VMware, Inc. (VMW) Management Presents at Wells Fargo Technology Summit Conference (Transcript)

VMware, Inc. (NYSE:VMW) Wells Fargo Technology Summit Conference Transcript December 4, 2018 3:00 PM ET

Executives

Rangarajan Raghuram - Chief Operating Officer, Products and Cloud Services

Analysts

Scott Dillon - Wells Fargo & Company

Operator

… Chief Operating Officer, Cloud Products and Service of VMware; and Scott Dillon, Chief Technology Officer of Wells Fargo & Company.

Scott Dillon

So the mics are working. Thank you for joining me. We are thrilled back you here. We are going to have about 35 minutes of dialogue and we are going to ask maybe 5 minutes to 10 minutes to the end and maybe save up some questions kind of hit it with us. One of the dream jobs that I have never had that I always wanted was Investor Relations.

Rangarajan Raghuram

Oh! There you go.

Scott Dillon

So I thought I’d read a statement for you all. So forward-looking statements to make sure we get the protocol done. Statements made in these discussions which are not statements of historical fact are forward-looking statements based upon current expectations. Actual results could differ materially from those projected due to a number of factors, including those referenced in VMware’s most recent SEC filings on Forms 10-Q, K and 8-K.

Scott Dillon

[Inaudible] So there’s a lot going on and you have got a very unique chair at VMware…

Rangarajan Raghuram

Yeah.

Scott Dillon

… and in the industry. So cloud is top of mind for everyone.

Rangarajan Raghuram

Yeah.

Scott Dillon

The journey is an interesting one.

Rangarajan Raghuram

Yeah.

Scott Dillon

We are in certain inning today but there’s a lot going on.

Rangarajan Raghuram

Yeah.

Scott Dillon

And maybe the next two years would love to share with this audience what it looks like from your chair.

Rangarajan Raghuram

Yeah. I think if you look back the last couple of years, I mean, five years, six years ago everybody said, okay, everybody’s moving, shift left to the cloud immediately and the tone of everything that we know about and then today it’s more of a moderate.

Two things have happened. One it’s more of a moderate position. People understand that there’s sort of workload that everyone live in corporate datacenters for lot s of different reasons. For a long time lots of applications will work great on the public cloud and so a hybrid is becoming the watchword and especially in the last year or so, that’s point number one.

And point number two is, customers are increasingly have the hyperscaler platforms all achieve maturity. Customers are choosing the different applications in different clouds. So multi-cloud or cross-cloud, whatever you want to call it had again become a very common theme, right. I would say that’s the future that at least our customers tell us that they will see a lot of.

And then, the notion of cloud is an architecture itself changes. It’s not just in the corporate data center. It’s not just in the cloud. But do you see the cloud architecture and the edge of the network as well. So we see this continuum of computing from cloud to data center and edge, all operating in the same cloud principles. So that’s what we see.

Scott Dillon

So I am going to pull a little bit on that specifically because you had also basically the full stack and the data center.

Rangarajan Raghuram

Yeah.

Scott Dillon

That you have a much changing, VMware, obviously, a long history on compute.

Rangarajan Raghuram

Yeah.

Scott Dillon

But there’s a lot going on in storage and networking to your point, that’s being driven by this. So again kind of how are you seeing those trends and where is it going and how is VMware thinking about that?

Rangarajan Raghuram

Yeah. So that’s been a very disruptive trend in the industry. We started off at the early stages of it. Back in 2009, 2010, we articulated this concept that we call the software defined datacenter. So the idea is that if you want to build your own private cloud or infrastructure as a service stack or a platform as a service stack in your data center, right. Like your company does and many others do. You need to have a more modern infrastructure underneath, that’s agile and that’s more programmatically controllable.

In order to do that, you have to rethinks not just compute, but you have to rethink storage and networking and we brought in the principles that we applied in compute virtualization to storage and to network, and that gave rise to modern hyperconverged infrastructure. With our vSAN product line and the software-defined networking with our NSX product line.

