Evolving Cloud Data Protection Market Needs with Dell and HYCU

The big news of today. You know, I think it's, it's great to hear Simon Taylor, CEO, founder of Haiku talk about his company Haiku. That's great.

You know, but the thing that I think Haiku was searching for over the last five, six years was not how to build better and more integrations. It was how to get these accessible to the world at large. And when we thought about all the companies in the world that are out there selling great technology, there was only one that was incredibly focused, laser focused, in fact, on driving all of the infrastructure for all of artificial intelligence worldwide.

And it was Delta. And you know, this began a relationship that started about two years ago with my great friend and executive sponsor, David Noy here from Dell. And, and David said to me, you know, there is so much synergy here, Simon.

And of course I nodded vigorously. He said, what if we put you on the price book for Dell, and what if we put you into the ETC program and we start to sell synergistically with PPDM and with Dell at large. And it has been just, you know, honestly, the honor of my career to get to work with this man right here.

I'm so thrilled and excited. But he's here to talk about it and to talk about what Dell is doing, you know, in this space. But what I want you to take away from all of this is Haiku is about total coverage.

We have invested an enormous amount of money, time, dollars, and resources into building great technology. Dell is about making sure the entire world is protected. Mm-hmm.

And so our major goal is to make sure that all of the millions of customers that are using Dell, uh, whether it's for data domain or DDVE, you know, whatever it is, that all of these integrations here translate to what this man here is working on. David Noy, I am the Vice President of product management at Dell for the data protection portfolio. Um, it's been about 10 years since I've been at a field days, so I'm back, um, still alive kicking.

I'm gonna go into a little bit about why people use Dell for cloud data protection. I'm gonna cover a couple of topics, but just to give you an idea, you know, Simon mentioned a few acronyms within our data protection portfolio. The key tenets are the Power protect data domain, which is everyone's known it for a long time, is a data domain product.

We got 25,000 customers globally. Um, and I'll share with you some statistics about what we have in cloud. We have the PPDM Power Protect Data Manager product, which is our own backup software, and we excel in certain on-prem workloads.

We also have some legacy products like networker that are still being used for backup by very large organizations globally. And then we have our own cyber resilience suites. But let's talk about why people use Dell in a cloud context.

So number one is avoiding CSP lock-in. If you're backing up data to CSP infrastructure, and I'll walk you through an example in a moment, you get locked into the CSPs infrastructure. So how do you abstract yourself away from that so that you can move data to other clouds or repatriate to on-prem and do that in a cost effective way.

Number two is reducing TCO. So I had my team poll last week, tell me what the global deduplication ratio is for data domain for all of our customers across all deployments through the telemetry that's coming home. Turns out, um, average d uh, deduplication is 50 to one, 50 to one deduplication across all of our data domain estate.

Um, the next one is around security. So the bottom line is, when you're deploying infrastructure for data protection, this is your data of this is your, your solution of last resort. You lose this, that's bad news.

And every person who's a data protection professional, every backup administrator woke up about two years ago, maybe three years ago, and found out that they have a second job. They're now the cybersecurity person too. They're the cybersecurity person and the backup person.

And why is that? Why isn't it the network person? Why not the virtual machine infrastructure or admin?

And the reason is, oftentimes you don't know that something bad happened until it happened. And the person who's gonna get you out of that jam is the backup admin. That's number one.

Number two is it, it's according off infrastructure. So if you're going after primary storage, you have to vector into the data protection storage. That person is gonna be the one who's gonna rescue you.

When you find out that something's gone. Get me back to three days ago, four days ago, what's the last known good copy. But there are other reasons why people look to us for security.

We include retention lock capabilities. There are federal certifications that need to be in the product to make sure that the storage is compliant with federal requirements. You have to be built invulnerable that you're, if you have a data corruption issue, something happens, drives fail that you can recover from it no matter what.

Another important thing is have a uniform solution for protecting storage that's being used for data protection on-prem and off-prem so that your administrators only have to deliver one technology. Last is the cloud ecosystem. And what Simon just walked us through, and I just learned what haiku means.

