 Live from Las Vegas, it's theCUBE, covering AWS re-invent 2017, presented by AWS, Intel and our ecosystem of partners. Welcome back, here we are live on theCUBE, the flagship broadcaster SiliconANGLE media. It's a pleasure to be with you live here at re-invent. Day two of our coverage on with Stu Miniman. I'm John Walls, and we're joined by David Gugrich, who is the senior, or vice president rather, product management at CloudBerry Lab. David, good to see you, how you been? I am really good. It's been a great show. How's this working for you? It's great, these are our customers here. So everybody that walks by says, we have something that can help them do the backup to the cloud. So hey, the CloudBerry guys here, come by and come see us. Let's talk about backup just in general. First off, I mean, just the scene, are people prepared? I mean, are you seeing folks in, whether it's enterprise or medium, small, or is everybody doing what they should be doing in terms of backup these days? I think most customers are moving in that direction. So there was some resistance years ago about using the cloud for backup. But as customers are getting really comfortable with the cloud, especially with Amazon S3, we see a lot of customers looking to start to move their backup architecture to the cloud. So they can de-invest in those old disk arrays and the old hardware that they have in their data centers that they're using for backup. And now they can leverage S3, which is great because it helps with planning. They don't have to worry about their growth because S3 can grow with them. They get built-in disaster recovery because their backups are now off-site and they don't have to worry about some kind of disaster in their data center destroying their backups along with their live data. So every year the business keeps growing and growing and growing as more of our customers start to embrace the cloud. Well, you mentioned customers then. I mean, so what are you hearing then from folks about if they've made this migration mentally at least and they're in the process of doing it within their own environments? What are you hearing from people about whether it's issues that they're now confronting or problems they want you to solve? That's a good question. I think we're hearing a lot this year, unfortunately, is ransomware protection. Everybody sees all the ransomware attacks that are going on and a lot of customers are very concerned about having their backups in their own data centers where the ransomware could actually see their backup files in addition to their live data. So what they really want to be able to do is have local backups, but also have backups in a place protected from any ransomware attacks. The cloud is a perfect place for that. A majority of our customers use Amazon S3 for their backup storage and it kind of gives them exactly what they need, the protection they need. And that's actually something that we've added in the latest release of our Cloudberry backup product is built-in ransomware protection. So we can help customers detect when they're infected by this type of malware and protect their existing backups so they wouldn't get overwritten in any way because of a ransomware attack. David, you mentioned customers trying to figure out where they put their data. I think something we've been looking at for a number of years, we hear Amazon talking about how they see a hybrid or multi-cloud world. Give us your insight as to what your customers, what they're seeing, how are they making that decision point as to where their data lives, where their backups live. We're a cloud agnostic backup vendor, so we have customers bring their cloud storage solution for backup to us. Now, a majority of our customers are using Amazon AWS, not surprisingly, given the market share they have, but we don't provide the data center. And a lot of our customers love that because they can leverage all of the regional access that's available for Amazon AWS. They can keep their EU assets in the EU. They can keep their US-based assets in North America and the United States region. And that's important to them. And what they also want to know is that should they ever decide not to like us anymore, which we hope they won't, the backups are in their own storage. They're theirs to keep. Now, a lot of our customers are still backing up their own on-prem data centers to the cloud, but a lot of our customers are now starting to migrate to EC2. So that's what we hear from our customers. Can you back up our EC2 assets as easily as you're able to back up our assets that are on-premise? And of course, the answer is yes, but we're happy to help those customers as well. Take us into that security discussion. Instead of ransomware or as a hot button, it's a challenging thing. There's lots of things that can trip people up. How does CloudBerry help them? Well, what we do in the software without getting too technical, is we look for changes in encryption in the files. And if we detect a lot of files that are getting encrypted, live data that's getting encrypted, we will make a note of it, notify the administrator, and actually prevent any previous backups from being deleted, which could happen with normal retention settings. Customers may keep three generations' worth of backups for 60 days, and then they may delete them. We want to make sure that those old backups are protected if we encounter something. So we'll notify the admin, they'll get to review exactly what's going on. If they do have a problem, the backups are already protected, and they can do what's called a point-and-time restore to get all their live data back without any worry that it's gone. David, it's interesting. As we have the transition to the Cloud and as customers are doing SaaS, you hear often it's security and things like backup sometimes fall by the wayside, or I think that my platform provider is going to take care of that. Are we getting over that or customers kind of, obviously you're doing well with customers all the time, and usually the bigger the customer, the more resistant they are in moving their assets to the Cloud. And I think that's pretty much