[Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] you [Music] [Applause] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners come back this is the cubes coverage of Cisco live 2020 here in Barcelona doing about three and a half days of wall-to-wall coverage here I'm Stu minim and my co-host for this segment is Dave Volante John furs also here scouring the floor and really happy to welcome to the program to first-time guests I believe so Ron Daris is the product manager of product marketing for cloud computing with Cisco and sitting to his left is Matt Ferguson who's director of product development also with the Cisco cloud group Dave and I are from Boston Matt is also from the Boston area yes and Costas is coming over from London so thanks so much for joining us thanks IBPS all right so obviously cloud computing something we've been talking about many years we've really found fascinating the relationship Cisco's had with its customers as well as through the partner ecosystem had many good discussions about some of the announcements this week maybe start a little bit you know Cisco's software journey and you know positioning in this cloud space right now yes oh so it's a it's a really interesting dynamic when we start transitioning to multi cloud and we actually deal with cloud and compute coming together and we've had whether you're looking at the infrastructure ops organization or whether you're looking at the apps operations or whether you're looking at you know your dev environment your security operations each organization has to deal with their angle at which they view you know multi cloud or they view how they actually operate within those the cloud computing context and so whether you're on the infrastructure side you're looking at compute you're looking at storage you're looking at resources if you're an app operator you're looking at performance you're looking at visibility assurance if you are in the security operations you're looking at maybe governance you're looking at policy and then when you're a developer you really sort of thinking about CI CD you're talking about agility and there's very few organizations like Cisco that actually is looking at from a product perspective all those various angles of multi-cloud yeah definitely a lot of piece of cost us maybe up level it for us a little bit there's there's so many pieces you know we talked for so long you know you don't talk to any company that doesn't have a cloud strategy doesn't mean that it's not going to change over time and it means every company's got at home positioning but talk about the relationship cisco has with its customer and really the advisory position that you want to have with them it's actually a very relevant question to what to what Matt is talking about because we talk a lot about multi cloud as a trend and hybrid clouds and this kind of relationship between the traditional view of looking at computing data centers and then expanding to different clouds you know public cloud providers have now amazing platform capabilities and if you think about it the the it goes back to what Matt said about IT ops and the development kind of efforts why is this happening really you know there's there's the study that we did with with an analyst and there was an amazing a shocking stat around how within the next three years organizations will have to support 50% more applications than they do now and we have been trying to test this stat our events that made customer meetings etc that is a lot of a lot of change for organizations so if you think about why are they use why do they need to basically what go and expand to those clouds is because they want to service IT Ops teams want ER servers with capabilities their developers faster right and this is where you have within the IT ops kind of theme organization you have the security kind of frame the compute frame the networking where you know Cisco has a traditional footprint how do you blend all this how do you bring all this together in a linear way to support individual unique application modernization efforts I think that's what are we hearing from customers in terms of the feedback and this is what influences our strategy to converts the different business units and engineering engineering efforts right couple years ago I have to admit I was kind of a multi cloud skeptic I always said I thought it was more of a symptom than actually a strategy a symptom of you know shadow IT and different workloads and so forth but now I'm kind of buying in because I think IT in particular has been brought in to clean up the crime scene I often say so I think it is becoming a strategy so if you could help us understand what you're hearing from customers in terms of their strategy toward the multi cloud and how Cisco that was mapping into that yeah so so when we talk to customers it comes back to the angle at which they're approaching the problem in like you said the shadow IT has been probably around for longer than anybody won't cares to admit because the people want to move faster organizations want to get their product out to market sooner and and so what what really is we're having conversations now about you know how do I get the visibility how do I get you know the policies and the governance so that I can actually understand either how much I'm spending in the cloud or whether I'm getting the actual performance that I'm looking for that I need the connectivity so I get the bandwidth and so these are the kinds of conversations that we have with customers is is is going I realize that this is going on now I actually have to now put some you know governance and controls around that is their products is their solutions is their you know they're looking to Cisco to help them through this journey because it is a journey because as much as we talk about cloud and you know companies that were born in the cloud cloud native there is a tremendous number of IT organizations that are just starting that journey that are just entering into this phase where they have to solve these problems yeah I agree and it's just starting the journey with a deliberate strategy as opposed to okay we got this this thing but if you think about the competitive landscape its kind of interesting and I want to try to understand where Cisco fits because again you you initially had companies that didn't know in a public cloud sort of pushing multi cloud and you'd say oh well okay so they have to do that but now you see anthos come out with Google you see Microsoft leaning in we think eventually AWS is going to lean in and then you say I'm kind of interested in working with someone whose cloud agnostic not trying to force now now Cisco a few years ago you didn't really think about Cisco as a player now so this goes right in the middle I have said often that Cisco's in a great position John Fourier as well to connect businesses and from a source of networking strength making a strong argument that we have the most cost-effective most secure highest performance network to connect clouds that seems to be a pretty fundamental strength of yours and does that essentially summarize your strategy and and how does that map into the actions that you're taking in terms of products and services that you're bringing to market I would say that I can I can I can take that ya know it's a chewy question for hours yeah so I I was thinking about a satellite in you mentioned this before and you're like okay that's you know the world is turning around completely because we we seem to talk about satellite e is something bad happening and now suddenly we completely forgot about it like let let free free up the developers gonna let them do whatever they want and basically that is what I think is happening out there in the market so all the solutions you mentioned in the go to market approaches and the architectures that the public cloud providers at least are offering out there certainly the big three have differences have their strengths and I think those strengths are closer to the developer environment basically you know if you're looking into something like a IML there's one provider that you go with if you're looking for a mobile development framework you're gonna go somewhere else if you're looking for a dr you're gonna go somewhere else maybe not a big cloud but your service provider that you've been dealing with all these all these times and you know that they have their accreditation that you're looking for so where does Cisco come in you know we're not a public cloud provider we offer products as a service from our data centers and our partners data centers but at the - at the way that the industry sees a cloud provider a public cloud like AWS a sure Google Oracle IBM etc we're not that we don't do that our mission is to enable organizations with software hardware products SAS products to be able to facilitate their connectivity security visibility observability and in doing business and in leveraging the best benefits from those clouds so we we kind of we kind of moved to a point where we flip around the question and the first question is who is your cloud provider what how many tell us the clouds you work with and we can give you the modular pieces you can put we can put together for you so there's so that you can make the best out of your plan it's been being able to do that across clouds we're in an environment that is consistent with policies that are consistent that represent the edicts of your organization no matter where your data lives that's sort of the the vision in the way this is translated into products into Cisco's product you naturally think about Cisco as the connectivity provider networking that's that's really sort of our you know go to in what we're also when we have a significant computing portfolio as well so connectivity is not only the connectivity of the actual wire between geographies point A to point B in the natural routing and switching world there's connectivity between applications between cute and so this week you know the announcements were significant in that space when you talk about the compute and the cloud coming together on a single platform that gives you not only the ability to look at your applications from a experience journey map so you can actually know where the problems might occur in the application domain you can actually then go that next level down into the infrastructure level and you can say okay maybe I'm running out of some sort of resource whether it's compute resource whether it's memory whether it's on your private cloud that you have enabled on Prem or whether it's in the public cloud that you have that application residing and then why candidly you have the actual hardware itself so inter-site it has an ability to control that entire stack so you can have that visibility all the way down to the hardware layer I'm glad you brought up some of the applications wonderful we can you know stay there for a moment and talk about some of the changing patterns for customers a lot of talk in the industry about cloud native often it gets conflated with you know microservices containerization and lots of the individual pieces there but you know one of our favorite things that been talked about this week is the software that really sits at the application layer and how that connects down through some of the infrastructure pieces so help us