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>> Good morning everybody. Welcome back to Las Vegas.
This is day four of theCUBE's wall-to-wall coverage
of our Super Bowl, aka AWS re:Invent 2022.
I'm here with my co-host, Paul Gillin.
My name is Dave Vellante.
Sanjay Poonen is in the house,
CEO and president of Cohesity.
He's sitting in as our guest market watcher,
market analyst, you know, deep expertise,
new to the job at Cohesity.
He was kind enough to sit in,
and help us break down what's happening at re:Invent.
But Paul, first thing,
this morning we heard from Werner Vogels.
He was basically given a masterclass on system design.
It reminded me of mainframes years ago.
When we used to, you know,
bury through those IBM blue books and red books.
You remember those Sanjay? That's how we-
learned back then. >> Oh God, I remember those,
Yeah. >> But it made me think,
wow, now you know IBM's more of a systems design,
nobody talks about IBM anymore.
Everybody talks about Amazon.
So you wonder, 20 years from now,
you know what it's going to be.
But >> Well-
>> Werner's amazing.
>> He pulled out a 24 year old document.
>> Yup. >> That he had written
early in Amazon's evolution about synchronous design
or about essentially distributed
architectures that turned out to be prophetic.
>> His big thing was nature is asynchronous.
So systems are asynchronous.
Synchronous is an illusion.
It's an abstraction.
It's kind of interesting.
But, you know-
>> Yeah, I mean I've had synonyms for things.
Timeless architecture.
Werner's an absolute legend.
I mean, when you think about folks who've had,
you know, impact on technology,
you think of people like Jony Ive in design.
>> Dave: Yeah.
>> You got to think about people like Werner in architecture
and just the fact that Andy and the team
have been able to keep him engaged that long...
I pay attention to his keynote.
Peter DeSantis has obviously been very, very influential.
And then of course, you know, Adam did a good job,
you know, watching from, you know, having watched
since I was at the first AWS re:Invent conference,
at time was President SAP
and there was only a thousand people at this event, okay?
Andy had me on stage.
I think I was one of the first guest
of any tech company in 2011.
And to see now this become like, it's a mecca.
It's a mother of all IT events,
and watch sort of even the transition
from Andy to Adam is very special.
I got to catch some of Ruba's keynote.
So while there's some new people in the mix here,
this has become a force of nature.
And the last time I was here was 2019,
before Covid, watched the last two ones online.
But it feels like, I don't know 'about what you guys think,
it feels like it's back to 2019 levels.
>> I was here in 2019.
I feel like this was bigger than 2019
but some people have said that
it's about the same. >> I think it was 60,000
versus 50,000. >> Yes. So close.
>> It was a little bigger in 2019.
But it feels like it's more active.
>> And then last year, Sanjay,
you weren't here but it was 25,000,
which was amazing 'cause it was right in that little space
between Omicron, before Omicron hit.
But you know, let me ask you a question
and this is really more
of a question about Amazon's maturity
and I know you've been following them since early days.
But the way I get the question,
number one question I get from people
is how is Amazon AWS going to be different
under Adam than it was under Andy?
What do you think?
>> I mean, Adam's not new because he was here before.
In some senses he knows the Amazon culture from prior,
when he was running sales and marketing prior.
But then he took the time off and came back.
I mean, this will always be, I think,
somewhat Andy's baby, right?
Because he was the...
I, you know, sent him a text,
"You should be really proud of what you accomplished",
but you know, I think he also,
I asked him when I saw him a few weeks ago
"Are you going to come to re:Invent?"
And he says, "No, I want to leave this to be Adam's show."
And Adam's going to have a slightly different view.
His keynotes are probably half the time.
It's a little bit more vision.
There was a lot more customer stories
at the beginning of it.
Taking you back to the inspirational pieces of it.
I think you're going to see them probably pulling up the stack
and not just focused in infrastructure.
Many of their platform services are evolved.
Many of their, even application services.
I'm surprised when I talk to customers.
Like Amazon Connect,
their sort of call center type technologies,
an app layer. It's getting a lot.
I mean, I've talked to a couple of Fortune 500 companies
that are moving off Ayer to Connect.
I mean, it's happening and I did not know that.