gone. I think they're all embracing it. They understand the security mechanisms are in place with the Cloud vendors, especially AWS, that they can protect their assets. So I guess to clarify my question, I wasn't saying that it's stopping them from going to the Cloud. It's sometimes, if they go to SaaS or public Cloud, they say, oh, I don't need to worry about security or backup because won't the platform just take care of that for me? Which of course, it's like, as we know, most of the people are often, oh, I just put an instance in a single zone of Amazon. Oops, I didn't back, I didn't spread it out. I didn't architect it properly. That could be a misconception, but our customers today, understanding that backup becomes critical even when I'm outside of my own data center. I think those customers are. I mean, we do run into occasional customers, it says, why do I need to backup? I have a lot of durability running my environment in this particular Cloud. Why do I need to backup? And I think backup is something you need to be doing. There may be accidental deletions, data can get destroyed, any number of reasons that you want to roll back your SQL server database or your Windows server or just to get back those family photos that maybe you accidentally deleted locally and you weren't backing up. So we serve managed service providers, businesses, and we have a huge consumer base. We are not abandoning consumers, we want to provide backup for them so they can back up to their own private S3 accounts to make sure that their family pictures and videos and their music and all their important personal documents are protected as well. BYOD, right? It brings a whole new up. So how do you deal like costs on one, if you have perpetual backup occurring, right? So a lot of money involved in that, a lot of time being sucked up into that. How do you kind of parcel that out so that maybe certain operations are being done when they can be done and not interfering with other critical parts of a process? Well, we have a couple of different things. We have a SaaS solution that runs in Amazon EC2 and that provides the administrative controls that the backup administrators need to manage large environments. But when it comes to things like backing up over the internet, you want to make sure you have good bandwidth controls in there because there's a limited internet bandwidth that most companies have available. So during business hours, you're not going to want to use all that bandwidth for backup, but you may be able to do that at night. So you want to make sure you have a product like ours that can actually help you do the scheduling of bandwidth to make sure you use appropriate amounts during the day versus at night when maybe you have more available. David, my understanding, you work with a number of service providers also. Could you talk about how that dynamic's changing as to kind of your go-to-market, how customers are working with your solution? Yeah, we have a very strong MSP solution. So the MSPs we work with can white label our product and rebrand it with their own company name, sell it to their own customers and select the storage vendor they want to do the backup and manage it all in a very cost-effective way. I mean, we're really talking much about cost here but we're a very cost-effective solution. So we do a lot of volume business with a lot of companies, a lot of MSPs and a lot of consumers. Yeah, so you teed it up. Let's talk about cost because backup has been hot. For a number of years, there's many players out there. What sets CloudBerry apart from a cost standpoint? CloudBerry, you can start if we're the managed service provider, our managed backup for MSPs or businesses who want sort of like an EC2 thin client control panel for the administration control starts at $49.99 a year for file-based backup, $59 for image-based backup. We do a volume discounts which can bring the price down dramatically from there. And then you work with your storage vendor like Amazon and S3 and you work with them directly to pay them. Now we also can help customers save a lot of money by plugging into Amazon's object lifecycle policies. So we can intelligently move the data from S3 to Glacier after a certain amount of time for long-term archival storage. And just the overall, we're talking so much about the creation of this exponentially increases of data in general these days. So what does that do to you in the backup world? Because you're dealing with a factor of X off the charts more than you were maybe three years ago. Well that helps us because if you've read the analysts reports from Gartner or IDC they've been saying the same thing for probably the last eight years that data is doubling in size every 18 to 24 months. And it's not only data in the data center now, it's laptops, it's your remote workers working on desktops from home, it's your mobile devices, there are more devices there, there's more disk available. So storage is cheaper for your data centers. That means you're just going to collect more data. It's like having a big basement, right? Or an attic in your house. You just tend to push a lot of stuff there. So you're not as diligent about cleaning out the old stuff. So as customers are seeing their data centers grow in size they are now increasingly looking at the cloud as a place to put all of those backups because they just don't have the investment, they don't want to maintain all the hardware, they don't want the personnel. And they certainly don't want to pay for the electricity to power all of these older driver rays just to store backups in the same place where the live data exists, which inherently can be somewhat dangerous for disaster. So that helps us. The more data that's out there the more customers want to come to us for a solution. It's like, why do I want to heat the closet? Right? So, David, thanks for the time. Good to have you here on theCUBE and continue to success at CloudBerry Lab. All right, thanks guys. All right, thanks you. Back with more here live from Las Vegas as we continue our coverage of re-invent. We're coming to you with much more here on theCUBE right after this.