 Welcome back to VMworld 2013. This is our special live coverage live in San Francisco, California. This is theCUBE. It's looking at Angles flagship program. We go out to the events, extract the signal from the noise, talk to the tech athletes, talk to the entrepreneurs, talk to the customers, talk to the partners, talk to the execs, join my co-host Dave Vellante. And we're here with a very special guest, Sanjay Pune, the new GM of the End User Computing business unit at VMware. Welcome back to theCUBE. You're a CUBE alumni from SAP, of which we've done for four years as well. It's our fourth year at VMware. Great to see you on theCUBE. Nice to be back. Thank you very much. Executive at VMware. So what a year it's been. The whole theme has changed in 10 years. A 10 year anniversary of VMworld. Defy convention, change. In our past conversations, you can handle that. You have so much experience at SAP. Defying convention, that's me. Defy convention and VMware needs some help at the end user computing area. Strategic area. So over to my data center, hybrid cloud, end user computing. Pat simplified it down to three areas. You're heading up end user computing. Strategic, to say the least, for VMware. What's your take of what that is today? Where has it been? And what motivated you to come to VMware from SAP, which had great edge, mobile, mobile analytics. Everything's happening at SAP. With mobility, you know, I think. What got you here? I've always loved being in your show. So first off, thank you guys for having me back. I looked at the way in which end users have been using computing. And as you know, I've been in the business user space practically all my life. Analytics, big data, in the last 15, 18 months in mobile. So I saw this as a great opportunity for a company that was looking to extend their brand from the data center to the desktop and where the desktop is going. My views of the desktop obviously is not just the laptop, but the future of these mobile devices. So the desktop of today is clearly going to move into the cloud, there's mobile, and then there's machines. Your Tesla, your thermostat, your refrigerator. These are all the ways in which we think about them. These are all going to be end user computing devices. As I looked at this- Personal computers. Absolutely. Personal computers. There is more software today in your car than there was in the first spacecraft in 1970. Believe that or not. So from my perspective, if you think about the types of players and technology infrastructure players that are going to be strong, I believe that need to be three core disciplines to what that company either have. In terms of technology, and I'll cover the other aspects. One was management technology, the other was security and virtualization. And quite frankly, I felt that VMware had much better assets than any of the other companies to make that happen for what end user computing. The other aspect of it was VMware has always been a company that's valued innovation. You look at the roots of this company, it's an innovator. Product and go to market, it's an innovation company. I wanted to be close to an innovating team. The culture is very much of innovation from product to go to market. And then, you know, from a joking perspective, thirdly, my commute got 50 yards shorter. I used to turn left, now I turn right 50 yards shorter. That was a factor to me. And the campus is nice at VMware, and this beautiful campus is where I was at SAP. But I got to ask you about the end user computing. Because, you know, one of the things Dave and I were talking earlier, we love that stack that Joe Tucci, Pat Gelsinger, and Paul Meritz laid out in 2010. You know, four years ago, and it was something called the software mainframe, cloud computing, and it was beautiful. Nice, we all recognize that, yeah, fill in the stack. But there was some misfires. Virtualization expanded, you got flash, you got data fabric, all kind of was happening. Software defined jumped in there and changed a little bit. Didn't change the direction. But then, at the top of the stack, there was some misfires and just didn't feel right. Was that a factor that come in with a clean sheet of paper? Was it a turnaround situation? Was it just, okay, reboot, reset, grow? What was the dynamics at the top of the stack that you felt? Yeah, I think, first off, you want to go, I mean, I felt this was a company that had a tremendous brand. 500,000 customers, you know, 40, 50 million, but this is a company that has a brand this year. So that's always a good place to start. You're not creating a brand, you're building on that brand. That was very, very important. But as you looked at where the data center was going, it's moving to the cloud and cloud computing. And we have a clear strategy there to play in cloud computing. That was very, very important to me. But in terms of where the end user computing opportunity was, I saw this as just being the first inning, the VDI space, virtual desktops. It really is a two player market there. And I think our competitor isn't innovating very much. We have an opportunity to be the innovator and gain market share and overtake them to be number one. I'm here to be the number one player in VDI. But mobile, we're just in the beginning of that inning, if you would, the first to second inning. It's a wide open market, social computing. We've got social cost, it's a great product. Tim Young's the CEO of that company. He's the real deal in social computing. We think that those areas, desktop, mobile, social, and where they're going to go are at least the first three aspects of where end user computing has a lot, a lot of opportunity. So Sanjay, the first three shows we ever did, we did EMC World was the first one we ever did with theCUBE. And right after that we did SAP Sapphire and then VMworld. It was always interesting to contrast the sort of infrastructure shows to Sapphire. And we saw the transformation of SAP pretty substantially, particularly after the side-base acquisition. So you had serious management, this top management thrust toward mobile. And then you also, the acquisition of side-base gave you some of the management technology, the security, and maybe not the virtualization piece. But you really began to change the discourse and the customers bought into it. So that was, I felt a catalyst just as an outside