WEBVTT 1 00:00:00.450 --> 00:00:02.130 Michael Novinson: Hello, this is Michael Novinson with 2 00:00:02.130 --> 00:00:05.130 Information Security Media Group. I'm joined today by 3 00:00:05.130 --> 00:00:09.330 Sanjay Beri. He is the founder and CEO at Netskope. Good 4 00:00:09.330 --> 00:00:10.500 afternoon, Sanjay. How are you? 5 00:00:11.010 --> 00:00:13.200 Sanjay Beri: I'm doing well. Great to talk to you, Michael. 6 00:00:13.930 --> 00:00:16.210 Michael Novinson: Thank you for making the time. It's been a 7 00:00:16.210 --> 00:00:19.570 very busy summer at Netskope. Wanted to start off by talking a 8 00:00:19.570 --> 00:00:21.910 little bit about the two acquisitions that you've made 9 00:00:21.910 --> 00:00:24.880 since June. Want to get a sense of what piqued your interest in 10 00:00:24.880 --> 00:00:27.280 those companies, and how things have played out since those 11 00:00:27.280 --> 00:00:28.180 deals were announced? 12 00:00:28.810 --> 00:00:31.690 Sanjay Beri: Yeah, it's a great question. So, you know, 10 years 13 00:00:31.690 --> 00:00:35.680 ago, I scribbled on a napkin the goal of redefining sort of the 14 00:00:35.680 --> 00:00:38.860 biggest market in security - data network security - and 15 00:00:39.610 --> 00:00:41.590 digital transformation, I thought would equal this 16 00:00:41.590 --> 00:00:45.880 transformation of how people think about their perimeter. And 17 00:00:45.880 --> 00:00:49.870 really part of that vision was how do I on-ramp and protect all 18 00:00:49.870 --> 00:00:53.440 internet traffic and on-prem traffic, and how to accelerate 19 00:00:53.440 --> 00:00:57.940 it. And so that second part is where the acquisition of Infiot 20 00:00:57.940 --> 00:01:01.540 comes in - the release of our borderless WAN piece. We already 21 00:01:01.540 --> 00:01:04.870 were known in a leadership quadrant, on the Gartner SSE 22 00:01:04.870 --> 00:01:08.920 Magic Quadrant, which speaks to the security services, that as 23 00:01:08.920 --> 00:01:13.000 you redefine how your edge looks, but the acceleration 24 00:01:13.000 --> 00:01:17.740 part, the optimization part that was really where us releasing 25 00:01:17.770 --> 00:01:21.940 the Borderless SD-WAN, and next-gen SD-WAN comes in. And, 26 00:01:22.360 --> 00:01:26.140 you know, frankly, I looked at the entire market. I got to know 27 00:01:26.170 --> 00:01:30.670 Infiot well over a year ago. They were in my view, the 28 00:01:30.670 --> 00:01:33.580 founders of SD-WAN, they came from some of the traditional 29 00:01:33.610 --> 00:01:38.350 SD-WAN. Great team, designed the product exactly the way we would 30 00:01:38.350 --> 00:01:42.820 have designed it in a modern cloud manner. And, frankly, over 31 00:01:42.820 --> 00:01:47.290 the year, plus it became such a great fit culturally, platform 32 00:01:47.290 --> 00:01:56.320 wise and modern. And that helps us go from SSE - securing the 33 00:01:56.320 --> 00:02:03.040 new way people work to SASE - securing and accelerating, 34 00:02:03.070 --> 00:02:08.380 optimizing and redefining their on-prem edge. And so that was 35 00:02:08.380 --> 00:02:12.130 the first, right? It was a beautiful fit across the board. 36 00:02:12.130 --> 00:02:16.360 Very excited. We have a lot of customers, frankly, who wanted 37 00:02:16.360 --> 00:02:21.760 us to do this. And so we're very excited about it. And then the 38 00:02:21.760 --> 00:02:27.100 second is WootCloud - IoT security. And the reality is, 39 00:02:27.100 --> 00:02:29.740 you know, we're the on-ramp for close to a third of the Fortune 40 00:02:29.740 --> 00:02:34.960 100, protecting all internet and on-prem traffic. You know, one 41 00:02:34.960 --> 00:02:38.230 of the fastest growing cyber companies in the world, you 42 00:02:38.230 --> 00:02:42.070 know, one of Forbes