 Hey, welcome back everybody, Jeff Frick here with theCUBE. We're at our Palo Alto studio today for a CUBE conversation and we're excited to have from Druva, a very hot company in the storage base, Dave Packer, the VP of Corporate and Product Marketing from Druva, welcome Dave. Thank you, it's great to be here. I appreciate it. Absolutely. So last week, I'm sure you were there, we were there at AWS re-invent. Right. What'd you think? I was a great event, especially for Druva, it was one of these events where we came out as one of the top storage vendors for AWS. And during their keynote, they showed a bunch of categories around storage vendors. We were in two of them in the top five. And another thing was when we announced our AWS Marketplace introduction of our Phoenix product line which focuses in on server data. And so that was big as we were one of 11 vendors that AWS picked to be part of that program. And what it does is allows organizations to actually go directly to the Marketplace, purchase our product, use it, and basically on a regular basis, renew or do whatever they want to do. So it's actually, it's a new way of doing it. It's really exciting actually. Okay, well let's back up a couple of steps for people that aren't as familiar with Druva. A little bit the history of the company. So you guys are your storage, cloud storage and backup and replication, security. Give us kind of the four one one. Yeah, so we characterize Druva as being cloud information management. Ultimately, we were founded in 2008. Our focus has really been on, how do you help businesses, especially today where data becomes so much more fragmented and dispersed? How do you enable businesses to still have the visibility, the accessibility, the availability of their data? So when you think about it, organizations are faced with end users on laptops or using cloud services or using mobile devices. You have servers. You just have data going everywhere. But as a business, you're still required to kind of be the steward of your data, especially sensitive information, financials, health care. There's pesky words like governance, compliance, those types of things. Exactly, I'll come into play still. So the legacy models, which were really designed to be on-premises and try to address those things have fallen short because of the way data's changed so much in the last five years, kind of where it's located and everything. So as Drew was matured as a company, our focus has really been to help businesses and enterprises get that visibility, that manageability over the data in a way that they can kind of bring that all together and get a holistic view on a worldwide global basis if necessary. Right, and you guys took a kind of a cloud approach early on, you kind of saw the benefits of doing that versus kind of the traditional way. Right, so we're really fortunate because being founded in 2008 gave us a huge advantage, which was cloud was just becoming something at that point in time, which from our CTO's office point of view was this is something we need to grab onto and run with and we had the foresight to see that this was gonna be a huge market opportunity. And so we developed to be 100% cloud native. And so what that means is at the end of the day we can provide businesses not only kind of a global reach for their data centers and where they want their data and how they wanna manage it because there's a lot of data regulations out there today that require maybe data to be in Germany or data to be in the UK or the US. And so we wanted to make sure that companies couldn't adhere to those. But also it gives us a form of elasticity and capacity that's unmatched by anything you could do on premises. And I'll give you a case in point is one of the big challenges, especially when you start talking about compliance and you start talking about governance and legal data handling. One of the big issues companies have had in the past is they've depended on systems that require them to build a ton of infrastructure to support. They didn't understand really what it would take to make it happen. They wound up babysitting it a lot. And so the cost just skyrocketed. In the cloud, you can kind of like take that off the table completely. And the elasticity is there so you can get things like real time indexing of data. Things that you wouldn't be able to months before to do the premises. And so we've been able to bring these to bear so companies can have these different ways of managing information all on a single data set. Which when you really think about it, in the old world, I'd have a data set for my archive, I'd have a data set for my backup, I'd have a data set for my governance capabilities and for my search, we merge that all together, single data set, no replication, all in the cloud. Interesting. So I think a big thing that came out of the re-invent show was a couple of people such kind of AWS 2.0, that clearly enterprises have bought into the vision. We saw Andy Jassy and Pat Gelsinger on stage together earlier this year talking about a partnership. So clearly enterprises are now, they get it, right? I'm curious, your perspective is kind of the, one of the early knocks on cloud was the whole security conversation. And how that's evolved over time from your early days where it was probably a big sales objection that you had to overcome to now, in fact, one might argue that it's actually more secure to be at a third party. Yeah, it's an excellent, it's an excellent point. Because I'd agree, three, four years ago when I first started with a company, I actually took on enterprise security as kind of one of the areas I was managing to help the kind of our sales team. And it was a big issue. And it was one of these things where the conversation always came back to security, my data's more secure on premises. But there's two, I'd say there's two things that have evolved. One is, and I'll make a couple points on this, is one is that 99% of the largest breaches in the last three years have been all on-premises systems. And you can go back to something like Sony, which was two years ago, and see one of the things that I challenge is, I talk about it's kind of like the M&M