observer. Is that true? And then what's the catalyst here? Was it cleaning up sort of what I used to call the misfit toys, creating the pivotal piece and getting more focus, bringing in a new leader? What is that catalyst? You know, I think, fortunately I was very blessed to see a transformation of SAP from systems of record to systems of engagement. I was very involved, as you know, in the analytics, the data, and the mobile business. Much of that catalyst is still valid. Systems of record to systems of engagement. So a lot of what's happening in the end user computing area is those systems of engagement. That continues, that's abroad. But then as I looked at the IT trends, of big data, of mobile, of social, of cloud, there's at least three or four of those now that we have an opportunity to play here in a big way. Yes, there was an opportunity to redefine things with almost a clean slate in many areas. And a fantastic team. Both Pat and Joe Tucci were involved in recruiting me here. Have a grand vision and a great vision of where this is going. They're fantastic executives. And then the rest of the executive, from Carl to Jonathan to everybody else here, the world-class people that I felt I could just culturally fit in very well with. And in this area, as you know, business user stuff in end user computing has been my passion. So it's a very natural area for me to hopefully extend what I've done in the last 15, 20 years into something that could help this company. And then from a revenue perspective, if we can double the revenue of this company with hopefully a good part of that coming from end user computing, this will continue to be a very, very, hopefully well-marked, capitalized company. And also you mentioned SAP about the cloud. They've had some cloud issues. We've seen some shifts and some things there. But the mobile they were kicking butt on. We saw that right away and we were in that. But I'd like to get your view on the competition because David and I were talking yesterday on the first day about Balmer's resignation and just did a reorganization, go to the intelligent edge of the network. So the competition was Disruptor or Sustainer? You know, who are you, right? I mean, VMware, a technology-driven company is not sustaining anything, it's still disrupting. Microsoft obviously kind of sustaining the status quo. So the question is, who's your competitors? Is it a Microsoft? Is it someone else? Who's in your rear-view mirror and who's, who are you looking to laugh on the field? I mean, clearly, if you look at each of our businesses, they're different ones. But in the core data center stuff, traditionally completely Microsoft, but we are far and ahead. A market share leader, you know, in that at least 70% plus. So that's a very strong position there. And where the cloud is going, it's open mark, it's a complete open opportunity. I think we heard from Pat Gelsinger a message where we're going to embrace an appropriate place as open stack. So you're going to see this not be a combative, but a place where it's collaborative in some places. In the end user computing area, we are in some areas, number two behind Citrix, but I view it as a huge opportunity. We're bigger than them and as a brand, as a company. And my ambition here is to play to be number one. And in the areas of mobile, there is no clear leader. It's very much an open area, especially as it relates to mobile management and mobile security in the enterprise mobile world. And the good news I think in the end user computing area, especially as you think about the new aspects of mobile, there is no one device operating system. In the laptop world, you guys both have Macs, but Windows is still about 80, 90% market share there. In the device operating world of mobile, it's a heterogeneous world already from the get go. iOS, Android, Windows, mobile, and that actually creates much more of an opportunity for a Switzerland type of player to be a leader in management, security, and virtualization. So much of those dynamics I think requires to be innovative. But my general attitude on competitors is, you don't obsess about it. Clearly, you have to have ambition to be number one and competition keeps you honest. But I'm much more focused not on who's in the rear view mirror competitors. I described some of them in that league, but a lot of where we believe we should be going. You were talking a little bit before, I call it the Internet of Things or the Industrial Internet. Cisco calls it the Internet of Everything. I love theCUBE because we get to do all these great events. We were at the GE Industrial Internet launch and I know Pivotal is a good part of that. So I wanted to, it was great, because you get to talk to all the smartest people like you and extract their knowledge. So I want to understand the roadmap for the customers. So you take down the enterprise of what used to be known as VDI. Is it a parallel path to the Internet of Things or the Industrial Internet? Talk about that a little bit. Yeah, I think, first off, you've got to think about where the desktop is today and where the desktop is going. Because that's the primary aspect of where people have traditionally been using, their computing time has been on the desktop. 10 to 20 years ago, you probably did all your email on a desktop. Today a significant part of that is on a smartphone. As little as possible on a desktop. So the world of the time spent between a desktop and a mobile device is changing. We've seen it, especially since iOS came out. Now, the fact of the matter is that computing inside machines is not a new concept. It's been there for a while. But the ability to manage them, to secure them, potentially virtualize them is something that's very nascent and one where I believe there'll be an opportunity. So my view is that whether it's the desktop, whether it's a mobile, whether it's a machine, the technologies are going to have some common substrate or fabric that are going to be common to all of them. But there's going to need to be some miniaturization. You can't apply potentially the exact same software you have in the data center to a tiny thermostat. And the beauty of it is we've got smart engineers. We understand the miniaturization of where this technology needs to apply. And we're going to play this out. I think the machine-to-machine, internet-to-things opportunities, well