 Live from Las Vegas, it's theCUBE, covering Dell EMC World 2017, brought to you by Dell EMC. Okay, welcome back everyone. We are here live at Dell EMC World 2017. This is our eighth year of coverage of formerly known as EMC World, but it's now Dell World first year of the combined company. Some say Dell bought EMC, some say EMC bought Dell. Either way, the merger and the acquisition or combination, how we want to call it. I'm certainly working out this CUBE coverage of the first year, I'm John Furrier with my co-host, Keith Townsend, CTO advisor. Our next guest is Turin Thacker, co-founder and CEO of Datto's IO, Big News, and as well, Peter Schmelz, Vice President of Marketing and Business Development, a former EMC-er, been in the industry. Guys, congratulations, welcome to theCUBE. Thank you, John. Thank you Keith. Thank you so much. So, big bang news at the Dell EMC. There are tons of stories here. Obviously the big story is the combination, but you guys have some really amazing news. Funding, traction, give us the update on the hard news. Excellent, thank you John. First, thank you guys. Thank you very much for the opportunity to be here. The last couple of weeks have been just amazing for us. Last week was all about product, which Peter's going to talk about. Our journey from our one-dollar to two-dollar. Our journey is all driven by customers and where the market is headed. But this week was all about enterprise adoption. It's about enterprise record industry. You have these two industries, all the words, $200 billion of market cap, recognizing the value of what we have been doing. And so the hard news is what Cisco and NetApp have invested. Cisco and NetApp, both are investors in day two today. So this is a round of funding from corporate investors, any VCs coming in as well? Both, you know, the investors were already in the company. They want to maintain their ownership. Okay, so they did their pro rata, they re-upped. That's correct. Okay, so new corporate investors, that's validation. Yes, yes. Why are they investing? I mean that's what we want to know. Why the hell are they investing? Why don't they just do it themselves? Yeah, so you know, look, I think it's very, very clear that this industry of the data management or this industry of enterprise adoption to the cloud is this massive pace right now, right? The acceleration is at its highest gear, so to speak. And you know, we've been working with both those companies for the last few months and they recognize at fundamental level what we have built, right? The application-centric nature of the product built it fundamentally for cloud-native applications, helping existing customers mobilize their applications to the cloud. You know, we have now three-year lead into this space, right? And it's best to join forces. Well, we had our CUBE conversation in our studio in Palo Alto. You were kind of smiling then, certainly smiling now, the big funding, big fat financing, as they say. But you were really kind of coy about not sharing the news to me, which I thought was cool, but kept the secret. But you guys have shown- Also no other reasons. But the cloud certainly is accelerated. You guys have the tiger by the tail. But if you look at the VC funding landscape, we were saying yesterday on our opening that it's a canary in the coal mine. It's a really leading indicator of what's going on in the marketplace. If you're a storage startup, you're dealing, oh, hey, no one's funding that. They're repivoting always. You see, I got scale-out, scale-out storage. Pivot, pivot, pivot. But all these companies, data management, you know, data backup and protection are all booming, massive, out-rubric, cohesity, billion-dollar valuations. Why are these companies getting such big funding? Why are you guys being successful? Is cloud just creating massive scale? But was normally a white space? No, so, you know, the answer, I'll go first. Go for it. I'll jump in. Because you come from this world of, most recently. Look, John, there has been no innovation in the space of backup and recovery for the last 20 years. Like, we've been still living in the world of four-wall data center, media-server-based architectures, and backup and recovery products that were truly written for tape architectures. That world ain't exist in this cloud world, right? There has been no innovation. And now you're seeing companies that are cohesity-grade companies, great fellow companies to be part of. And all of us recognize the disruption opportunity and recognize what we can go all do for the next 10, 20 years. And I'll jump on that. So, if you net it out, there's really two things happening. You know, 70% of CIOs have a cloud-first strategy, right? So, enterprise, one of the reasons we're here, you know, enterprises have a cloud-first strategy. Okay, they're moving to the cloud. They're doing two things. One, they're either building that new applications in the cloud. Geodistributed, you know, highly scalable applications. You need a fundamentally different approach for protecting those applications. That's number one. Number two is, those same customers are saying, I want to move as many of my non-recovery workloads from my traditional four-wall data center off-prem. I want to leverage the cloud. I want to put my data where I want to put it when I want to put it there. There's no, there