So it's, you know, I think
as they move up the stack, the platform's gotten more...
The data centric stack has gotten, and you know,
in the area we're working with Cohesity, security,
data protection, they're an investor in our company.
So this is an important, you know, both...
I think tech player and a partner
for many companies like us.
>> I wonder the, you know, the marketplace...
there's been a big push on the marketplace
by all the cloud companies last couple of years.
Do you see that disrupting the way softwares,
enterprise software is sold?
>> Oh, for sure.
I mean, you have to be a ostrich with your head in the sand
to not see this wave happening.
I mean, what's it? $150 billion worth of revenue.
Even though the growth rates dipped a little bit
the last quarter or so, it's still aggregatively
between Amazon and Azure and Google, you know, 30% growth.
And I think we're still in the second or third inning
off a grand 1 trillion or 2 trillion of IT,
shifting not all of it to the cloud,
but significantly faster.
So if you add up all of the big things
of the on-premise world,
they're, you know, they got to a certain size,
their growth is stable, but stalling.
These guys are growing significantly faster.
And then if you add on top of them, platform companies
the data companies, Snowflake, MongoDB, Databricks,
you know, Datadog, and then apps companies on top of that.
I think the move to the Cloud is inevitable.
In SaaS companies, I don't know why
you would ever implement a CRM solution on-prem.
It's all gone to the Cloud. >> Oh, it is.
>> That happened 15 years ago.
I mean, begin within three, five years
of the advent of Salesforce. And the same thing in HR.
Why would you deploy a HR solution now?
You've got Workday, you've got, you know, others that are so
some of those apps markets are are just
never coming back to an on-prem capability.
>> Sanjay, I want to ask you,
you built a reputation for being able to, you know,
forecast accurately, hit your plan,
you know, you hit your numbers, you're awesome operator.
Even though you have a, you know, technology degree,
which you know, that's a two-tool star, multi-tool star.
But I call it the slingshot economy.
This is like, I mean I've seen probably more downturns
than anybody in here, you know, given...
Well maybe, maybe-
>> Maybe me. >> You and I both.
I've never seen anything like this, where
where visibility is so unpredictable.
The economy is sling-shotting.
It's like, oh, hurry up, go Covid, go, go
go build, build, build supply, then pull back.
And now going forward, now pulling back.
Slootman said, you know, on the call,
"Hey the guide, is the guide."
He said, "we put it out there,
We do our best to hit it."
But you had CrowdStrike had issues
you know, mid-market, ServiceNow.
I saw McDermott on the other day on the, on the TV.
I just want to pay, you know, buy from the guy.
He's so (indistinct)
>> But mixed, mixed results, Salesforce, you know,
Octa now pre-announcing, hey, they're going to be,
or announcing, you know, better visibility, forward guide.
Elastic kind of got hit really hard.
HPE and Dell actually doing really well
in the enterprise. >> Yep.
>> 'Course Dell getting killed in the client.
But so what are you seeing out there?
How, as an executive, do you deal with such poor visibility?
>> I think, listen, what the last two or three years
have taught us is,
you know, with the supply chain crisis,
with the surge that people thought you may need of,
you know, spending potentially in the pandemic,
you have to start off with your tech platform
being 10 x better than everybody else.
And differentiate, differentiate.
'Cause in a crowded market,
but even in a market that's getting tougher,
if you're not differentiating constantly
through technology innovation, you're going to get left behind.
So you named a few places,
they're all technology innovators,
but even if some of them are having challenges,
and then I think you're constantly asking yourselves,
how do you move from being a point product to a platform
with more and more services where you're getting, you know,
many of them moving really fast.
In the case of Roe, I like him a lot.
He's probably one
of the most savvy operators, also that I respect.
He calls these speedboats,
and you know, his core platform started
off with the firewall network security.
But he's built now a very credible cloud security,
cloud AI security business.
And I think that's how you need to be thinking
as a tech executive.
I mean, if you got core,
your core beachhead 10 x better than everybody else.
And as you move to adjacencies in these new platforms,
have you got now speedboats that are getting
to a point where they are competitive advantage?
Then as you think of the go-to-market perspective,
it really depends on where you are as a company.
For a company like our size, we need partners a lot more.