We have had a lot of success over the last four or five years. But those are also vastly under penetrated in the market, right. But if you look at storage, we have 17,000 customers using our vSAN product, which is good, but we have hundreds of thousands of customers using compute virtualization.

If you look at NSX, we have approaching 10,000 customers for our NSX product line. But then again there are hundreds of thousands of customers. So we are in the early innings. So there’s a lot of adoption that’s happening as customers recognize the benefits. That’s point number one.

Point number two, the technology is also dramatically changing, right. So in storage it’s not just enough to have hyperconverged, you need to have it connect to the cloud. You need to have a hybrid storage.

In networking similarly you can’t have a network that just operates from the data center. The software network has to extend to the edge and the software network has to extend to the cloud. It’s got to culminate not just VMs. It’s got to culminate containers and Kubernetes, and so on and so forth. And we introduced this idea of a virtual cloud network and those are the kind of things that we are working on.

And the other interesting thing that’s happening especially in today’s economy industry sentiment is security lets you get more and more built into all these infrastructure layers. We call this idea intrinsic security and that’s in fact one of the reasons that’s driving NSX adoption. Half of NSX adoption is due to security, right, and similarly in storage. So those are some of the key things that we see going forward.

Scott Dillon

Yeah. From speaking as a user or somebody who has to manage the technologies. Hybrid, for all the reasons you mentioned I think we absolutely see as well and would agree with.

Rangarajan Raghuram

Yeah.

Scott Dillon

From a complexity of managing in a hybrid world, how do you think about that and what are some of the issues and challenges that you see, customers facing and what does that mean from an R&D and a go-forward development perspective for VMware?

Rangarajan Raghuram

Yeah. That’s a great question. So if you think about the hybrid as a basic concept, it basically says that there are applications that are running in the cloud and applications that are running on premise, and I need to be able to move some of these applications to one way, one place or the other for a period of time, right.

Now, if you have two disparate architectures, right, in your corporate data center and on the public cloud, this becomes very hard to do, because the operational model is different, the architecture is different. So when you take an application and move it from the private cloud to the public cloud, you have got to re-factor it, you have got to re-platform it, right, which means your operational model becomes different. The set of tools you use to deploy, manage, secure, monitor, all those things become different, your operational teams have to have a different training, etcetera, right, and that’s a super expensive.

So the idea of hybrid cloud would be brought into the marketplace and other public cloud vendors are trying to do that as well. It’s the idea that if you say a hybrid cloud, what it means is consistent infrastructure and consistent operations.

So in the case of the VMware offering, for example, we have got the VMware cloud foundation offering in the private data center, which consists of vSphere and vSAN and NSX. We have the same thing in our data and AWS data center, right. And so, you can literally take an application without having to recertify it, retest it, worry about its performance and move it over there, right.

Your IT teams, your teams that know how to manage VMware and the data center, now can manage the applications in the cloud. All the security governance protocols that you put in place for compliance and so on, they work absolutely unchanged. They all works unchanged so on and so forth.

So, that really is the idea of a consistent infrastructure, consistent operations. That’s why there’s a lot of excitement around this definition of the hybrid cloud. That’s how we get over a lot of the problems you talked.

Scott Dillon

Yeah. Yeah. Again, I completely agree and I think it’s absolutely coming. Do you think we are -- how far down that journey is the industry in general, are they step 2 of 10, step 3 of 10, a lot more to go or what kind of…

Rangarajan Raghuram

Step 1 of 10…

Scott Dillon

Yeah.

Rangarajan Raghuram

… is my judgment, right. Because a lot of customers are starting to try these combinations, right. And it’s not just the customers, but the ecosystem has to support them, right. All the vendors and the tooling and so on and so forth have to accommodate hybrid cloud as the way the industry are, the way that you want to run your infrastructure, right. And so I would say we are just in the beginning stages. It’s a huge opportunity.

Scott Dillon

Got it.

Rangarajan Raghuram

So if you look at the total number of workloads probably, 80% to 90% of the workloads are still in the private cloud, they will all become hybrid.