Cloud 100. We just got named Best SASE by 43 00:02:42.070 --> 00:02:45.220 SC Awards. And one of the reasons is we try to anticipate 44 00:02:45.220 --> 00:02:48.400 what our customers want. And the reality is that there'll be over 45 00:02:48.400 --> 00:02:53.530 60 billion IoT devices shortly. And so it isn't just about 46 00:02:53.530 --> 00:02:57.670 users, originating traffic, right? It's also devices - 47 00:02:57.700 --> 00:03:02.890 barcode readers, badge readers, medical systems, and making sure 48 00:03:02.890 --> 00:03:07.960 that we're the best at governing, uncovering and 49 00:03:07.960 --> 00:03:11.410 policing those systems, which are big potential sources of 50 00:03:11.410 --> 00:03:15.940 malware. That was a big piece. And for us, the exact piece we 51 00:03:15.940 --> 00:03:19.480 needed was what WootCloud brought to us. And now both 52 00:03:19.480 --> 00:03:23.740 teams and platforms are fully integrated as part of our SASE 53 00:03:23.920 --> 00:03:27.790 platform. And so we're very excited about what we've been 54 00:03:27.790 --> 00:03:28.540 able to do there. 55 00:03:29.650 --> 00:03:31.120 Michael Novinson: Let's go into each of those in a little bit 56 00:03:31.120 --> 00:03:34.630 more detail, starting with Infiot. Why is it so important 57 00:03:34.630 --> 00:03:38.290 for you and Netskope to be able to offer the full SASE stack in 58 00:03:38.290 --> 00:03:41.740 one place, as opposed to just offering the SSE organically and 59 00:03:41.740 --> 00:03:43.780 then partnering for that SD-WAN piece? 60 00:03:44.020 --> 00:03:46.390 Sanjay Beri: Yeah, that's a good question. You know, the reality 61 00:03:46.390 --> 00:03:49.000 is that, you know, we've always been a company that has open 62 00:03:49.000 --> 00:03:53.200 APIs, and you know, we're big believers in the ecosystem, 63 00:03:53.260 --> 00:03:55.600 right? We're not believers that people have one security 64 00:03:55.600 --> 00:03:58.780 platform. And so we integrate with the EDRs, identity 65 00:03:58.780 --> 00:04:01.720 providers, SIEM SOAR and the network. And so we'll continue 66 00:04:01.720 --> 00:04:04.630 to support that, right. If somebody else has another 67 00:04:04.630 --> 00:04:07.870 system, you know, who are we to say that, hey, that's not what 68 00:04:07.870 --> 00:04:12.070 they should use. And, and so first, our belief is open. But 69 00:04:12.190 --> 00:04:16.090 in this specific area, the reality is we had a swelling of 70 00:04:16.090 --> 00:04:19.660 customers who said, "Look, you're one of the most critical 71 00:04:19.660 --> 00:04:22.150 platforms in our infrastructure. You protect our data, our 72 00:04:22.150 --> 00:04:25.090 threats, you handle all internet traffic. Half our users are 73 00:04:25.090 --> 00:04:29.230 remote; you are a remote solution as well, right? You're 74 00:04:29.230 --> 00:04:32.080 kind of our remote connectivity with new edge - the largest 75 00:04:32.200 --> 00:04:36.100 cloud network in the world. You are a network now. And so it 76 00:04:36.100 --> 00:04:40.720 makes sense that you have a thin edge device that can quickly 77 00:04:40.720 --> 00:04:44.920 onramp people to your security cloud, and optimize things like 78 00:04:44.920 --> 00:04:47.530 voice and video which are already helping, you know, 79 00:04:47.530 --> 00:04:52.690 please." And so I think it was just look, great input from our 80 00:04:52.690 --> 00:04:58.390 base. You know, we also realized that we're uniquely able to tie 81 00:04:58.840 --> 00:05:04.480 the next-generation of SD-WAN to SSE, right? We have that ability 82 00:05:04.480 --> 00:05:09.760 to do that and bring together a very, you know, clean, smooth, 83 00:05:10.720 --> 00:05:14.470 consolidated solution. And so I've always felt strongly that 84 00:05:14.470 --> 