Because if we're going to, you know, stand
on the shoulders of giants like Isaac Newton said,
"I see clearly because I stand on the shoulders giants."
I need to really go and cultivate Amazon
so they become our lead partner in cloud.
And then appropriately Microsoft and Google where I need to.
And security.
Part of what we announced last week was, last month,
yeah, last couple of weeks ago,
was the data security alliance
with the biggest security players.
What was I trying to do with that?
First time ever done in my industry
was get Palo Alto, CrowdStrike, Wallace,
Tenable, CyberArk, Splunk,
all to build an alliance with me
so I could stand on their shoulders with them helping me.
If you're a bigger company,
you're constantly asking yourself
"how do you make sure you're getting your, like Amazon,
their top hundred customers spending more with that?"
So I think the the playbook evolves,
and I'm watching some of these best companies
through this time navigate through this.
And I think leadership is going to be tested in enormously
interesting ways. >> I'll say.
I mean, Snowflake is really interesting because they...
67% growth, which is, I mean,
that's best in class for a company that's $2 billion.
And, but their guide was still, you know, pretty aggressive.
You know, so it's like, do you, you know, when it
when it's good times you go, "hey, we can
we can guide conservatively and know we can beat it."
But when you're not certain, you can't dial down too far
'cause your investors start to bail on you.
It's a really tricky-
>> But Dave, I think listen, at the end of the day,
I mean every CEO should not be worried
about the short term up and down in the stock price.
You're building a long-term multi-billion dollar company.
In the case of Frank, he has,
I think I shot to a $10 billion, you know,
analytics data warehousing data management
company on the back of that platform,
because he's eyeing the market that,
not just Teradata occupies today,
but now Oracle occupies or other databases, right?
So his tam as it grows bigger,
you're going to have some of these things,
but that market's big. I think same with Palo Alto.
I mean Datadog's another company, 75% growth.
>> Yeah. >> At 20% margins,
like almost rule of 95. >> Amazing.
>> When they're going after,
not just the observability market,
they're eating up the sim market, security analytics,
the APM market.
So I think, you know, that's, you look at these case studies
of companies who are going from point product to platforms
and are steadily able to grow into new tams.
You know, to me that's very inspiring.
>> I get it.
>> Sanjay: That's what I seek to do at our com.
>> I get that it's a marathon, but you know,
when you're at VMware, weren't you looking
at the stock price every day just out of curiosity?
I mean listen, you weren't micromanaging it.
>> You do, but at the end of the day,
and you certainly look at the days of earnings
and so on so forth. >> Yeah.
>> Because you want to create shareholder value.
>> Yeah. >> I'm not saying
that you should not but I think in obsession with that,
you know, in a short term,
>> Going to kill ya. >> Makes you, you know,
sort of myopically focused on
what may not be the right thing in the long term.
Now in the long arc of time,
if you're not creating shareholder value...
Look at what happened to Steve Bomber.
You needed Satya to come in to change things
and he's created a lot of value.
>> Dave: Yeah, big time.
>> But I think in the short term,
my comments were really on the quarter to quarter,
but over a four a 12 quarter,
if companies are growing and creating profitable growth,
they're going to get the valuation they deserve.
>> Dave: Yeah.
>> Do you the...
I want to ask you about something Arvind Krishna said
in the previous IBM earnings call,
that IT is deflationary
and therefore it is resistant
to the macroeconomic headwinds.
So IT spending should actually thrive in a deflation,
in a adverse economic climate.
Do you think that's true?
>> Not all forms of IT.
I pay very close attention to surveys from,
whether it's the industry analysts or the Morgan Stanleys,
or Goldman Sachs. The financial analysts.
And I think there's a gluc in certain sectors
that will get pulled back.
Traditional view is when the economies are growing
people spend on the top line, front office stuff,
sales, marketing.
If you go and look at just the cloud 100 companies,
which are the hottest private companies,
and maybe with the public market companies, there's way
too many companies focused on sales and marketing.
Way too many.
I think during a downsizing and recession,
that's going to probably shrink some,
because they were all built for the 2009 to 2021 era,
where it was all about the top line.
Okay, maybe there's now a proposition
for companies who are focused on cost optimization,
supply chain visibility.