problem, right? Where companies have invested really heavily in security at the perimeter, but internally it's not as strong, right? There's a lot of clear text transmission happening. So if a hacker or even an internal person wants to go in and start misappropriating information or going after it, they have access to all these systems and pretty simply can move from one system to the next. A lot of people don't realize that Sony had to actually have a HIPAA breach notification because when that breach happened, they went into the HR system, they were able to pull data that was relevant to healthcare information and that required a breach notification on that. And so we see that that's one issue companies face. The second is that if I were to go through my top 10 list of customers, they are government contractors, pharmaceutical companies, medical companies, all companies that are heavily regulated and you have a high or maybe a low tolerance for security risks. But in our conversations with them, what they've come back and told us is that when we do our own infosec reviews in our own systems and we started thinking we've got to stand up systems internationally, maybe multiple data centers in the US, there's no way that we can staff it and address all the security issues with the rate of change that these things are happening at and they've fully embraced the cloud. We have customers that back up into GovCloud, which is the AWS specifically for US government agencies. Right, Teresa Carlson's group. Right, and so we're right at actually, Druva's right at the tail end of being FedRAMP certified as well. So these are all things that really attest to how strong the security is in the cloud that everybody's having this confidence. And so it's less of an inhibitor. I think where we do occasionally see it is more internationally. Companies are still trying to get a feel of cloud and what that means to them. It's just funny to me because there's so many places where you need to focus on your competitive differentiator and you outsource the parts that are not your core business. And how can you compete in James Hamilton's thing on Tuesday night with James Hamilton, which I'm sure you attended and he just talked about the scale and their networks and laying cable across oceans and all these things that you can't do if your core business is selling insurance or selling cars or doing whatever. Right, well there's a difference between an InfoSec team of 10 and an InfoSec team of 2,000. Right, right, right. It's funny to me. So just another question, Begg. So you're in the storage business and you partner with Amazon. Amazon S3 is like one of their core products. So how does that work with kind of a third-party value add service like you guys within the context of a cloud provider like in Amazon that's got some of the core basics already? Yeah, so that's the way to understand, Druva, is what we're doing is we're helping you get your data, consolidating it and getting insight into that data. And so let's have just a pure storage play. We definitely use Amazon storage, we use S3, S3IA, we use Glacier, we implement what's called auto-tiering. So you're using all that stuff kind of under your covers for your infrastructure. So it's under, we look at, best way to think about it is we look at Amazon like an operating system. And so the operating system provides some database functionality, provides storage functionality, memory, compute. And we're optimizing all those things to provide a customer an application that provides the value that they're looking for. Like Amazon can't manage legal holds for terabytes of data through the legal process. We handle that for customers. Amazon won't provide compliance monitoring. Like as data's coming into our system we can look for healthcare information, we can look for other sensitive data types, PII, PCI type data, we can then provide alerts and information back to an administrator or a compliance manager about what is there, right? And so it's about those insights. And that's why, you know, Druva as a company, why we have done so well. It's, you know, we just were funded back in September for our E-Round, 51 million dollars led by Sequoia Capital. You know, it's about this idea of in today's environment, how do you give companies back that insight, that visibility, you know, and again, I'll harken it back to legacy, you know, you go back, even remind the clock six years, most companies would say, oh, I felt really comfortable because everything was fire behind the firewall. So I knew at least for 80% of my data was, even if I didn't know everything about it, at least I had some confidence. Today that confidence is down to like 20% because it's, well, it could be an Office 365, it could be in Box, it could be in Salesforce, it could be, you know, you name it, or it could be on somebody's mobile device, right? And if I don't know where it is, that's gonna create big issues for me. And I'll talk about, you know, Advocate Healthcare in Illinois that just in August received a 5.5 million dollar fine for HIPAA violation. Largest HIPAA fine ever allocated out to a company, right? And the reason is- Which basically means they exposed. Right, so, you know, they had to give a breach of notification because healthcare data was compromised, right? And so what companies are starting to realize or experience is that these regulations are becoming tighter. They're becoming much more stricter oversight of them. And probably the scariest one for a lot of organizations where there's a lot of question marks is GDPR, which is the new EU, kind of a sensitive data protection regulation that's analogous to HIPAA in the United States, but covers the whole EU. And anybody who's doing business in the EU has to know, you know, whose data is where, who has it, what the sensitivity is, what the risk is, what the security is on that. And it's unique in the EU because they have a right to be forgotten clause, which means like, hey, if I call and contact you and I say, I don't want you to have any information about me anymore, you've got to go through and forget where all that is and expunge it, right? So it's a real, it's a real challenge. So those