It means hybrid cloud uptime. Great, I got it. And it makes a lot of sense is that while we are focused on our entire portfolio, I talked about data domain, PPDM, our backup software, the number one thing that I'm focused on is maintaining the lead industry, leading market share of power protect data domain.

We have almost 50% of the entire purpose built back of appliance market with for target storage. We're actually around 80%. And we are absolutely committed to making sure we grow that.

And the way that we do that is we provide the best storage solution for backup data, but we lean into a ecosystem of partners because what has just said is he's got 80 SaaS services and they can add services very quickly. They understand the workloads and they're able to drive those workloads data into our storage solution. We believe we have the industry best solution for protective storage, but ecosystem partners are gonna help us avoid that problem.

What was your equivalent? I forgot the name equivalent. But the idea is like, look, if we have to sit here and spend a year every single time, we've gotta go pick up a new workload.

And this environment is changing so fast. Think about the, um, AI application and SaaS vendors that have popped up just in the last year alone. We're not gonna do that.

We're gonna rely on our, on our, uh, software partners like Haiku to go and lean into that. So we have, uh, a product within the data domain domain called Boost. And Boost is a, a transport protocol for moving data from the application to our storage.

It's a secure protocol. It is a very highly efficient protocol, sending only the minimum amount of data across the wire that reduces your egress ingress. It reduces your, uh, exposure to somebody hacking the, uh, transmission because it's an encrypted transmission.

We have Boost Partners and Haiku is now a Boost partner. So they're able to actually use that, um, the protocol to basically send data into the Power protect data domain. Now, I'm gonna give you some stats.

You may not have known this, but we have 1800 Power Protect data domain DDVE virtual customers in cloud today. And we've ingested 24 exabytes of front end capacity, 24 exabytes of front end capacity. That's a lot of front end capacity.

We operate in all the major clouds, Amazon, Azure, Google. We're also in ALI Cloud detecting all the different workloads. But again, not all of them through our own backup software, but again, leading into partners like Haiku.

And part of the reason why we did the ETC relationship is because we want access to these workloads and we want access to these cloud workloads in a way that we can add them as fast, as fast as possible. So let's talk a little bit about why power protect data domain matters so much in cloud. If you look at some of the cloud native data protection solutions, it's basically take a snapshot, store it to object storage, that that's fine, but that's very tape.

Like why is it tape? Like if you move it into something like Glacier, you gotta pay for ticket it out. You've now put yourself into a vendor's proprietary storage solution, migrating between clouds, migrating back to on-prem.

Difficult thing to do. You're gonna pay for egress, you're gonna pay for promoting that data and accessing it, and you gotta move it to a different format. Not great, no compression, no deduplicate, well, you get compression, but no deduplication the 50 to one.

You're not gonna get that in a cloud vendor. I don't care if you go to the cheapest Amazon Glacier or Azure Cold Blob, you're not gonna get the kind of economics of 50 to one. It's just not gonna happen.

So, okay, what if by abstracting away and building a technology layer above the cloud vendor's object storage, you could get the benefits of all of the security features I talked about, the vaulting, the ability to compress your data down through deduplication 50 to one, and then still persistent on the cloud vendor's infrastructure, but taking advantage of all those other benefits. And that's really what we have here is basically the DDVE data domain virtual edition is taking the data domain core file system, ripping it off the data domain appliance, but making it actually run as a virtual machine in cloud. And then this is where Iku will go and have the workload understanding to transfer that data in, in, in a workload context to a data domain for long-term retention or for for backup storage and recovery.

Simple as that. So give you an example of how much cost reduction you can get. This is real world example on AWS, if you've just used native infrastructure, you, you're looking at about a seven K for the particular workload that we looked at.

Seven and a half K after you take into account the DDVE license as well as all of the cost of infrastructure underneath DDVE, we're able to drive that down by about 75%, 66% at the end of the day. DDE, uh, DDVE consists of the data domain file system running on compute nodes in the cloud. So native EC2 instances, Azure compute instances, Google Compute instances, but it runs us on, on top of the native cloud object storage.

So we are using object storage underneath the covers, but we've built a secure layer on top of it that basically, uh, gives you all the benefits of that deduplication and then cost-effective data transmission, all encrypted, and then potentially even retention locked down to the data bids themselves dynamically tiered if you wanted to that as well. Okay. So this is really, um, you know, what we're leaning into, as I said, 24 exabytes 1800 customers.

