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it's a Kubernetes native application. It's deployed right into the cluster, the OpenShift cluster, as an example. It's a certified Red Hat operator, and it provides unified protection for both the VMs and those containers running in OpenShift. We talked about that. It can be run anywhere. We talked about that. So the flexibility that comes in without having any type of vendor lock-in, so both OpenShift and Kasten within Veeam can provide that for customers. It's that enterprise-grade compliance and security that both Red Hat and Kasten can provide. Red Hat has their own security features that are built-in to their products, as well as, obviously, the features that Kasten can provide within its product set. Then the ransomware resilience, and this is again, obviously, a constant theme for Veeam itself. But it's taking that and extending that into the containerized world, into the Kubernetes world. It's being able to provide those features like immutable backups and access controls. I mean, all this really comes into play from a security standpoint to help with that operations, that data resilience to protect against ransomware. If I could maybe sum up the Kasten piece of this with OpenShift and maybe four areas. It's the security and compliance I was talking about and dive a little bit deeper. We are FIPS 140-3 compliant along with Red Hat OpenShift. I mentioned the immutable backups that we can support. We have these integrations with Red Hat's Advanced Cluster Security, Advanced Cluster Manager, and all that also ties together with other vendors as well. There might be some SIEM integrations that Kasten also has and partnerships that we have there. The other one is performance and performance at scale. That's definitely important for large enterprises, for sure, but probably most organizations. It's having that performance protection for whether those are VMs or containers, again, running in OpenShift. Some of the features that Kasten can bring to that environment are change block tracking capabilities with storage vendors, the incremental backups, file-level recovery. These are all some key factors and features that Kasten provide that many others can't provide in our space. Together, we can provide a combined platform for customers and organizations that are looking to make that journey from their traditional VM hypervisor environment over to more of a modern platform like OpenShift. We talked about the freedom of choice and the benefit there. Something we haven't talked about is really the business benefit to organizations. From a Veeam standpoint, it's that business continuity that we can really provide. It's the regulatory compliance, the governance aspect that we can help these customers manage their data properly. The security, so we hit on that quite a bit, but it's making sure we have that customer has a secure software supply chain, the data encryption that comes in with the features and capabilities within Kasten. All that is a combined offer that provides a lot of value for our customers, as well as as you integrate into the capabilities that Red Hat can provide, not only from the Linux platform and how that goes up into OpenShift, but as we mentioned with ACS and ACM, it really makes a nice combined stack. Then the other feature, the benefit that Kasten can provide is really around cost savings. This can be from, if we look at modernization as an example, maybe organizations want to repurpose their existing infrastructure and run their existing VM infrastructure, and run OpenShift on top of that. Kasten, because the agnostic capabilities of both of our platforms, that can be done. Another example is cost optimization, using Kasten to help manage the data services or the deployment models with the data across different types of storage tiers, and a hyperscaler as an example. That all helps from a cost optimization standpoint for customers. I think combined, there's a lot that Veeam can provide with Kasten in the portfolio, with Red Hat to our customer set and to our ecosystem. What would you like to add to that, Todd, about from a Red Hat perspective? Yeah. Again, it's a very similar theme on the Red Hat side in terms of the flexibility and those aspects. What I've seen with companies that are going to undergo a migration from VMware as an example, Red Hat doesn't have to come in and say, you have to take just everything and just completely change your environment into a containers environment or Cloud, whatever it may be. We can really sit down and go at their pace. What I mean by that is, I mentioned a product or a solution we have called OVE. If there is a environment that's on virtual machines today, and they need to, for contractual reason, whatever it is, get that simply over to another virtual machine environment, we can do that pretty quick with very little disruption. At the process of doing that, we don't just look at the application stack and say, all of these applications have to go in this direction. They all have to go on to a Kubernetes platform because that's faster and easier, and you can deploy it on the Edge and all those nice things. We can really sit down with them, and this goes into the cost savings aspect of it. We can really sit down with them and understand from a performance point of view, which applications are suitable for virtual machines, which are suitable for Kubernetes, which are suitable for the Edge. Not all applications are suitable for those environments. The cost savings aspect of it is really an analysis over time and over their pace of time, which is nice. What I've also found in customer after customer is how pleasantly surprised they are at the performance of their Kubernetes applications. That initial analysis might not have certain applications moving over to a Kubernetes environment. Once they understand how to