retail shop or a back of the pizza shop, right? That's going small on one end. The other end is I think that many of our customers has expressed interest of the co-locators, right? They working with in other geographical areas that they're actually working with local providers that they don't own themselves. They do not even wanted to purchase, right? The cooling and managing the space. So they want us to provide an integrated solution with many of the large co-locators but as well as some of the niche co-locators so that we can offer that end to end and offer that together as a platform to our partners. So that's where we're going. Very exciting space and you guys do move quick. Matt, I'll give you the last word before we sign out. Where can people get more information? Wouldn'ts GA or I guess, or is this GA? I think we are GA. Give us the last word. Yeah, so yes, the service is available. People can get more information at VMware.com. And I think the truth of the matter is is the cloud is an operating model. It's not an individual data center location, right? And the idea of a cloud operating model that could be currently hybrid that can move from a public cloud data centers to your own data centers to the edge to everywhere in between, including MSPs. VMware provides a great platform that standardizes across that. One of the things that is a driver for VMware customers is their ability to keep their existing workloads without having to modify, refactor or rework them, right? I have a workload that I sit in a data center in a public cloud, if it's on VMware, I simply vMotion or use HCX to move that workload and I could be up and running instantly. On that consistency adds a lot of flexibility, agility and it helps people do things faster. So I think those are my final comments. It was really good to see you, Jeff. Thanks for having us. You too. Thanks for checking in. I think it's the first time we've done one of these but certainly we've spent lots of time together around theCUBE set. So I'm glad everybody's healthy and this two-show pass. So keep working hard, keep delivering those great products and thanks again for stopping by. Thank you, Jeff. All right, it's Matt and Wei. I'm Jeff, you're watching theCUBE. Thanks for watching. We'll see you next time.