understand what you're hearing from customers and and where how you're helping them through this transition to constants as you were saying absolutely there's going to be lots of new applications more applications and they still have the the old stuff that they need to continue to manage because we know an IT nothing ever goes away that's that's definitely true I was I was thinking you know there's there's a vacuum at the moment and and there's things that Cisco is doing from from technology leadership perspective to fill that gap between the application what do you see when it comes to monitoring making sure your services are observable and how does that fit within the infrastructure stack you know everything upwards network the network layer base again that is changing dramatically some of the things that Matt touched upon with regards to you know being able to connect the the networking the security in the infrastructure the computer infrastructure that the developers basically are deploying on top so there's a lot of there's a lot of things on containerization there's a lot of in fact it's you know one part of the of the self-injure side of the stack that you mentioned and one of the big announcements you know that there's a lot of discussion in the industry around ok how does that abstract further the conversation on networking for example because that now what we're seeing is that you have huge monoliths enterprise applications that are being carved down into micro services ok they you know there's a big misunderstanding around what is cloud native is it related to containers different kind of things right but containers are naturally the infrastructure de facto currency for developers to deploy because of many many benefits but then what happens you know between the kubernetes layer which seems to be the standard and the application who's gonna be managing services talking to each other that are multiplying you know things like service mesh network service mess how is the network evolving to be able to create this immutable infrastructure for developers to deploy applications so there's so many things happening at the same time where cisco has actually a lot of taking a lot of the front seat this is where it gets really interesting you know it's sort of hard to squint through because you mentioned kubernetes is the de facto standard but it's a de-facto standard that's open everybody's playing with but historically this industry has been defined by you know a leader who comes out with a de facto standard kubernetes not a company right it's an open standard and so but there's so many other components than containers and so history would suggest that there's going to be another de facto standard or multiple standards that emerge and your point earlier is you you got to have the full stack you can't just do networking you can't just do certain few so you guys are attacking that whole pie so how do you think this thing will evolve I mean you guys are obviously intend to put out as Casta as wide a net as possible capture not only your existing install base but attractive attract others and you're going aggressively at it as are as are others how do you see it shaking out deep do you see you know four or five pockets do you see you know one leader emerging I mean customers would love all you guys to get together come up with standards that's not going to happen so we're it's jump ball right now well yeah and you think about you know to your point regarding kubernetes is not a company right it is it is a community driven I mean it was open source by a large company but it's but it's community driven now and that's the pace at which open source is sort of evolving there is so much coming at IT organizations from a new paradigm a new software something that's you know the new the shiny object that sort of everybody sort of has to jump on to and sort of say that is the way we're going to function so IT organizations have to struggle with this influx of just every coming at them and every angle and I think what's starting to happen is the management and the you know that stack who controls that or who is helping IT organizations to manage it for them so really what we're trying to say is there's elements that you have to put together that have to function and kubernetes is just one example docker the operating system that associated with it that runs all that stuff then you have the application that goes rides IDEs on top of it so now what we have to have is things like what we just announced this week HX ap the application platform for HX so you have the compute cluster but then you have the on top of that that's managed by an organization that's looking at the security that's looking at the the actual making opinions about what should go in the stock and managing that for you so you don't have to deal with that because you can just focus on the application development yeah I mean Cisco's in a strong position to do there's no question about it and to me it comes down to execution if you guys execute and deliver on the the products and services that you say you know your nouns for instance this week and previously and you continue on a roadmap you're gonna get a fair share of this marketplace I think there's no question so last topic before we let you go is love your viewpoint on customers what's separating kind of leaders from you know the followers in this space you know there's so much data out there you know I'm a big fan of the state of DevOps report yeah focus you know separate you know some but not the not here's the technology or the piece but the organizational and you know dynamics that you should do so it sounds like Matt you you like that that report also love them what are you hearing from customers how do you help guide them towards becoming leaders in the cloud space yeah the state of DevOps report was fascinating and I mean they've been doing that for what a number of years yeah exactly and really what it's sort of highlighting is two main factors that I think that are in this revolution or this this this paradigm shift or journey we're going through there's the technology side for sure and so that's getting more complex you have micro services you have application explosion you have a lot of things that are occurring just in technology that you're trying to keep up but then it's really about the human aspect that human elements the people about it and that's really I think what separates you know the the elites that are really sort of you know just charging forward in the head because they've been able to sort of break down the silos because really what you're talking about in cloud native DevOps is how you take the journey of that experience of the service from end to end from the development all the way to production and how do you actually sort of not have organizations that look at their domain their data set their operations and then have to translate that or have to sort of you know have another conversation with another organization that it doesn't look at that that has no experience of that so that is what we're talking about that end-to-end view is that in addition to all the things we've been talking about I think Security's a linchpin here now you guys are executing on security you got a big portfolio and you've seen a lot of M&A and a lot of companies now trying to get in and it's gonna be interesting to see how that plays out but that's going to be a key because organizations are going to start there from a strategy standpoint and then build out yeah absolutely if you follow the DevOps methodology its security gets baked in along the way so that you're not having to sit on after do anything Custis give you the final word I was just as follow-up with regard what what Mark was saying there's so many there's what's happening out there is this just democracy around standards which is driven by communities and we will love that in fact cisco is involved in many open-source community projects but you asked about customers and and just right before you were asking about you know who's gonna be the winner there's so many use cases there's so much depth in terms of you know what customers want to do with on top of kubernetes you know take AI ml for example something that we have we have some some offering the services around there's the customer that wants to do AML there their containers that their infrastructure will be so much different to someone else's doing something just hosting yeah and there's always gonna be a SAS provider that is niche servicing some oil and gas company you know which means that the company of that industry will go and follow that instead of just going to a public law provider that is more organized if there's a does that make sense yeah yeah this there's relationships that exist the archer is gonna get blown away that add value today and they're not gonna just throw them out so exactly right well thank you so much for helping us understand the updates where your customers are driving super exciting space look forward to keeping an eye on it thank you thank you so much all right there's still lots more coming here from Cisco live 20/20 in Barcelona people are standing watching all the developer events lots of going on the floor and we still have more so thank you for watching the cute [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] you [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back over 17,000 in attendance here for Cisco live 2020 in Barcelona ops to Minh and my co-host is Dave Volante and to help us to dig into of course one of the most important topic of the day of course that security we're thrilled to have back a distinguished engineer Francisco one of our cube alumni TK Kia Nene TK thanks so much for joining us ideal man good good all right so TK it's 2020 it's a new decade we know the bad actors are still out there they're there the the question always is you know it used to be you know how do you keep ahead of them then I've here Dave say many times well you know it's not you know when it's it's not if it's when you know you probably already have been okay you know compromised before so it gives latest so you know what you're seeing out there what you're talking to customers about in this important space yeah it's uh it's kind of an innovation spiral you know we we innovate we make it harder for them and then they innovate they make it harder for us right and round and round we go that's been going on for for many years I think I think the most significant changes that have happened recently have to deal with not essentially their objectives but how they go about their objectives and Defenders topologies have changed greatly instead of just your standard enterprise you now have you know hybrid multi cloud and all these new technologies so while while all that innovation happens you know they get a little clever and they find weaknesses and round and round we go so we talked a lot about the sort of changing profile of the the threat actors going from hacktivists took criminals now is a huge business and nation-states even what's that profile look like today and how has that changed over the last decade or so you know that's pretty much stayed the same bad guys are bad guys at some point in time you know just how how they go about their business their techniques they're having to like I said