 Hey, we're back live in San Francisco, Dave. We're not in Orlando, Florida. We're in Las Vegas. Again, in Las Vegas, just unbelievable. This is theCUBE, we are here at EMC World 2012 and this is the siliconangle.com, siliconangle.tv flagship telecast of theCUBE, where we go out to the events and talk to the smartest people we can find, extract the signal from the noise and share that with you. And I'm John Furrier, the founder of siliconangle.com and I'm with my co-host. I'm Dave Vellante of wikibond.org, John. This is year three. You know, we met 2010. We started doing theCUBE, EMC World was our first. It was our third EMC World. Very excited to be here with you. You know, Dave, this is really marks a milestone for us because in EMC 2010, we did theCUBE, our first ever Mark Hopkins prototype did at South by Southwest in 2009. And, you know, we kind of knew it felt good but we really weren't sure what it was going to turn into. But two years later, full two years we're on our third season. We've interviewed over 600 people and have had over six million views of our content where we go out and go in depth at these events that are not covered by anybody else to this scale. So I'm real proud to have worked with you and the silicon angle team to go out and actually cover really compelling content. And as it turns out, this is the hottest area in tech with Facebook's IPO just behind us last week and the future of the tech world, tech culture, tech industry. It's all revolving around cloud and big data and that is what EMC is banking on. They took that bet over a year ago. Cloud means big data and we're here to cover it wall to wall. And we're going to hear more cloud, more big data. Silicon Angle will be tomorrow in San Francisco for the HBase conference, which is a database on top of Hadoop. So we got it covered. We got it on siliconangle.com and wikibon.org for all the research. And Dave, what are you expecting this week here at EMC World 2012? What is your angle and what do you expect to hear from our amazing lineup of guests this week? Well, John, you alluded to EMC's marketing of a year, a year and a half ago talking about cloud meets big data. They definitely were ahead of the game and it's very clear that they got it right. That messaging is now being used by virtually everybody in the marketplace. Now, here's the thing. The theme this year is IT plus business transformation, transform your IT, your business and yourself. When you think about transforming IT, John, to me that's all about cloud. Now, wikibon just launched a survey last week of its practitioner community and we found that really, John, we've said it here in theCUBE, 2012 really is the year of the cloud and we've confirmed that. I want to give you some data points. Last year, 15% of the people we interviewed in the wikibon community said cloud is meaningless buzzword. Today, that number's down to 15%. Last year, only 9% said hybrid cloud was their primary strategy. That number shot up to 37%. So that's clearly happening. Now, on the big data side, so that's the IT transformation. The big data transformation or the business transformation is all about big data. We had a couple of questions in there on big data. John, the number one challenge that people have with big data is monetizing and getting value out of information. So they talk about the three Vs, variety, velocity and volume. There's a fourth and that's all about value and that's really what the big data transformation is all about and then, of course, there's the personal transformation and if you're an IT professional, that's all about getting cloud smart, becoming a cloud architect and if you're a business person, it's all about being good with data, good with numbers and actually finding ways to monetize big data. You know, EMC, Dave, has done an amazing job. We've talked about this on theCUBE and we're going to have Jeremy Burton who's the CMO of EMC on Thursday morning, I mean, Wednesday morning and their marketing has been fantastic for a couple of reasons. One is they saw the trend of cloud, they saw the trend of big data as well and they actually marketed to that. When in reality, the market was so early on, they've established a good position in there but at the end of the day, what we're seeing today from EMC in this show is the kickoff of a new set of positioning around EMC. They're going to expand the cloud meets big data positioning and take that messaging and the product and the value that they want to deliver to their customers to a whole nother level. They're talking about transformation for IT which is essentially data centers and corporate enterprises. Service providers, which is, you know, cloud providers and also individuals and that is ultimately where it's at and there's different themes around this. So EMC is packaged their product and portfolio of solutions to address the cloud meets big data. So for EMC, when they talk about cloud, they're referring to IT and to some extent service providers with all their infrastructure and solutions. When they talk about big data, they're really talking about business transformation and we covered this on theCUBE at SAP Sapphire last week and we've been doing it for over a year. Big data with Hadoop and unstructured data