 We're back at Veeamon 2022. We're here at the Aria Hotel in Las Vegas. This is theCUBE's continuous coverage. We're in day two. Welcome to the CXO session. We have CEO, CTO, CSO, Chief Strategy Officer, Brett Diamond is the CEO, Justin Giordina is the CTO and Dante Orsini is the Chief Strategy Officer for 1111 Systems. Recently named, I guess today, the Impact Cloud Service Provider of the Year. Congratulations guys, welcome. Thank you. Welcome back to theCUBE, great to see you again. Thank you, great. Likewise. So, okay, Brett, let's start with you. Tell us, give us the overview of 1111, your focus area. Talk about the island acquisition, what that's all about, give us the setup. Yeah, so we started 1111 really with a focus on taking the three core pillars of our business, which are cloud connectivity and security. Bring them together into one platform, allowing a much easier way for our customers and our partners to procure those three solution sets through a single company. And really focus on the three main drivers of the business, which have a litany of other services associated with them under each platform. Okay, so Justin, cloud connectivity and security, they all dramatically changed in the March of 2020. Everybody had to go to the cloud, we had to rethink the network, had a secure remote worker. So what did you see from a CTO's perspective? What changed and how did 1111 respond? Sure, so early on when we built our cloud, even back into 2008, we really focused on enterprise grade features, one of which being very flexible in the networking. So we found early on was that we would be able to architect solutions for customers that would dip in their toe in the cloud and set ourselves apart from some of the vendors at the time. So if you fast forward from 2008 until today, we still see that as a main component for IaaS and DRaaS and the ability to start taking into some of the things Brett talked about where customers may need a point to point circuit to offload data connectivity to us or develop SD-WAN and multi-cloud solutions to connect to their resources in the cloud. In my opinion, it's just the natural progression of what we set out to do in 2008. And to couple that with the security, if you think about what that opens up from a security landscape, now you have multiple clouds, you have different ingress and egress points, you have different people accessing workloads in each one of these clouds. So the idea or our idea is that we can layer a comprehensive security solution over this new multi-cloud networking world and then provide visibility and manageability to our customer base. So what does that mean specifically for your customers? Because we saw obviously a rapid move toward endpoint, cloud security, identity access, people really started thinking, rethinking that as opposed to trying to just build a moat around the castle. What does that mean for your customer? You take care of all that, you partner with whomever you need to partner in the ecosystem and then you provide the managed service, how does that work? Right, it does and that's a great analogy. You know we have a picture of a hamburger in our office exploded with all the components and they say a good security policy is all the pieces and it's really synonymous with what you said. So to answer your question, yes. We have all that baked in the platform, we can offer managed services around it but we also give the consumer the ability to access that data whether it's a UI or API. So Dante, I know you talk to a lot of customers. All you do is watch the stock market go like this and like that and you say, okay, the pandemic drove all these, but when you talk to CISOs and customers, a lot of things are changing permanently. First of all, they were forced to march to digital when previously they were like, eh, we'll get there. I mean, a lot of customers were, let's face it. I mean, some were serious about it but many weren't. Now if you're not a digital business, you're out of business. What have you seen when you talk to customers in terms of the permanence of some of these changes? What are they telling you? Well, I think we go through this ourselves, right? Business continues to grow, you've got tons of people that are working remotely and they're going to continue to work remotely, right? As much as we'd like to offer up hybrid workspace and things like that, some folks are like, hey, I've worked it out. I'm working out great from home, right? It also, I think what Justin was saying also is we've seen time go on. That operating environment has gotten much more complex. You've got stuff in the data center, stuff at somebody's end point. You've got various different public clouds, different SaaS services, right? That's why it's been phenomenal to work with Veeam because we can protect that data regardless of where it exists. But when you start to look at some of the managed security services that we're talking about, we're helping those CISOs get better visibility, better control and take proactive action against the infrastructure when we look at threat mitigation and how to actually respond when something does happen, right? And I think that's the key because there's no shortage of great security vendors, right? But how do you tie it all together into a single solution, right? With a vendor that you can actually partner with to help secure the environment while you go focus on the things that are more strategic to the business. I was talking to Jim Mercer at Red Hat Summit last week, he's an IDC analyst and he said, we did a survey, I think it was last summer and we asked customers to your point about there's no shortage of security tools. How do you want to buy your security? And do you want best to breed bespoke tools and you sort of put it together or do you kind of want your platform provider to do it? Now surprisingly, they said platform provider. The problem is that's aspirational