innovate around you know we make it harder for them they you know on Monday we're safe on Tuesday we're not you know and then on Wednesday it switches again so so it talked about kind of this multi-cloud environment when we talk to customers it's like well I want the developer to be able to build their application and not really have to think too much underneath it that that has to have some unique challenges we know security we knew long ago well I just go to the cloud it doesn't mean they take care of it some things are there some things they're gonna remind you now you need to make sure you set certain things otherwise you could be there but how do we make sure that Security's baked in everywhere and is up as a practice that everybody's doing well I mean again some of the practices hold true no matter what the environment I think the big thing was cognitive is in back in the day when when you looked at an old legacy data center you were part sort of administrator in your part detective and most people don't even know what's running on there that's not true in cloud native environments some some llamó file some some declaration it's it's just exactly what productions should look like right and then the machines instantiate production so you're doing things that machine scale forces the human scale people to be explicit and and for me I mean that's that's a breath of fresh air because once you're explicit then you take the mystery out of what you're protecting how about in terms of how you detect threats right phishing for credentials has become a huge deal but not just you know kicking down the door or smashing a window using your your own credentials to get inside of your network so how is that affected the way in which you detect yeah it's it's a big deal you know a lot of a lot of great technology has a dual use and what I mean by that is network cryptology you know that that whole crypto on the network has made us safer for us to compute over insecure networks and unfortunately it works just as well for the bad guys so you know all of their malicious activity is now private to so it you know for us we just have to invent new ways of detecting direct inspection for instance I think it's a thing of the past I mean we just can't depend on it anymore we have to have tools of inference and not only that but it's it's gave rise in a lot of innovation on behavioral science and as you say you know it's it's not that the attacker is breaking into your network anymore they're logging in ok what do you do then right Alice Alice's account it's not gonna set off the triggers so you have to say you know when did Alice start to behave differently you know she's working in accounting why is she playing around with the source code repository that's that's a different thing right yes automation is such a big trend you know how do we make sure that automation doesn't leave us more vulnerable that's rarity because we need to be able automate we've gone beyond human scale for most of these configurations that's exactly right and and how do how do we I always say just with security automation in particular just because you can automate something doesn't mean you should and you really have to go back and have practices you know you could argue that that this thing is just a you know machine scale automation you could do math on a legal pad or you can use a computer to do it right what so apply that to production if you mechanized something like order entry or whatever you're you're you're automating part of your business use threat modeling you use the standard threaten modeling like you would your code the network is code now right and the storage is code and everything is code so you know just automate your testing do your threat modeling do all that stuff please do not automate for your attacker matrix is here I want to go back to the Alice problem because you're talking about before you have to use inference so Alice's is in the network and you're observing her moves every day and then okay something anomalous occurs maybe she's doing something that normally she wouldn't do so you've got to have her profile in her actions sort of observed documented stored the data has got to be there and at the same time you want to make sure it's always that balance of putting handcuffs on people you know versus allowing them to do their job and be productive at the same time as well you don't want to let the bad guys know that you know that alice is doing something that she didn't be doing is actually not Alice so all that complexity how are you dealing with it and what's the data model look like doing it machines help let's say that machines can help us you know you and I we have only so many sense organs and the cognitive brain can only store so many so much state machines really help us extend that and so you know looking at not three dimensions of change but 7000 dimensions have changed right something in the machine is going to say there's an outlier here that's interesting and you can get another machine to say that's that's interesting maybe I should focus on that and you build these analytical pipelines so that at the end of it you know they may argue with each other all the way to the end but at the end you have a very high fidelity indicator that might be at the protocol level it might be at the behavioral level it might be seven days back or thirty days back all these temporal and spatial dimensions it's really cheap to do it with a machine yeah and if we could stay on that for a second so it try to understand I know that's a high-level example but is it best practice to have the Machine take action or is it is it an augmentation and I know it depends on the use case but but how is that sort of playing out again you have to do all of this safely okay a lot of things that machines do don't return back to human scale stuff that returns back to human scale that humans understand that is as useful so for instance if machines you know find out all these types of in assertions even in medical you know right now if if you've got so much telemetry going into the medical field see the machine tells you you have three weeks to live I mean you better explain what the heck you know how you came about that assertion it's the same with security you know if I'm gonna say look we're gonna quarantine your machine or we're gonna readjust machine it's not I'm not like picking movies for you or the next song you might listen to this is high stakes and so when you do things like that your analytics needs to have what is called entailment you have to explain what it is how you got to that assertion that's become incredibly important in how we measure our effectiveness in in doing analytics that's interesting because because you're using a lot of machine intelligence to do this and in a lot of AI is blackbox you're saying you cannot endure that blackbox problem in security yeah that black boxes is is very dangerous you know I you know personally I feel that you know things that should be open sourced this type of technology it's so advanced that the developer needs to understand that the tester needs to understand that certainly the customer needs to understand it you need to publish papers and be very very transparent with this domain because if it is in fact you know black box and it's given the authority to automate something like you know shut down the power or do things like that that's when things really start to get dangerous so good TK what wondered you know give us the latest on stealthWatch there you know Cisco's positioning when it when it comes to everything we've been talking about here you know stealthWatch again is it's been in market for quite some time it's actually been in market since 2001 and when I when I look back and see how much has changed you know how we've had to keep up with the market and again it's not just the algorithms rewrite for detection it's the environments have changed right but when did when did multi-cloud happen so so operating again cusp it's not that stealthWatch wants to go their customers are going there and they want the stealthWatch function across their digital business and so you know we've had to make advancements on the changing topology we've had to make advancements because of things like dark data you know the the network's opaque now right we have to have a lot of inference so we've just you know kept up and stayed ahead of it you know we've been spending a lot of time talking to developer communities and there's a lot of open-source tooling out there that that's helping enable developers specifically in security space you were talking about open-source earlier how does what you've been doing the self watch intersect with that yeah that's always interesting too because there's been sort of a shift in let's call them the cool kids right the cool kids they want everything is code right so it's not about what's on glass or you know a single pane of glass anymore it's it's what stealth watches code right what's your router as code look at dev net right yeah yeah I mean definite is basically Cisco as code and it's beautiful because that is infrastructure as code I mean that is the future and so all the products not just stealthWatch have beautiful api's and that's that's really exciting I've been saying for a while now it's do you I think you agree is that that is a big differentiator for Cisco I think you you're one of the few if not the only large established player and the enterprise that has figured out that sort of infrastructure is code play others have tried and are sort of getting there but you know start/stop you use a term that really cool is like living off the land you know bear bear grylls like the guy who lives down so bad so and and and threat actors are doing that now they're using your own installed software and tooling to hack you and and steal from you how were you dealing with that problem yeah it's a tough one and like I said you know much respect the the adversary is talented and they're patient they're well funded okay that's that's where it starts and so you know why why bring why bring an interpreter to a host when there's already one there right why right all this complicated software distribution when I can just use yours and so that's that's where the the play the game starts and and the most advanced threats aren't leaving footprints because the footprints are already there you know they'll get on a machine and behaviorally they'll check the cache to see what's hot and what's hot in the cache means that behaviorally it's a path they can go they're not cutting a new trail most of the time right so living off the land is not only the tools that they're using the automation your automation they're using against you but it's also behavioral and so that that makes it you know it makes it harder it's it impossible no can we make it harder for them yes so yeah no I'm having fun and I've been doing this for over twenty five years every week it's something new well it's a hard problem you're attacking and you know Robert Herjavec who came on the cube sort of opened my eyes and you think about what are we securing we're securing everything I mean a critical infrastructure were essentially exerted securing the entire global economy and he said something that really struck me it's an 86 trillion dollar economy we spend point zero