Hey channel insiders, I'm Katie Bavoso here for partner POV on site at scale computing platform 2025 in beautiful Las Vegas, Nevada. I'm talking with IT innovators and partners from all over the globe. Today, including this very familiar face right here. We have Jeff Brey, co-founder and CEO of Scale Computing. Welcome. Thank you. Thank you. Let's talk about one of the biggest topics that you've really discussed here at scale computing platform which would be your customers.
You have really leaned into the midmarket since Broadcom acquired VMware. Talk to me about the impact that you saw that particular acquisition have on that customer base and why was it so important for you to fill that void. We started the company originally really focused on the mid-market and that's always been a big segment of our business. Now today we serve customers SMB all the way through large enterprise but mid-market's always been near and dear to our hearts.
When the Broadcom VMware transaction happened, the midmarket is where I saw the the most adversely affected, right? The products that they often used were the ones that were cut. The pricing structures they used were the ones that were raised the most. You know, we could have just done nothing and benefited from it, but we actually kind of aggressively went into it. We've we've made some pricing changes ourselves and cuts to say okay here's a pathway off of off of VMware for all those mid-market accounts.
One of the particular solutions that you discussed at platform was zero touch application management which essentially allows you to deploy applications across thousands of locations simultaneously. Right. Talk to me about the opportunity that this is for your partners to be able to work with their customers. What doors does it open for them? The most important thing for for any partner to recognize is we are at the start of a new era of computing.
So you know we had centralized computing with the data center in the cloud. Edge computing represents a move towards a distributed architecture. And what we are going to see over the next you know year, 2 years, 5 years is a massive increase in the number of applications that are going to exist in in that edge driven by many things not least of which is AI. Right? a lot of AI applications running on site and so partners have an opportunity to sort of pave the way that will enable those applications to get out there and so the the feature that we unveiled here that you're talking about um zero-ouch application deployment is an extension of what scale's always been well known to have very easy to deploy infrastructure and when you're talking about an an edge environment I may have a dozen or hundreds or thousands of sites and so we make it easy to deploy to those sites.
What about when I want to deploy this application to those sites and be able to click one button from a centralized portal and have it deployed literally thousands of times? What partners want to enable their customers to do is run applications. Businesses and organizations run on apps and this is about accelerating how quickly you can get those apps out there. Theh software announced at platform this year that they're now going to support backup solutions for scale computing hyper core.
Right. What does that mean for not only scale computing as a business, what does it mean for the greater partner base? Theh much like scale has customers of all shapes and sizes, but they are also well known for a lot of strength in the mid-market. So there is a perfect alignment between the scale customer base and the partners who serve them in the veh segmentation of the same. Now you can literally say, oh, how do I move to scale? I simply take my backup and restore it to scale and I'm done.
With the VH products specifically as an MSP, you may also want to provide a service where you're going to manage that on behalf of the customer and you get recurring revenue presumably from doing that and that can all be enabled right on the scale platform. You said that because of the rise of edge computing and AI coupled with VMware's industry disrupting choices and changes, it's made the channel cool again. Direct quote. Yes. Can you expand on that thought for me?
I think that um over the last 15 years as we've seen a you know big move to the cloud uh there was an element where you know we were no longer deploying as much infrastructure on site and channel partners you know they would assist their customers in moving to the cloud but in a way you know the customer ends up sort of owned by the cloud. I mean, they're an Amazon customer. They're a Microsoft customer. And here now you're talking about, oh, well, that customer is going to run applications on site.
They need help. How do I get infrastructure out there? What kind of servers and and GPUs and CPUs do I need? And this is where where channel partners are right back in their prime. Then on top of it, customers are are looking at their renewal quotes from VMware and thinking, I got I need help, right? What do I do? They they often haven't even been thinking about infrastructure like this in years. So partners can say no there are other options and you know options like scale are
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