from Las Vegas. It's the Cube. Covering VMworld 2018. Brought to you by VMWare and its ecosystem partners. Ladies and gentlemen, VMWare would like to thank its global diamond sponsors and its platinum sponsors for VMworld 2018. With over 125,000 members globally, the VMWare user group connects VMWare customers, partners, and employees to VMWare information, resources, knowledge sharing, and networking. To learn more, visit the VMug booth in the Solutions Exchange or the VMug lounge in VM Village. Become a part of the community today. This presentation includes forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially as a result of various risk factors, including those described in the 10Ks, 10Qs, and 8Ks VMWare files with the SEC. Please welcome Pat Gelsinger. Welcome to VM, let's try it again. Good morning! And I'll just say it is great to be here with you today. I'm excited about the sixth year of being CEO. When it was on this stage six years ago were Paul Moritz handing me the clicker and that's the last he was seen. We have 20,000 plus here on site in Vegas. And on behalf of everyone at VMWare, we're just thrilled that you would be with us. And it's a joy and a thrill to be able to lead such a community. We have a lot to share with you today and we really think about it as a community. It's my 23,000 plus employees, the souls that I'm responsible for, but it's our partners, the thousands, and we kicked off our partner day yesterday. But most importantly, the VMWare community is centered on you. We're very aware this event would be nothing without you. And our community and the role that we play at VMWare is to build these cool breakthrough innovations that enable you to do incredible things. You're the ones who take our stuff and do amazing things. Together we have truly changed the world over the last two decades. And it is two decades. It's our anniversary. In 1998, the five people that started VMWare, it was exactly 20 years ago. And we're just thrilled. And I was thinking about this over the weekend and it struck me, anniversary, that's like old people. We're here, we're having our birthday and it's a party. We're 20 years old, we can't have a drink yet, but next year, we can do that. And I'll just say the culture of this community is something that truly is amazing. And in my 38 years in tech, that sort of sounds like I'm getting old or something, but the passion, the loyalty, almost the cult-like behavior that we see in this team of people to us is simply thrilling. And we put together a little video to sort of summarize the 20 years and some of that history and some of the unique and quirky aspects of our culture. Let's watch that now. It was one of the best experiences of our life, building VMWare. We knew we had something unique and then we demonstrated that what was unique was also better. For some reasons that we love VMWare, you know, it's like the community out there is so great, the technology, I love it. VMWare is solid. It's resilient and it matched our need. Literally, I do love VMWare. It's awesome. The company is super awesome, super supportive. There's always someone at VMWare that wants to listen and learn from us, and we've learned so much from them as well. And we reached out to VMWare to help us start building what's that future world look like. Since we're doing really cutting-edge stuff, there's really no better people to call for. And VMWare has been known for continuous innovation. There's no better way to learn how to do new things in IT than being with a company that's at the forefront of technology. What do you think? Don't you love that commitment, that passion? You know, but in the prep sessions for this, I thought, boy, what can I do to take my commitment to the next level? And so, you know, coming in a couple days early, I went down the street to badass tattoo. So it's time for all of us to take our commitment up a level.  And VMWare has had this unique role in the industry over these 20 years. And for that, we've seen just incredible things that have happened over this period of time. And it's truly extraordinary what we've accomplished together.  You know, and we've seen time and again that we see these areas of innovation emerge and rapidly move forward. But then as they become, you know, utilized by our customers, they create this natural tension of what business wants, this flexibility to use across these silos of innovation. And from the start of our history, we have collectively had this uncanny ability to bridge across these cycles of innovation. You know, in Act 1 was clearly the server generation.  Right?  And, you know, IT had to decide, well, which architecture am I going to deploy and run this on? And we bridged across and that was the magic of ESX. You know, and it just changed the industry when that occurred. And I sort of called the early days of ESX and vSphere. It was like the intelligence test. If you weren't using it, you failed. Because, you know, server, 10 servers become one months become minutes. I still have people today who come up to me and they reflect on their first experience of vSphere or vMotion. And it was like a holy moment in their life and in their careers. Amazing. And act two, the BYOD, you know, can we bridge across these devices and users wanted to be able to come in and say, I have my device and I'm productive on it. I don't want to be forced to use the corporate standard. And maybe more than anything was the power of the iPhone that was introduced in 2007. And suddenly every employee said, this is exciting and compelling. I want to use it so I can be more productive when I'm here. BYOD was the rage. And again, it was a tough challenge. And once again, VMware helped to bridge across the surmountable challenge. And clearly our workspace one community today is clearly bridging across these silos and not just about managing devices, but truly enabling employee engagement and productivity. Maybe act three was the network. And, you know, we think about the network and, you know, for 30 years we were bound to this physical view of what the network would be. And in that network we were bound to specific protocols. We had to wait months for network upgrades and firewall rules. Once every two weeks we'd upgrade them. If you had a new application that needed the firewall rule, sorry, you know, come back next month. We'll put it, you know, deep frustration among developers and CIOs. Everyone was ready to break the chains. And that's exactly what we did. And NSX and NYSERA, the day we acquired its Cisco stock drops and the industry realizes the networking has changed in a fundamental way. It will never be the same again. Maybe act four was this idea of cloud migration. If we were here three years ago it was student body right to the public cloud. Everything is going there. And I remember I was meeting with a CIO, a federal CIO, and he comes up to me and he says, I tried for the last two years to re-platform my 200 applications. I got two done. You know, and all of a sudden it was this, how do I do cloud migration in an effective and powerful way? Once again, we bridged across. We brought these two worlds together and eliminated this, you know, this gap between private and public cloud. And we'll talk a lot more about that today. You know, and maybe our next act is what we'll call the multi-cloud era. You know, because today in a recent survey by Deloitte said that the average business today is using eight public clouds and expected to become 10 plus public clouds. And you know, as you're managing different tools, different teams, different architectures for the solution, how do you again bridge across? And this is what we will do in the multi-cloud era. We will help our community to bridge across and take advantage of these powerful cycles of innovation that are going on, but be able to use them across a consistent infrastructure and operational environment. And we'll have a lot more to talk about on this topic today. You know, and maybe the last item to bridge across may be the most important, you know, people or profit. You know, too often we think about this as an either or question. You know, and as a business leader, am I worried about the people or the planet, right? And Milton Friedman probably set us up for this issue decades ago when he said the sole purpose of a business is to make profits. You want to create a multi-decade dilemma, right, for business leaders. Could I have both people and profits? Could I do well and do good? You know, and particularly for technology, I think we don't have a choice to think about these separately. We are permeating every aspect of business and society. We have the responsibility to do both. And of all the things that VMware has accomplished, I think this might be the one that I'm most proud of. Over, you know, we have demonstrated by vSphere and the hypervisor alone that we have saved over 540 million tons of CO2 emissions. That is what you have done. Can you believe that? 540 million tons is enough to have 68% of all households for a year. Wow, thank you for what you have done. Or another translation of that is that's enough to drive a trillion miles in the average car or you could go to and from Jupiter just in case that was in your itinerary a thousand times, right? You know, it's just incredible what we have done. And as a result of that, and I'll say we were thrilled to accept this recognition on behalf of you and what you have done. You know, VMware recognized as number 17 and the Fortune changed the world list last week. And we really view it as us accepting this honor on behalf of what you have done with our products and technology. Tech as a force for good. We believe that fundamentally that is our opportunity, if not our obligation. Fundamentally, tech is neutral. We together must shape it for good. The printing press by Gutenberg in 1440, right? It was used to create mass education and learning materials also can be used for extremist propaganda. The technology itself is neutral. Our ecosystem has a critical role to play in shaping technology as a force for good. You know, and as we think about that, you know, and tomorrow we'll have a opportunity to have a very special guest. And I really encourage you to be here, be on time tomorrow morning on the stage.  And for it, there'll be a bit of extra security as you come in. And you understand that I just encourage you not to be late because we see this tech being a force for good in everything that we do at VMware. And I hope you'll enjoy. I'm quite looking forward to the session tomorrow. Now, as we think about the future, I like to put it in this context, the superpowers of tech.  