00:05:17.980 it's about converging networking and security. And this piece 85 00:05:17.980 --> 00:05:21.970 brings us the ability to do that to the next level. And so that's 86 00:05:21.970 --> 00:05:22.360 why. 87 00:05:24.640 --> 00:05:27.520 Michael Novinson: In terms of the WootCloud piece, given your 88 00:05:27.550 --> 00:05:31.870 historic focus on CASB, now expanding into SASE SSE, why do 89 00:05:31.870 --> 00:05:34.360 you feel it's so important to have IoT as a part of that? 90 00:05:34.000 --> 00:05:37.031 Sanjay Beri: Yeah, you know, I think in general, I always have 91 00:05:37.093 --> 00:05:40.805 viewed the world as what is originating traffic, and where's 92 00:05:40.867 --> 00:05:44.517 it going? And the reality is, where is it going was kind of 93 00:05:44.579 --> 00:05:48.292 our thesis, it's going to cloud, right? We were the first to 94 00:05:48.353 --> 00:05:52.251 really govern all SaaS, public cloud, the internet, on-prem and 95 00:05:52.313 --> 00:05:56.025 beyond. But where's it coming from? isn't just users, right? 96 00:05:56.087 --> 00:05:59.861 It's devices. And, you know, the reality is, just like people 97 00:05:59.923 --> 00:06:03.574 don't really know what cloud apps they're using, until they 98 00:06:03.635 --> 00:06:07.595 kind of bring us in. Many times they don't know what devices are 99 00:06:07.657 --> 00:06:11.245 communicating. And so what we've done with our solution is 100 00:06:11.307 --> 00:06:15.267 similar to what we did for cloud is tell people what's going on, 101 00:06:15.329 --> 00:06:19.289 what devices they have, what IoT and OT. Now that they know, let 102 00:06:19.350 --> 00:06:23.001 them set guardrails, let them police it, let them make sure 103 00:06:23.063 --> 00:06:26.589 that "wow, why is there a PlayStation in my building? And 104 00:06:26.651 --> 00:06:29.992 why is it going out to this rogue site? Or why is this 105 00:06:30.054 --> 00:06:33.642 barcode reader, badge reader, medical system going out and 106 00:06:33.704 --> 00:06:37.540 communicating to a C&C." And so it's very important as part of 107 00:06:37.602 --> 00:06:41.500 our notion of cover all users, all devices, no matter where you 108 00:06:41.562 --> 00:06:45.336 are, and no matter where they're going, we got it covered the 109 00:06:45.398 --> 00:06:48.430 device part. And so it was very important for us. 110 00:06:49.830 --> 00:06:52.230 Michael Novinson: Interesting; why don't you talk as well about 111 00:06:52.260 --> 00:06:55.530 endpoint DLP? I know you announced an offering there in 112 00:06:55.530 --> 00:06:59.790 May and wanted to get a sense really of how that fits into the 113 00:07:00.210 --> 00:07:02.940 existing security stack you have in Netskope, as well as your 114 00:07:02.940 --> 00:07:06.930 vision around SSE and SaaS. Why is it important to have endpoint 115 00:07:06.930 --> 00:07:08.040 DLP as part of that? 116 00:07:08.600 --> 00:07:11.600 Sanjay Beri: Yeah, I mean, the reality is, for many of our 117 00:07:11.600 --> 00:07:15.050 customers, we are their data protection provider. Like if you 118 00:07:15.380 --> 00:07:19.220 look at some of the recent results from analysts, you'll 119 00:07:19.220 --> 00:07:21.710 see they rate us, you know, number one on data protection. 