has not been any good solution to do that. So, for us, that's cloud data management. We're about protect. If you have stuff in the cloud, we'll protect it. If you want to move stuff to the cloud, from the cloud, within the cloud, that's mobility to us, that's what we do. And ultimately, this is why there's so much attention being paid to cloud data management, because everybody's moving the cloud, and the one thing we have heard consistently is they're not taking traditional tools to the cloud. Simple quick. You know, go to the website. I don't see anything about backup. I don't see anything about, you know, there's data protection. But in enterprise, when we go to the cloud for the first time, a couple of things we figure out first. Backup is hard, because, you know, I can't point my data domain to S3, in backup S3, or some type of object storage. I also find out that these traditional architectures within the data center just don't translate to the cloud. So, where are you guys at in the education cycle of the enterprise, and helping them understand the value of an application-centric model? And where do you need to go? Yeah, so Keith, that's a great question, right? You actually hit the nail on the head. You have these proprietary backup appliances. We used to call data domain really a PBBA appliance. You had these media-server-based architectures with the likes of Veritas and Commod. Perfect for four walks, right? In the cloud, geo-distributed applications, right? And you look at those sort of that scale, the application-centricity, and we started what we did in our strategy. We started with absolutely green field. What does that mean? That means the cloud-native applications, the non-relational databases, right? The analytics, the IoT applications. So you go towards the use case where the world and the customers are already thinking cloud-native, right? You don't, coaching and training customers, as you rightly called, is very hard journey. It is the crossing the chasm. It takes time, right? You need to start with early adopters, the innovators who will then latch on to you and take you forward, right? So our strategy of picking a space which was completely green-field and blue ocean couldn't have served us better. So what's that next step after we've figured out backup, because we have to back the data up? Data management was way more than backup. Now, as I've blown away the limits of my data center and I can access data from anywhere in the world, what have you helped customers understand that they can do with their applications and data now that I can access it from anywhere in the world? Yeah, so I can take that to your point. If you look at protect, our three pillars, protect, mobilize, monetize. You'll hear us say that over and over again. We started with protection. It's a business critical use case. You cannot have a cloud-first strategy if you don't protect your data. Got it. Second piece around the mobility piece is, like you said, giving what have we done by being application-centric data management. What we do that nobody else does is we enable you to very intelligently and very efficiently move data sets in native format wherever you want to any cloud that you want. We don't normalize data. We don't change formats. So for example, to give you one great example of application-centricity, I have a non-prem workload. I want to run a query against that, star.peterstar. That resulting data set, that's all I want to move to the cloud because I want to run BI against it. I want to do something that helps me monetize my data in the cloud. That data set I want to move. One, you can run a query against that database. Two, will intelligently and efficiently only move that data in native format, spin it up in the cloud as native data set. All your metadata is there. Do whatever you want to that data. When you're done, move it back if you want. Do whatever you want. So essentially we've eliminated any silos from a cloud standpoint. So what we've done is we've given people complete cloud freedom to move what they want when they want to, where they need to. That's the essence of what we've done. Let's talk about the monetized portion of it because you guys have been curious. If I can move the data to the cloud natively, that's great. That's really value add. But on top of that, I need to figure out really tough problem, which is metadata. I have global data worldwide. I have data scientists wanting to pound against that in a completely new way. Do you guys provide a new way to access this data other than my legacy tool? Absolutely Keith. So I want to hit on those two points in the statement you made. Moving data efficiently to the cloud, Keith, is a very hard problem. What we have done by being only protecting what you need to protect, why back up an entire database when you only care about a couple of tables? Remember, we're going from traditional monolithic architectures to microservices in the cloud, right? DBAs and admins, they only care about a couple of tables. I want to run a BI query against a certain part of the data. What we have fundamentally done to the first part of your question moved data very highly efficient, which is 10x DDo of what data domain could do. We have a significant amount of IP protected around that technology. The second piece around the metadata question. What we've