Together, we're unlocking game changing opportunities that have not been available to any people in the history of humanity. And we have these opportunities now. And I think about these four. Cloud, you have unimaginable scale. You know, literally with your Amex card, you can go rent, you know, 10,000 cores for $100 per hour. Or if you have Michael's Amex card, we can rent a million cores for $10,000 an hour. Thanks, Michael. But we also know that we're in many ways just getting started and we have tremendous issues to bridge across incompatible clouds. Mobile unprecedented scale, literally your application can reach half the humans on the planet today. But we also know that 5% the lowest 5% of humanity or the other half of humanity are still in the lower income brackets, less than 5% penetrated. And we know that we have customer examples that are using mobile phones to, you know, raise impoverished farmers in Africa out of poverty just by having a smartphone with proper crop information, field and weather guidance, that one tool alone, lifting them out of poverty. AI, you know, I really love the topic of AI. In 1986, I'm the chief architect of the 8486. Some of you remember what that was? Yeah, you know, you're my folk, right? And for those of you who don't, it was a real important chip at the time. And my marketing manager comes running into my office and he says, Pat, Pat, we must make the 486 a great AI chip. This is 1986. What happened? Nothing. And AI is today a 30 year overnight success. Because the algorithms, the data have gotten so much bigger that we can produce results that we can bring intelligence to everything. And we're seeing just dramatic breakthroughs in areas like healthcare, radiology, you know, new drugs, diagnosis tools and designer treatments. We're just scratching the surface, but AI has so many gaps yet. We don't even, in many cases, know why it works, right? And we call that explainable AI. And Edge and IoT, we're connecting the physical and the digital worlds as never before possible. We're bridging technology into every dimension of human progress. And today, you know, we're largely hooking up things, right? We have so much to do yet to make them intelligent networks, secured, automated and patched, bringing world-class IT to IoT. But it's not just that these are superpowers. We really see that each one of them is a superpower in and of their own right, but they're making each other more powerful as well. Cloud enables mobile connectivity. Mobile creates more data. More data makes the AI better. AI enables more edge use cases and more edge requires more cloud to store the data and do the computing, right? They're reinforcing each other. And with that, we know that we are speeding up and these superpowers are reshaping every aspect of society from healthcare to education, the transportation, financial institutions. This is how it all comes together. Now, just a simple example. How many of you have ever worn a hard hat? Yeah, you know, a pretty boring thing and it has one purpose, right? You know, keep things from smacking me in the head. Well, here's the modern hard hat. It's a complete heads-up display with AR, VR capabilities that give the workers safety or workers or, you know, factory workers or supply people the ability to see through walls to understand what's going on inside of the equipment. I always wanted when I was a kid to have X-ray vision. You know, some of my thoughts weren't good about why I wanted it, but, you know, I wanted it. Well, now you can have it. You know, but imagine in this environment the complex application that sits behind it. You know, you're accessing maybe 50-year-old building plans, right? You're accessing HVAC systems, but modern AR and VR capabilities and new containerized displays. You know, think about that application. You know, John Gage famously said the network is the computer. Pat today says the application is now a network and pretty typically a complicated one. You know, and this is the VMware vision is to make that kind of environment realizable in every aspect of our business and community. And we simply have been on this journey, any device, any application, any cloud with intrinsic security. And this vision has been consistent.  You know, and for it we're going to walk through and use this as the compass for our discussion today as we walk through our conversation. And, you know, we're going to start by a focus on any cloud. And as we think about this cloud topic, you know, we see it as a multi-cloud world, hybrid cloud, public cloud, but increasingly seeing edge and telco becoming clouds in and of their own right. And we're not going to spend time on it today, but this area of telco to be is an enormous opportunity for us and our community. You know, data centers and cloud today are over 80% virtualized. The telco network is less than 10% virtualized. Wow, an industry that's almost as big as our industry, entirely unvirtualized, although the technologies we've created here can be applied over here in telco and we have an enormous build out coming with 5G environments emerging. What an opportunity for us, a virgin market right next to us, and we're getting some early mega winds in this area using the technologies that you have helped us curate in this market. So we're quite excited about this topic area as well. So let's look at this full view of the multi-cloud, any cloud journey. And we see that businesses are on a multi-cloud journey. Today, we see this fundamentally in these two paths, a hybrid cloud and a public cloud. And these paths are complementary and coexisting. But today, each is being driven by unique requirements and unique teams. Largely, the hybrid cloud is being driven by IT and operations. The public cloud being driven more by developers in line of business requirements. And it's a multi-cloud environment. So how do we deliver upon that? And for that, let's start by digging in on the hybrid cloud aspect of this. And as we think about the hybrid cloud, we've been talking about this subject for a number of years and I want to give a very specific and crisp definition. You know, the hybrid cloud is the public cloud and the private cloud cooperating with consistent infrastructure and consistent operations. Simply put, seamless path to and from the cloud that my workloads don't care if it's here or there. I'm able to run them in an agile, scalable, flexible, efficient manner across those two environments. Whether it's my data center or someone else's, I can bring them together. To make that work is the magic of the VMware Cloud Foundation. VMware Cloud Foundation brings together Compute, vSphere, the core of why we are here, but combines with that networking, storage, delivered through a layer of management and automation. The rule of the cloud is ruthlessly automate everything. We laid out this vision of the software-defined data center seven years ago when we've been steadfastly working on this vision and VMware Cloud Foundation provides this consistent infrastructure and operations with integrated lifecycle management, automation, patching. VMware Cloud Foundation is the simplest path to the hybrid cloud. And the fastest way to get VMware Cloud Foundation is hyper-converged infrastructure. You know, and with this, we've combined integrated and validated hardware and as a building block inside of this, we have validated hardware, the vSAN-ready environments. We have integrated appliances and cloud-delivered infrastructure, three ways that we deliver that integrated, hyper-converged infrastructure solution. And we have by far the broadest ecosystem of partners to do it. A broad set of vSAN-ready nodes from essentially everybody in the industry. Secondly, we have integrated appliances, VxRack and VxRail that we have co-engineered with our partners at Dell Technology. And today, in fact, Dell is releasing the PowerEdge MX servers, a major step in blade servers that, again, are going to be powering VxRail and VxRack systems. And we deliver hyper-converged infrastructure through a broadening set of VMware Cloud partners as well. At the heart of the hyper-converged infrastructure is vSAN. And simply put, you know, vSAN has been the engine that's just been moving rapidly to take over the entire integration of compute and storage and expand to more and more areas. We have incredible momentum. Over 15,000 customers for vSAN today. And for those of you who joined us, we say thank you for what you have done with this product today. Really amazing. With 50% of the global 2000 using it, VMware, vSAN, VxRail are clearly becoming the standard for how hyper-converged is done in the industry. Our cloud partner programs, over 500 cloud partners are using vSAN and their solution. And finally, the largest in HCI software revenue. Simply put, vSAN is the software-defined storage technology of choice for the industry. And we're seeing that customers are putting this to work in amazing ways. VMware and Dell technologies believe in tech as a force for good. And that it can have a major impact on the quality of life for every human on the planet. And particularly for the most underdeveloped parts of the world, those that live on less than $2 per day. In fact, at this moment, 5 billion people worldwide do not have access to modern and affordable surgery. Mercy ships is working hard to change this global surgery crisis with greater than 400 volunteers. Mercy ships operates the largest NGO hospital ship delivering free medical care to the poorest of the poor in Africa. Let's see from them now. When the ship shows up to port, literally people line up for days to receive state-of-the-art life-changing, life-saving surgeries, tumors, sight, limbs, disease, blindness, birth defects. But not only that, the personnel are educating and training the local healthcare providers with new skills and infrastructure so they can care for their own after the ship is left. Mercy ships runs on VMware and Dell technology with Verizon, VxRail, Dell Isilon and Data Protection. We are the IT platform for Mercy ships. Mercy ships is now building their next-generation ship called Global Mercy, which will more than double its life-saving capacity. It's the largest charity hospital ever. It will go live in 2020 serving Africa. And I personally plan on being there for its launch. It is truly amazing what they are doing with our technology. So we see this picture of the hybrid cloud. We've talked about how we do that for the private cloud. So let's look over at the public cloud and let's dig into this a little bit more deeply. You know, we're taking this incredible power of the VMware Cloud Foundation and making it available for the leading cloud providers in the world. And with that, the partnership that we announced almost two years ago with Amazon and on this stage last year, we announced our first generation of products, no better example of the hybrid cloud. And for that, it's my pleasure to bring to stage my friend, my partner, the CEO of AWS. Please welcome Andy Jassy. Thank you, Andy. You honor us with your presence. And it really is a pleasure to be able to come in front of this audience and talk about what our teams have accomplished together over the last year. Can you give us some perspective on that, Andy, and what customers are doing with this? Well, first of all, thanks for having me. I really appreciate it. It's great to be here with all of you. You know, the offering that we have together, VMware Cloud and AWS is very appealing to customers because it allows them to use the same software they've been using to manage their infrastructure for years to be able to deploy it in AWS. And we see a lot of customer momentum and a lot of customers using it. You see it in every imaginable vertical business segment in transportation. You see it with stagecoach and media and entertainment. You see it with discovery, communications, in education, MIT and Caltech and consulting, Accenture and Cognizant and DXC. You see it in every imaginable vertical business segment, and the number of customers using the offering is doubling at every quarter. So people are really excited about it. And I think that probably the number one use case we see so far, although there are a lot of them, is customers who are looking to migrate on-premises applications to the cloud. And a good example of that is MIT, where they're right now in the process of migrating, in fact, they just did migrate 3,000 VMs from their data centers to VMware Cloud and AWS. And this would have taken years before to do in the