120 00:07:22.400 --> 00:07:25.250 And you know, some of the largest health care, financial, 121 00:07:25.250 --> 00:07:29.180 retail, manufacturing, we are the system that is uncovering 122 00:07:29.180 --> 00:07:34.460 and finding PCI and PHI, and, you know, IP information. And we 123 00:07:34.460 --> 00:07:37.340 did that first for SaaS, then we did it for public cloud, then we 124 00:07:37.340 --> 00:07:41.390 did it for the generic web, then we did it for email. And then 125 00:07:41.570 --> 00:07:45.590 we're doing it for on-prem apps, zero trust network access 126 00:07:45.590 --> 00:07:50.720 product. And sort of the last piece was, "Well, do all that. 127 00:07:50.720 --> 00:07:53.420 Can you just do it on the endpoint too?" When somebody 128 00:07:53.420 --> 00:07:57.830 tries to transfer something to a USB or print it, you already 129 00:07:57.830 --> 00:08:01.460 know what that content is? Can you help us say, "No, you can't 130 00:08:01.460 --> 00:08:04.130 stick that over on a USB that came from a confidential 131 00:08:04.130 --> 00:08:08.510 folder?" And so endpoint data protection for us, where we 132 00:08:08.510 --> 00:08:12.830 define how people do that, it allows you to not have the 133 00:08:12.830 --> 00:08:17.720 negatives of endpoint DLP - all the performance, CPU hogging and 134 00:08:17.720 --> 00:08:21.320 instead, we did it in a way which I call next generation 135 00:08:21.320 --> 00:08:26.120 endpoint DLP, where you leverage the smarts that we have around 136 00:08:26.150 --> 00:08:29.720 this data, because we know what it is when it comes from the 137 00:08:29.720 --> 00:08:33.290 internet or cloud. And you bring those policies to the endpoint. 138 00:08:33.470 --> 00:08:38.510 So you can efficiently govern how people take that data out of 139 00:08:38.510 --> 00:08:42.260 their laptop or computer or beyond. And so just a natural 140 00:08:42.260 --> 00:08:46.220 extension, and really rounds out being the sole data protection 141 00:08:46.220 --> 00:08:49.760 provider for many of the organizations across the world. 142 00:08:51.080 --> 00:08:52.730 Michael Novinson: Let's get into the bread and butter here of 143 00:08:52.730 --> 00:08:56.360 what you do - security service edge, SSE. Gartner put out the 144 00:08:56.360 --> 00:08:59.240 first Magic Quadrant earlier this year. You were named as one 145 00:08:59.240 --> 00:09:02.990 of three leaders in SSE alongside Zscaler and alongside 146 00:09:02.990 --> 00:09:06.350 Skyhigh, what's now Skyhigh Security. What's different about 147 00:09:06.350 --> 00:09:09.410 how you approach SSE at Netskope versus Zscalar and Skyhigh 148 00:09:09.410 --> 00:09:10.040 Security? 149 00:09:10.480 --> 00:09:13.210 Sanjay Beri: Yeah, it's really a couple big reasons. One, you 150 00:09:13.210 --> 00:09:16.090 know, our vision since the beginning was SSE and SASE. 151 00:09:16.090 --> 00:09:19.780 Like, we kind of feel like now that it has a name, you know, 152 00:09:19.810 --> 00:09:24.010 the napkin on which we are drawn is okay, as a name, right? We 153 00:09:24.010 --> 00:09:27.010 don't have to explain it. So one, we are kind of we feel the 154 00:09:27.010 --> 00:09:30.760 pioneers of SSE and SASE. And then the second, you know, when 155 00:09:30.760 --> 00:09:34.030 you look at differentiation is many folks take it from the 156 00:09:34.030 --> 00:09:37.690 network side or the security side. And they're good at one 157 00:09:37.690 --> 00:09:41.200 but not the other. And the reality is our focus has always 158 00:09:41.200 --> 00:09:44.830 been to converge both, right? And so if you look at us, one of 159 00:09:44.830 --> 00:09:48.730 our big differentiators is, ultimately, what CISOs on the 160 00:09:48.730 --> 00:09:51.400 security side care about is their data. Right? I remember 161 00:09:51.400 --> 00:09:55.300 this CISO telling me like I get fired if I lose our data, and 162 00:09:55.300 --> 00:09:59.380 it's the one thing that matters, right? My data and my users and 163 00:09:59.410 --> 00:10:02.260 you know that where we're best at - it's finding, uncovering 164 00:10:02.260 --> 00:10:05.350 and protecting sensitive data regardless of where it is, and 165 00:10:05.350 --> 00:10:08.530 bringing context how people use it. So you can have real 166 00:10:08.530 --> 00:10:11.740 