really done, Keith, in our sort of scale out elastic data protection to the tune of elastic compute and elastic storage, you need to extend that to elastic data management, is you're metadata catalog back up at the end of the day has a catalog. The golden nugget. Right. That catalog used to be siloed. If I had 10 media servers, I had that catalog siloed around that. No value there. No value there. Our catalog is now distributed and stretched across cloud boundaries. If I have a Datos running on-prem and I have a Datos running in Amazon, those are two instances of the same software, two nodes. The metadata catalog can see each other. You back up here. John can see that back up in the cloud. He can spin up his SQL server in the cloud. You couldn't do that past. You couldn't do that back in the old world. The golden nugget, you need to stretch your metadata catalog and you need to make it distributed across cloud boundaries, which is fundamentally what. What's the impact to the application developers? Because now, are you freeing up? I mean, what is the ultimate value to the customers? I mean, you're basically freeing up the hassles for the app developer to say whatever. Give us the bottom line. So, you know, absolutely, John. Look, I'll give you a customer real scenario, okay? A world's leading e-commerce platform where we go and our wives go spend a lot of money buying clothes. I'm going to just leave it at that, right? They are moving from a monolithic architecture, the Oracle DB2 to the cloud-native architecture, right? Application developers want to take their CICD. I'm writing new code. I want to bring new catalog items on the website. I want to test my code changes. An hour ago, from the day and not two days ago, which was the old backup world, every day you're doing a backup. Now they want what we call, to your question of, we don't call it backup, we call it versioning. I want a version one hour ago because I want to test my code changes. I want to deploy those code changes on the e-commerce platform, driving a billion dollars in revenue. So what do we say? More coolness for the developer. From a data stale versus fresh data. Yeah, to a certain level. But I only jump on that as well, because it's the thing that sometimes goes overlooked is that one of the things that the cloud has done that people don't always acknowledge is created. We've pushed the silo problem from on-prem to the cloud. Clouds don't talk to each other. The notion of that, so the notion of the universal file system or such in the cloud, which some of the competitive landscape tries to address. Wait a minute, we're supposed to have multi-cloud. No, but to your point, we do have multi-cloud. But it's amazing how difficult it is to deal with that. So to your point. And the future, some day, they might be talking to each other, but today they're not. But, but my point on that is that we enable you to do that. So the ultimate value to the customer? I'm the marketing guy, yes, but the notion of cloud freedom is a direct business value to the customer. So that's legit from your standpoint. Cloud freedom. Put it where you need to put it when you want to put it there. Bring it back when you want to bring it back. So it's from an app standpoint, a lot more flexibility, a lot more agility in terms of app development. From a cost standpoint, from an IT standpoint, I can dramatically reduce my cost because I can leverage the cloud versus having everything on-prem. And from an operation standpoint, I ensure everything's protected. So there's a lot more. And we know cloud-native developers are very like, they won't tolerate a lot of the old baggage and dogma of IT. Right, right. Are you freaking kidding me? That's actually, can I take that one? Yeah, please, please, please. That's actually, if you see how many hours we have to talk with you, because that's a fascinating topic. Just pause, can I pause you for a second? Yes. Since he left EMS, yeah, I'll touch you. Anyway, the point is that, no, but the problem isn't new. But there's a persona, what I prefer to do is basically like a persona innovator's dilemma that we're also helping address. Because there's a convergence of personalities and people involved in the protection and management of data. So to your point, we've been dealing with a lot of the new personas going after cloud-native data protection. But you're watching the organization, the enterprises, they're going through it and they are rapidly transforming these personas. So part of our job to your education point earlier is making sure that the left-hand knows what the right-hand's doing and marrying those two different pieces, because that's ultimately, and that's value to the customer. And we help drive that process. Well, Taruna and Peter, congratulations and good to see the journey and continue to accelerate. Thank you. Entrepreneurial journey. And we'll keep in touch. Love the name, data OS. We believe and Wikibon believes and their firm on this, the business value of data is ultimately going to be a major, major disruptor for business. Not necessarily a technology, but having that data operating system, that data OS, as you call it, is going to be fundamental. Congratulations. Thank you, John. Thank you. Thank you. Thank you, Cube, live here at Dell EMC World 2017. More live coverage. Stay with us more after this short break.