past, but they did it in just three months. Yeah, it was really spectacular. And they're just a fun company and, you know, to work with and the team there. But we're also seeing other use cases as well. And you're probably the second most common example is, I'll say, on-demand capabilities for things like disaster recovery. And we have great examples of customers using that. And one in particular is Brinks, right? Everybody knows that Brinks security trucks and armored trucks coming by. And they had a critical need to retire a secondary data center that they were using for DR. So we quickly built a DR protection environment for 600 VMs. They migrated their mission critical workloads and voila, stable and consistent DR. And now they're eliminating that site and looking for other migrations as well. They're really... They saved 10 to 15% in the process of doing it. Yeah, it was just great. One of the things I believe, Andy, customers should never spend capital on DR ever again with this kind of capability in place. It is just that game changing. And obviously, we've been working on expanding our reach. We promised to make the service available a year ago with the global footprint of Amazon and now we've delivered on that promise. And in fact, today or yesterday, if you're in Aussie, right down under, we announced in Sydney as well. And now we're in U.S., Europe and in APJ. Yeah, it's really... I mean, it's very exciting. Of course, Australia is one of the most virtualized places in the world. And it's pretty remarkable how fast European customers have started using the offering, too, in just the quarter that's been out there. Probably of the many requests customers have had and you've had, probably the number one request has been that we make the offering available in all the regions the AWS has regions. And I can tell you by the end of 2019, we'll largely be there, including with GovCloud. So GovCloud... Oh, yeah. You guys have been... That's been huge for you guys. Yeah, it's a government-only region that we have that a lot of federal government workloads live in. And we are pretty close together having the offering FedRAMP authority to operate, which is a big deal on a game changer for governments, because then they'll be able to use the familiar tools they use in VMware, not just to run their workloads on premises, but also in the cloud as well with the data privacy requirements and security requirements they need. So it's a real game changer for government, too. Yeah. And as you can see by the picture here, basically before the end of next year, everywhere that you are and have an availability zone, we're going to be there running on time. Yeah, let's get with it. Okay, we're a team. Go faster. Okay. And it's not just making it available, but this pace of innovation. And you guys have really taught us a few things in this respect. And since we went live in the Oregon region, we've been on a quarterly cadence of major releases. M2 was really about mission critical at scale, and we added our second region. We added our hybrid cloud extension. With M3, we moved the global rollout, and we launched in Europe with M4. We really added a lot of these mission critical governance aspects that started to attack all of the industry certifications. And today, we're announcing M5. And with that, I think we have this little cool thing that we're doing with EBS and storage. Yeah, well, two of the most important priorities for customers are cost and performance. And so we have a couple things to talk about today that we're bringing to you that I think hit both of those. On the storage side, we've combined the elasticity of Amazon Elastic Block Store or EBS with VMware's VSAM. And we've provided now a storage option that you'll be able to use that is much, it's very high capacity and much more cost effective. And you'll start to see this initially on the VMware Cloud and AWS R5 instances, which are compute instances that are memory optimized. And so this will change the cost equation. You'll be able to use EBS by default, and it'll be much more cost effective for storage or memory intensive workloads. It's something that you guys have asked for. It's been very frequently requested and it hits preview today. And then the other thing is that we've worked really hard together to integrate VMware's NSX along with AWS's Direct Connect to have a private even higher performance connectivity between on-premises and the cloud. So very, very exciting new capabilities to show deep integration between the companies. Yeah, and that aspect of the deep integration has really been the thing that we committed to. We have large engineering teams that are working literally every day on bringing together and how do we fuse these platforms together at a deep and intimate way so that we can deliver new services just like Elastic DRS and the VSAM EBS really powerful capabilities. And that pace of innovation continues. So Mnext, maybe six, I don't know, we'll see. But we're continuing this toward pace of innovation. Completing all of the capabilities of NSX, full integration for all of the Direct Connect capabilities, really expanding that, improving license capabilities on the platform will be adding PKS on top of for expanded developer capabilities. So just, oh, thank you. I think that was formerly known as storage Chad. So anyway, right. And, you know, we're continuing this pace of innovation going forward. But I think we also have a few other things to talk about today. Andy? Yeah, I think we have some news that hopefully people here will be pretty excited about. We have a pretty big database business in AWS and it's both on the relational and on the non-relational side. And the business is billions of dollars of revenue for us. And on the relational side, we have a service called Amazon Relational Database Service or Amazon RDS that we have hundreds of thousands of customers using because it makes it much easier for them to set up, operate, and scale their databases. And so many companies now are operating in hybrid mode and will be for a while. And a lot of those customers have asked us, can you give us the ease of manageability of those databases but on-premises? And so we talked about it and we thought about it and we worked with our partners in VMware. And I'm excited to announce today, right now, Amazon RDS on VMware. And so that will bring all the capabilities of Amazon RDS to VMware's customers for their on-premises environments. And so what you'll be able to do is you'll be able to provision databases. You'll be able to scale the compute or the memory or the storage for those database instances. You'll be able to patch the operating system or database engines. You'll be able to create read replicas to scale your database reads. And you can deploy those replicas either on-premises or in AWS. You'll be able to deploy in high availability configuration by replicating the data to different VMware clusters. You'll be able to create online backups that either live on-premises or in AWS. And then you'll be able to take all those databases. And if you eventually want to move them to AWS, you'll be able to do so rather easily. You have a pretty smooth path. This is going to be available in a few months. It'll be available on Oracle, SQL Server, MySQL, Postgres, and MariaDB. I think it's very exciting for our customers. And I think it's also a good example of where we're continuing to deepen the partnership and listen to what customers want and then innovate on their behalf. Absolutely. Thank you, Andy. It is thrilling to see this. And as we said when we began the partnership, it was a deep integration of our offerings and our go-to-market, but also building this bi-directional hybrid highway to give customers the capabilities where they want it. Cloud on-premise, right? On-premise to the cloud. It really is a unique partnership that we've built, the momentum we're feeling to our customer base, and the cool innovations that we're doing. Andy, thank you so much for joining us here at VMworld 2018. Thank you, guys. Appreciate it. You know, we really have just seen incredible momentum. And as you might have heard from our earnings call that we just finished, as we finished the last quarter, we just really saw a customer momentum here accelerating. Really exciting to see how customers are starting to really do the hybrid cloud at scale. And, you know, with this, we're just seeing that this VMware cloud foundation available on Amazon, available on premise, very powerful. But it's not just the partnership with Amazon. We are thrilled to see the momentum of our VMware cloud provider program. And this idea of the VMware cloud providers has continued to gain momentum in the industry. And, you know, over five years, right, this program has now accumulated more than 4,200 cloud partners in over 120 countries around the globe. It gives you choice, you know, local provider specialty offerings, some of your local trusted partners that you would have in giving you the greatest flexibility to choose from and cloud providers that meet your unique business requirements. And we launched last year a program called VMware cloud verified. And this is saying, you know, the most complete embodiment of the VMware cloud foundation offering by our cloud partners. And this program and this logo, you know, allows you to know that this provider has achieved the highest standard for cloud infrastructure, and that you can scale and deliver your hybrid cloud and partnering with them. You know, in particular, we've been thrilled to see the momentum that we've had with IBM as a huge partner. And our business with them has grown extraordinarily rapidly in triple digits, but not just in customer count, which is now over 1700, but also in the depth of customers moving large portions of the workload. And as you see by the picture, we're very proud of the scope of our partnerships on a global basis, the highest standard of hybrid cloud for you, the VMware cloud verified partners. Now, when we come back to this picture, you know, we've, you know, we're growing in our definition of what the hybrid cloud means. And through VMware cloud foundation, we've been able to unify the private and the public cloud together as never before. But we're also seeing that many of you are interested in how do I extend that infrastructure further and farther? And we'll simply call that the edge, right? And how do we move data closer to where how do we move data center resources and capacity closer to where the data is being generated, the operations need to be performed? Simply the edge and we'll dig into that a little bit more. But as we do that, one of the things that we offer today with what we just talked about with Amazon and our VCPP partners is that they can consume as a service, this full VMware cloud foundation. But today, we're only offering that in the public cloud until project dimension and project dimension allows us to extend delivered as a service, private, public, and to the edge. Today, we're announcing the tech preview of project dimension VMware cloud foundation in a hyper converged appliance. We're partnered deeply with Dell EMC and Lenovo for the first partners to bring this to the marketplace built on that same proven infrastructure. A hybrid cloud control plane. So literally, just like we're managing the VMware cloud today, we're able to do that for your on premise, your small or remote office or your edge infrastructure through that exact same as a service management and control plane, a complete VMware operated end to end environment. This is project