business policies to protect it. And so one, the data protection, 167 00:10:11.770 --> 00:10:14.710 you look at some of the reviews. Gartner's done some of the 168 00:10:14.830 --> 00:10:17.770 ratings, you'll see that, you know, our rating is like double 169 00:10:17.800 --> 00:10:21.730 what some of the others you just mentioned are. And so we are 170 00:10:21.730 --> 00:10:25.360 known as sort of the best data protection in the SSE market and 171 00:10:25.360 --> 00:10:28.450 SASE market. Two is the convergence of networking and 172 00:10:28.450 --> 00:10:34.090 security. So there isn't another really leadership company in the 173 00:10:34.090 --> 00:10:38.230 SSE leadership quadrant. There isn't, that actually has the 174 00:10:38.230 --> 00:10:41.200 ability to say, I got the world's largest cloud network 175 00:10:41.200 --> 00:10:44.020 with new edge. 15 milliseconds away from anybody in the world. 176 00:10:44.380 --> 00:10:49.090 And that actually can bring to bear this next generation of 177 00:10:49.120 --> 00:10:53.230 SD-WAN, right? Their portfolio doesn't stretch to that degree. 178 00:10:53.440 --> 00:10:57.250 And so for us, the data protection piece, and the 179 00:10:57.250 --> 00:11:00.220 ability to bring context to what people are doing, right? We're 180 00:11:00.790 --> 00:11:04.060 kind of the modern proxies, what I used to say the Layer 8 proxy, 181 00:11:04.180 --> 00:11:07.600 whereas the others are more on the Layer 7 side. And so they 182 00:11:07.600 --> 00:11:09.730 can't see the granularity. And then you bring the data 183 00:11:09.730 --> 00:11:12.610 protection on top of that. And then the other big piece is we 184 00:11:12.610 --> 00:11:15.940 truly are converging networking and security. And we're the only 185 00:11:15.940 --> 00:11:20.320 ones who truly are in leadership quadrant for SSE, yet also have, 186 00:11:20.590 --> 00:11:25.720 you know, the next-gen SD-WAN component and the large world's 187 00:11:25.720 --> 00:11:26.890 largest cloud network. 188 00:11:28.040 --> 00:11:30.200 Michael Novinson: We've seen folks get into this SSE in the 189 00:11:30.200 --> 00:11:32.870 SASE market from a lot of different places. Obviously, 190 00:11:33.080 --> 00:11:36.080 Netskope's heritage is in CASB. We have Zscaler coming in from 191 00:11:36.080 --> 00:11:39.560 SWGs firewall vendors like Palo Alto Networks and Fortinet as 192 00:11:39.560 --> 00:11:44.000 well as some from the SD-WAN side. What do you feel is 193 00:11:44.000 --> 00:11:48.770 beneficial about entering into this SASE or SSE space with such 194 00:11:48.770 --> 00:11:51.290 a deep background and such a deep knowledge around CASB and 195 00:11:51.290 --> 00:11:52.040 cloud security? 196 00:11:52.330 --> 00:11:55.630 Sanjay Beri: Yeah, it's a good question. And so I feel like if 197 00:11:55.630 --> 00:11:59.710 you think about a SaaS app, and you know, think about us as tens 198 00:11:59.710 --> 00:12:04.240 of billions of transactions every day going through us and 199 00:12:04.240 --> 00:12:08.620 we're governing the SaaS apps. The reality is that the SaaS app 200 00:12:08.620 --> 00:12:13.210 is the superset of all destinations you could go to. A 201 00:12:13.210 --> 00:12:16.060 website is just the dumb SaaS app, right? If you think about 202 00:12:16.060 --> 00:12:20.260 it, like with a SaaS app, you can do so many things. And a 203 00:12:20.260 --> 00:12:23.350 website, well, you can do a very limited set of things. Maybe you 204 00:12:23.350 --> 00:12:26.350 can post and chat and blog, but you can't do the hundreds of 205 00:12:26.350 --> 00:12:29.560 things you can do in a SaaS app. And so for us, you know, 206 00:12:29.560 --> 00:12:34.780 building the ability to effectively govern SaaS was the 207 00:12:34.780 --> 00:12:38.230 