 Okay, welcome back everyone to theCUBE's coverage of AWS re-invent 2021. I'm John Furrier, your host of theCUBE. We are Matt Morgan, Vice President Cloud Infrastructure business group at VMware, CUBE alumni. Matt, great to see you. Can't wait to see you in person, but thanks for coming in remotely for the virtual now hybrid CUBE for re-invent. It's good to see you too, John. Thanks for having us. You know, it's our ninth year covering re-invent. I remember the first year we went there, it was all developers, right? And it reminds me of the story that you guys have with AWS. You know, VMware cloud and VMware with vSphere, pioneered operations in IT, you know, vSphere workloads. But now you move that all in the cloud. I remember Ragu when he announced that deal with Pat Gelsinger and Andy Jassy, we covered it extensively. People were like, what are they doing here? This is interesting. Boy, the dependence, I'll get it wrong. Their relationship has been blossoming. It's been really powerful. Take us through the history here. Thanks, John. I mean, you're absolutely right. We have a phenomenal relationship with Amazon Web Services. The value of our partnership has been realized by customers all over the world and every industry as they embrace the seamless hybrid cloud experience powered by VMware vSphere and of course VMware cloud stack. Of course, we've recently expanded our operations here, including Japan, the launch of the soccer regions, and we're fully open for business with the US federal government with VMware cloud on AWS GovCloud. The strong alignment across the field with new go-to-market teams on both sides and a powerful resell agreement that enables AWS sellers to take VMware cloud on AWS and all the associated VMware services such as VMware cloud disaster recovery NSX vRealize cloud management to their enterprise customers. And we couldn't be doing better. Yeah, and you brought up a lot of things there. You mentioned outposts, mentioned GovCloud. You mentioned marketplace, which means you mentioned the acronym, which is basically, I think it's called EDP credits, which is essentially the enterprise, Amazon's sales force working together. So essentially full business model and technical integrations with Amazon. So success, certainly being demonstrated there. So congratulations, that being said, there's still more to do. We got this whole big wave coming on. You see the edge, you're seeing multi-cloud, you're seeing hybrid becoming the operational model both on-premises and in the cloud. And so customers really are asking themselves, okay, I got VMware, I got AWS cloud, I got to secure these clouds now. I got to start putting the business model together on top of the technical architecture, microservices, Kubernetes, Tanzu, all the things you guys are doing. But customers want to ask you, what about securing the cloud? That's the number one question. What's your reaction to that? Yeah, it's a great topic, John. At the end of the day, this is about evolving the hybrid cloud. And if you think about it, originally the hybrid cloud was about unifying both infrastructure and operations between the on-premises world and the public cloud world. And now what's happening is we are seeing people embrace that in states. And as a result of that, their tier one applications are running both on-premises and in the public cloud. And with our new announced local cloud capabilities with VMware cloud on AWS Outposts, it's leading to this whole new enterprise architecture, which we call the distributed cloud. When you look at deploying enterprise applications in a distributed cloud environment, the conversation starts with consistent networking and importantly security. So let's talk about that for a moment. Customers are asking us, how do we secure our data when we start having infrastructure in a variety of locations? Are applications and networks, are they really secure when they run in these completely different environments? And importantly, when we move an application, we take it from our on-premise data center, we move it to the public cloud. Are the security policies, are they moving with it? Do I need to re-architect for that? And the real question all of this boils down to, are we expanding that attack surface when we move to VMware cloud on AWS? And so we have to come back to, what do we do here to really alleviate these concerns? With data security, it's all about encryption, universal insights. We have this super root capability within our platform to ensure that everything is measured. Every message from an application, every data, it's great for chain of custody audit. Of course, we have backup, DR, ransomware. On the application side, of course segmentation, super important with application-centric firewalls, VPNs, tunneling, EDR, IDS, IPS. And of course, none of that matters if you have to reset everything up every time an application moves. And this is a really unique value proposition for us. It's about portability. We deliver portable security. We can move an application, the APIs are standard. You can move it up to the public cloud, your