dimension, taking the VCF stack, the full VMware cloud foundation stack, making available in the cloud to the edge and on premise as well, a powerful solution operated by VMware. This is project dimension. And project dimension allows us to have a fundamental building block in our approach to making customers even more agile, flexible, scalable, and a key component of our edge strategy as well. So let's click into that edge a little bit more. And we think about the edge in the following layers, the compute edge. How do we get the data and operations and applications closer to where they need to be? If you remember last year, I talked about this pendulum swinging of centralization and decentralization edge is a decentralization force. We're also excited that we're moving the edge of the devices as well. And we're doing that in two ways one with workspace one for human optimized devices. And the second is project pulse or, you know, VMware pulse. And today we're announcing pulse 2.0 where you can consume it now as a service, as well as with integrated security. And we've now scaled pulse to support 500 million devices. Isn't that incredible? Right? I mean, this is getting a scale. Billions and billions. And finally, networking is a key component, you know, that we're stretching the networking platform, right? And evolving how that edge operates in a more cloud. And that's a service way. And this is where NSX SD WAN with by fellow cloud is such a key component of delivering the edge and network services as well taken together the device edge, the compute edge and rethinking and evolving the networking layer together is the VMware Edge strategy. In summary, we see businesses are on this multi cloud journey. Right? How do we then do that for their private and public coming together the hybrid cloud? But they're also on a journey for how they work and operate across the public cloud. And the public cloud challenges, you know, we have this torrid innovation, you know, when Andy's here, he's announcing 1500 new services aware, extraordinary innovation. And you know, same for Azure, Google, IBM cloud. But it also creates the same complexity. As we said, businesses are using multiple public clouds. And how do I operate them? How do I make them work? You know, how do I, you know, keep track of my accounts and users that creates the set of cloud operations problems as well. And the complexity of doing that. How do you make it work? Right? And, you know, for that, we'll just see that there's this idea of, you know, cloud cost, compliance, analytics is these common themes that keep coming up. And we're seeing in our customers that a new role is emerging, the cloud operations role. You know, the person who's figuring out how to make these multi cloud environments work and keep track of, you know, who's using what and which data is landing where. Today, I'm thrilled to tell you that VMware is acquiring the leader in this space, Cloud Health Technologies. Cloud Health Technologies supports today. Amazon, Azure, and Google, they have some 3,500 customers. Some of the largest and most respected brands in the as-a-service industry and SaaS business today, rapidly expanding feature sets. We will take Cloud Health and we're going to make it a fundamental platform and branded offering from VMware. We will add many of the other VMware components into this platform such as our Wavefront analytics, our cloud choreo, compliance, and many of the other VMware products will become part of the Cloud Health suite of services. We will be enabling that through our enterprise channels as well as through our MSP and VCPP partners as well. You know, simply put, we will make Cloud Health the cloud operations platform of choice for the industry. I'm thrilled today to have Joe Concella, the CTO and founder. Joe, please stand up. Joe, to your team of a couple hundred, you know, mostly in Boston, welcome to the VMware family, the VMware community. It is a thrill to have you part of our team. Thank you, Joe. We're also announcing today and you can think of this much like we had vRealize operations and vRealize automation. The complement to the Cloud Health operations, VMware Cloud Automation. And some of you might have heard of this in the past as Project Tango. Well, today we're announcing the initial availability of VMware Cloud Automation. Assemble, manage complex applications, automate their provisioning and cloud services, and manage them through a brokerage service. You know, today the initial availability of Cloud Automation services, the acquisition of Cloud Health as a platform, VMware, the most complete set of multi-cloud management tools in the industry. And we're going to do so much more. So we've seen this picture of this multi-cloud journey that our customers are on. And we're working hard to say we are going to bridge across these worlds of innovation in the multi-cloud world. We're doing many other things and you're going to hear a lot at the show today about this. We're also giving the tech preview of the VMware Cloud Marketplace for our partners and customers. Also, today Dell Technologies is announcing their Cloud Marketplace to provide a self-service portfolio of Dell EMC technologies. We're fundamentally in a unique position to accelerate your multi-cloud journey. So we've built out this any cloud piece, but right in the middle of that any cloud is the network. And when we think about the network, we are just so excited about what we have done and what we're seeing in the industry. So let's click into this a little bit further. We've gotten a lot done over the last five years in networking. Look at these numbers. 80 million switch ports have been shipped. We are now 10x larger than number two in software defined networking. We have over 7,500 customers running on NSX. And maybe the stat that I'm most proud of is 82% of the Fortune 100 has now adopted NSX. You have made NSX the standard in software defined networking. Thank you very much. When we think about this journey that we're on, we started just saying, hey, we got to break the chains inside of the data center, as we said. And then NSX became the software defined networking platform. We started to do it through our cloud provider partners. IBM made a huge commitment to partner with us and deliver this to their customers. We then said, boy, we're going to make it fundamental to all of our cloud services, including AWS. We built this bridge called the hybrid cloud extension. We said we're going to build it natively into what we're doing with telcos, with Azure and Amazon as a service. We acquired the, I'll just tell you, SD-WAN, right, and VeloCloud, the hottest product in VMware's portfolio today, the opportunity to fundamentally transform branch and wide area networking, and we're extending it to the edge. Literally, the world has become this complex network. We have seen the world go from defined by rigid boundaries, simply put, in a distributed world, hardware cannot possibly work. We're empowering customers to secure their applications in the data, regardless of where they sit. And when we think of the virtual cloud network, we say it's these three fundamental things, a cloud-centric networking fabric with intrinsic security and all of it delivered in software. The world is moving from data centers to centers of data, and they need to be connected and NSX is the way that we will do that. So VMware is well known for this idea of talking, but also showing. So no VMworld keynote is okay without great demonstrations of it, because you shouldn't believe me, only what we can actually show. And to do that, I'm going to have our CTO come on stage, and CTO, I used to be a CTO, and CTO is the Certified Smart Guy. He's also known as the Chief Talking Officer, and today he's my demo partner. Please welcome VMware CTO, Ray to the stage. Ray? Good morning, Pat. How are you doing? Oh, it's great, Ray, and thanks so much for joining us. I promise that we're going to show off some pretty cool stuff here. We've covered a lot already. Are you up to the task? We're going to try and run through a lot of demos. We're going to do it fast, and you're going to have to keep me on time. You're going to ask an awkward question and slow me down. Okay, that's my fault if you run along. Okay, I got it. Let's jump right in here. So as CTO, I get to meet lots of customers. And a few weeks ago, I met a CIO of a large distribution company, and she described her IT infrastructure as consisting of a number of data centers throughout the U.S., but she also spoke of a large number of warehouses globally, and each of these had local hyperconverged compute and storage, primarily running surveillance and warehouse management applications. And she posed me four questions. The first question she asked me, she says, how do I migrate one of these data centers to VMware Cloud and AWS? I want to get out of one of these data centers. Okay, sounds like something Andy and I were just talking about. Exactly, what you just spoke to a few moments ago. She also wanted to simplify the management of the infrastructure in the warehouses themselves, these edge and smaller data centers that she had out there. Her application at the warehouses, that needed to run locally, but her developers wanted to develop using cloud infrastructure, cloud APIs, a little bit like the RDS we spoke of earlier. Okay, okay. And then her final question was, looking to the future, make all this complicated management go away. I want to be able to focus on my applications. That's what my business is about. So give me some new ways of how to automate all of this infrastructure from the edge to the cloud. Sounds pretty clear. Can we do it? Yes, we can. So we're going to dive right in right now into one of these demos. And the first demo we're going to look at is VMware cloud on AWS. This is the best solution for accelerating this public cloud journey. So can we start the demo, please? So what you are looking at here is one of those data centers and you should be familiar with this product. It's a familiar vSphere client. You see it's got a bunch of virtual machines running in there. These are the virtual machines that we now want to be able to migrate and move to VMC on AWS. So we're going to go through that migration right now. And to do that, we use a product that you've seen already, HCX. However, HCX has got some new cool features since the last time we demoed it, probably on this stage here last year. And one of those in particular is how do we do bulk migration? And there's a new concept. The whole thing, right? The whole thing. We want to move the data center en masse. And this concept here is cloud motion with vSphere replication. What this does is it replicates the underlying storage of the virtual machines using vSphere replication. So if and when you want to now do the final migration, it actually becomes a vMotion. And so this is what you see going on right here. The replication is in place. Now when you want to actually move those virtual machines, what you'll do is a vMotion. And the key thing to think about here is this is an actual vMotion. Those VMs as they're moving, as they're migrating, remain live just as you would in a vMotion across one part of your infrastructure to the other. So complete application or data center migration with no dying time. It's a standard vMotion kind of appearance. Wow, that is really impressive. That's correct. Wow. So one of the other things we want to talk about here is as we are moving these virtual machines from the on-prem infrastructure to the VMC and AWS infrastructure, unfortunately, when