We wanna make sure that in the cloud we're providing our customers with all of the support for the various workloads that they on, that they're onboarding. That's why we're leaning into our ecosystem partners. That's why I'm here today.

And so we'll talk a little bit more about some examples of customers who are doing this sort of stuff as we go through the sessions today. And the Haiku team will take you through some more of what they're up to. But I wanted to at least under give you sort of the, you know, ground level view of what it is that we provide as Dell and why, you know, we're so interested in this partnership.

You find that the drive down on pricing because of time and market and the deduplication and the efficiencies you've gotten have really helped your like stability and growth. And now, like Hiku is a great add-on because they've got the application layer intelligence. Yeah.

It looks to me like you highlighted costs and size and retention a lot. Seems like those have been the most successful factors in How big data domain has remained over the, the years. Yeah, I mean, look, data domain is a specialized storage solution.

It, it essentially, it's making a bet on, I can use CPU, so I, I'm probably gonna cost a little bit more on the CPU side, but by investing more heavily in CPU, I can actually reduce data down to a point where you get a net benefit on the storage. That's why it was so successful in the on-prem. But what customers then said is, that's great, but I want to be able to use that in the cloud.

Because if you look at cloud infrastructure, it's multiples more expensive than on-prem. Mm-hmm. So to the extent that you can actually bring that down and make it more cost effective, now going to a hybrid cloud, maybe it's a 50 50 mix, maybe it's a 60 40 mix is a lot more economical and it actually makes more sense.

And now if also if you're a customer who's hedging between two different cloud vendors and you're basically doing data transmission between the two, you know, you can get hit with some pretty heavy egress fees. If I dedupe things down 50 to one and then I'm only transmitting 2% of the original data footprint across the wire, that's a great economics thing as well. So at the end of the day, it's economics, resilience, and then support for modern applications.

And that's where we lead into our partners. Nice. So with regards to the go to market for this, 'cause if this a hundred percent, um, indirect partners and that's what Dell provides, how do you, do you have a trained sales force that's, uh, that's specific to this and do, and to what extent do you package this with Dell Hardware?

I see, um, you know, let's, let's disambiguate. So Haiku is a hundred percent partner driven. Dell is a combination of partners and direct sellers, right?

So we have an established for the last couple of decades, 25,000 customer base for the data domain product. We sell up quite a bit through channel. So I talk to channel partners globally all the time, but you know, there's a pretty well established buyer base for data domain.

Um, but it's available either through a Dell direct seller, through a channel partner, or even through the marketplace. So we have marketplace offerings for DDV. If you go to AWS or Azure marketplace, you'll find this listed as well.

So there's not a direct Salesforce through Dell. We do have a direct Salesforce as well. Okay.

So all of the different routes to market, as you can imagine, this is a, a multi-billion dollar product portfolio. So it's, it's pretty well diversified across all the different sales and go to market. So it's relatively equal between the channels, between direct and direct.

Oh, I would say channel is a, is the, is, you know, more than 50% share. Okay. And then direct accounts for your really high end customers.

Mm-hmm. And then there's gonna be some who will come in through Marketplace as well, and those usually done through private offer. Okay.

Thanks. Is There some sort of preferential pricing or, um, hybrid benefit of using both Dell's data domain product and Haiku versus a different storage backend for your backups that you're generating through Haiku? So, I, I'm representing Dell, not Haiku, but what, what I'll say is that the TCO that we drive as, as Dell, you know, we can show TCO calculators and we can show basically what the benefits of using our storage is.

Mm-hmm. Um, what we've done through the ETC relationship is we've allowed the Dell seller to go in and actually quote both Iku software and Dell storage on a quote from Dell. Okay.

So that actually simplifies that. So from a customer's perspective, they see one quote, but they see all the products on Dell's paper, then on Dell paper. Now, it could be we, we'll all will oftentimes sell our own backup software as well.

In fact, that's what we, we wanna do that primarily, but we don't have the coverage that they have mm-hmm. In terms of, you know, different cloud SaaS offers. Okay.

Yeah. Makes sense.