one four percent on securing that economy and it's nothing now of course he's an entrepreneur and he's pimping for his is his business but it's true we are barely scratching the surface of this problem yeah I'm and it's changing I mean it's changing it could it be better yes it is changing his board awareness you know twenty years ago then right me to a dinner party they you know what does your husband do I'd say you know cyber security or something they'd roll their eyes and change the subject now they asked me the same question so oh you know my computer's running really slow right these are not this is everyone I'm worried about a life hack yeah how do I protect myself or what about these coming off the bank I mean that's those guys a dinner table cover every party so now now you know I just make something up I don't do cybersecurity I just you know a tort or a jipner's you've been to this business forever I can't remember have I ever asked you the superhero question what is that your favorite superhero that's a tough one there's all the security guys I know they like it's always dreamed about saving the world [Laughter] you're my superhero man I love what you do I think you've a great asset for Cisco and Cisco's customers really thanks TK give us a final word if people want to you know find out more about about what Cisco's doing read more of what you're working on but what's some of the best resource I have to go do you know just drop by the web pages I mean everything's published out that like I said even even for the super nerdy you know we published all our our laurs security analytics papers I think we're over 50 papers published in the last 12 years TK thank you so much always a pleasure to catch alright yeah and a travels thank you so much for de Villante I'm Stu Mittleman John furrier is also in the house we will be back with lots more coverage here from Cisco live 20/20 in Barcelona thanks for watching the keys [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020s brought to you by Cisco and its ecosystem partners hello and welcome back to the cubes live coverage it's our fourth day of four days of coverage here in Barcelona Spain for Cisco live 2020 I'm John Faria my co-host to many men to great guests here in the dev net studio where the cube is sitting all week long been packed with action mindy Whaley senior director developer experiences but dev net and partner a senior director welcome back to this cube good to see you guys glad to be here so we've had a lot of history with you guys what from day one yes watching def net from an idea of hey we should develop earthing you also have definite create yes separate more developer focused definite is Cisco's developer environment we've been here from the beginning what a progression congratulations on the success thank you thank you so much it's great to be here in Barcelona with everybody here you know learning in the workshops and we just love these times to connect with our community at Cisco live and it definitely ate what you mentioned which is coming up in March so it's right around the corner def net zone which we're in it's been really robust spins it's been the top of the show every year and it gets bigger and the sessions are packed because people are learning developers new developers as well as Cisco engineers who were certified coming in getting new skills as the modern cloud hybrid environments are new skills is a technology shift yeah exactly and what we have in the definite zone are different ways that the engineers and developers can engage with that technology shift so we have demos around IOT and security and showing how you know to prevent threats from attacking the Industrial routers and things like that we have coding workshops from you know beginning intro to Python intro to get all the way up through advanced like kubernetes topics and things like that so people can really dive in with what they're looking for and this year we're really excited because we have the new definite certifications with those exams coming out right around the corner in February so a lot of people are here saying I'm ready to skill up for those exams I'm starting to dive into this topic well Susie we was on she's the chief of deaf net among other things and she said there's gonna be a definite 500 the first 500 certifications of deaf net are gonna be kind of like the Hall of Fame or you know the inaugural or founder certifications so can you explain what this it means it's not a definite certification badge it's a series of write different sir can you deeper in then yeah just like we have our you know existing network certifications which are so respected and loved around the world people get CCIE tattoos and things just like there's an associate and professional and expert level on the networking truck there's now a definite associate a definite professional and coming soon definite expert and then there's also specialist badges which help you add specific skills like data center automation IOT WebEx so it's a whole new set of certifications that are more focused on the software so there are about 80 80 % software skills 20 percent knowledge of networking and then how you really connect up and down the stock so these are new certifications not replacing anything all the same stuff they're new they're part of the same program they have the same rigor the same kind of tests they actually have ways to enter weave with the existing networking certifications because we want people to do both skill paths right to build this new IT team of the future and so it's a completely new set of exams the exams are gonna be available to take February 24th and you can start signing up now so with the definite 500 you know that's gonna be a special recognition for the first 500 people who get dead note certifications it'll be a lifetime achievement they'll always be in the definite 500 right and I've had people coming up and telling me you know I'm signed up for the first day I'm taking my exams on the first day I'm trying to get into them you and I only always want to be on the lift so I think we might be on them and what's really great is with the certifications we've heard from people in the zone that they've been coming and taking classes and learning these skills but they didn't have a specific way to map that to their career path to get rewarded at work you know to have that sort of progression and so with the certifications they really will have that and it's also really important for our partners and par is doing a lot of work with certifications and partners yeah definitely that would love to hear a little bit we've interviewed on the cube over the years some of the definite partners from a technology standpoint of course the the channels ecosystem hugely important to Cisco's business gives the update as to you know definite partnering as well as what will these certifications mean to both the technology and go to market partners yeah the wonderful thing about this is it really demonstrates Cisco's embracement of software and making sure that we're providing that common language for software developers and networkers to bring the two together and what we've found is that our partners are at different levels of maturity along that progression of program ability and this new definite specialization which is anchored in the individuals that are now certified at that partner allow them to demonstrate from a go-to-market standpoint from a recognition standpoint that as a practice they have these skills and look at the end of the day it's all about delivering what our customers need and our customers are asking us for significant help in automation digital transformation they're trying to drive new business outcomes and this this will provide that recognition on on who to partner with in the market it's so important I remember when Cisco helped a lot of the partner ecosystem build data center practices went from the silos and now embracing you've got the hardware the software we're talking multi cloud it's the practice that is needed today going forward to help customers with where they're going it really is and and another benefit that we're finding and talking to our partners is we're packaging this up and rolling it out is not only will it help them from a recognition standpoint from a practice standpoint and from a competitive differentiation standpoint but it'll also help them attract challenge I mean it's no secret there is a talent shortage right now if you talk to any CEO that's top of mind and how these partners are able to attract these new skills and attract smart people smart people like working on smart things right and so this has really been a big traction point for them as well it's also giving ways to really specifically train for new job roles so some of the ways that you can combine the new definite certifications with the network engineering certifications we've looked at it and said you know there's there's a role of Network automation developer that's a new role everyone we ask in one of our sessions who needs that person on their team so many customers partners raise their hands like we want the network Automation developer on our team and you can combine you know your CCNP Enterprise with a definite certification and build up the skills to be that Network automation developer certainly has been great buzz I got to get your guys thoughts because certainly it's for careers and you guys are betting on the the people and the people are betting on Cisco mm-hmm yes this is what's going on submit surety of Devin it almost it's like a pinch me moment for you guys because you continue to grow I got to ask you what are some of the cool things that you're showing here as you mature you still have the start here session which is intro to Python and other things pretty elementary and then there's more advanced things what are some of the new things that's going on yeah that you could share so some of the new things we've got going on and one of my favorites is the IOT insecurity demonstration there's a an industrial robot arm that's picking and placing things and you can see how it's connected to the network and then something goes wrong with that robot alarm and then you can actually show how you can use the software and security tools to see was there code trying to access you know something that that robot was it was using it's getting in the way of it working so you could detect threats and move forward on that we also have a whole automation journey that starts from modeling your network to testing to how you would deploy automation to a deep dive on telemetry and then ends with multi domain automation so really helping engineers like look at that whole progression that's been that's been really popular Park talked about the specialization which ones are more popular or entry-level which ones are people coming into getting certified first network engineering automation first or what's the yeah so we're so the program is going to roll out with three different levels one is a specialized level the second is an advanced level and then we'll look to that third level again they're anchored in the in the individual certs and so as we look for that entry level it's really all about automation right I mean some things you take for granted but you still need these new skills to be able to automate and