warehouses evolving is really about transforming and instrumenting the business and we're seeing massive disruption, Dave, in this area. So I think EMC's got it right. I think they have good messaging that they're building on and I think what they're going to do is extend that messaging and really deliver the solutions. And I got to tell you, from our research and our coverage on siliconangle.com that clearly this is resonating with the C level executives where they understand that the transformation both on the infrastructure side and the business is happening all the way down to the developer communities within these environments where the developers are adopting open source. Open source is a variable in all this. And so you got the perfect storm for innovation and ultimately value creation, as you said, and that is you got the top down approach with the C level and the bottoms up with the developer. So between those two, you're going to see the consumerization of IT hit the main stage this year. And I think EMC, again, is smart to be ahead of the curve on this. You know, John Paul Moretz, the CEO of VMware has talked about going beyond cost savings, going beyond consolidation and getting deeper into business integration. That is the land grab that's going on right now. Cloud is the enabler of that. Big data is the realization of that value. And so we have all the guests, all executives, we got customers, we got bloggers, we got analysts coming on. John, I really want to understand from the EMC executives what transformation means for them, how they're supporting customers getting from point A to point B without massive disruption, without having to rip and replace. That's the big challenge that IT executives tell us. Here's the problem is if you look at the data, about 60% of the spending that goes on around servers and storage, about 60% according to Wikibon is on labor. That's enormous. Now, IT is supposed to be about automation. And here we have a situation where labor is choking innovation. So that's why people always talk about 70% of investments are made on running the business, only 30% on growing the business and innovation. In order for that to flip, that has to change. So I think we're going to hear a lot about infrastructure that's converged. I'm interested in hearing about that and how you support these new big data applications, John. You know, Dave, you mentioned a good point about the labor and value, right? So here's my take on all this right now. In the industry right now, when I talk to CIOs and people in the trenches, the number one issue right now is what is my future going to be like? My future in terms of my job and my environment that I'm living in in terms of I'm CIO or if I'm an application developer. So this notion of labor is interesting. So under the covers is some interesting trends going on around infrastructure and big data. And that is that the skill set to operate these new infrastructures is transforming. So at the same time, the skill sets for in these job markets is changing because of social media, social infrastructure and the cloud, the different applications are evolving. So the consumerization of IT, although it's been kicked around for a long time, is really hitting mainstream and that affects the labor pool. So data science is a great example in the big data space, the notion of a data scientist is evolving as a job description. Very similar to the DBA was when the databases hit the scene. You know, we've talked about this with Hadoop. And so I find that very, very interesting. At the same time, the infrastructure is changing around business value, agile IT as I call it. Agility is a programming concept, but agile IT is essentially combining developer paradigms of agile development with agile operations. And that's the DevOps message. So, you know, we covered DevOps and SiliconANGLE DevOps.com and DevOpsANGLE.com. So that's a really, really important thing. Now underneath all this innovation around skill sets and disruption around infrastructure and applications is open source. Open source is becoming a very important variable in this equation. And that's an interesting balance between these big incumbent companies like EMC and VMware and others on how they balance the innovations in open source. Because in the open source communities, we're seeing massive innovation around performance and capabilities. The question is, will the incumbents embrace the open source community around this scale and innovation? And will they roll it into their solutions or will they try to kill the open source movements? Now my feeling is we're seeing with EMC and VMware they're embracing the open source. Green Plum has shifted their strategy much more open. Hadoop is becoming a standard around big data applications and infrastructure. So very interesting dynamic around the labor. It's a personal dynamic, but also the infrastructure is changing in that open source. Yeah, the other thing I want to point out, John, is this is now a third year doing theCUBE and we have seen the transformation of EMC. Now, of course, I've witnessed it first hand for, you know, 20, 30 years ago. EMC used to be a one product company. When Joe Tucci took over, he made a major effort to expand the portfolio, made