Scott Dillon

Yeah. Any forward forecast in five years and say, is it a 50/50, 40/60, 60/40?

Rangarajan Raghuram

I don’t know. I think it will start to approach 50, is my belief.

Scott Dillon

Yeah.

Rangarajan Raghuram

Yeah.

Scott Dillon

Yeah. Yeah.

Rangarajan Raghuram

Yeah.

Scott Dillon

I am throwing a lot of curveballs in so…

Rangarajan Raghuram

And by the way, the -- don’t forget the edge of the network as well. I mean, IoT and what companies like yourselves are doing, the branches and so on and so forth, right?

Scott Dillon

Yeah.

Rangarajan Raghuram

That is fundamentally going to require a lot of computer to edge. So you need for cloud literally a consistent infrastructure stretches all the way, right. And that’s also going to be factored into this 50/50.

Scott Dillon

Yeah. Again, I strongly agree, I think, especially now with some of the computer to the edge actually the options you can do in a distributed environment are going to be really robust.

Rangarajan Raghuram

Yeah.

Scott Dillon

But still have to mature.

Rangarajan Raghuram

Yeah.

Scott Dillon

So there’s a lot going on with AWS. A lot of…

Rangarajan Raghuram

Yeah.

Scott Dillon

A lot of interesting things, a lot of things, you guys have a point of view in the relationship and a lot of stuff going on as well, so maybe what can you share with us all about that?

Rangarajan Raghuram

Yeah. So when we -- back about 2016 in our previous cloud offering, vCA was not working so well and we have been asked the customers what they needed from VMware in terms of such an offering. They said, you guys are right on with aspect of the hybrid cloud idea. But the hybrid cloud that we want is VMware and AWS together, because AWS had most present in 75% to 80% of our customers, right.

So we embarked upon this partnership just to bring the best of private cloud and the best of public cloud together and that’s where the VMware Cloud and AWS partnership has spawn. It’s been a tremendous R&D effort and it has been fantastic collaboration between the two companies.

As a result, the partnership between the two companies are going significantly stronger over the last three years, while we are still building our VMware Cloud and AWS, we are building our geographic, to be in every geography that our customers want us to be. A lot of feature set, very aggressive roadmap. We are on target to hit a large number of customers this year and drive consumption. We have already started expanding beyond that, right.

To your point -- earlier point about hybrid, hybrid is not only about workloads moving to the cloud. It’s also about cloud services being delivered on-premise. So in that way, we collaborated with AWS to introduce RDS on-premise. So if you are having a lot of cost of ownership or complexity in matters that you own thousands of your databases, whether they be SQL server, mySQL, Arx or whatever, RDS can automate that for you on top of vSphere, right. So that is one example.

And then, most recently, we collaborated with AWS and offering that AWS call is AWS Outposts, which is where they are going to bring their AWS hardware infrastructure onto your data center and we are going to bring the VMware Cloud offering onto -- on top of that.

As well as, they are going to bring EC2 to their data center and we are going to bring networking and management and so on to connect to EC2 to address the VMware enterprise environment. So these are the two offerings that is the latest product with a collaboration. So it’s going really well.

We collaborated with all the public cloud providers, right. For example, we are doing a lot in Kubernetes and Google. We are doing a lot with the Microsoft in networking and management, in desktop, et cetera. But with respect to vSphere and the hybrid cloud base in vShphere, AWS is our preferred cloud provider.

Scott Dillon

Yeah. And to a degree that you will share and go even further in what you just said, so VMware kind of a Switzerland [ph] approach to cloud providers.

Rangarajan Raghuram

Yeah.

Scott Dillon

Obviously, a lot of good things you just referenced. But how far do you think you will go with some of those other providers. Shall we expect to see similar agreements with some of the top providers?

Rangarajan Raghuram

So the VMware cloud offering itself is a managed stack. It’s a managed service offering to manage in the VMware stack. So in that sense, we are like a SaaS company almost, no different than Workday or anybody else that’s running a stack inside of AWS.