scale and have repeatable scalable benefits from that this the second tier will be more cross-domain and that's where we're really thinking that an additional skill set is needed to deliver dashboard experience compliance experiences and then that next level again we'll anchor towards the expert level that's coming out but one thing I want to point out is in addition to just having the certified people on staff they also have to demonstrate that they have a practice around it so it's not just enough to say I've passed an exam as we work with them to roll out the practice and they earn the badge they're demonstrating that they have the full methodology in place so that it really there's a lot behind it that means we can't be in the 500 list then even if a 500 list I don't know that the cube would end up being specialized its advertising no seriously all fun it's all fun it's Cisco live in Europe is there a difference between European and USD seeing any differences in geographic talent you know in the first couple years we did it I think there was a bigger difference it felt like there were different topics that were very popular in the US slightly different in Europe last year and this year I feel like they have converged it's it's the same focus on DevOps automation security as a huge focus in both places and it also feels like the the interest and level of the people attending has also converged it's really similar congratulations been fun to watch the rise and success of Devon it continues to be strong how see in the hub here and the definite zone behind us pact sessions yes what's the biggest surprise for you guys in terms of things that you didn't expect or some of the success what's what's jumped out yeah I think you know one of the points that I want to make sure we also cover and it has been an added benefit we're hoping it would happen we just didn't realize it would happen this soon we're attracting new companies new partners so the specialization won't just be available for our traditional bars this is also available for our non resale and we are finding different companies accessing definite resources and learning these skills so that's been a really great benefit of Deb net overall definitely my favorite surprises are when I show up at the community events and I hear from someone I met last year what the what they went back and did and the change that they drove and they come in their company and I think we're seeing those across the board of people who start a grassroots movement take back some new ideas really create change and then they come back and we get to hear about that from them those are my favorite surprises and I tell you we've known for years how important the developer is but I think the timing on this has been perfect because it is no longer just oh the developer has some tools that they like in the corner the developer connected to the business and driving things forward exactly so perfect timing congratulations on this certification their thing that's been great is that our at Cisco itself we now have API is across the whole portfolio and up and down the stock so that's been a wonderful thing to see come together because it opens up possibilities for all these developers so Cisco's API first company we are building it guys everywhere we can and and that the community is is taking them and finding creative things to build it's been fun to watch you guys change Cisco but also impact customers has been great to watch far many thanks for coming up yeah games live coverage here in Barcelona for Cisco live 20/20 I'm John Ford Dave Dave Alon face to many men we right back with more after this short break [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] you live from Barcelona Spain it's the cube covering Cisco live 2020 brought to you by Cisco and its ecosystem partners hello and welcome back to the cubes live coverage here at Cisco live 20/20 and partial into Spain I'm John first evening men cube coverage we've got a lot of stuff going on with Cisco multi-cloud and cloud technologies of clarification of Cisco's happening in real time is happening right now cloud is here here to stay we got two great guests to unpack what's going on in cloud native and networking and applications as the modern infrastructure and software evolves we got eugene kim global product marketing and compute storage at cisco global part of marketing manager and fabio corey senior director cloud solutions marketing guys great comeback great thanks for coming back appreciate it thanks very much great to see a lot of guys so probably we've had multiple conversations and usually even out from the sales force given kind of the that the discussion and the motivation cloud is big it's here it's here to stay it's changing Cisco API first we hear and all the products it's changing everything what's the story now what's going on I would say you know the reason why we're so excited about the launch here in Barcelona it's because this time it's all about the application experience I mean the last two years we've been announcing some really exciting stuff in the cloud space right think about all the announcements with the AWS the Google's the Azure so the world but this time it really boils down to making sure that is incredibly hyper distributed world well there is an application explosion ultimately we will help for the right operations tools and infrastructure management tools to ensure that the right application experience will be guaranteed for the end customer and that's incredibly important because at the end what really really matters is that you will ensure the best possible digital experience to your customer otherwise ultimately nothing is gonna work and of course you're going to lose your brand and your customers one of the main stories that we're covering is the transformation of the industry also Cisco and one of the highlights to me was the opening keynote you had app dynamics first not networking normally it's like what's under the hood the routers and the gear no it was about the applications this is the story we're seeing it's kind of a quiet unveiling it's not yet a launch but it's evolving very quickly can you share what's going on behind this all this absolutely it's exactly along the lines of what I was saying a second ago in the end that the reason why we're driving the announcement if you want from the application experience side of the house is because without dynamics we already have a very very powerful application performance measurement tool which it's evolving extremely rapidly first of all after Amex can correlate not just the application performance to some technology kpi's but to true actual business KPIs so AB dynamics can give you for instance the real-time visibility of say a marketing funnel conversion rates transactions that you're having in your in your business operation now we're introducing an incredibly powerful new capability that takes the bar to a whole new level and that's the dynamics experience journey Maps what are those it's actually the ability of focusing not so much on front-ends and backends and databases performances but really focusing on what the user is seeing in front of his or her screen and so what really matters is capturing the journey that a given user of your application is is being and understanding whether the experience is the one that you want to deliver oh you have like a sudden drop of somewhere and you know why that is important because in the end we've been talking about is it a problem of the application performance user performance well it could be a badly designed page how do you know and so this is a very precious information is that were giving to application developers not just to the IT ops guys that is incredibly precious to get this in so you just brought up that journey so that's part of the news so just break down real quick one minute yeah what the news is yeah so we have three components the first one as you as you correctly pointed out is really introduction the application journey Maps right the experience journey Maps that's very very important the second is we are actually integrating after am it's with the inter-site action inter-site optimization manager the workload team is a workload promisor and so because there is a change of data between the two now you are in a position to immediately understand whether you have an application problem we have a workload problem or infrastructure problem which is ultimate what you really need to do as quickly as you can and thirdly we have introduced a new version of our hyper flex platform which is hyper-converged flat G flat for Cisco with a fully containerized version we tax free if you want as well there is a great platform for containerized application of parameter so you teen when I've been talking to customers last few years when they go through their transformational journey there's the modernization they need to do the patterns I've seen most successful is first you modernize the platform often HCI is you know and often for that it really simplifies the environment you know reduces the silos and has more of that operational model that looks closer to what the cloud experience is and then if I've got a good platform then I can modernize the applications on top of it but often those two have been a little bit disconnected it feels like the announcements now that they are coming together what are you seeing what are you hearing how is your solution set solving this issue yeah exactly I mean as we've been talking to our customers love them are going through different application modernisations and kubernetes and containers is extremely important to them and to build a container cloud on Prem is extremely one of their needs and so there's three distinctive requirements that they've kind of talked to us about a lot of it has to be able to it's got to be very simple very turnkey and a fully integrated ready to turn on the other one is something that's very agile right very DevOps friendly and the third being a very economic container cloud on Prem as far we mentioned high flex application platform takes our hyper-converged system and builds on top of it a integrated kubernetes platform to deliver a container as a service type capability and it provides a full stack fully supported element platform for our customers and the one of the best great aspects of is that's all managed from inside from the physical infrastructure to the hyper-converged layer to all the way to the container management so it's very exciting to have that full stack management and insight as well yeah it's great to you know John and I have been following this kubernetes wave you know since the early early days Fabio mentioned integrations with the Amazons and Google's the world because you know a few years ago you talked to customers and they're like oh well I'm just gonna build my own urbanity right back nobody ever said that is easy now just delivering at his service seems to be the way most people wanted so if I'm doing it on Amazon or Google they've got their manage service that I could do that or that they're through partners they're working with so explain what you're doing to make it simpler in the data center environment because I'm tram absolutely is a piece of that hybrid equation the customers need yes so essentially from the customer experience perspective as