Security's been intangible,
that I think is going to continue to an investment.
So I tell, listen, if you are a tech investor
or if you're an operator, pay attention to CIO priorities.
And right now, in our business at Cohesity,
part of the reason we've embraced
things like ransomware protection,
there is a big focus on security.
And you know, by intelligently being a management
and a security company around data, I do believe we'll
continue to be extremely relevant to CIO budgets.
There's a ransomware, 20 ransomware attempts every second.
So things of that kind make you relevant in a bank.
You have to stay relevant
to a buying pattern or else you lose momentum.
>> But I think what's happening now
is actually IT spending's pretty good.
I mean, I track this stuff pretty closely.
It's just that expectations were so high
and now you're seeing earnings estimates come down
and so, okay, and then you, yeah, you've got the, you know
the inflationary factors and your discounted cash flows
but the market's actually pretty good.
>> Yeah. >> You know,
relative to other downturns that if this is not a...
We're not actually not in a downturn.
>> Yeah. >> Not yet anyway.
It may be.
>> There's a valuation there. >> You have to prepare.
>> Not sales. >> Yeah, that's right.
>> When I was on CNBC, I said
"listen, it's a little bit like that story of Joseph.
Seven years of feast, seven years of famine."
You have to prepare for potentially your worst.
And if it's not the worst, you're in good shape.
So will it be a recession 2023? Maybe.
You know, high interest rates, inflation,
war in Russia, Ukraine, maybe things do get bad.
But if you belt tightening,
if you're focused in operational excellence,
if it's not a recession, you're pleasantly surprised.
If it is one, you're prepared for it.
>> All right. I'm going to put you in the spot
and ask you for predictions.
Expert analysis on the World Cup. What do you think?
Give us the breakdown.
(group laughs)
>> As my...
I wish India was in the World Cup,
but you can't get enough Indians at all
to play soccer well enough, but we're not,
>> You play cricket, though. >> I'm a US man first.
I would love to see one of Brazil, or Argentina.
And as a Messi person, I don't know if you'll get that,
but it would be really special for Messi to lead,
to end his career like Maradonna winning a World Cup.
I don't know if that'll happen.
I'm probably going to go one of the Latin American countries,
if the US doesn't make it far enough.
But first loyalty to the US team,
and then after one of the Latin American
countries. >> And you think one
of the Latin American countries is best bet to win or?
>> I don't know. It's hard to tell.
They're all...
What happens now at this stage >> So close, right?
>> is anybody could win. >> Yeah.
You just have lots of shots of gold.
I'm a big soccer fan.
It could, I mean, I don't know if the US is favored to win,
but if they get far enough, you get to the finals,
anybody could win. >> I think they get
Netherlands next, right? >> That's tough.
>> Really tough. >> But...
The European teams are good too,
but I would like to see US go far enough,
and then I'd like to see Latin America
with team one of Argentina, or Brazil.
That's my prediction.
>> I know you're a big Cricket fan.
Are you able to follow Cricket
the way you like? >> At god unearthly times
the night because they're in Australia, right?
>> Oh yeah. >> Yeah.
>> I watched the T-20 World Cup, select games of it.
Yeah, you know, I'm not rapidly following every single game
but the World Cup games,
I catch you. >> Yeah, it's good.
>> It's good.
I mean, I love every sport.
American football, soccer.
>> That's great. >> You get into basketball now,
I mean, I hope the Warriors come back strong.
Hey, how about the Warriors Celtics?
What do we think? We do it again?
>> Well- >> This year.
>> I'll tell you what- >> As a Boston Celtics-
>> I would love that.
I actually still, I have to pay off some folks
from Palo Alto office with some bets still.
We are seeing unprecedented NBA performance this year.
>> Yeah. >> It's amazing.
You look at the stats, it's like nothing.
I know it's early. Like nothing we've ever seen before.
So it's exciting. >> Well, always a pleasure
talking to you guys. >> Great to have you on.
>> Thanks for having me. >> Thank you.
Love the expert analysis. >> Sanjay Poonen.
Dave Vellante. Keep it right there.
re:Invent 2022, day four.
We're winding up in Las Vegas. We'll be right back.
You're watching theCUBE, the leader
in enterprise and emerging tech coverage.
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