So like any SaaS company, we have to like put a lot of effort into running on one cloud really well that’s really going to be the focus for a long, long time. Having said that, we continue to work on other things with Microsoft and other things with Google, and so that’s how we will proceed. Our goal is to be like I said, the Switzerland [ph] when it comes to providing customers options across all clouds.

Scott Dillon

Yeah. Good. You mentioned Kubernetes and containerization is obviously got a big and a growing role.

Rangarajan Raghuram

Yeah.

Scott Dillon

What do you see customers doing? How does VMware thinking about it strategically and where do you think we have it end up over the next couple of years?

Rangarajan Raghuram

Yeah. We are super excited about it. So strategically, we think it’s a tremendous opportunity to grow not just our on-prem footprint, but also provide solutions across multiple clouds. And the key technology there is called Kubernetes, right. So Kubernetes is emerging as an infrastructure standard across any cloud.

So back to our earlier theme of like customers are run -- want to run applications across multiple clouds. They want a common-looking environment and they want a common-looking set of management tools. And Kubernetes is providing that and Kubernetes has meant for these containerized environments, right.

So, the growth of containers is going to accelerate with standardization around Kubernetes and this is why we recently acquired this company called Heptio, which was created by the founders of Kubernetes, right. And we plan to produce the right set of IP and tooling around Kubernetes across all plants. So we see a lot of acceleration in container adoption in enterprise, driven by multiple factors, standardization being one of them, maturity being another, right.

And thirdly, as folks like yourself in response to digital trends, start to rewrite your applications, you want to rewrite them to these micro services standards and -- I mean architectural frameworks and they typically put them in containers. So all of that is leading to an explosion in the growth of containers, and by the way, containers run on VMs, right. Our computer business is benefiting from the fact that people want to put containers in VMs. Clearly, in the public clouds containers run a lot in VMs. So we see it’s synergetic to our business.

Scott Dillon

So, a little bit of a tangent but love your thoughts on it. When you mentioned kind of the open source world and Kubernetes and other stuff.

Rangarajan Raghuram

Yeah.

Scott Dillon

The most recent acquisition, is that also, at least from my perspective, I think, you see where there is a strong open source environment as usually in North Star, for lack of a better word, we somebody’s kind of driving the strategy and trying to pull the community with. Is that a role that you see as part of that acquisition that would be important for VMware?

Rangarajan Raghuram

Yeah. In fact, that is one of the big reasons we do, right. So, the Kubernetes is an emerging community, right. There is a foundation called CNC, our Cloud Native Computing Foundation that tries to bring all the players together, right. And one of the attractiveness of Heptio, the company that we acquired is the two founders of Heptio are the two of the three founders of Kubernetes.

And they are also the folks that were instrumental in creating the Cloud Native Compute Foundation and many of the employees of Heptio are leading a lot of the technical subprojects if you will within the open source community. So this represents a strong step-up for VMware in the open source community especially around Kubernetes. We have been broadening our open source efforts across the Board, but this is a very significant step-up for us.

Scott Dillon

And speaking of it in kind of the broader family, so Pivotal, obviously, had a lot of strategic…

Rangarajan Raghuram

Yeah.

Scott Dillon

… importance and…

Rangarajan Raghuram

Yeah.

Scott Dillon

… plays in overlapping, adjacent, supportive, anything going on in that front?

Rangarajan Raghuram

Yeah. So Pivotal being in the application platforming space, right. Their flagship product to-date has been Pivotal Cloud Foundry. I mean, you guys are very familiar with that. So that business is going really well. And we provide the underlying platform for PCF in terms of networking and compute.

But the most recent thing we have done with Pivotal is, as Pivotal started engaging more with Kubernetes, we have jointly built a Kubernetes product called PKS. It’s an enterprise Kubernetes platform and we released it just this summer and it’s starting to gain rapid traction. That’s a joint development effort where half of the engineers are from VMware and half of the engineers are from Pivotal. And of course, our Heptio acquisition will feed into that by providing more open source technologies into that. So we are jointly attacking the Kubernetes market.