I mentioned it's very fairly turnkey right from the hyper flicks application platform we're taking our hyper grew software we're integrating a application virtualization layer on top of it Linux KVM based and then on top of that we're integrating the kubernetes stack on top as well and so in essence right it's a fully curated kubernetes stack right it has all the different elements from the networking from the storage elements and and providing that in a very turnkey way and as I mentioned the inner site management is really providing that simplicity that customers need for that management ok Fabio this the previous announcement you've made with the public clouds yeah this just ties into those hybrid environments that's exactly you know a few years ago people like oh is there gonna be a distribution that wins in kubernetes we don't think that's the answer but still I can't just move between kubernetes you know seamlessly yet but this is moving towards that direction so a lot of customers want to have a very simple implementation at the same time they want of course a multi cloud approach and I really care about you know marking the difference between you know multi-cloud hybrid cloud there's been a lot of confusion but if you think about it multi cloud is really rooted into the business need of harnessing innovation from whatever it comes from you know the different clouds PV different things and you know what they do today tomorrow it could even change so people want option maladie so they want a very simple implementation that's integrated with public cloud providers that simplifies their life in terms of networking security and application of workload management and we've been executing towards that goal to fundamentally simplify the operations of these pretty complex kind of hybrid environments I want you to nail that operations on ibrid that's where multi cloud comes in absolutely just a connection point absolutely you're not a shitty mice no isn't a shit so in order to fulfill your business like your I know business needs you then you have a hybrid problem and you want to really kind of have a consistent production rate environment between fins on Prem that you own and control versus things that you use and you want to control better now of course there are different school of thoughts but most of the customers who are speaking with really want to expand their governance and technology model right to the cloud as opposed to absorb in different ways of doing things from each and every clock I want to unpack a little bit of what you said earlier about the knowing where the problem is because a lot of times it's a point the finger at the other first and where's it's the application problem isn't a problem so I want to get into that but first I want to understand the hyper flex application platform Eugene if you could just share the main problem that you guys saw what did some of the pain points that customers had what problems does the AP solve yeah as I mentioned it's really the platform for our customers to modernize their applications on right and it addresses those things that they're looking for as far as the economics right really the ability to provide a full stack container experience without having to you know but you know bringing any third party hypervisor licenses as well as support cost so that's fully integrated there you have your integrated hyper-converged storage capability you have the cloud-based management and that's really developing you providing that developer DevOps simplicity from the data Julie that they're looking for internally as well as for their product production environments and then the other aspect is its simplicity to be able to manage all this right in the entire lifecycle management as well so it's the operational side of the whole yeah uncovers Papio on the application side where the problem is because this is where I'm a little bit skeptical you know normally rightfully so but I can see in a problem where it's like whose fault is it gasification is problem or the network I mean it runs into more serious workloads the banking app that's having trouble how do you know where it what the problem is and how do you solve that problem what what's going on for that specific issue absolutely and you know the name of the game here is breaking down this operational side right and I love what our app dynamics VP GM Danny winoker said you know it has this terminology beast DevOps which you know may sound like an interesting acrobatics but it's absolutely true the business has to be part of this operational kind of innovation because as you said you know developer edges you know drops their containers and their code to the IET ops team but you don't really know whether the problem a certain point is gonna be in the code or in how the application is actually deployed or maybe a server that doesn't have enough CPU so in the end it boils down to one very important thing you have to have visibility inside and take action and every layer of the stack I mean instrumentation absolutely there are players that only do it in their software overlay domain the problem is very often these kind of players assume that underneath links are fine and very often they're not so in the end this visibility inside inaction is the loop that everybody is going after these days to really get to the next if you want generational operation where you gotta have a constant feedback loop and making it more faster and faster because in the end you can only win in the marketplace right regardless of your IT ops if you're faster than your competitor well still still was questioning the GM of AppDynamics running observability and he's like no it's not to feature it's everywhere so he his comment was yeah but serve abilities don't really talk about it because it's big din do you agree with that absolutely it has to be at every layer of the stack and only if you have visibility inside an action through the entire stack from the software all the way to the infrastructure level that you can solve the problem otherwise the finger-pointing quote-unquote will continue and you will not be able to gain the speed that you need okay so the question on my mind I want to get both of you guys can weigh in on this is that you look at Cisco as a company you got a lot going on I mean a guy's huge customer base core routers - no applications there's a lot going on a lot of a lot of complexity you got IOT security Ramirez talked about that you got the WebEx rooms got totally popular it's kind of got a lot of glam to it having the WebEx kind of you know I guess what virtual presence was yeah telepresence kind of model and then you get cloud is there a mind share within the company around how cloud is baked into everything because you can't do IOT edge without having some sort of cloud operational things so there's stuff you're talking about is not just a division it's kind of gonna it's kind of threads everywhere across Cisco what's the what's the mind share right now within the Cisco teams and also customers around clarification well I would say it's it's a couple of dimension the first one is the cloud is one of the critical domains of this multi domain architecture that of course is the cornerstone of Cisco's technology strategy right if you think about it it's all about connecting users to applications wherever they are and not just the user the applications themselves like if you look at the latest stats from IDC 58% of workloads is heading to the public cloud and to the edge it's like the data center is literally exploding in many different directions so you have this highly distributed kind of fabric guess what sits in between all these applications and microservices is a secure network and that's exactly what we're executing upon now that's the first kind of consideration the second is if you look at the other silver line most of the Cisco technology innovation is also going a direction of absorbing cloud as a simplified way of managing all the components or the infrastructure you look at the IP flex ap is actually managed by inter site which is a SAS kind of component this journey started a long time ago with Cisco Meraki and then of course we have SAS properties like WebEx everything else is kind of absolutely migrants reporter we've been reporting eugen that from years ago we saw the movement where api's are starting to come in when you go back five years ago not a lot of the gear and stuff at Cisco had api's now you got api's building into all the new products that's right you see the software shift with you know you know intent-based networking to AppDynamics it's interesting it's you're seeing kind of this agile mindset this is some of you and I talk about all the time but agile now is the new model is it ready for customers I mean the normal Enterprise is still got the infrastructure and application it's separated okay how do I bring it together what are you guys seeing the customer base what's going on with with not that not the early adopters heavy-duty hardcore pioneers out there but you know the the general mainstream enterprise are they there yet have they had that moment of awakening yeah I mean I think they they are there because fundamentally it's all about that ensuring that application experience and you can only ensure that application experience right by having your application teams and your structure teams work together and that's what's exciting you mentioned the API is and what we've done there with AppDynamics integrating with inter-site workload optimizer as Fabio mentioned it's all about visibility inside action and what app dynamics is provides providing that business and end-user application performance experience visibility inner sites giving you know visibility on the underlining workload and the resources whether it's on Prem in your you know drive data center environment or in different type of cloud providers so you get that full stack visibility right from the application all the way down to the bottom and then inner side local optimizer is then also optimizing the resources to proactively ensure that application experience so before you know if we talk about someone at a checkout and they're about to have abandonment because the functions not working we're able to proactively prevent that and take a look at all that so you know in the end I think it's all about ensuring that application experience and what we're providing with app dynamics is for the application team is kind of that horizontal visibility of how that application is performing and at the same time if there's an issue the infrastructure team could see exactly within the workload topology where the issue is and insert' aeneas lee whether it be manual intervention or even automatically there's or a ops capability go ahead and provide that action so the action could be you know scaling out the VMS it's on-prem or looking at a new different type of ec2 template in the cloud that's what's very exciting about this it's really the application experience is now driving and optimizing infrastructure in real time and let me flip your question like do you even have a choice John when you think about in the next two years 50% more applications if you're a large enterprise you have 5 to 7,000 apps you have another to 3,000 applications just coming into into the the frame and then 50% of the