size Kubernetes, how the whole environment works, and how lightweight they are in the right areas, some of those applications, they fly. They just a lot faster. The other part of that, which I've mentioned before, but it's worth saying again, is that standardization of deployment across. Even though I'm talking about multiple technologies, that underlying platform is consistent. That management platform is consistent and Veeam is built into that layer. That expertise that goes from one business unit to the next, if it's needed, that all flows into cost savings and operating cost savings. The last one would be automation. You bring up the ACM integration that Veeam is doing with our cluster management software. It's not going to make anyone a ton of money, but it's going to make our customers far more resilient in terms of when a cluster sees some security anomaly, it's going to trigger a backup of a certain nature. It's going to be just built into the product. It's going to be a plug-in, that kind of a thing. But that non-profitable development of products and integration, it's huge for customers. That's the relationship that Veeam and Red Hat have together. We're going to be able to provide automated features like that, or bring in Ansible to really extend that automation conversation. Was it the automation? There certainly should be cost savings, or at least performance that pays for those cost savings, and then some. There's a lot of synergies in the cost savings world, but it really needs to be dissected, and Red Hat allows that to happen at customers. Yeah. We talked about from a technology standpoint, how this all comes together. Maybe just summing that up, it's a unified management protection platform. We can manage these environments, these containerized environments, or these VM workloads that might be running on that platform. We want to be able to secure them. We can do that together. We want to protect them from ransomware, and add additional types of security features. Maybe that's even an air-gapped environment that we need to be running, and we both can do that, or on an edge, we both can do that, or maybe it's across multiple types of environments. Being able to move the mobility piece, being able to move these applications and this data across these different types of deployment models in these different environments is another key powerful feature that we can provide together to these customers and organizations. But let's talk a little bit more about the outcomes and how customers are using our products, our platforms to save money. We talked about cost optimization to make things run faster. We talked about that possibly by moving to some containerized modern applications, making things smoother, less downtime. Let's just talk about a couple of real-life examples, if we could. From a use case standpoint, maybe just to recap, the use cases we can look at, modern virtualization, you mentioned OVE. That's OpenShift Virtualization Engine. Just to clarify for everybody, that's a offer that Red Hat has. Basically, a pretty low barrier offer as far as being able to move to OpenShift platform and protect those VMs, and I'm sorry, to run those VMs on OpenShift. You in turn, there's Veeam and Kasten has also a lower barrier to entry offer that can support or just protect those VMs running on OpenShift. We have that Kasten for these Kuber type of environments and that offer that marries up to that very nicely. As well as we phase and customers go through this journey of moving their VMs over to OpenShift, running them in OpenShift and getting the benefits and features on a modern platform. Similar to as if they were containerized applications, but maybe they want to, as you mentioned, start moving those applications to be containerized. Getting the benefit, the real benefit, the OpenShift platform can offer with actually running containerized applications. Again, Kasten can protect that complete portfolio of applications that are running in that environment. It's that hybrid Cloud, multi-Cloud, backup, disaster recovery type of scenario that we all fit in, and the cost optimization that we mentioned before. Let's talk a little bit, what's the real-world aspects of these with some customers. I'll go first and give an example of what's been taking place from our perspective with a customer that is running OpenShift as well as Kasten. This is a customer, it's a large global organization that's involved in the travel and tourism industry. They are delivering platforms to enhance their operational efficiencies and their customer experience and to generate revenue for their customers. It's a platform that they're providing and it's a highly customized Kubernetes environment. They didn't have any existing data protection that was set up. They needed some storage migration and to really future-proof their environment and have this Cloud mobility capabilities that they really wanted to build in and create this multi-Cloud environment across multiple different types of hyperscalers. They chose OpenShift to be the underlying platform to make that happen and to be able to run that platform on, their specific platform to support their customers. As they looked at Red Hat and Veeam Kasten to provide the overall stack for this customer, it was going across on-prem environments, Cloud environments, and Kasten was able to provide an integration into their existing CI-CD pipelines and their DevOps pipelines. They started enabling secure and multi-tenant RBAC for cross-team collaborations. This goes, again, back to the access controls and security controls you want to build in and Kasten helps provide that granularity, as well as delivering an instant ROI by migrating their apps across different types of storage classes and managing that data and those data services across various types of storage classes. They were able to save about $10,000 a day by doing this. They used the power and capabilities of Kasten to make that happen. That's just one example. Again, we're talking about multi-Cloud. We're talking about being able to have that mobility features that we can provide across different types of environments. The security aspects and the requirements that come into play from a backup and DR standpoint, as well as access controls, and then that ROI and that cost optimization ability that we were able to provide with this specific customer. That's just one example. I don't know if you maybe want to give another one, Todd. Yeah. The one that comes to mind is a European telecom customer. They were really stuck in terms of their VMware contract. I love this example because it flows with what I've been talking about in terms of they really needed to identify some workloads that were major, just core business workloads that they could migrate quickly. Those modernization conversations, all those hybrid conversations that pushed aside a bit, and we took these applications that we just VM to VM and moved them over. After that, that's when the conversations started about what is the best deployment? They wanted to be in a hybrid Cloud environment. They did not have any Kubernetes experience at all. We actually went in and were able to train them and get them up to speed on that. Just that I've been talking about, at their pace, which was remarkably fast, they wanted to do this whole project in about 18 months. They were able to migrate all their applications off of their core environment over to a OpenShift environment. I don't know the exact split between virtual machines and containers right now, but it's shifting constantly towards the container environment. More and more applications are going that way. The reason I really like this one is because when they started realizing the benefits of a hybrid Cloud multi-virtualization environment, their incumbent backup solution couldn't handle it. It couldn't really take and communicate through all those different technologies and all those different deployment options. There was a bake-off and Veeam came in. They actually were introduced with Veeam at a Red Hat event over in Europe. They liked what they saw. We did a proof of concept that lasted a little over 30 days. After that 30 days, the conversation was over. It was like Veeam can follow Red Hat throughout this path and this modernization path that we have. Also on that day 1, their immediate need, Veeam was there. Just day 1, they could help them do that VM-to-VM move. The metrics on that, the only one I really know because it's being evolved over time, but just the initial OpEx cost was about a $5 million savings. With the Veeam and OpenShift versus their legacy stack, so it's a great one. They're up, they're running, they're happy. They are constantly looking at automation and modernization on a regular basis and we're both in there helping them do that. It's really cool. Yeah. That's a great example. I know we have many more because we have customers that are across many different types of verticals. We gave a technology platform example, a telco example. We have manufacturing examples, financial services examples. We cross all the verticals, government examples, even Department of Defense examples because of the security requirements we both can meet. Because of that, it does really make a very unique and a very good solution that has a lot of value to not only the end-users and the customers that are going to be in organizations that are going to be using the platform, but from a partner standpoint and the ecosystem standpoint, how you can really benefit from building services around these products and these offers that you can also drive in the market to expand your business. Obviously, there's partners that were involved in each of these examples we gave. DSTs were probably involved, VARs, SIs, etc. There's many different types of partners that are involved across all of our deals from GSIs to the smaller regional SIs, to the hyperscalers we mentioned, etc. It goes on and on. The ecosystem is very rich and there's a lot that we can both offer. I think we just want to really sum this up and identify what these partners or the Veeam ecosystem can really take away and benefit and really act upon. Maybe just to recap, OpenShift, it's a trusted hybrid application platform. Kasten, it's the trusted data protection layer. Combine those together, combine those in your engagements and pre-migration over to OpenShift, day 1, etc., day 0, day 1. You don't have to wait till day 2 operations take place to involve Veeam in those types of scenarios. We can help customers modernize. We can help them modernize securely. As I mentioned, you can add services, expand your offerings around services, around these different product offers. Both of our companies have incentives typically for the channel in some form or fashion. You want to look at what you can use and leverage combining these incentives together across Red Hat, across Veeam. I think with that, Veeam Kasten and Red Hat OpenShift are really giving you the tools, you the partners, the tools to lead customers through modernization with confidence. Protecting every workload in any environment with the flexibility, security that they're going to require, that they're going to demand. Let's all work together. Let's build the go-to-market together. Let's plan and capture this opportunity together. You can look for more information on the Veeam partner portal or as well as on the Red Hat ecosystem catalog. With that, thanks for joining. Let's keep the customers modernized, securely, confidently, and let's do it as fast as possible or even at their own pace. Thanks for your time, Todd. Thanks for participating. It's a great partnership and we look forward to doing more together. Thanks, Kevin. Appreciate it. ♪♪♪
