 Good afternoon from the Venetian Expo Center Hall, whatever you want to call it in Las Vegas. Lisa Martin here, it's day four. I'm not sure what this place is called. Wait, what? Lisa Martin here with Dave Vellante. This is theCUBE. This is day four of a ton of coverage that we've been delivering to you, which you know because you've been watching since Monday night. Dave, we are almost at the end. We're almost at the show wrap. Excited to bring back, been talking about security, a lot about security. Excited to bring back an alumna to talk about that, but what's your final thoughts? Well, so just in the context of security, we've had just three in a row talking about cyber, which is like the most important topic. And I love that we're having Palo Alto Networks on. Palo Alto Networks is the gold standard in security. Talk to CISOs, they want to work with them. And it's interesting because I've been following them for a little bit now, watch them move to the cloud. Had a couple of little stumbling points, but I said at the time they're going to figure it out and come rockin' back and they have and the company's just performing unbelievably well, despite all the macro headwinds that we love to talk about. Right, and we're going to be unpacking all of that. With one of our alumni, as I mentioned, Ankur Shah is with us, the SVP and GM of Palo Alto Networks. Ankur, welcome back to the queue. It's great to see you, it's been a while. It's good to be here after a couple years. Yeah, I think three. Yeah, yeah, for sure, yeah, yeah. It's a bit of a blur after COVID. Everyone's saying that. Are you surprised that there are still this many people on the show floor because I am? Yeah, look, I am not. This is my fourth. Last year was probably one-third or one-fourth of the size, but pre-COVID, this is what dream went look like. And it's energizing, it's exciting. It's just good to be doing the good old things. So many people and amazing technology and innovation. It's been incredible. Let's talk about innovation. I know you guys from Palo Alto Networks recently acquired CIDR Security. Talk to us a little bit about that. How is it going to complement Prisma? Give us all the scoop on that. Yeah, for sure. Look, some of the recent cybersecurity attacks that we have seen are related to supply chain, the colonial pipeline, many, many supply chain. And the reason for that is the modern software supply chain, not the physical supply chain, the one that AWS announced, but this is the software supply chain. It's really incredibly complicated. Developers are building and shipping code faster than ever before. And the CIDR acquisition at the center, the heart of that was securing the entire supply chain. White House came up with a new initiative on supply chain security and S-bomb software bill of material. And we needed a technology, a company, and a set of people who can really deliver to that. And that's why we acquired that for supply chain security. Otherwise known as CICD security. CIDC security. So how will that complement Prisma Cloud? Yeah, so look, if you look at our history, Lisa, over the last four years, we have been wanting to, our mission has been to build a single code to cloud platform. As you may know, there are over 3,000 security vendors in the industry. And we said, enough is enough. We need a platform player who can really deliver a unified, cohesive platform solution for our customers because they're sick and tired of buying pipeline product. So our mission has been to deliver that code to cloud platform. Supply chain security was a missing piece. And we acquired them. It fits really nicely into our portfolio of products and solution that the customers have. And they'll have a single pane of glass with this. So there's a lot going on. You've got an adversary that is incredibly capable these days and highly motivated and extremely sophisticated, mentioned supply chain. It's caused the shift in CISO strategies. We talked about the pandemic, of course, we know work from home, that changed things. You've mentioned public policy. And so as well, you have the cloud, the cloud relatively new. I mean, it's not that new, but still. But you've got the shared responsibility model. And not only do you have a shared responsibility model, you have a shared responsibility across clouds and on-prem. So yes, the cloud helps with security, but the CISO has to worry about all these other things. The app dev team is being asked to shift left, secure. And they're not security pros. And audit is like the last line of defense. So I love this event. I love the cloud. But customers need help in making their lives simpler. And the cloud in it of itself, because shared responsibility doesn't do that. That's your Palo Alto and firms like yours come in. Absolutely. So look, Jim, this is a unvinable situation for a lot of the CISOs simply because there are over 26 million developers, less than three million security professionals. If you just look at all the announcements that AWS made, I bet you there were like probably over 2,000 features. I mean, they're shipping faster than ever before. Developers are moving really, really fast and just not enough security people to keep up with the velocity and the innovation. So you're right. While AWS will guarantee securing the infrastructure layer, but everything that is built on top of it, the new machine learning stuff, the new application, the new supply chain applications that are developed, that's the responsibility of the CISO. They stay up at night. They don't know what's going on because developers are bringing new services and new technology. And that's why we've always taken a platform approach where customers and the CISOs don't have to worry about it. What AWS new service they have? It's covered. It's secured. And that's why the adopters McLeod and Palo Alto Networks because regardless of what developers bring, security is always there by their