Question-and-Answer Session

Q - Scott Dillon

Yeah. Good. We have been in a lot of dialogue and we are going to throw a curveball in the middle and see if anyone’s got a question that -- on any of the topics that we just hit, we covered a lot of territory. So anywhere in the room wants to do a probe, we’d -- we grab an ad hoc one and encourage it too so we are not talking at people the whole time. I know it’s not a shy group, that’s how you all at the park. Okay. Well keep thinking because I will come back and maybe I will even actually go to a table next time to encourage a question.

So thinking a little bit more cloud, hybrid, you can have that dialogue today whether it’s a financial services or anyone else without putting security on the table.

Rangarajan Raghuram

Yeah.

Scott Dillon

I think this one will care a lot about maybe the investment thought process. I care a lot. I think a lot of the technologist care about what your vision is for security in the cloud, but maybe put both those two pieces together, vision combined with what does it mean for product evolution, adjacency of products or interesting areas?

Rangarajan Raghuram

Yeah. Absolutely. So if you think about the way the security industry operates today, right. The analogy that I would draw is imagine you went out and bought a car, the car did not have antilock brakes and hazard lights and do you have to go after market and shop for all of those things?

Scott Dillon

A backup camera because I am helpless without one.

Rangarajan Raghuram

Yeah. A backup camera and whatever else, a safety features that a car has. You have to go shopping for all of those things and then choose the best-of-breed backup camera, the best-of-breed antilock brakes and what have you and then come in and give it to your car and start to install it yourself or go to your neighborhood garage and get it installed.

That is the state of the security industry. That’s really telling you what’s your teams are doing, right. And we think that’s fundamentally a flawed approach. We think the platforms have to be more intrinsically secure.

So the first part of our vision is intrinsic security and what that really means is that the platforms that we bring into the marketplace such as our computer, networking platform are for the cloud managed, cloud providing, cloud renders platforms or device platforms, et cetera. We want to have intrinsic security capabilities. This is why if you think about NSX, for example, NSX has East-West firewall is built-in. So every VM gets automatically protected.

Our app difference product automatically protects every VM running on a vSphere and in the future on every cloud. So the idea is that when you put an application workload onto a platform, you get intrinsically it becomes security applies, right? That’s part one.

And then part two is the idea of a known good. And the idea that there is today a lot of the security is based on trying to track every bad actor and every bad virus and every bad everything and then try to shoot it down, right? And if you think about our anti-virus definition that you load up on your PCs it’s probably like hundreds of thousands if not millions of [inaudible]. It’s a never ending battle because there are more smart people out there than your IT, right, are people working on the security companies.

Instead, we think that approach need to get flipped to saying the applications I know, what -- I know what the known good behavior is, right. And therefore it’s better for me to track deviations from known good rather than tracking every bad thing.

The analogy again is, if you are, let’s say, call it a New York apartment building, right. The front desk knows what the normal behavior of the apartment residents are, right, who goes and who comes out, et cetera, et cetera, over a period of time. They learned it. And so when there are suspicious people entering or trying to enter or walking around the parking lot or whatever it is, then they know. That is the approach that we are taking with respect to non-good.

Thanks to machine learning and AI and so on. What we have done is with this have different technology, we are putting the technology underneath the hypervisor, inside the hypervisor that can observe the normal behavior of a workload, whether the workload is exchange or your custom banking application or whatever be the safety, whatever it is.

Over a period of time, we observe it. So we know what fortune opens. How many processes are drones, what’s the CPU consumption pattern, et cetera, et cetera. I don’t know it happened to be deviations over time and by the way we know it not just in your shop, but the centralized learning especially for third-party applications across the actual customers. So we know the behavior patterns.

And then once you start to see deviations, then we know something is going on. Then, we inform your security teams or in the case of vSphere or NSX that are automatic programmatic controls, they can automatically put a bubble around that virtual machine or application, quarantine it, courted out with the rest of the network or do whatever you want to do.