ahead of us. We're in the beginning of that. But the good opportunity there is it's 50 billion plus things, tens of billions of devices, and so on and so forth. The other thing that I think is important is that there are other technologies. I mentioned management, security, virtualization. There are other technologies that I think that are also going to play. Social computing. What is the appropriate place for how people are going to collaborate in processes? I don't think that's been, it's well understood in the consumer world because you see the Facebooks and the LinkedIn. But there is some mirror of that in the enterprise, which I think is a wide-open opportunity. There could be machine learning, big data, those kinds of trends will drive a lot of that. And how you're going to collaborate not just between man-to-man, man-to-machine, machine-to-man. Unsupervised, yeah. Unsupervised machine learning. That's the automation piece. That keeps on coming back as the automation. I got to ask you since you brought up the thermostat thing and you were kind of riffing on that. You had a lot of experience and certainly SAP in the verticals. It's interesting. Mobile has different verticals. You talked to financial services, government. Is that a constraint or an opportunity? I think it's a great opportunity. I think that any company that grows horizontally, which is what we've done. You know, we have five, I mean three, the most baffling stat when Pat and Joe talked to me was that VMware has 500,000 customers. That's huge. But most of that growth has happened horizontally. There's been gradually an industry verticalization. One of the things we did very well at SAP was industry verticalization. Now, SAP is a 40-year-old company. You'd expect that. What we're going to start doing in end user computing is starting to verticalize some of our aspects of how we sell. For example, in VDI, we're finding a number of healthcare places where they want to equip physicians and clinicians with either laptops or devices now where you can get to their clinical records, medical records on a device that's completely locked down and virtualized so that you don't have to worry about that device or that laptop getting locked. That's a real, real opportunity for virtualization in healthcare. The same in government. We're seeing the same in many of the very, very sophisticated branch and local type of remote office type of settings. So increasingly, we think both the desktop and mobile, they're going to be vertical use cases and we'll start building out technology and both solutioning of them that allows us to go once in a while. Absolutely, by industry. And I think some of them that are very relevant are healthcare, banking, federal, and then several of the other sectors where there's lots of employees very distributed in sense and also ones where you've got to ensure that the data doesn't leave their device, laptop or mobile. Sanjay Pune here inside the cube now with VMware, GM of the end user computing group. Thanks for coming inside the cube. I'll give you the final words I want to ask you. Obviously you're a senior executive, great leadership move for VMware. You can come in when you're running shoes on. There's no real delay there. So I'm expecting to see some great stuff from you but what's your objective? You're going to get ingratiated into the new culture which is not going to be hard for you. Again, left turn versus right turn. You understand tech. What's your personal objectives over the next couple months as you get in and start to put together the plan? I mean, obviously the metrics are clear. Objectives are clear. SDDC, hybrid cloud and user computing and peer piece. What are you going to roll out? I think it all, as you know in any software company your assets are your people. So my first focus is to really understand the fabric of our team, our people. It's a smaller team than SAP. I don't worry about 65,000 people here, it's 15,000 but in my own team, getting to understand how we can continue to retain and grow great talent. We have a fantastic team, not just at VMware but also in my immediate team and we're going to continue to grow that team. And in that I think you'll find great innovation. Secondly, we're going to define goals that are revenue and market share related that are both short-term and long-term to be number one, the undisputed number one of every aspect of our market. In some of our markets, there are existing competitors in other ones that we're completely creating new markets. And third, we're going to go and make customers enormously successful. I think when you make customers successful with great innovation and great people, you have a fantastic business. And I could envision over a multi-year period, imagine that VMware is twice the size that we are today, five billion dollar company. If a significant part of that could come from end user computing, that's going to be a great morale boosting. We'll have to shut the streets down here in San Francisco like to do with Oracle Open World. Rent down 23,000 people estimated here. And it's just growing right up, straight up. So VMworld. But you're going to envision that 50 billion dollar TAM, 39 billion dollar market cap. I mean, I could see that within the next five years. I hope there's a double the revenue. You guys do the estimate where the market cap is. But double right along with it. And then you got to figure out, we talked to Pat, you got to figure out the bigger TAM, and then it's got to go for the $100 billion TAM. We double the revenue in triple the market. Those are all good problems TAM. Now we're dreaming a little bit. But I think you got to dream the future before you create it. These are open markets. The most inspirational thing we could do is help our employees and our customers dream that future. And that's what I'm excited to do. Sanjay Poonan, we're here at VMworld. We'll be documented. It's our fourth straight VMworld. We'll be continuing document when we're here in theCUBE. Thank you for coming on your tech athlete. Looking forward to seeing you with your running shoes on and user computing needs a big lift. They have the right guy for the job. We're right back with theCUBE, with our next guest, our friends at Andresa Horowitz and a hot startup in the space in virtualization. We'll be right back after this short break.