side. And so security teams need just a simple one-click solution. They don't have to worry about it. They can sleep at night, keep the bad actors away. And that's where Palo Alto Networks has been innovating in this area. AWS is one of our biggest partners and we've integrated with a lot of their services. We launch about three integrations with their services and we've been doing this historically for more and more. Are you still having conversations with the security folks or because security is a board level conversation, are your conversations going up the stack because this is a C-suite problem, this is a board level initiative? Absolutely. Look, there was a time about four years ago like the best we could do is director of security. Now it's this CEO level conversation, board level conversation to your point, simply because, I mean, if all your financial stuff is going to public cloud, all your healthcare data, all your supply chain data is going to public cloud, the board is asking very simple question, what are you doing to secure that? And to be honest, the question is simple. The answer is not because all the stuff that we talked about, too many applications, lots and lots of different service, different threat vectors and the bad actors, the bad guys that always step ahead of the curve and that's why this has become a board level conversation. They want to make sure that things are secured from the get go before the enterprises go too deep into public cloud adoption. I mean, there was shift topics a little bit. There was hope, kind of early this year that cyber was somewhat insulated from the sort of macro pressures. Nobody's safe. Even the cloud is sort of, you know, facing those headwinds, people optimizing costs. But one thing when you talk to customers is, I always like to talk about that octave graph. We've all seen it, right? And it's just this eye test of tools and it's a beautiful taxonomy, but there's just too many tools. So we're seeing a shift from point tools to platforms. You guys obviously a platform play. And that's a way, so what are you seeing in the field with customers trying to optimize their infrastructure costs with regard to consolidating to platforms? Yeah, look, you rightly pointed out one thing. The cybersecurity industry in general and follow-alternate networks knock on wood. The stock's doing well. The macro headwinds hasn't impacted the security spend so far, right? Like time will tell, we'll see how things go. And one of the primary reason is that when the economy starts to slow down, the customers again want to invest in platforms. It's simple to deploy, simple to operationalize. They want a security partner of choice that knows that it's going to be by them through the entire journey from code to cloud. And so that's why platform in especially times like these are more important than they've ever been before. Customers are investing in, the product I lead at Palo Alto Network is called Prisma Cloud. It's in the cloud network application protection platform, CNAP space, where once again, customers are investing in platform from code to cloud and avoiding all the point products for sure. Yeah, and you've seen it in Palo Alto's performance. I mean, not every cyber firm has, you know. I know, ouch, crowd strike. Yeah, it was not good. Well, you saw that. I mean, and you know, the large customers were continuing to spend. It was the small and mid-sized businesses that were a little bit soft. You know, it's really, it's really, I mean, you see Okta now after they had some troubles announcing that their visibility is a little bit better. So it's very hard to predict right now. And of course, if Tom Abrava is buying you, then your stock price has been up and steady. Yeah, look, I think the key is to have a diversified portfolio of products. Four years ago before our CEO, Nikesh, took over the reins of the company. We were a single product next in Firewall Company. And over time, we have added XDR, we were the first one to introduce that. Recently launched XIM, you know, to make sure we build an XGEN Seam. Cloud security is a completely net new investment, zero trust with Prisma Access as workers started working remotely and they needed to make sure, enterprises needed to make sure that they are accessing the applications securely. So we've added a lot of portfolio of products over time. So you have to remain incredibly diversified, stay strong, because there will be stuff like remote work that's slowed down. But if you've got other portfolio of product like cloud security, well, those secular tailwinds continue to grow. I mean, look how fast AWS is growing. 35, 40%, like $80 billion run rate, crazy at that scale. So luckily, we've got the portfolio of products to ensure that regardless of what the customer's journey is, macro headwinds are, we've got portfolio of solutions to help our customers. Talk a little bit about the AWS partnership. You talked about the run rate and I was reading a few days ago, you're right, it's an $82 billion ARR, massive run rate. It's crazy. So what are, what is Palo Alto Networks doing with AWS and what's the value in it to help your customers on a secure digital transformation journey? Well, absolutely. We have been doing business with AWS. We've been one of their security partners of choice for many years now. We have a presence in their marketplace where customers can through one click deploy the several Palo Alto Network security solutions. So that's available. Like I said, we have launched partner to many, many new products and innovation that AWS comes up with. But always the day one partner, Adam was talking about some of those announcements in his keynote, security data lake was one of those and there were like a bunch of others related to compute and others. So we've been a partner for a long time and look, AWS is an incredibly customer obsessed company. They've got their own security products. But if the customer says like, hey, like I'd like to pick this from yours but there's three other things from Palo Alto Networks or Prisma Cloud or whatever else they may be, they're open to it. And that's the great thing about AWS where it doesn't have to be wall garden, open ecosystem. Let the customer pick the best. And that's, I mean, there's examples where AWS is directly competitive. I mean, my favorite example is Redshift and Snowflake. I mean, those are directly competitive products but Snowflake is an unbelievably great relationship with AWS. They do. Cybers, I think different. I mean, yeah, you got GuardDuty and you got some other stuff there. But generally speaking, correct me if I'm wrong, the ecosystem has more room to play on AWS than it may on some other clouds. 