we set up the cloud on VMC and AWS, we only set up four hosts. That might not be enough. That might not be enough because she is going to move the whole infrastructure of that data center. Now this was something you guys, you and Andy referred to briefly earlier, this concept of elastic DRS. What elastic DRS does, it allows VMC and AWS to react to the workloads as they're being created and pulled in onto that infrastructure and automatically pull in new hosts into the VMC infrastructure along the way. So what you're seeing here is essentially VMC growing the infrastructure to meet the needs of the workloads themselves. Very cool. So we're seeing that elastic DRS. We also see the EBS capabilities as well. Again, you guys spoke about this too. This is the ability to be able to take the huge amount of storage that Amazon have in EBS and then front that by vSAN. You get the same experience of vSAN, but you get this enormous amount of storage capabilities behind that. Wow. That's incredible. That's incredible. I'm excited about this. This is going to enable customers to migrate faster and larger than ever before. Correct. Now she had a series of other questions. Okay. The second question was around what about all those data centers and those age applications that I did not move? And this is where we introduce a project which you've heard of already tonight called Project Dimension. What this does, it gets you the simplicity of VMware cloud bringing that out to the edge. You know what's basically going on here? VMC and AWS is a service which manages your infrastructure on AWS. We now stretch that service out into your infrastructure in your data center and at the edge, allowing us to be able to manage that infrastructure in the same way. Once again, let's dive down into a demo and take a look at what this looks like. So what you've got here is a familiar series of services available to you, one of them which is Project Dimension. When you enter Project Dimension, you first get a view of all of the different infrastructure that you have available to you, your data centers, your edge locations. You can then dive deeply into one of these to get a closer look at what's going on. Here we're diving into one of these warehouses. And we see there's a problem here. The problem is there's a networking problem going on in this warehouse. How do we know? We know because VMware is running this as a managed service. We are directly monitoring your infrastructure and we discover there's something going wrong here. We automatically create the SR so somebody is dealing with this. You have visibility to what's going on. But the VMware managed service is already chasing the problem for you. Very good. So now we're seeing this dispersed infrastructure with Project Dimension. But what's running on it? So before we get what's running on it, you've got another problem. And the problem is, of course, if you're managing a lot of infrastructure like this, you need to keep it up to date. And so once again, this is where the VMware managed service kicks in. We manage that infrastructure in terms of patching it and updating it for you. And as an example, when we release a security patch, here's one for the recent L1 terminal fault, the VMware managed service is already on that and making sure that your on-prem and edge infrastructure is up to date. Very good. Now what's running on it? Okay, so what's running on it? So we mentioned this case of this software running at the edge infrastructure itself. And these are workloads which are running locally at those edge locations. This is a surveillance application. You can see it here at the bottom. It says, warehouse safety monitor. So this is an application which gathers images and then stores those images somewhere. And it puts them in a database. My SQL database is on top there. Now this is where we leverage the technology you just learned about when Andy and Pat spoke about this ability to take RDS and run that on your on-prem infrastructure. The block of virtual machines in the moment are the RDS components from Amazon running in your infrastructure or in your edge location. And this gives you the ability to allow your developers to be able to leverage and operate against those APIs, but now the actual database, the infrastructure, is running on-prem. Now you might be doing this for performance reasons because of latency. You might be doing it simply because this data center is not always connected to the cloud. When you take a look under the hood and see what's going on here, what you actually see, this is vSphere, a modified version of vSphere, you see this new concept of my custom availability zone. That is the availability zone running on your infrastructure which supports RDS. What's more interesting is you flick back to the Amazon portal. This is typically what your developers are going to do. Once again you see an availability zone in your Amazon portal. This is the availability zone running on your equipment in your data center. So we've truly taken that RDS infrastructure and moved it to the edge. So the developer sees what they're comfortable with and the infrastructure sees what they're comfortable with, bridging those two worlds. Fabulous, right? So the final question, of course, that we got here was what's next? How do I begin to look to the future and say I'm going to, I want to be able to see all of my infrastructure just handled in an automated fashion? And so when you think about that, one of the questions there is how do we leverage new technologies such as AI and ML to do that? So what you've got here is, sorry, we've got a little bit later, what you've got here is how do I blend AI and ML and the power of what's in the data center itself? Okay, and we could do that. We're bringing AI and ML, right, and fusing them together, as never before, to truly change how the data center operates. Correct. And it is this introduction, it's this merging of these things together, which is extremely powerful. In my mind, this is a little bit like a self-driving vehicle. So think about a car driving down the street, a self-driving vehicle. It is consuming information from all of the environment around it, other vehicles, what's happening, everything from the weather. But it also has a lot of built in knowledge, which is built up due to self-learning and training along the way. We've been collecting lots of that data for decades. Exactly. And we've got all that from all the infrastructure that we have, we can now bring that to bear. So what we're focusing on here is a project called Project Magna. And Project Magna leverages all of this infrastructure. What it does here is it helps connect the dots across huge data sets and gain a deep insight across the stack, all the way from the application hardware, the infrastructure to the public cloud, and even the edge. And what it does, it leverages hundreds of control points to optimize your infrastructure on KPIs of cost, performance, even user-specified policies. This is a use of machine language in order to fundamentally transform, I'm sorry, machine learning. I'm going back to some very early things here, right? This is a use of machine learning and AI, which will automatically transform how do you actually automate these data centers. The goal is true automation of your infrastructure. So you get to focus on the applications which really serve the needs of your business. Yeah. And maybe you could think about that as in the past, we would have described the software-defined data center. But in the future, we're calling it the self-driving data center. So here we are taking that same acronym and redefining it, right? Because the self-driving data center, this deep infusion of AI and machine learning into the management and automation, into the storage, into the networking, into vSphere, redefining the self-driving data center. And with that, we believe fundamentally this would be an enormous advance in how they can take advantage of new capabilities from VMware. Correct. And you're already seeing some of this in pieces of projects such as some of the stuff we do at Wavefront and so already. This is how do we take this to a new level? And that's what Project Magnet will do. So let's summarize what we've seen in a few demos here as we've been working through each of these very quickly going through these demos. First of all, you saw VMware Cloud on AWS. How do I migrate an entire data center to the cloud with no downtime? Check. We saw a project dimension. Get the simplicity of VMware Cloud in the data center and manage it at the edge as a managed service. Check. Amazon RDS on VMware. Cool demo. Seamlessly deploy a cloud service to an on-premises environment, in this case RDS. We got that one coming in M5. And then finally, Project Magnet. What happens when you're looking to the future? How do we leverage AI and ML to self-optimize the virtual infrastructure? Well, how did Ray do as our demo guy? Thank you. Thanks, Ray. Thanks, Ray. Thank you. So coming back to this picture, our GPS for the day, we've covered any cloud. Let's click into now any application. And as we think about any application, we really view it as this breadth of the traditional cloud native and seass. Kubernetes is quickly maybe spectacularly becoming seen as the consensus way that containers will be managed and automated. It's the framework for how modern app teams are looking at their next generation environment. Quickly emerging as a key to how enterprises build and deploy their applications today. And containers are efficient, lightweight, portable. They have a lot of values for developers. But they need to also be run and operate and have many infrastructure challenges as well, manage and automation. While patched lifecycle updates, efficient move of new application services can be accelerated with containers, we also have these infrastructure problems. And one thing we want to make clear is that the best way to run a container environment is on a virtual machine. In fact, every leader in public cloud runs their containers on virtual machines. Google, the creator and arguably the world leader in containers, they runs them all in containers, both their internal IT and what they run, as well as GKE for external users as well. They just announced GKE on premise on VMware for their container environments. Google and all major clouds run their containers in VMs. And simply put, it's the best way to run containers. And we have solved through what we have done collectively the infrastructure problems. And as we saw earlier, cool new container apps are also typically some ugly combination of cool new and legacy and existing environments as well. How do we bridge those two worlds? And today as people are rapidly moving forward with containers and Kubernetes, we're seeing a certain set of problems emerge. And Dan Cohn, the director of CNCF, the cloud native computing foundation, the body for Kubernetes collaboration and the group that sort of stewards the standardization of this capability. And he points out these four challenges. How do you secure them? How do you network them? How do you monitor? And what do you do for the storage underneath them? Simply put, VMware is out to be, is working to be, is on our way to be the dial tone for Kubernetes. Now, some of you who are in your 20s might not know what that means. So lean over to a gray hair or come and see me afterward. We'll explain what dial tone means to you. Or maybe stated differently, enterprise grade standard for Kubernetes. And for that, we are working together with our partners at Google as well as