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  • >> Live from Las Vegas

  • it's theCUBE!

  • Covering VMworld 2018.

  • Brought to by VMware and its ecosystem partners.

  • >> Hello everyone, welcome back theCUBE's live coverage

  • here for day two, were kickin' it off,

  • for wall-to-wall coverage,

  • three days of CUBE interviews here

  • in the VMware village, the VMworld village.

  • I'm John Furrier with Dave Vellante,

  • our next guest is a special guest

  • CUBE alumni Michael Dell, CEO of Dell Technologies,

  • Founder of Dell, Michael Dell,

  • named after the company.

  • Great to see you again, thanks for comin' on.

  • >> Great to be with you guys,

  • and thank you as always for the

  • incredible coverage you provide for our events,

  • and so many great events across the whole industry.

  • You got two

  • two teams goin' here at the same time.

  • >> It's great, isn't it?

  • >> Tremendous coverage.

  • >> Thank you.

  • >> Great community.

  • What's interesting is

  • this is our ninth year doing VMworld,

  • and we've gotten to know the community really well,

  • and it's just been so much fun

  • and it's been great to see everyone,

  • and more exciting now is this years keynote

  • which I thought was pretty interesting.

  • You know you look back just four years ago

  • the cloud, and what was doing cloud,

  • who wasn't doing cloud, and everyone's throwin' around

  • "well they don't have a cloud strategy"

  • what does that mean, right?

  • So it's very clear what's happening with cloud right,

  • everyone knows the cloud's going to be there,

  • but the role of infrastructure hasn't changed, so,

  • at the end of the day

  • you made a big bet,

  • going taking Dell private,

  • and the things that you've been doing

  • certainly with VMware and others;

  • infrastructure is never going away, so,

  • that was a good bet.

  • I mean, storage doesn't go away,

  • all these things are still happening,

  • and Amazon announcing RDS on VMware on-premises

  • is absolute validation from the customers

  • that on-premises activity

  • is still going to be super relevant in a cloud world,

  • and so it's not like anything's really changed

  • it's just the rearranging of the resources.

  • Your thoughts on this trend,

  • and your bet on infrastructure?

  • >> It's a data economy,

  • right, it's a multi-cloud world,

  • that's a two way street.

  • And if you think about the billions of connected devices,

  • the explosion in data, overlay on top of that,

  • all the new computer science,

  • that requires all kinds of new infrastructure,

  • there's a boom on the edge.

  • And so, absolutely,

  • this is why you see our business growing so quickly,

  • and doing as well as it's doing and

  • we're investing in innovation, strongly,

  • you saw it you know yesterday, today in the keynotes and,

  • it's resonating extremely well with customers.

  • And so, I think we're very well positioned,

  • we've been gratified by the response

  • you know from customers and partners around the world and

  • look

  • you know the

  • you know every business is increasingly

  • recognizing the importance of

  • you know technology and data, and,

  • you know that requires lots of new tools and technology,

  • and it's why we created Dell Technologies, right,

  • to be the essential infrastructure company

  • and you know it's working well,

  • it's actually working better than we thought it would work.

  • So, it's all good guys.

  • >> Well, you know, my old boss,

  • whom I think you knew Pat McGovern used to say that

  • 90% of mergers and acquisitions

  • failed to meet their objectives,

  • so then we have many, many examples of that.

  • In roughly 36 months

  • from when you announced the merger/acquisition,

  • you've completely transformed Dell,

  • you went from a company that was like

  • sort of a half super power obviously in client,

  • and you were relevant in other areas,

  • but you weren't number one.

  • To like number one in all the magic quadrants and

  • in record time,

  • it was one of the most amazing transformations

  • I've ever seen.

  • >> Thank you, thank you.

  • >> You're welcome, but,

  • I'd really like to understand, you know,

  • what were the conditions that allowed you to do it,

  • obviously they say it's better to be lucky than good,

  • you're both good and there's probably some luck involved.

  • What were the conditions that allowed you

  • to make that transformation in such record time?

  • >> Well certainly a big one was the acquisition of EMC.

  • >> Well right. (all laugh)

  • >> And along with it,

  • you know VMware and Pivotal, right?

  • And we theorized,

  • and actually as you guys know,

  • this story goes back a long way, right?

  • It actually goes back to 2001

  • when Dell and EMC started working together,

  • when VMware it was just a little,

  • you know, when Sanjay showed the slide about

  • the server virtualization;

  • actually before VMware was server virtualization

  • it was workstation virtualization.

  • >> Workstation, that's right. (laughs)

  • >> And we were an investor in VMware,

  • and we thought that was cool.

  • Anyway, so you fast forward to 2013, we go private,

  • 2014, Joe Tucci and I

  • restart the discussion that we'd had earlier

  • back in 2009 about combining together,

  • 2015 we announced it,

  • and we thought that

  • if we could combine everything together

  • that customers would really like it.