100%. Once again, GuardDuty for examples, we've got a lot of customers who use GuardDuty and Prisma Cloud and other Palo Alto Networks products. And we also ingest the data from GuardDuty. So if customers want a single pane of glass, they can use the best of AWS in terms of GuardDuty threat detection but leverage other technology suite from a platform provider like Palo Alto Networks. So look, world is a complicated place. Some like blue, some like red, whatever that may be. But we believe in giving customers that choice just like AWS. Customers want that, not a problem. And at least today, they're not directly in your space. Even if they were, you've got such a much mature stack. Absolutely. Frankly, Microsoft's different, right? I mean, you see, I mean, even the analysts were saying that some of the crowd strikes troubles because Microsoft's got the good enough, right? So... Yeah, endpoint security. Yeah, for sure. Do you have a favorite example of a customer where Palo Alto Networks has really helped them come in and enable that secure business transformation? Anything come to mind that you think really shines a light on Palo Alto Networks and what it's able to do? Yeah, look, we have customers across, and I'm going to speak to public cloud in general, but like Palo Alto has over 60,000 customers. So we've been helping with that business transformation for years now, but because it's reinvented in AWS, the Prisma Cloud product has been helping customers across different industry verticals, some of the largest credit card processing companies, they can process transactions because we are running security on top of the workloads. The biggest financial services, biggest healthcare customers, they're able to put the patient health records in public cloud because Palo Alto Networks is helping them get there. So we're helping accelerate that digital journey. We've been an enabler. Security is often perceived as a blocker, but we have always treated our role as enabler. How can we get developers and enterprises to move as fast as possible? And like my favorite thing is that, moving fast and going digital is not a monopoly of just the tech company. Every company is going to be a tech company. Thanks to public cloud, and we want to help them get there. So the other thing too, I mean, I'll just give you some data. I love data. I have ETR as our survey partner, and I'm looking at data, 395. They do a survey every quarter, 1,250 respondents on this survey. 395 were Palo Alto customers. Fortune 500, S&P 500, big global 2,000 companies as well, some smaller companies. Single digit churn, okay? Very, very low replacement rates. And still, high single digit, new adoption, right? So you've got that tailwind going for you, right? It's sticky because especially our main business firewall, once you deploy the firewall, we're inspecting all the network traffic. It's just so hard to rip and replace. Customers are getting value every second, every minute, because we are thwarting attacks from public cloud. And look, we provide solutions, not just product. We just don't leave the product and ask the customers to deploy it. We help them with deployment, consumption of the product, and we've been really fortunate with that kind of gross dollar and net retention rate for our customers. Now, before we wrap, I got to tease the cube, it's going to be a Palo Alto ignite in two weeks. Back here, I think we're at the MGM, right? We are at the MGM December 13th and 14th. So give us a little, show us a little leg, if you would. What can we expect? Hey, look, I mean, a lot of exciting new things coming. Obviously, I can't talk about it right now. The PR ink is still not dry yet, but lots of lots of new innovation across our three main businesses, network security, public cloud security, as well as XDR, XIM. So stay tuned, you'll see a lot of new, exciting things coming up. Look forward to it. We are looking forward to it. Last question on Curfew, if you had a billboard to place in Times Square, you're going to take over the Times Square NASDAQ. What does the billboard say about why organizations should be working with Palo Alto Networks to really embed security into their DNA? You know, when Jim said Palo Alto Networks is the gold standard for security, I thought I was going to steal it. I think it's pretty good. Gold standard for security. But I'm going to go with our mission, cybersecurity partner of choice. We want to be known as that and that's who we are. Beautifully said. Thank you so much for joining David on the program. We really appreciate your insights, your time. We look forward to seeing you in a couple of weeks back here in Vegas. Absolutely. Can't have enough of Vegas. Thank you, Lisa. Thank you, Jim. Well, I don't know about that. By this time of the year, I think we can have had enough of Vegas. We're going to be able to see you on theCUBE's coverage, which you can catch of Palo Alto Networks show Ignite, December, I believe, 13th and 14th on theCUBE.net. We want to thank Ankar Shah for joining us. For Dave Vellante, this is Lisa Martin. You're watching theCUBE, the leader in live enterprise and emerging tech coverage.