existing ones that are gonna be refactor lifted and shifted or replace or retired by SAS application it's just like it's tsunami that's that's coming on you and oh by the way because of again the micro service is kind of affect the number of dependencies between all these applications is growing incredibly rapidly like last year we were eight average interdependencies for applications now we are 20 so imaging imaging what happens as as you are literally flooded with the way the scanner really you have to ensure that your application infrastructure fundamentally will get tied up as quickly as you can still and I have been toilet for at least five years now if not longer the networking has been the key kind of last changeover - clarification and I would agree with you guys I think I've asked the question because I wanted to get your perspective but think about it it's 13 years since the iPhone so mobile has shown people that a mobile app can change business but now if you look at the pressure the network's bringing the pressure on the network or the pressure for the network to be better than programmable is the rise of video and data I mean so you got mobile check now you've got video I mean more people doing video now than ever before videos of consumer oil as streaming you got data these two things absolutely forced yeah the customers to deal with it but what really tipped the the balance John is is actually the SAS effect is the cloud effect because as you know it's in IT sort of inflection points nothing is linear right so once you reach a certain critical mass of cloud apps and we're absolutely there already all of a sudden you're traffic pattern on your network changes dramatically so why in the world are you continuing kind of you know concentrating all of your traffic in your data center and then going to the internet you have to absolutely open the floodgates at the branch level as close to the users as possible and that implies a radical change I would even add to that and I think you guys are right on where you guys are going it may be hard to kind of tease out with all the complexity with Cisco but in the keynote the business model shifts come from SAS so you got all this technical stuff going on now you have this Asif ocation or cloud that's changes the business models so new entrants can come in and existing players can get better so I think that whole business model conversation yeah never was discussed at Cisco live before yeah in depth as well hey run your business connect your hubs campus move packets around that was applications in business model yeah but also the fact that there is increasing number of software capabilities and so fundamental you want to simplify the life of your customers through subscription models that help the customer by now using what they really need right at any given point in time all the way to having enterprise agreements I also think that's about delivering these application experiences for your business small different type experience that's really what's differentiating you from your different competitors right and so I think that's a different type of shift as well well you guys are good got some good angle on this cloud I love it I got to ask you the question what can we expect next from Cisco more progression along clarification what's next well I would say we've been incredibly consistent I believe in the last few years in executing on our cloud strategy which again is centered around helping customers really gluon this mix set of data centers and clouds to make it work as one write as much as possible and so what we really deliver is networking security and application of performance management and we're integrating there's more and more on the two sides of the equation right the the designer side and the powerful outside and more more integrating in between all of these layers again to fundamentally give you this operational capability to get faster and faster we'll continue doing so and you set up before we came on camera that you were talking to the sales teams what are they what's their vibe with the sales team they get excited by this what's that oh yeah feedback oh yeah absolutely from the inner side were claw optimizer and they have dynamics that's very exciting for them especially the conversations they're having with their customers really from that application experience and proactively insuring it and on the hyper flex application platform side this is extremely exciting with providing a container cloud to our customers and you know what's coming down is more and more capabilities for our customers to modernize their applications on hyper flex you guys are riding some pretty big waves here at Cisco I get a cloud way to get the IOT Security wave it's pretty exciting pretty big stuff thanks for coming in thanks for sharing the insights Fabio I appreciate it thank you for having us your coverage here in Barcelona I'm John Force dude Minutemen be back with more coverage fourth day of four days of cube coverage we right back after this short break [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] why Trump Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back to Barcelona everybody we're here at Cisco live and you're watching the cube the leader in live tech coverage we got to the events and extract the signal from the noise this is day one really we started a zero yesterday Eric Hertzog is here he's the CMO and vice president of storage channels probably been on the cube more than [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back everyone's two cubes live coverage day four of four days of wall-to-wall action here in Barcelona Spain Francisco live 2020 I'm John Ferrier with mykos Dave Volante with a very special guest here to wrap up Cisco live the president of Europe Middle East Africa and Russia Francisco Wendy Mars cube alumni great to see you thanks for coming on to kind of put a bookend to the show here thanks for joining us right there it's absolutely great to be here thank you so what a transformation as Cisco's business model of continues to evolve we've been saying brick by brick we still think is a big move coming I think there's more action I can sense the walls talking to us like let's just go live in the US and more technical announcements in the next 24 months you can see you can see where it's going it's cloud its apps yeah its policy based program ability it's really a whole nother business model shift for you and your customers the technology shift and the business model shift so I want to get your perspective of this year opening key no you let it off talking about the philosophy of the business model but also the first presenter was not a networking guy it was an application person yeah app dynamics yep this is a shift what's going on with Cisco what's happening what's the story well you know if you look for all of the work that we're doing is but is really driven by what we see from requirements from our customers the change that's happening in the market and it is all around you know if you think digital transformation is the driver organizations now are incredibly interested in how do they capture that opportunity how do they use technology to help them but you know if you look at it really there's the three items that are so important it's the business model evolution it's actually the business operations for for organisations plus their people there are people in the communities within that those three things working together and if you look at it with you know it's so exciting with application dynamics there because if you look for us within Cisco that linkage of the application layer through into the infrastructure into the network and bringing that linkage together is the most powerful thing because that's the insight and the value our customers are looking for you know we've been talking about the in the innovation sandwich you know you got you know date in the middle and you got technology and applications underneath that's kind of what's going on here but you I'm glad you brought up the year the part about business model business operations and people in communities because during your keno you had a slide that laid out three kind of pillars yes people in communities business model and business operations there was no 800 series in there there was no product discussions this is fundamentally the big shift that business models are changing I tweeted provocatively the killer app and digital the business model because you think about it the applications are the business and what's running under the covers is the technology but it's all shifting and changing so every single vertical every single business is impacted by this it's not like a certain secular thing in the industry this is a real change can you describe how those three things are operating with that constitute think if you look from you know so thinking through those three areas if you look at the actual business model itself our business models as organizations are fundamentally changing and they're changing towards as consumers we are all much more specific about what we want we have incredible choice in the market we are more informed than ever before but also we are interested in the values of the organizations that were getting the capability from as well as the products and the services that naturally we're looking to gain so if you look in that business model itself this is about you know organizations making sure they stay ahead from a competitive standpoint about the innovation of portfolio that they're able to bring but also that they have a strong strong focus around the experience that their customer gains from an application a touch standpoint that all comes through those different channels which is at the end of the day the application then if you look as to how do you deliver that capability through the systems the tools and the processes as we all evolve our businesses you have to change the dynamic within your organization to cope with that and then of course in driving any transformation the critical success factor is your people and your culture you need your teams with you the way teams operate now is incredibly different it's no longer command and control its agile capability coming together you need that to deliver on any transformation never never mind let it be smooth you know in the execution there so it's all three together what I like about that model and I have to say we this is you know ten years to do in the cube you you see that marketing in the vendor community often leads what actually happens not surprising as we entered the last decade it was a lot of talk about cloud well it kind of was a good predictor we heard a lot about digital transformations a lot of people roll their eyes and think it's a buzzword but we really are I feel like an exiting this cloud era into the digital era it feels real and there are companies that you know get it and are leaning in there are others that maybe you're complacent I'm wondering what you're seeing in in Europe just in terms of everybody talks digital yeah be CEO wants to get it right but there is complacency there when it's a services say well I'm doing pretty well not on my watch others say hey we want to be the disruptors and not get disrupted what are you seeing in the region in terms of that sentiment I would say across