Pivotal to deliver VMware PKS. Kubernetes is an enterprise capability. It builds on Bosch, the lifecycle engine that's foundational to the Pivotal offerings today. It builds on and is committed to stay current with the latest Kubernetes releases. It builds on NSX, the SDN container networking, and additional contributions that we're making like Harbor, the VMware open source contribution for the container registry. It packages those together, makes them available on hybrid cloud as well as public cloud environments. With PKS, operators can efficiently deploy, run, upgrade their Kubernetes environments on SDDC or on all public clouds while developers have the freedom to embrace and run their applications rapidly and efficiently. Simply put, PKS the standard for Kubernetes in the enterprise. And underneath that, NSX is emerging as the standard for software defined networking. But when we think about it, we saw that quote on the challenges of Kubernetes today. We see that networking is one of the huge challenges underneath that. And in a containerized world, things are changing even more rapidly. My network environment is moving more quickly. NSX provides the environments easily automate networking and security for rapid deployment of containerized environments. It fully supports VMware PKS, fully supports Pivotal's application service. And we're also committed to fully support all of the major Kubernetes distributions such as Red Hat, Heptio, and Docker as well. NSX, the only platform on the planet that can address the complexity and scale of container deployments. Taken together, VMware PKS, the production-grade container service for the enterprise. Available on hybrid cloud, available on major public clouds. Now, let's not just talk about it. Again, let's see it in action. And please welcome to the stage Wendy Carter with Ray, the Senior Director of Cloud Native Marketing for VMware. Wendy? Hi, Pat. Thank you. Hi, everybody. So we're going to talk about PKS because more and more new applications are built using Kubernetes and using containers. And with VMware PKS, we get to simplify the deploying and the operation of Kubernetes at scale. Wendy, you're the expert on all of this, right? So can you take us through the scenario of how PKS or VMware PKS can really help a developer operate in the Kubernetes environment, develop great applications, but also from an administrator point of view, I can really handle things like networking security and those configurations. Sounds great. I love to. Let's dive into the demo here. Okay. Our demo is VMware PKS running Kubernetes on Feesphere. Now, PKS has a lot of cool functions built in, one of which is NSX.  So we're going to start with a Feesphere client, which has been extended to run PKS-deployed Kubernetes clusters. We're going to go into PKS instance one. And we see that there are five clusters running. We're going to select one of the clusters called application production. And we see that it is running NSX. Now, a cluster typically has multiple users, and users are assigned namespaces. And these namespaces are essentially a way to provide isolation and dedicated resources to the users in that cluster. So we're going to check how many namespaces are running in this cluster. And we're brought up the Kubernetes UI, and we're going to click on namespace. And we see that this cluster currently has four namespaces running. What we're going to do next is bring up a new namespace and show that NSX will automatically bring up the network objects required for that namespace. So to do that, we're going to upload a YAML file. And your developer may actually use kubectl command to do this as well. And we're going to check the namespace. And there it is. We have a new namespace called pksrocks. Yeah. Okay, now that guy. Now it's great. We have a new namespace. And now we want to make sure it has the network elements assigned to it. So we're going to go to the NSX manager and hit refresh. And there it is. pksrocks has a logical router and a logical switch automatically assigned to it and it's up and running. So I want to interrupt here because you made this look so easy, right? I'm not sure people realize the power of what happened here. The developer went in using Kubernetes APIs or infrastructure they're familiar with, added a new namespace and behind the scenes pks entirely took care of the networking. A combination of NSX, a combination of what we do with pks to truly automate this function. Absolutely. So this means that if you are on the infrastructure operation side, you don't need to worry about your developers bringing up namespaces because NSX will take care of bringing the networking up and then bringing them back down when the namespace is not used. So right, but that's not it. Now I was in operations before and I know how hard it is for enterprises to roll out a new product without visibility, right? So pks took care of those day two operational needs as well. So while it's running your clusters, it's also exporting metadata so that your developers and operators can use Wavefront to gain deep visibility into the health of the cluster as well as resources consumed by the cluster. So here you see the Wavefront UI and it's showing you the number of nodes running, active pods, inactive pods, et cetera. You can also dive deeper into the analytics and take a look at information such as your namespace. So you see pks rocks there and you see the number of active nodes running as well as the CPU utilization and memory consumption of that namespace. So now pks rocks is ready to run containerized applications and microservices. So you just gave us a very highlight of a demo here to see a little bit what pks does. Where can we learn more? So we'd love to show you more. Please come by the VMware booth and we have more cool functions running on pks and we'd love to have you come by. Excellent. Thank you, Wendy. Thank you. Thank you. So when we look at these type of workloads now running on vSphere, containers, Kubernetes, we also see a new type of workload beginning to appear. And these are workloads which are basically machine learning and AI. And in many cases they leverage a new type of infrastructure. Hardware accelerators, typically GPUs. What we're going to talk about here is how NVIDIA and VMware have worked together to give you flexibility to run sophisticated VDI workloads but also to leverage those same GPUs for deep learning inference workloads also on vSphere. So let's dive right into a demo here again. What you're seeing here is again you're looking at here you're looking at your standard vRealize operations product and you see we've got two sets of applications here. A VDI desktop workload and machine learning. And the graph is showing what's happening with the VDI desktops. These are office workers leveraging these desktops every day so of course the infrastructure is super busy during the daytime when they're in the office. But the green area shows this has not been used very heavily outside of those times. So let's take a look what happens to the machine learning application. In this case this organization leverages those available GPUs to run the machine learning operations outside the normal working hours. Let's take a little bit of a deeper dive into what the application it is before we see what we can do from an infrastructure and configuration point of view. So this machine learning application processes a vast number of images and it clarifies or sorry it categorizes these images and as it's doing so it is moving forward and putting each of these in a database and you can see it's operating here relatively fast and it's leveraging some GPUs to do that. So typical image processing type of machine learning problem. Now let's take a dive in and look at the infrastructure which is making this happen. First of all we're going to look only at the VDI VDI infrastructure here. So I've got a bunch of these applications running VDI applications. What I want to do is I want to move these so that I can make this image processing out application run a lot faster. Now normally you wouldn't do this but Pat insisted that we do this demo at 10 30 in the morning when the office workers are in there so we're going to move all their VDI workloads over to the other cluster and that's what you're seeing is going on right now. So as they move over to this other cluster what we are now doing is freeing up all of the infrastructure the GPUs that that VDI workload was using. Here we see them moving across and now you've freed up that infrastructure. So now we want to take a look at this application itself the machine learning application and see how we can make use of that now freed up infrastructure. What we've got here is the application is running using one GPU in a vSphere cluster but I've got three more GPUs available now because I've moved the VDI workloads. We simply modify the application let it know that these are available and you suddenly see an increase in the processing capabilities because of what we've done here in terms of making the flexibility of accessing those GPUs. So what you see here is the same GPUs that you use for VDI which you probably have in your infrastructure today can also be used to run sophisticated machine learning and AI type of applications on your vSphere infrastructure. So let's summarize what we've seen in the various demos here in this section. First of all we saw how the mware pks simplifies the deployment and operating operation of Kubernetes at scale. What we've also seen is that leveraging the Nvidia GPUs we can now run the most demanding workloads on vSphere. When we think about all of these applications and these new types of workloads that people are running I want to take one second to speak to another workload that we're seeing beginning to appear in the data center and this is of course blockchain. We are seeing an increasing number of organizations evaluating blockchains for smart contract and digital consensus solutions. So this technology is really becoming or potentially becoming a critical role in how businesses will interact with each other. How do we work together? With Project Concord which is an open source project that we're releasing today you get the choice performance and scale of verifiable trust which you can then bring to bear and run in the enterprise. But this is not just another blockchain implementation. We have focused very squarely on making sure that this is good for enterprises. It focuses on performance. It focuses on scalability. We have seen examples where running consensus algorithms have taken over 80 days on some of the most common and widely used infrastructure in blockchain and with Project Concord you can do that in two and a half hours. So I encourage you to check out this project on GitHub today. You'll also see lots of activity around the whole conference speaking about this. Now we're going to dive into another section which is the any device section and for that I need to welcome Pat back up here. Thank you Pat. Thanks Ray. So diving into any device piece of the puzzle you know as we think about the super powers that we have maybe there are no more area that they are more visible than in the any device aspect of our picture you know and as we think about this you know the super powers you know think about mobility right you know and how it's enabling new things like desktop as a service you know in the mobile area these breadth of smartphones and devices AI and machine learning allow us to manage them secure them and this expanding envelope of devices in the edge that need to