a bunch of acquisitions. Not all of them worked out, but one of them worked out great. And that was VMware. And the acquisition of VMware has totally transformed this company. And that was sort of yesterday's news. Now we're seeing a total transformation around, as I said before, getting deeper into the business side, deeper business integration. And that's about transforming infrastructure to make it cloud ready, cloud like, hybrid cloud associations, and then bringing the big data piece to it. And that's something that EMC led the charge. I was frankly skeptical that an infrastructure company could actually lead that charge. EMC is clearly leading the messaging. We were at SAP Sapphire last week. John, you heard a little bit about big data. And clearly SAP is at the forefront of transforming organizations and helping them get to mobile. You know, but their big data messaging was not nearly as forceful as what you're going to hear this week from EMC. So I think the key is that EMC has to prove that it's not just marketing, that it's got substance and it's got real proof points and it can deliver real value. And that value is going to come from a combination of products and very importantly, services. And one of the areas of services that they're paying a great deal of attention to is the training and education of both cloud art. We talked about this at the top of the show. Cloud architects and data scientists. You know, Dave, I think my view on this show at EMC World here in Vegas is where the infrastructure is really changing. And if you look at what's happened over the past three years, initially EMC was positioning themselves as a private cloud, journey to the private cloud. That was our first cube gig where we came out and did the cube. But now it's evolved into a couple of different segmentation. So I'm looking at this marketplace segmenting in the following categories. IT organizations, service providers, developers, what's happening under the covers, and then the application market. So on the IT organization, the theme is literally IT as a service, consumerization of IT, but really agile IT as I call it. And so the IT organizations, that's about the data center, that's about servicing the business units and ultimately their customers. The service provider really is about the cloud. That's about the hybrid clouds. The hybrid cloud is emerging as the kind of de facto offering in the service provider markets. And those are the normal issues. Multitenancy, very Amazon-like, AWS, Rackspace, and the Citrix Solutions out there are doing that kind of hybrid cloud. And even HP recently announced them there. And then developer community, it's interesting because to make the private cloud and the agile IT work and the service providers, there's a lot of under the covers innovation that needs to happen. Automation, configuration management, provisioning, and ultimately data. We're going to hear from Pat Gelsinger. I'm sure he's going to talk about the role of data, value creation around data, and big data in particular. But these are all under the covers innovations that are actually to do items in the developer community. And finally, applications. The application market is very clear. Rapid application deployment on these infrastructure to deliver value to the customer. So there it is. You know, you got the IT enterprises, you got the service providers, you got the developers, and you got applications. All those are core pillars in this new emerging infrastructure. I want to talk a little bit about, I want to go back to your comments about cloud. I'll tell you, again, I'll give you some of the data from the survey that we just launched. Commercial enterprises, John, are not relying on the public cloud as their sole or primary cloud strategy. It's just not happening. I mean, it's increasing, but not nearly to the extent that the hybrid cloud is. So last year in the survey, we saw 6% of organizations were standardizing on public cloud as their primary strategy today. That's up to 9%. Okay, not bad. But it's the hybrid cloud that is really taking off. It used to be private cloud. As you said, it was journey to the private cloud. And now it's the hybrid cloud that is really picking up momentum. We're here at EMC World 2012. This is SiliconAngle.tv's exclusive coverage of EMC World 2012. We are an independent media outlet where we go out to the events and extract the signal from the noise. If you're interested in EMC's perspective, go to EMC TV. Go to EMC.com. They have a lot of videos. They've got all their executives. Really, really, that's the corporate content. They're doing an amazing job. I got to say EMC TV. Dave has done an amazing job. Since day one when we came here three years ago at theCUBE, there was no EMC TV. Now, two years later, Jeremy Burden and Jonathan Martin and their team under Maggie Burke's leadership has evolved EMC TV into a really, really compelling organization where they are absolutely taking the message directly to their customers, directly to their partners, and they're producing high quality content from EMC's perspective. And I got to say I'm really impressed with that. We're excited to collaborate with them in a very social kind of coexistence way, bringing our independent