for a lot of platforms providers. So they got to look to a managed service provider. So Brett, talk about the island acquisition, what green cloud is, how that all fits together. So we acquired island and green cloud last year and the reality is that the people at both of those companies and the technology is what drove us to making those acquisitions. They were the foundational pieces to 11-11. Obviously the things that Justin has been able to create from an automation and innovation perspective at the company is transforming this business in a litany of different ways as well. So those two acquisitions allow us at this point to take a cloud environment on a geographic footprint not only throughout the U.S., but globally, have a security product that was given to us from the green cloud acquisition of Cascade and add on connectivity to allow us to have all three platforms in one, all three pillars. So like 11-11-11 that's near and dear to my heart. So where did the name come from? Everybody asked me this question. I think five times a day. So growing up as a kid, everyone in my family would always say 11-11 make a wish whenever you'd see it on the clock and during COVID we were coming up with a new name for the business. My daughter looked at the microwave, said dad it's 11-11, make a wish. The reality was though, I had no idea why I'd been doing it for all that time and when you look up kind of the background origination, derivation of the word, it means the time of day when everything's in line and when things are complex, especially with running all the different businesses that we have aligning them so that they're working together. It seemed like a perfect meeting. So when I had the big corner office at IDC I had my staff meetings at 11-11 because the universe was aligned and then the other thing was nobody could forget the time so they gave me 11 minutes to be there. And now you'll see it all the time even when you don't want to. So Justin, we've been talking a lot about ransomware and not just backup but recovery. My friend Fred Moore coined the phrase backup is one thing, recovery is everything. And recovery time, network speeds and the like are critical, especially when you're thinking cloud. How are you architecting recovery for your clients? Maybe you could dig into that a little bit. Sure, so it's really a multitude of things. You mentioned ransomware, seeing the ransomware landscape evolve over time, especially in our business with backup and DR. It's very singular, people protecting against host nodes. Now we're seeing ransomware be able to get into an environment, land and expand, actually delete backups, target backup vendors. So the ransomware point, I guess trying to battle that is a multi-step process. You need to think about how data flows into the organization from a security perspective, from a networking perspective. You need to think about how your workloads are protected. And then when you think about backups, I know we're at Veeamon now talking about Veeam, there's a multitude of ways to protect that data, whether it's retention, whether it's immutability, air-gapping data. So while I know we focus a lot sometimes on protecting data, it's really that hamburger analogy where the sum of the parts make up the protection. So how do you provide services? I mean, you say, okay, do you want immutability? There's a line item for that. You want fast RPO, fast RTO. How does that all work as a customer? What am I buying from you? Is it just a managed service we'll take care of everything? Platinum, gold, silver, or is it? If you don't mind. So I'm glad you asked that question because this is something that's very unique about us. Years ago, his team actually built the IP because we were scaling at such an incredible rate globally through all our joint partners with Veeam that how do we take all the intelligence that we have in his team and all of our solution architects and scale it? So they actually developed a tool called Catalyst. And it's a pre-sales tool. It's an application, you download it, you install it. It basically takes a snapshot of your environment and you start to manipulate the data. What are you trying to do Dave? Are you trying to protect that data? Are you backing up to us? Are you trying to replicate for DR purposes? You know, what are you doing for production or maybe it's a migration? It analyzes the network. It analyzes all your infrastructure. It helps the SEs know immediately if we're a feasible solution based on what you are trying to do. So nobody in the space is doing this and that's been a huge key to our growth because the channel community as well as the customer they're working with real data. So we can get past all the garbage and get right to what's important for them to the outcome. Yeah, that's huge. Who do you guys sell to? Is it more mid-sized businesses that maybe don't have the large teams? Is it larger enterprises who want to complement to their business? Is it both? Well, I would say with the two acquisitions that we made, the go-to-market sale strategies and the clientele were very different. When you look at GreenCloud they're selling predominantly wholesale through MSPs and those MSPs are mostly selling to SMBs, right? So we covered that SMB market for the most part through our acquisition of GreenCloud. Island, on the other hand, was more focused on selling direct inbound through VARs, through the channel, mid-enterprise, big enterprise. So really, those two acquisitions outside of the IP that we got from the systems, we have every single go-to-market sale strategy and we're aligned from SMB all the way up to the Fortune 500. I heard a stat a couple of months ago that less than 50% of enterprises have a sock. It blew me away. And even small businesses need one, they may not be able to afford it, but there's certainly a medium-sized or larger business should have some kind of sock. Is that stat job with what you're seeing in the marketplace? 