policies, your integrations, even if it's third party integrations, they're maintained. And that really delivers the ability to say, look, we can make sure your attack surface is not expanding. It's a controlled environment for you. And that really shrinks the risk vectors associated with moving to this distributed cloud environment. You know, that's the really, I think the key point I think that you brought up this infrastructure kind of table stakes, which keeps rising because security is now there's no perimeter, it's huge surface area. Everything has to be secured and locked down. And the big theme at Reinvent this year is data, right? So data and security all go hand in hand. And so that brings up the aspect of the edge. The edge is now booming. You're seeing 5G again, you're hearing it here at Reinvent again, more and more 5G. You mentioned local services, outposts evolving. This is kind of the new area. It's certainly an attack vector as well. So you mentioned this whole local services. Take me through that because this becomes interesting because this is an architectural issue for enterprises to figure out, okay, I got to distribute a computing architecture, it's called the cloud and multiple clouds. Now I got this edge. Whole nother opening opens up the case for the architecture conversation. What's the strategy? How do you guys view the case? How do you make the case for local services? So we were super excited to announce VMware cloud on AWS outposts. This is a local cloud as a service offering. So let me break that down a little bit. Of course, compute at the edge is nothing new, but the problem with traditional approaches is typically edge locations may lack IT excellence, which means there's no one there to manage the service. VMware cloud on AWS outposts is a local cloud as a service, meaning it's fully managed. And at the edge, that's a perfect fit. It's hand in glove for those type of workloads that are pushed all the way out, whether it's part of an agricultural deployment or an energy production facility or a retail store where there isn't that typical IT excellence. VMware cloud on AWS outposts enables customers to deploy the same cloud instance as they're running in VMware cloud on AWS, but be able to do it out at that edge environment. And when you look at the overall value of VMware cloud on AWS outposts, it's about delivering a simpler, cost-effective, consistent cloud experience for those on-prem environments that matches the operating model of the public cloud. Think of the places that you really want to have cloud infrastructure, whereas critical, going back to your point on data, getting real-time insights on that data to be able to process that, we call those perishable insights. The value is the immediacy, understanding that value, specific to the moment it's being captured. Think about the different types of sensor environments where data's coming off expensive equipment that's measuring temperature and speed, understanding that value, back to the operator, really, really important. You don't have time to pipe that data up to a cloud process it and send the results back down. Edge environments require that real-time stuff. So together with AWS, we jointly deliver a fully managed service right down to the AWS hardware on which we built the VMware cloud instance. We think about where we're seeing the most interest here, you can look across all kinds of industries and use cases and we're seeing it specifically in healthcare out of the hospital, manufacturing for equipment monitoring, government, higher education, where those end points are typically virtualized. There are others, but these are the big ones so far. You know, I was just talking to an AMD executive or product marketing person on the gaming side and they're living this right now because they're putting all the virtual collaboration in the cloud, all the data because they have so much data and they have so much need for these special instances, whether it's GPUs and CPUs, a mix and match. So as instances become more special-purposed, that's going to enable them to have more productivity. But then when you have that baseline in the cloud, the edge also has processing power. So I think people are starting to see this notion of, okay, I'm in the cloud, but I can also have that cloud edge without moving data back to the centralized cloud and processing it at the edge with software. This is real. It's super real. And the one that really resonates with customers is one that we all understand and that's healthcare. Anytime you're in a regional environment, where you're at a hospital, think of an ICU, the criticality of that data being processed, providing the insights, this is more mission-critical than any other environment because we're dealing with human lives. Think about the complex compute requirements of that environment. And then look at the beauty and elegance of this system, a cloud-based system on-premises, doing that compute, providing those insights, giving reality back to the clinician so they can make those decisions. Healthcare is super, super important