  • And, you know, thankfully as we've found

  • that's been true, it's been more true than we thought, and,

  • and the innovation engines are crankin' on high,

  • you know $12.8 billion in R&D

  • invested in the last three years.

  • And you see here at VMworld

  • and at Dell Technologies World,

  • the strength of the roadmaps, so,

  • every turn of the crank

  • we're just getting stronger and stronger.

  • We never believed

  • that you know everything was going to go

  • one place or the other, okay,

  • it's actually great that the edge is booming.

  • Now if you said "Did you know that five or 10 years ago?"

  • No, I didn't really know (laughs)

  • but you could kind of see some things starting to happen.

  • Look, you know distributed computing

  • will be even more distributed in the future. (laughs)

  • >> And so you had good products,

  • you had a great combination, that makes a lot of sense,

  • and you know we were. >> And incredible people too,

  • >> The team.

  • >> The quality of the talent that we are blessed with

  • is amazing, and it's a flywheel,

  • because you can attract the people,

  • and the very best people,

  • and develop them and train them,

  • and they want to come be part of the winning company.

  • >> And we saw a lot of,

  • and they saw that on theCUBE

  • we commented about the synergies

  • that were probably unrealized or unrecognized by others,

  • you obviously saw that.

  • But then also there's the other side of the equation

  • of the financial opportunity,

  • you took a financial risk,

  • you put your own money into the deal,

  • there's a lot of engineering going on-

  • >> We took the risk, it's the man in the arena, you know,

  • and not everybody wanted to take the risk, and,

  • you know I,

  • I'm happy to take some risk.

  • >> Yeah, but the rewards are lookin' good, I mean,

  • I mean if you're keepin' score,

  • which I'm sure you are,

  • the numbers are lookin' pretty good, so.

  • >> This has been good.

  • >> There's the financial side of it,

  • and then also risk/reward payouts

  • are also part of the entrepreneurial thing. (laughs)

  • >> Yeah, I mean if you look at our last quarter,

  • you know, gap revenues up plus 19%,

  • non-gap revenues up 17%,

  • data center, ISG business up 25%, right?

  • I mean we're clearly gaining share,

  • number one in storage, in all flash, in NAS,

  • you know in backup and data protection;

  • and every category of storage unstructured,

  • you know, we're bigger than number two,

  • and number three, and number four,

  • all combined together! (John laughs)

  • Number one in servers, right?

  • Number one in virtualization in all flavors,

  • you saw what Pat showed

  • you know with the progress with NSX, with Workspace ONE,

  • obviously server virtualization.

  • You know, number one in client as well, right?

  • In you know client revenue, so.

  • The business is quite strong and healthy,

  • and what's really interesting

  • is if you look at it across customer types,

  • you know the very largest,

  • the small, the medium,

  • the government, the state, local,

  • top 50 countries,

  • pretty much everything is growing double digits

  • all across the world;

  • every customer, every route to market, every channel.

  • So, you know, I think the industry

  • is stronger than people understand, that's the first point,

  • I think there's this data economy,

  • and this tsunami of data that's being created,

  • and that's driving demand for

  • infrastructure products and solutions,

  • which we have the best in the world,

  • and then on top of that, we're gaining share.

  • >> These market forces are interesting.

  • >> So all of this together is,

  • it's a good news story.

  • >> And the market forces you mentioned

  • that really were somethin' that

  • I think a lot of people in the industry at the time

  • that you were contemplating the deal.

  • And we talked privately about this,

  • so I want to kind of bring this up here on theCUBE,

  • way back when.

  • The industry pundits were looking at the industry

  • almost like a siloed map of TAM,

  • total addressable market.

  • And these other forces,

  • if you factor those in as a market force,

  • it changes the analysis of what you talk about,

  • and we talked privately many times,

  • but one time we were talkin' about

  • the maturity and size of the on-premises IT market,

  • it wasn't "Oh, IT's dying!" It's like huge! (laughs)

  • I mean it's massively mature, so,

  • and we talked privately about that;

  • that's somethin' that a lot of people missed,

  • they didn't miss that the size of the market was so big,

  • might've been you know flat, but it's a ature market,

  • but then these outside forces transform,

  • and now the deal with Amazon highlights

  • that bet. >> It's a two way street,

  • now it's goin' the other way.

  • And look, if it's obvious,

  • there's probably no opportunity, right? (laughs)

  • And so, you know I've kind of made my life of

  • doin' stuff that maybe wasn't quite obvious to everyone,

  • okay fine, that's just how it goes.

  • So, maybe it wasn't obvious to everyone,

  • and I remember when we announced,

  • you know in 2015,

  • everyone was like "Whoa, whoa, what are you doing?"

  • right, so why are you doing it?