superset problem. And then part of our vision was okay, well to 208 00:12:38.230 --> 00:12:41.440 bring that Layer 8 intelligence, the data protection, the 209 00:12:41.440 --> 00:12:44.380 granularities, let's bring it to the web now. And then let's 210 00:12:44.380 --> 00:12:49.420 bring it to on-prem apps. And so the reason that starting with an 211 00:12:49.450 --> 00:12:55.990 inline governance of SaaS was the most advantageous is you're 212 00:12:55.990 --> 00:13:00.550 covering the hardest problem, and you can govern the web. And 213 00:13:00.550 --> 00:13:03.130 actually, you don't need a lot of granularity, right. And 214 00:13:03.130 --> 00:13:05.920 that's what traditional proxies, the other ones you mentioned 215 00:13:05.920 --> 00:13:09.730 are. They're more like, you know, what I would say, Layer 7 216 00:13:09.730 --> 00:13:12.820 proxies, and so they're not going to help you with SaaS. In 217 00:13:12.820 --> 00:13:16.660 fact, the number one rule on those other systems is bypass 218 00:13:17.170 --> 00:13:21.550 office or bypass SaaS. That's in practice with their number one 219 00:13:21.550 --> 00:13:25.300 rule for cloud is. And so for us, starting with the hardest 220 00:13:25.300 --> 00:13:29.560 problem, and then built the platform to basically cover the 221 00:13:29.560 --> 00:13:33.730 rest. That's why you know, our Next Gen Secure Web Gateway is 222 00:13:33.730 --> 00:13:36.130 the fastest growing web gateway, I think, in the history of 223 00:13:36.190 --> 00:13:40.240 secure web gateways. It's because people wait, wait, wait, 224 00:13:40.240 --> 00:13:43.030 they covered the artist problem. I see what they've done with 225 00:13:43.030 --> 00:13:47.020 web, it works great. And now I can converge web, SaaS, public 226 00:13:47.020 --> 00:13:47.980 cloud and on-prem. 227 00:13:49.550 --> 00:13:51.080 Michael Novinson: Very interesting. Let's talk a little 228 00:13:51.080 --> 00:13:55.250 bit about the economy. I know, last summer, you raised $300 229 00:13:55.250 --> 00:13:59.210 million on a $7.5 billion valuation. It's interesting to a 230 00:13:59.210 --> 00:14:01.400 lot of industry observers that the next step was going to be an 231 00:14:01.400 --> 00:14:04.430 initial public offering. Realize the economy today is very 232 00:14:04.430 --> 00:14:08.000 different than the economy of summer 2001. Wanted to get a 233 00:14:08.000 --> 00:14:10.760 sense from you of how are you thinking about the next steps at 234 00:14:10.790 --> 00:14:13.880 Netskope. You still see an IPO is something that's imminent? 235 00:14:14.120 --> 00:14:17.060 Are you thinking about debt financing? How do you kind of 236 00:14:17.060 --> 00:14:18.950 weather through this economic storm? 237 00:14:18.990 --> 00:14:21.120 Sanjay Beri: Yeah. So for Netskope, you know, one of the 238 00:14:21.120 --> 00:14:25.050 interesting things about the macroeconomic situation is that, 239 00:14:25.080 --> 00:14:27.300 and I remember sitting in front of a bunch of public market 240 00:14:27.330 --> 00:14:30.810 investors who came up to me and said, "Sanjay, you must be so 241 00:14:31.050 --> 00:14:35.400 happy with what you're built." And I said, "Yeah, but like, why 242 00:14:35.400 --> 00:14:37.950 are you saying this to me now?" And he goes, "Well, think about 243 00:14:37.950 --> 00:14:41.880 it. You know, nobody, if you think about the breadth of 244 00:14:41.880 --> 00:14:45.510 product you have, the depth, the capital investment to build your 245 00:14:45.510 --> 00:14:48.450 infrastructure, there's not going to be another Netskope. 