are the- You guys deal in those types of problems as well. Right, so you know, we're helping companies get those types of problems to solve too. And then there's the availability cycle. How do you, you know, systems go down, I lose laptops, people leave their device on a train. You know, how do we make sure that data's recoverable, right? And so we solve that challenge. And then oh, by the way, there's this little thing called big data. And IOT and mobile data that's just, you guys have seen that thing just explode, right? Right, right. Yeah, it's funny, we do some stuff with GE and everybody loves to talk about the airplane engine data, right? When the airplane's flying, it gives off so many terabytes, blah, blah, blah. But you know, as it's crossing international borders in Europe, where's the data supposed to go? I think that's kind of an interesting question with data sovereignty. German data, French data, Spanish data. Right, right. Yeah. And those are the sovereignty issues are actually a real big challenge for a lot of businesses. And you know, we've talked to a lot of companies, they come to us and say, hey, you know, we're going into, you know, Germany, what do we need to do? And you know, we have some best practices companies should follow, especially when they're thinking about adopting cloud in like Germany or, you know, we get questions about Russia or China or Singapore, you know. And each one is, I got its own little nuance, you know. And you have to understand those variations and why the laws were written the way they were. But you know, to your point, you know, yeah, a plane flying, transmitting data, who knows, right? And just to kind of come full circle on the AWS show and the fact that the enterprises have adopted that. So this brings up the concept of the whole hybrid cloud, right? Because there's still legacy applications, legacy vendors, legacy systems that are still running big mission critical applications on-prem. Even if the company itself is doing either USB test dev, now it's Greenfield projects starting to migrate historical things to the cloud. How does that change a challenge for the folks managing that data and how have you guys kind of seen that evolution impact your business? Kind of this hybrid cloud notion, if you will. Yeah, so you know, when we look at hybrid cloud, you know, we fully understand that for the foreseeable future, you know, enterprises are gonna have a lot of workloads on-premises. You know, especially real high transaction systems. It's hard to move those to the cloud. There's a lot of legacy infrastructure there, technology sets. The pesky thing, like the speed of light, which is very slow. Yeah, exactly, right, right. So, you know, our focus has been on, you know, in our world, you can go direct to cloud with everything, if you want to. We have a large portion of our customers, that's all they do is go direct to cloud. We do provide the ability to have caching servers, which is basically a software appliance. Companies can solve that on-premise. It'll cache locally, so the data doesn't have to go direct to clouds. You don't have to worry about the latencies and all those other issues. You can do recovery directly out of the cache, things like that. So, we have ways to address that for those types of environments and those types of systems. One thing we do do, though, that is unique. If you have a very heavy VM environment and you want to do disaster recovery, we can take those images and spin them up in the AWS cloud before you, as well. So, that's a, our Phoenix product actually allows you to take those. We convert them automatically into AMIs. You can configure them for failover. And then we'll actually push them into customers' AWS accounts. So, you get around a lot of the security, manageability issues of failover. So, it's actually, it's a very kind of elegant way of handling that migrations test of replication. So, we're coming to the end of our time and we're coming to the end of 2016. We're answering the calendar here in a couple of weeks. As you look forward to 2017, whether some things you're excited about, what do you look forward to? What's kind of on your roadmap for the next 12 months? You know, I guess the things that really kind of get me kind of like get, you know, passionate about what we do is that I think there's a lot of opportunity to get more from data. That's, you know, you think about where the cloud, if you could massively store a whole enterprise's data set, right? What you can actually pull from that, you know? Whether that's through machine learning, whether that's digging in, search, mining. I think what I'm starting to see is something that companies have been trying to sell for years actually coming to a solution, right? And that's a, I think between that and some of the new technologies we see kind of evolving and microservices, et cetera. Also, the cloud becoming even more cost efficient for customers. You know, one of the things you talked about security, the other thing customers typically will talk about is the cost of cloud. Wow, it's too expensive. It's way more than what I would pay for on premise. And what we try to explain to people is that if you were going with the legacy model that has been retrofitted into the cloud, if you take something that's expensive on premise, you put it on the cloud, it's going to be twice as expensive, right? That's really what's burned a lot of people. And that's why I really try to advocate, you know, being a 100% cloud native stack, you know, we are starting to leverage microservices inside of AWS. It's all about getting, compressing those cost efficiencies to make it more beneficial to customers. I think we're going to see a lot more of that next year where companies start waking up to, wow, this is actually much more cost effective way for our business. Right, and you can do so much more. Get out of that legacy mindset if you will. All right, Dave. Well, thanks for taking a few minutes to stop by on a Friday morning, a little bit of rain in Palo Alto, which we need more and more and more rain. So he's Dave Packer. I'm Jeff Rick. You're watching theCUBE. We'll catch you next time. Thanks for watching.