So these two are fundamental principles for us. It is the idea of learning what the non-good state. By the way we do the same thing on the desktop, on the device using our AirWatch and Workspace 1 technology.

On an intrinsic security, building security into the platform, that really is the vision. So the way it will help our business is going to drive platform, because everybody will say look, I want a more secure platform, to your point. And then, secondly, it’s going to drive the product that we are building on top of. And thirdly, it’s going to attract the security ecosystem to build around this kind of alternative [ph], right. Because these things will in turn enable a lot of security vendors and participant to the industry to build more robust security products, so that’s really our thinking around security.

Scott Dillon

That’s interesting that again one of my words, but one part that make the compute, the VM, if you will very secure.

Rangarajan Raghuram

Yeah.

Scott Dillon

And apparently in regards to where it’s running.

Rangarajan Raghuram

Yeah.

Scott Dillon

Which is added security, because then you got the platform security as well. And then, micro-segmentation…

Rangarajan Raghuram

Yeah.

Scott Dillon

… load segmentation, right, both evolving. Do you think they will both evolve equally? Do you think one will run faster over time or is it just a commitment that both of those have to go forward?

Rangarajan Raghuram

No. I mean, both of those have to go forward, right. And we will start the third category which is the storage side. So we are building in the data address encryption into the products, right. And the next thing is, once you have these three, how do you tie it all to the learning that you are doing…

Scott Dillon

Yeah.

Rangarajan Raghuram

… to control these things dynamically from a policy point of view, from a crypto point of view et cetera. Just to give you an example, on our VMware Cloud and AWS, right. The storage is on the local server, on NVMe drives that are machine encrypted. So AWS encrypts at the first layer. Then our vSAN encrypts at the second layer, right, using KMS as in key management technology that you guys approve or your regulators approve, right.

And then on top of that, if you want to encrypt at your own app level, that’s possible too. So you can have this layered thing that’s possible. And then, on the networking side, we can micro-segment off the VM or the container or whatever or the collection of containers. And then, we can using the app different type of technology observe and then correct as well. So that’s how we bring all of these things together.

Scott Dillon

Great. And you mentioned the end user computing side of the equation. I don’t -- we don’t always talk about that when we talk…

Rangarajan Raghuram

Yeah.

Scott Dillon

… about VMware, but it’s a big portfolio, maybe give us a few insights around strategic direction?

Rangarajan Raghuram

Yeah. Definitely. So if you think about what’s happening on the end user computing side, there are a lot of analogies what’s happening in the cloud side, right. So if you think about the cloud, I mean, we talk about multiple clouds and multiple applications, generations that leading up to all this opportunity. In the case of the end user computing side, the watchword is a multi-device, right.

Every employee in your company wants to bring either their own devices or you got to give them devices and it’s a plethora of operating system, plethora of devices, plethora of applications on device applications, traditional windows applications, SaaS, et cetera. So this heterogeneity is a big problem.

On top of which you want to deliver a digital workspace to make your employees more productive, right. And so that’s really the problem that Workspace ONE solves. How do you deliver this enterprise security while maintaining consumer simplicity, right. And so that’s really the Workspace ONE challenge that we have -- that’s some of the early challenge that Workspace ONE solves.

And that business is going great for us, growing about 100%. It’s a SaaS-oriented business increasingly and initially it was primarily about enterprise management. Now we have added capabilities around security, about end user experience and we are breaking it into devices both Windows types of devices, as well as other types of devices.

For example, Dell is going to proactive -- ProDeploy and ProManage set of products that they sell to customers like yourself is going to be powered by Workspace ONE. So the idea really is to deliver a digital workspace across any device and any operating system. Just like on the cloud we say any application.

Scott Dillon

It can be a personal compute, Switzerland [ph] as well.

Rangarajan Raghuram

Exactly. Exactly.

Scott Dillon

If you think about, just the dialogue we have had, maybe in closing, then we will go to some questions. Is VMware has become critical to the enterprise. What are you hearing from customers, how does that align with where you have just outlined you are going, where are customers going, just again -- just kind of a broad, a lot of interest I think in the room to the perspective there?