and we see customers across the spectrum looking at what's happening at the edge and embracing it, whether it's healthcare or other industries. And again, it's a perfect fit for that. Yeah, real quick, before we move on to what's new, I want to get to that, the Tanzu stuff as well. What other industries are popping out? Obviously manufacturing, what can you talk of some industries and some verticals that are really primed for this local cloud service? So let's talk about manufacturing for a moment. Manufacturing is another facility-oriented compute requirement that is perfectly fit from a system and solution like VMware Cloud on AWS Within the manufacturing environment, there's tons of very critical machines. There's inventory management. There's a combination of time management, people management, bringing it all together to ensure that process lines are moving as required, that inventory is provided at the specific moment it's needed and to make sure that everything, especially in today's supply chain world is provided when is required. This type of capability allows an organization to bring in that sensor data, bring in that inventory data, produce applications that manage that in real time, delivering that compute and in the manufacturing floor, again, limited IT excellence. So this provides that capability. Another one is energy production. Think about energy production that's out in the field in North Dakota or element oil rig that might be in the Gulf of Mexico. Not only are you dealing with lack of IT excellence, you're also dealing with limited connectivity. This equipment needs to be monitored and censored and the data from those sensors help drive critical decisions and with limited connectivity, I mean, you may not even have an LTE signal, the need to do that real time is paramount. Local cloud provides that capability. Yeah, and I'd also just add, because we got to move on about it, higher ed is going to be completely transformed. Well, I think that's going to be kind of like a complete revamp. Let's get into what's new on VMware cloud on AWS. Give us the update on the new things that people should know about. That's important that they should review. Take us through that, what's new. Yeah, absolutely. So the first is the integration with the AWS console. This is a big thing that we're delivering because VMware cloud on AWS is a native service of AWS. I have to kind of say that twice. It's a native service of AWS. And because of that, we get the same operational and commerce experience for VMware cloud instances as customers do with traditional AWS services. This means customers now have a choice between AWS centric operating model, which is highly relevant to DevOps and developers or VMware centric operating model, which is very relevant to conditional operators and IT users. VMware cloud on AWS GovCloud is expanded to the US East Virginia region and achieved IL-5 certification. This new region will make the service more relevant for the Eastern Seaboard where much of the federal government resides. And of course with IL-5, it opens up VMware cloud on AWS to the US military and defense contractors, which is huge. There's massive cloud transformation contracts currently in play. And of course VMware cloud on AWS GovCloud provides the most secure enterprise cloud for those DoD customers, especially when they focus on those critical tier one workloads. It's been three years since the GA of the VMware cloud on AWS has been earlier since you announced it. You're pumping on all cylinders. As we had predicted, others didn't just FYI for the folks watching. What's the final vibe and the segment with your view of what's going on with VMware cloud on AWS? What's the bumper sticker? So at the end of the day, every customer is looking to migrate and modernize their workloads. And VMware cloud gives them that capability to do it faster than anyone else. Customers take their applications of tier one applications, move it to that secure distributed cloud construct, that idea of having VMware cloud on AWS sharing all those security policies, all of that consistent infrastructure and operations. And then they can modernize those applications using all of those cloud services and the ability to use Tanzu to containerize where applicable. We're excited about these capabilities and our customers are adopting it faster each and every year. And we're thrilled about the traction we had and we're thrilled about the partnership we have with Amazon Web Services. So lots more to come in this space. A lot of great stuff. People moving up the stack on the cloud, you're seeing more refactoring in the cloud, Matt Morgan, great to see you. We've been talking about this for years on theCUBE, great to come on and give some insights. It's all happening, infrastructure is code. And everyone's winning with containers and microservices. So great stuff. Thanks for coming on. Thanks a lot, John. Take care. Okay, Matt Morgan is the VP of Cloud Infrastructure Business Group at VMware. This is theCUBE's coverage of AWS Reinvent 2021. I'm John Furrier, your host. Thanks for watching.