analysis. And we're going to continue to break news. We're going to continue to cover this market like a blanket. Again, next course of the day, we got 60 interviews lined up. Plus, if not more, packed wall-to-wall coverage. We're going to be going live every day, today, tomorrow, and Wednesday, and we're wrapping up Wednesday night. So keep watching SiliconANGLE.com, SouthernANGLE.tv. And for more information, go to those sites, and also for research, go to wikibon.org. You know, John, you mentioned EMC TV. What I like about what EMC's doing there, and you mentioned this with Jeremy Burden, is they're putting a big investment there. They're investing in the way in which people want to receive information, which is video. At the same time, everybody knows it's EMC TV. I mean, Jeremy even said at one of these shows, hey, if you got something good to say, come on, on EMC TV. That's what it is, that's what they do. But at the same time, I think Maggie Burke and company recognize that collaborating with people like us, independent news organizations, independent analyst organizations, is good for them, because that validates what they're doing. And so, communities collaborate. We have a community, they have a community. We're collaborating. John Furrier and I are going to go up on the main stage today in Hall-A, right before the Joe Tucci keynote, and we are going to be on stage, providing independent perspective with Maggie Burke of EMC TV. John, I'm very excited about that. Let's talk about, what are we going to talk about? Because obviously, EMC is exciting about this new Mega Launch 2. So, the big news that we'll be talking about on the big stage and here in theCUBE this week is the fact that EMC is coming out with what they call Mega Launch 2, Dave. And that is building on the Mega Launch 1, which we covered in January of last year in London and New York, where they had the largest ever announcements in terms of EMC's history under Jeremy Burton's leadership, of course. And today, it's the same thing. They got 42 product announcements this week at EMC World, 14,000 attendees here in Las Vegas. EMC has totally evolved from a storage company to a absolute infrastructure player. And now with the big data messaging there, actually delivering great solutions. And I got to say, I'm very impressed with the messaging, but also the positioning. When I talked to customers out there in pharma, healthcare, and other verticals, big data is on everyone's mind around business re-engineering, process improvement, around making their business smarter, faster, and accelerating those cycle times to deliver value to their customers. But no one really knows what to do. I talk to people and they're like, we know what big data is, we don't know what it means for our business. That plays to their strengths here at EMC because their organization around the service and support absolutely have great relationships. They can bring that consulting organization, guys like Bill Schmarzo, Cube alumni, among others at EMC, under Howard Elias's group, Tony Kolish, Tom Roloff. They actually have a huge army of consultants out there and sales folks who can actually deliver these solutions. So EMC is absolutely smart. Now on that side, they can handhold the customers, go out and deliver value, but Pat Gelsinger's leadership has been amazing in the sense that they've taken a step back and said, hey, let's create our product portfolio. Let's change the game in terms of how we deliver our value to our customers from a product perspective. And you've seen the VNX, which is a channel friendly product. They've got Vplexes now getting some major traction. We're going to talk about that. And they have the normal stuff at most. Data backup and recovery, absolutely changing because of the virtualization impact. So, you know, market leading 66% in backup and recovery. EMC is perfectly poised and they got some headroom. They got time. So they got some time to develop some products, acquire some companies. So I think EMC, both from the product perspective, has room to grow. They're in a good position. Their organization in the field is going to be working with customers. And in this market, how early it is with big data and cloud evolving very rapidly, I see that rising up very fast. Yes, so John, in just a couple of minutes here, we have BJ Jenkins coming on, who's the president of EMC's BRS division. He was an executive on the East Coast in marketing. He went out there right after the data domain acquisition, worked side by side with Frank Slutman, took over the company. They haven't missed the beat. I'm very interested to hear how he sees backup transforming, what EMC is doing. So let's take a quick break. Well, let's take a break, but we might have some breaking news. So I've been on the phone all morning this morning, since six o'clock in the morning, checking some sources. I might have some really big breaking news here about EMC, about VMware. Let's take a break and we'll either do the news in the next segment or later in the day. I'm still waiting to get some, quote, confirmations off the record around some really big news that really impacts EMC's leadership and CEO and or VMware. So stay tuned here at SiliconANGLE. We'll be right back after this break.