Rangarajan Raghuram

Yeah. I mean, if you think about the next decade or decade and a half or whatever, right. It’s pretty clear that it’s a multi-device, multi-cloud one for our enterprises, right. You would say that and those, I mean, there is phenomenal cloud companies building phenomenal innovation. There’s no reason that an enterprise would want to use just one, right.

Similarly, phenomenal among innovation does device and device operating systems. So the question becomes for enterprises how best do I take advantage of it to run my business or to improve my business or to gain competitive advantage.

Now all of these great cloud companies and device companies will come to you and say, [inaudible] run on my platform. It’s a fantastic platform right. AWS, will say that, Azure will say that, Google will say that, Oracle will name it, on and on and on.

The question is who is taking the enterprise CTO side or CIO side, and saying, how do I as an enterprise run across all of these, right. So that’s why we change VMware’s mission statement in the last two, two and a half years to be VMware’s mission is to be able to run, manage, connect and secure any application running on any cloud and delivered on any device. That really is an encapsulation of the secular philosophy.

We think we are the only vendor in the IT ecosystem that is taking the customer view point to that, right, and which is why we are trying to put vSphere, we are trying to put Kubernetes everywhere, we are trying to put our management everywhere, we are trying to put networking everywhere.

The other analogy that I would draw is for those of you that have been in the industry for a while, if you think the late 1990s just before virtualization in the data center, you had your Vintel silo, you had your Linux silo, you had your Solaris silo and the AIX silo and whatnot.

And what happened, people like Cisco, Cisco came and said I can do networking across all of these silos. BMC said I can do management across these silos. Symantec and other said I can do security across these silos. WebLogic said I will give you an application platform across these silos, right.

VMware is effectively doing all of those things, because if you think about it we do a run. We give you a runtime platform whether it’s Kubernetes or VMs across all of these clouds. Connect we give you a networking technology across these. Manage, we give you nanometer technology across these. So that’s really is what we are trying to do. So provide you with a layer of technology that enable you to take advantage of any cloud on any device the way you want it, right.

And that is a very strategic value proposition and it’s helping our business in two ways. One is customers understand where VMware as the future is going and why they should bet today on the roadmap, right.

And then, secondly, it’s leading to customers buying more and more of our solutions together, right, which is why you see us with a more of a strategic seat on the table, you see us selling bigger and bigger solutions across our portfolio. So that’s really what we think is opportunity in front of us and we are super excited by it.

Scott Dillon

It made me smile and cringe as you were dial -- this is -- I think editorial at least in my point of view is to some degree we are at risks or we are already passed that risk point of going from vertical silos to horizontal silos.

Rangarajan Raghuram

Yeah.

Scott Dillon

And from somebody who has to manage those, it really doesn’t matter if it is a silo that looks this way or silo that looks that way.

Rangarajan Raghuram

Yeah.

Scott Dillon

It’s equally as hard, right.

Rangarajan Raghuram

Yeah.

Scott Dillon

This has traded one problem for a different one.

Rangarajan Raghuram

Yeah.

Scott Dillon

So I kind of resonates a lot.

Rangarajan Raghuram

Yeah. Right. That’s where our effort on an open source comes into play, because we -- for us to convince you that you are not getting locked into the VMware. It’s going to be more open.

Scott Dillon

Right.

Rangarajan Raghuram

That’s what we are trying to do.

Scott Dillon

Yeah. That resonates well. Question? We’d love you had a sleep or…

Rangarajan Raghuram

Answered everything under the sun.

Scott Dillon

Well, Raghu, thank you so much for taking the time to be here with us.

Rangarajan Raghuram

Thanks for your time.

Scott Dillon

Thanks to everybody here for the attentiveness and the robust dialogue. We appreciate it.

Rangarajan Raghuram

Absolutely.

Scott Dillon

And enjoy the rest of the day.

Rangarajan Raghuram

All right. Thank you.