be connected and you know wearables and 3d printers and so on. We've also seen increasing research that says engaged employees are at the center of business success. Engaged employees are the critical ingredient for digital transformation and frankly this is how I run VMware right you know I have my device and my work you know my applications every one of my 23,000 employees is running on our transformed workspace one environment. Research shows that companies that that give employees ready any time access are nearly 3x more likely to be leaders in digital transformation that employees spend 20% of their time today on manual processes that can be automated the way team collaboration and speed of division decisions increases by 16% with engaged employees with modern devices. Simply put this is a critical aspect to enabling your business but you remember this picture from the silos that we started with and each of these environments has their own tribal communities of management security automation associated with them and the complexity associated with these is mind-boggling and we start to think about these remember the I'm a PC and I'm a Mac well now you have I'm an iOS and I'm Android and I'm a VDI and I'm now a connected printer and I'm a connected watch and remember Citrix manager and good is now bad and SCCM a failed model and VPNs and Zen apps oh my stop. The chaos is now over and at the center of that is VMware workspace one get it out of the business of managing devices automate them from the cloud but still have them enterprise secure you know cloud based analytics that brings new capabilities to this critical topic you know focus your energy on creating employee and customer experiences you know new capabilities to allow like our airlift the new capability to help customers migrate from their SCCM environment to a modern management expanding the use of workspace intelligence last year we announced a Chromebook and a partnership with HP and today I'm happy to announce the next step in our partnerships with Dell and today we're announcing that Dell provisioning for VMware workspace one as part of Dell's ready to work solutions Dell is taking the next leap in bringing workspace one into the core of their client offerings and the way you can think about this is day one productivity literally a Dell dropship laptop showing up to a new employee you give them their credential and everything else is delivered by workspace one your image your software everything patched and upgraded transforming your business right beginning at that device experience that you give to your customer and again we don't want to talk about it we want to show you how this works please welcome to the stage with ray renew the head of our desktop of products marketing thank you so we just heard from pat about how workspace one integrated with Dell laptops is really set up to manage windows devices what we're broadly focused on here is how do we get a truly modern management system for these devices but one that has an intelligence behind it to make sure that we're kept with a good understanding of how to keep these devices always up to date and secure can we start the demo please so what we're seeing here is the the the front screen that you see of workspace one and you see you've got multiple devices a little bit like that demo that pat just showed i've got ios i've got android and of course i've got windows renew can you please take us through how workspace one really changes the ability of somebody an it administrator to update and manage windows in their environment absolutely with windows 10 microsoft has finally joined the modern management party and we're really excited about that now the good news about modern management is the frequency of os updates and how quickly they come out because you can address all those security issues that are hitting our radar on a daily basis but the bad news about modern management is the frequency of those updates because all of us in it admins we have to test each and every one of our applications with that latest version because we don't want to roll out that update in case it causes any problems with workspace one we solve that we simply automate and provide you with the app compatibility information right out of the box so you can now automate that update process let's take a quick look let's drill down here further into the windows devices what we'll see is that only a small percentage of those devices are on that latest version of operating system now that's not a good thing because it might have an important security fix let's scroll down further and see what the issue is we find that it's related to app compatibility in fact 38 percent of our devices are blocked from being upgraded and the issue is app compatibility now we were able to find that not by asking the admins to test each and every one of those but we combined windows analytics data with app intelligence out of the box and we provided that information right here inside of the console let's dig down further and see what those devices and apps look like so renew this is the part that I find most interesting if I am at the system administrator at this point and I'm looking at workspace one is giving me a key piece of information it says if you proceed with this update it's going to fail 80 85 percent at a time that's an important piece of information here but not alone is it telling me that it is telling me roughly speaking why it thinks it's going to fail we've got a number of apps which are not ready to work with this new version particularly the mondecourt sales lead tracker app so what we need to do is get engineering to tackle the problems with this app and make sure that it's updated so let's get fixing it in order to fix it what we'll do is create an automation and we can do this right out of the box in this automation we'll open up a JIRA ticket right from within the console to inform the engineers about the problem not just that we can also flag and send a notification to that engineering manager so that it's top of mind and they can get working on this fix right away let's go ahead and save that automation right here ray you see there's the automation that we just saved so what's happening here is essentially this update is now scheduled meaning we can go out and update all those windows devices but workspace one is holding the process of proceeding with that update waiting for the engineers to update the app which is going to cause the problem that's going to take them some time right so the engineers have been working on this they have a fix and let's go back and see what's happened to our devices so going back into the os updates what we'll find is now we've unblocked those devices from being upgraded the 38 percent has drastically dropped down it can rest in peace that all of their devices are compliant and on that latest version of operating system and again ray this is just a snapshot of the power of workspace one to learn more and see more i invite you all to join our eoc showcase keynote later this evening okay so we've spoken about the presence of these new devices that you know it needs to be able to manage and operate across everything that to do but what we're also seeing is the emergence of a whole new class of computing device and these are devices which are we commonly speak to have been at the edge or embedded devices or iot and in many cases these will be in factories they'll be in your automobiles they'll be in the building controlling controlling the building itself fair conditioning etc are quite often in some form of an industrial environment or something like this we've got a wind farm and they're embedded in each of these turbines this is a new class of computing which needs to be managed secured we think virtualization could do a pretty good job of that a new virtualization frontier right at the edge for iot and iot gateways and that's gonna that's gonna open up a whole new realm of innovation in that space let's dive down and take a demo in this space as well let's do that what we're seeing here is a wind turbine farm a very different kind of data center than what we're used to and all the compute infrastructure is being managed by vcenter and we see two edge gateway hosts and they're running a very mission critical safety watchdog vm right on there now the safety watchdog vm is an ft mode because it's collecting a lot of the important sensor data and running the mission critical operations for the turbine so ft mode our fault tolerance mode that's a pretty sophisticated virtualization feature allowing two applications to essentially run in lockstep so if there's a failure one of them gets to take over immediately so this now sophisticated virtualization feature can be brought out all the way to the edge exactly so just like in the data center we want to perform an update so as we perform that update the first thing we'll do is we'll suspend ft on that safety watchdog next we'll put 205 into maintenance mode once that's done we'll see the power of vmotion that we're all familiar with we'll start to see all the virtual machines vmotion over to the second backup host again all the maintenance all the update without skipping a heartbeat without taking down any daily operations so what we're seeing here is the basic power of virtualization being brought out to the edge vmotion maintenance mode etc what's the big deal we've been doing that for years what's the you know come on what's the big deal it's doing on the edge so when you get to the edge pat you're dealing with a whole new class of infrastructure you're dealing with embedded systems and new types of cpu's and process yeah okay this whole demo has been done on an arm 64 virtualization brought to arm 64 for embedded devices so we're doing this on arm on the edge correct specifically focused for embedded for edge oems okay now that's okay okay thank you ray actually we got a summary here pat okay second before you disappear you want to wrap up what we've just seen right we've seen workspace one cross-platform management what we've also seen of course is esx i for arm to bring the power of esx to edge on 64 by arm platforms we'll go now okay okay thank you thanks now we've seen a look at a customer who is taking advantage of everything that we just saw and again a story of a customer that is just changing lives in a fundamental way let's see make a wish so when a family gets the news that a child is sick and it's a critical illness it could be a life threatening illness the whole family is turned upside down imagine somebody comes to you and they say what's the one thing you want that's in your heart you tell us and then we make that happen yeah so i was just calling to give you the good news that we're going to be able to grant jackson a wish make a wish is the largest wish granting organizations in the united states make a wish was featured in a cbs 60 minutes episode interestingly got a lot of hits but unfortunately for the it team the whole website crashed make a wish is going through a program right now where we're centralizing technology and putting certain security standards in place at our chapters so what you're seeing here we're configuring certain cloud services to make sure that they always are able to deliver on the mission whether they have a local problem or not as we continue to grow the partnership and work with bmware it's enabling us to become more efficient in our processes and allows us to grant more wishes it was a five-year-old girl she had a two-year-old brother she just wanted a puppy and she was