246 00:14:48.690 --> 00:14:51.570 Right? Like there's a public market investors. We're not 247 00:14:51.570 --> 00:14:54.930 going to fund one. We're not going to invest in one because 248 00:14:54.930 --> 00:14:58.410 the bar is too high. The wall is just got bigger in this 249 00:14:58.440 --> 00:15:02.490 macro-economic situation. Because the bar and to get to 250 00:15:02.490 --> 00:15:05.880 where you are, it's so high now. And it's going to take so much 251 00:15:05.880 --> 00:15:10.020 capital and so much depth and team like, you know, and so 252 00:15:10.470 --> 00:15:14.820 you're a rare asset, you're a rare platform." And so one of 253 00:15:14.820 --> 00:15:17.610 the things that this macroeconomic situation has 254 00:15:17.610 --> 00:15:21.390 done, it has made people want a platform, and it has made people 255 00:15:21.390 --> 00:15:25.290 realize that wait, it's very hard to build, you know, what 256 00:15:25.350 --> 00:15:28.920 Netskope has done. And it's made the investment community realize 257 00:15:28.920 --> 00:15:31.710 that too, to say, "Well, it's just not going to be another one 258 00:15:31.710 --> 00:15:37.500 of them." And so what that means is, frankly, our value has 259 00:15:37.500 --> 00:15:42.660 accelerated. It also means like, frankly, they now have 260 00:15:42.690 --> 00:15:45.630 customers/prospects calling us has accelerated in this 261 00:15:45.630 --> 00:15:48.540 timeframe. And it's also meant them now with people who are 262 00:15:48.540 --> 00:15:50.340 trying to transform digitally because they want to 263 00:15:50.340 --> 00:15:53.850 consolidate, reduce risk and save costs. That's what our 264 00:15:53.850 --> 00:15:57.270 platform does, that's also accelerated. So we're seeing an 265 00:15:57.270 --> 00:16:01.320 acceleration, you know, frankly, our business. And to that point, 266 00:16:01.650 --> 00:16:05.700 is, we have some of the biggest, most marquee, both private and 267 00:16:05.700 --> 00:16:09.000 public market investors as part of Netskope. You know, we don't 268 00:16:09.000 --> 00:16:12.930 need to go public for capital reasons, right? And the reality 269 00:16:12.930 --> 00:16:17.910 is, we would one day. Yes, one day, we will. But, you know, we 270 00:16:17.910 --> 00:16:22.230 don't have any need or rush to do it. And in today's world, 271 00:16:22.230 --> 00:16:28.710 like, you know, you can build your company faster, better and 272 00:16:28.770 --> 00:16:31.830 invest in the R&D you want, I would argue better privately. 273 00:16:32.490 --> 00:16:36.360 And so, you know, stay private until the time's right? When the 274 00:16:36.360 --> 00:16:41.130 markets are, you know, ready for more IPOs and beyond, and then, 275 00:16:41.340 --> 00:16:44.520 you know, we'll go from there. But for us, we're in a unique 276 00:16:44.520 --> 00:16:48.750 situation, like, we don't need to go public capital reasons, we 277 00:16:48.750 --> 00:16:50.580 have some of the best private and public market investors in 278 00:16:50.580 --> 00:16:52.710 the world, one of the fastest growing cyber companies in the 279 00:16:52.710 --> 00:16:57.630 world. You know, our growth is accelerating. And so, you know, 280 00:16:58.290 --> 00:17:02.130 we're I think, in a unique situation amongst, you know, 281 00:17:02.130 --> 00:17:06.240 private companies and I'll take advantage of that every way we 282 00:17:06.240 --> 00:17:09.960 can in terms of just continuing to pour investment into the 283 00:17:09.960 --> 00:17:10.620 platform. 