100%. If that's true, the need for a managed service like this is going to explode, it is exploding. Yeah, I mean 100%. There is zero unemployment in the cyberspace, right? Just North America alone, there's about a million or so folks in that space and right now you've got about 600,000 open recs just in North America, right? So earlier we talked about no shortage of tools, right? But the shortage of headcount is a significant challenge, big time, right? Most importantly, the people that you do have on staff, they've got alert fatigue from the tools that they do have. That's why you're seeing this massive surgeons in the managed security services provider. Lack of talent is the number one challenge for CISOs, that's what they'll tell you. And there's no end in sight to that and it's another tool, and it's amazing because you see security companies popping up all the time. Billion dollar valuations, I mean Lace worked in a billion dollar raise and so there's no shortage of funding, now maybe that'll change with the market but I wanted to turn our attention to the keynotes this morning, you guys got some serious love up on stage. There was a demo, it was a pretty cool demo, fast recovery, very tight RPO as I recall. I think four minutes of data loss, is that right? Was that the right net stat? I was happy it wasn't zero data loss because it's really no such thing. But so you got to feel good about that. Tell us about how that all came about, your relationship with Veeam, who wants to take it? Sure, I can take a stab at it. So one of the, or two of the things that I'm most excited about at least with this Veeam on is our team was able to work with Veeam on that demo and what that demo was showing was some CDP based features for cloud providers. So we're really happy to see that and the reason why we're happy to see that is that with the Veeam platform, it's now given the customers the ability to do things like snapshot replication, CDP replication, on-prem backup, cloud backup, immutability, air gap, the list goes on and on. And in our opinion, having a singular software vendor that can provide all that through, with a cloud provider on-prem or not is really like the icing on the cake. So for us, it's very exciting to see that. And then also coupled with a lot of the innovation that Veeam's doing in the SaaS space, right? So again, having that umbrella product that can cover all those use cases. I'll tell you, if you guys can get a, that was a very cool demo. If you can get a YouTube of that demo, I'll make sure we put it in the show notes of this video or maybe pop it into one of the blogs that we write about it. So how do you guys feel? I mean, this is a new chapter for you, very cool with a couple of acquisitions that are now the main spring of your strategy. So the first Veeam on in a couple of years. So what's the vibe been like for you? What's the nighttime activity, the customer interaction? I know you guys are running a lot of the backend demos. So you're everywhere. What's the vibe like at Veeam on? And how does it feel to be back? I'll give that one a Dante, as far as the vibe so far. Yeah, you got a lot of experience. Yeah, let me loose on this one, Dave. I'm like so excited about this, right? It's been far too long to get face-to-face again. And Veeam always does it right. And I think that for years, we've been back-ending like all the hands-on lab infrastructure here, but forget about that. I think the part that's really exciting is getting face-to-face with such a great team, right? We have phenomenal architects that we work with at Veeam, day in and day out, they put up with us, pushing them, pushing them, pushing them. And together we've been able to create a lot of magic together, right? But I think you can't replace the human interaction that we've all been starving for for the last two years. But the vibe's always fantastic at Veeam. If you're going to be around tonight, I'll be looking forward to enjoying some of that Veeam love with you at the after-party. Yeah, that's well. Famous after-parties, we'll see if that culture continues. I have a feeling it will. Brett, where do you want to take 11-11? New phase in all of your careers. You got a great crew out here, it looks like. I love that you're all out. And make some noise here, people. Let's hear it. All right, let's see. This is the biggest audience we've had all week. Where do you want to take 11-11? I think if you look at what we've done so far in the short six months since the acquisitions of Green Cloud and Island, obviously the integration is a key piece. We're going to be laser focused on growing organically across those three pillars. We've got to put more capital and resources into the incredible IP, like I said earlier, that Justin and his team have created on those front ends, the user experience. But we made two large acquisitions. Obviously, M&A is a key piece for us. We're going to be diligent. And we're probably going to be very aggressive on that front as well to be able to grow this business into the global leader of cloud connectivity and security. And I think we've really hit a void in the industry that's been looking for this for a very long time. And we want to be the first ones to be able to collaborate and combine those three into one. When the cloud started to hit the steep part of the S-curve kind of early part of last decade, people thought, oh, wow, these managed service providers are toast. The exact opposite happened. It created such a tailwind and need for consistent services and integration and managed services. We've seen it all across the stack. So guys, wish you best of luck and congratulations on the acquisitions. Thank you. Hope to have you back soon. Absolutely. You're on the block. All right, keep it right there, everybody. Dave Vellante for theCUBE's coverage of VMON 2022. We'll be right back after this short break.