pretty forthright and i want name the puppy in my name so my brother will always have me so but wisdom of a five-year-old it's it's something we can't change their medical outcome but we can change their spiritual outcome and we can transform their lives working together with you truly making wishes come true the last topic i want to touch on today and maybe the most important to me personally is security you know fundamentally when we think about this topic of security i'll say it's broken today and you know we would just say that the industry got it wrong that we're trying to bolt on or chasing bad and when we think about our security spend we're spending more and we're losing more right every day we're investing more in this aspect of our infrastructure and we're falling more behind we believe that we have to have much less security products and much more security you know fundamentally you know if you think about the problem we build infrastructure right generic infrastructure we then deploy applications all kinds of applications and we're seeing all sorts of threats launched at us daily tens of millions your simple virus scanner right is having tens of millions of rules running and changing many times a day we simply believe the security model needs to change we need to move from bolted on and chasing bad to an environment that has intrinsic security and is built to ensure good this idea of built-in security we are taking every one of the core vmware products and we are building security directly into it we believe with this we can eliminate much of the complexity many of the sensors and agents and boxes instead they'll directly leverage the mechanisms in the infrastructure and we're using that infrastructure to lock it down to behave as we intended it to ensure good right on the user side with workspace one on the network side with nsx and micro segmentation and storage with native encryption and on the compute with app defense we are building in security we're not chasing threats or adding on but radically reducing the attack surface when we look at our applications in the data center you see this collection of machines running inside of it right you know typically running on vSphere and those machines are increasingly connected through nsx and last year we introduced the breakthrough security solution called app defense and app defense leverages the unique insight we get into the application so that we can understand the application and map it into the infrastructure and then you can lock down you can take that understanding that manifest of its behavior and then lock those vms to that intended behavior and we do that without the operational and performance burden of agents and other rear-looking use of attack detection we are shrinking the attack surface not chasing the latest attack vector you know and this idea of bolt on versus chasing bad you sort of see it right in the network configuration machines have lots of connectivity lots of applications running and something bad happens it basically has unfettered access to move horizontally through the data center and most of our security is north south most of the attacks are east west we introduced this idea of micro segmentation five years ago and by it we're enabling organizations to secure some networks and separate sensitive applications and services as never before this idea isn't new it just was never practical before nsx but we're not standing still our teams are innovating to leap beyond to what's next beyond micro segmentation and we see this in three simple words learn imagine a system that can look into the applications and understand their behavior and how they should operate we're using machine learning and ai instead of chasing malware to be able to ensure good wear that that system can then lock down its behavior so the system consistently operates that way but finally we know we have a world of increasing dynamic applications and as we move to more containerized and microservices we know this world is changing so we need to adapt we need to have more automation to adapt to the current behavior today i'm very excited to have two major announcements that are delivering on this vision the first of those v-sphere platinum our flagship vmware v-sphere product now has app defense built right in platinum will enable virtualization teams yeah go ahead yeah this is you know platinum will enable virtualization teams you to give an enormous contribution to the security profile of your enterprise you can see whatever vm is for its purpose its behavior and tell the system that's what it's allowed to do dramatically reducing the attack surface without impact on operations or performance the capability is so powerful so profound we want you to be able to leverage it everywhere and that's why we're building it directly into v-sphere v-sphere platinum i call it the burger and fries you know nobody leaves the restaurant without the fries who would possibly run a vm in the future without turning security on that's how we want this to work going forward v-sphere platinum and as powerful as micro segmentation has been as an idea we're taking the next step with what we call adaptive micro segmentation we are fusing together app defense and v-sphere with nsx to allow us to align the policies of the application through v-sphere and the network we can then lock down the network and the compute and enable this automation of the micro segment formation taken together adaptive micro segmentation but again we don't want to just tell you about it we want to show you please welcome to the stage vj gante who heads our machine learning team for app defense vj great to be here but uh very good vj thanks for joining us so you know i talked about this idea right of being able to learn lock and adapt uh can you show it to us great yeah thank you with v-sphere platinum what we have done is we have put in everything you need to learn lock and adapt right with the infrastructure so next time you bring up your v-sphere client you actually see app defense right in there let's go with that demo there you go and when you look at app defense there what you see is that all your guest virtual machines and all your hosts hundreds of them and thousands of virtual machines are enabled for app defense it's in there and what that does is immediately gets you visibility into the processes running on those virtual machines and their risk for the first time think about it for the first time you're looking at the infrastructure through the lens of an application here for example the e-commerce application you can see the components that make up that application how they interact with each other the specific process talking to a specific ip address on a specific port that's what you get but so we're learning the behavior yes yeah very good but how do you make sure you only learn good behavior exactly how do we make sure that it's not bad we actually verify we ensure it's all good we ensure that every binary's reputation is verified we ensure that the behavior is verified let's go to svc house for example this process can exhibit hundreds of behaviors across numerous clis what we do here is we actually verify that failure that's not us it's actually our machine learning models that have been trained on millions of instances of goodware as you said and they've automatically verified that for you we've learned simply okay so we said learn now lock how does that work well once you've learned the application locking it is as simple as clicking on that verify and protect button and there you can lock both the compute and the network and it's done so we've pushed those policies into nsx and micro segmentation has been established exactly let's first look at compute okay actually lock down the compute and what we've done is the operating system is protected the processes and the behaviors are locked down to exactly what is allowed for that application and we have taken those policies and programmed your firewall this is nsx being configured automatically for you lock with one single click very good so we said learn lock now how does this adapt thing work well uh as you know bat change is the only constant with modern applications applications change on a continuous basis what we do is actually pretty simple we look at every change as it comes in determine it's good or it's bad so it's good we say allow it update the policies if it's bad we deny it let's look at an example else ask dot exe it's exhibiting a behavior that we've not seen during the learning period okay so this machine has never behaved this way this hasn't behaved that way okay but but again our machine learning models have seen thousands of instances of this process they know this is normal it talks on 389 all the time so what it's done is a few things it's lowered the criticality of the alarm okay so false positives exactly okay the bane of security operations false positives and it has gone and updated change those locks on compute and on network to allow for that behavior application continues to work and it's protected okay so we've seen learn lock and adapt an action right through the compute in the network what about the client well we do with workplace one intelligence protect and manage end user endpoint but workspace one intelligence nsx and app defense actually work together to protect your entire data center infrastructure but don't believe me you can watch it for yourself tomorrow at 1 p.m tom corn's keynote you want to be there be there or be nowhere i invite you hey thank you vj great job thank you so the idea of intrinsic security and ensuring good we believe fundamentally changing how security will be delivered in the enterprise in the future and changing the entire security industry we've covered a lot today i'm thrilled as i stand on stage to stand before this community that truly has been at the center of changing the world of technology over the last couple of decades in it we've talked about this idea of the superpowers of technology and as they accelerate the huge demand for what you do you know in the same way we together created this idea of the virtual infrastructure admin you know think about all the jobs that we are spawning in the discussion that we had today the new skills the new opportunities for each one of us in this room today quantum program machine learning engineer iot and edge expert we're on the cusp of so many new capabilities and we need you and your skills to do that the skills that you possess the abilities that you have to work across these asylos of technology and enable tomorrow i'll tell you i am now 38 years in the industry and i've never been more excited because together we have the opportunity to build on the things that collectively have done over the last four decades and truly have a positive global impact these are hard problems but i believe together we can successfully extend the lifespan of every human being i believe together we can eradicate chronic diseases that have plagued mankind for centuries i believe we can lift the remaining 10 percent of humanity out of extreme poverty i believe that we can reskill every worker in the age of the superpowers i believe that we can give modern education to every child on the planet even in the remotest slums i believe that together we could reverse the impact of climate change i believe that together we have the opportunity to make these a reality i believe this possibility is only possible together with you i ask you have a please have a wonderful vm world thanks for listening happy 20th birthday have a great poppies