284 00:17:11.890 --> 00:17:13.960 Michael Novinson: Very interesting. One more thing for 285 00:17:13.960 --> 00:17:17.200 you. I know, over the past four months or so we've seen quite a 286 00:17:17.200 --> 00:17:19.600 few layoffs in the security industry, particularly among 287 00:17:19.600 --> 00:17:22.660 late stage startups, companies like Cybereason and Lacework and 288 00:17:22.660 --> 00:17:26.470 OneTrust. They've all made job cuts in recent months. Have you 289 00:17:26.470 --> 00:17:28.990 done or are you considering doing any job reductions at 290 00:17:28.990 --> 00:17:30.430 Netskope? And why or why not? 291 00:17:31.560 --> 00:17:34.110 Sanjay Beri: That's a good question. So the reality is, we 292 00:17:36.600 --> 00:17:42.090 will always have hundreds of openings. You know, what I often 293 00:17:42.090 --> 00:17:45.360 tell people is when you scale and as you build your company, 294 00:17:45.630 --> 00:17:49.770 right? You always look and go like, how should I reorganize 295 00:17:49.770 --> 00:17:53.520 this to tackle the problem that, you know, exists today. So for 296 00:17:53.520 --> 00:17:56.340 example, we used to be in a digital world, all our marketing 297 00:17:56.880 --> 00:18:00.270 you know, had to move to online marketing, because nobody wanted 298 00:18:00.270 --> 00:18:03.930 it in person. Right? Now, you're in this hybrid world. So how do 299 00:18:03.930 --> 00:18:07.830 we get to a customer is a little different, in this hybrid world, 300 00:18:07.830 --> 00:18:12.480 right? You're not going to maybe do as many of that/rely on that 301 00:18:12.510 --> 00:18:15.540 only in person, you're going to have a good blend. And so you 302 00:18:15.540 --> 00:18:20.370 adjust, you know how you go to market. But what I always tell 303 00:18:20.370 --> 00:18:23.730 people is like, separate out, you know, what are you doing, 304 00:18:23.910 --> 00:18:26.520 you know, because of a macroeconomic situation. What 305 00:18:26.520 --> 00:18:30.000 are you doing just naturally to, frankly, adjust to how you want 306 00:18:30.000 --> 00:18:33.150 to reach your customer, right? And so I always make adjustments 307 00:18:33.150 --> 00:18:37.050 in our business. And that could involve like, pouring more into 308 00:18:37.050 --> 00:18:40.140 a certain region, you know, going less known events, more 309 00:18:40.140 --> 00:18:43.440 digital. So those adjustments we'll always be making, like, I 310 00:18:43.440 --> 00:18:47.220 think it's only right as you grow your company to do that. 311 00:18:47.400 --> 00:18:51.690 But on the other side, we're not a company that has seen from the 312 00:18:51.690 --> 00:18:55.050 macro situation like, "oh, wow, you know, our business is 313 00:18:55.050 --> 00:18:57.030 slowing." We're the opposite, right? It's been accelerating, 314 00:18:57.030 --> 00:19:01.170 it's growing, we're hiring. I pour investment into product and 315 00:19:01.170 --> 00:19:04.590 R&D, we're releasing a new module, probably every quarter. 316 00:19:05.520 --> 00:19:08.220 And, you know, I've given example in R&D. I've hundreds 317 00:19:08.220 --> 00:19:10.860 openings, and, you know, probably hiring every day, and I 318 00:19:11.070 --> 00:19:14.370 would continue that. So you know, we're not going to have 319 00:19:14.370 --> 00:19:17.910 what you said, because of the macro situation. But I always am 320 00:19:17.910 --> 00:19:20.850 also very pragmatic around like, "hey, how do we get to our 321 00:19:20.850 --> 00:19:25.560 customer in this new world? And how do we adjust that? And what 322 00:19:25.560 --> 00:19:28.740 new roles do we need and beyond?" So that's how more I 323 00:19:28.740 --> 00:19:29.250 think about it. 324 00:19:30.570 --> 00:19:32.070 Michael Novinson: Very interesting. Sanjay, thank you 325 00:19:32.070 --> 00:19:32.880 so much for the time. 326 00:19:33.330 --> 00:19:35.310 Sanjay Beri: Yeah, absolutely. Great to chat with you, Michael. 327 00:19:35.930 --> 00:19:37.700 Michael Novinson: Yourself as well. We've been speaking with 328 00:19:37.700 --> 00:19:41.420 Sanjay Beri. He is the founder and CEO at Netskope. For 329 00:19:41.420 --> 00:19:44.360 Information Security Media Group, this is Michael Novinson. 330 00:19:44.600 --> 00:19:45.500 Have a nice day.