the region you know there will always be verticals and industries that are slightly more advanced than others but I would say that then the bulk of conversations that I'm engaged in independence of the industry or the country in which we're having that conversation in there is a acceptance of transfer digital transformation is here it is affecting my business i if I don't disrupt I myself will be disrupted and be challenged help me so I you know I'm not disputing the end state I need guidance and support to drive the transition and a risk mythic mitigated manner and they're looking for help in that and there's actually pressure in the boardroom now around a what are we doing within within organizations within that enterprise the service right of the public said to any type of style of company there's that pressure point in the boardroom of come on we need to move it speed now the other thing about your model is technology plays a role in contribute it's not the be-all end-all but plays a role in each of those the business model of business operations and developing and nurturing communities can you add more specifics what role do you see technology in terms of advancing those three spheres so I think you know if you look at it technology is fundamental to all of those spheres in regard to the innovation the differentiation technology can bring then the key challenges one of being able to reply us in a manner where you can really see differentiation of value within the business so in then the customers organization otherwise it's just technology for the sake of technology so we see very much a movement now to this conversation of talk about the use case the use cases the way by which that innovation can be used to deliver the value to the organization and also different ways by which a company will work look at the collaboration capability that we announced earlier this week of helping to bring to life that agility look at the app D discussion of helping to link the layer of the application into the infrastructure the network's to get to root cause identification quickly and to understand where you may have a problem before you thought it actually arises and causes downtime many many ways I think the agility message has always been a technical conversation a gel methodology technology software development no problem check that's ten years ago but business agility mmm it's moving from a buzzword to reality exactly that's what you're kind of getting in here and teams how teams operate how they work you know and being able to be quick efficient stand up stand down and operate in that way you know we were kind of thinking out loud on the cube and just riffing with Fabio gory on your team on Cisco's team about clarification with Eugene Kim around just just kind of real-time what was interesting is we're like okay it's been 13 years since the iPhone and so 13 years of mobile in your territory in Europe Middle East Africa mobilities been around before the iPhone so with in more advanced data privacy much more advanced in your region so you got you out you have a region that's pretty much I think the tell signs for what's going on in North America and around the world and so you think about that you say okay how is value created how the economics changing this is really the conversation about the business model is okay if the value activities are shifting and be more agile and the economics are changing with sass if someone's not on this bandwagon it's not an in-state discussion where it's done deal yeah it's but I think also there were some other conversation which which are very prevalent here is in in the region so around trust around privacy law understanding compliance you look at data where data resides portability of that data GDP are came from Europe you know and as ban is pushed out and those conversations will continue as we go over time and if I also look at you know the dialogue that you saw so you know within World Economic Forum around sustainability that is becoming a key discussion now within government here in Spain you know from a climate standpoint and many other areas as well Dave and I've been riffing around this whole where the innovation is coming from it's coming from Europe region not so much the u.s. I mean us discuss some crazy innovations but look at blockchain us is like don't touch it pretty progressive outside United States little bit dangerous to but that's where innovation is coming from and this is really the key that we're focused on I want to get your thoughts on how do you see it going next level the next level next-gen business model what's your what's your vision so I think there'll be lots of things if we look at things like with the introduction of artificial intelligence robotics capability 5g of course you know on the horizon we have Mobile World Congress here in Barcelona in a few weeks time and if you talked about with the iPhone the smartphone of course when 4G was introduced no one knew what the use case would that would be it was the smartphone which wasn't around at that time so with 5g in the capability there that will bring again yet more change to the business model for different organizations and the capability and what we can bring to market when we think about AI privacy data ownership becomes more important some of the things you were talking about before it's interesting what you're saying John and when the the GDP are set the standard and and you see in the u.s. there are stovepipes for that standard California is going to do one every state is going to have a different center that's going to slow things down that's going to slow down progress do you see sort of an extension of a GDP are like framework of being adopted across the region and that potentially you know accelerating some of these you know sticky issues and public policy issues that can actually move the market forward I think I think the will because I think there'll be more and more you know if you look at there's this terminology of data is the new oil what do you do with data how do you actually get value from that data and make intelligent business decisions around that so you know that's critical but yet if you look for all of ours we are extremely passionate about you know where is our data used again back to trust and privacy you need compliance you need regulation you know I think this is just the beginning of how we will see that evolve you know when do I get your thoughts does Dave and I have been riffing for 10 years around the death of storage long live storage and but data needs to be stored somewhere networking is the same kind of conversation just doesn't go away in fact there's more pressure now forget the smartphone that was 13 years ago before that mobility data and video now super important driver that's putting more pressure on you guys and so hey we're networking so it's kind of like Moore's law it's like more networking more networking so video and data are now big your thoughts on video and data video but if you look at the Internet of the future you know what so if you look for all of us now we are also demanding as individuals around capability and access to that and inter vetted the future the next phase we want even more so there'll be more and more - you know requirement for speed availability that reliability of service the way by which we engage and we communicate there's some fundamentals there so continuing to to grow which is which is so so exciting for us so you talk about digital transformation that's obviously in the mind of c-level executives I got to believe security is up there as a topic what other what's the conversation like in the corner office when you go visit your customers so I think that there's a huge excitement around the opportunity realizing the value of the of the opportunity you know if you look at top of mind conversations are around security around making sure that you can make tank maintain that fantastic customer experience because if you don't the custom will go elsewhere how do you do that how do you enrich at all times and also looking at markets adjacencies you know as you go in and you talk at senior levels within within organizations independent of the industry in which they're in there are a huge amount of commonalities that we see across those of consistent problems by which organizations are trying to solve and actually one of the big questions is what's the pace of change that I should operate at and when is it too fast and when is what am I too slow and trying to balance that is exciting but also a challenge for companies so you feel like sentiment is still strong even though we're 10 years into this this bull market you know you got Briggs it you get you know China tensions with the US u.s. elections but but generally you see Tennessee sentiment still pretty strong and demand so I would say that the the excitement around technology the opportunity that is there around technology in its broadest sense is greater than ever before and I think it's on all of us to be able to help organizations to understand how they can consume I see value from us but it's you know it's fantastic science it tastes trying to get some economic indicators but really the real thing I'm trying to get you is Minh set of the CEO the corner office right now is it is it we're gonna we're gonna grow short-term by cutting or do we do are we gonna be aggressive and go after this incremental opportunity and it's probably both you're seeing a lot of automation yeah and I think if you look fundamentally for organizations it's it's that the three things helped me to make money how me to save money keep me out of trouble you know so those are the pivots they all operate with and you know depending on where an organization is in its journey whether a start-up there you know in in the in the mid or the more mature and some of the different dynamics and the markets in which they operate in as well there's all different variables you know so it's it's it's mix Wendy thanks so much for spending the time to come on the cube really appreciate great keynote folks watching if you haven't seen the keynote opening sections that's a good section the business model I think it's really right on I think that's going to be a conversation it's going to continue thanks for sharing that before we look before we leave I want to just ask you a question around what you what's going on for you here at Barcelona as the show winds down you had all your activities take us in the day of the life of what you do customer meetings what were some of those conversations take us inside inside what what goes on for you here well I'd say it's been an amazing it's been an amazing few days so it's a combination of customer conversations around some of the themes we just talked about conversations with partners and there's investor companies that we invest in a Cisco that I've been spending some time with and also you know spending time with the teams as well the DEF net zone you know is amazing we have this afternoon the closing session where we've got a fantastic external guest who's coming in it's going to be really exciting as well and then of course the party tonight and we'll be announcing the next location which I'm not gonna reveal now later on today we kind of figured it out already because that's our job and there's the break news but we're not gonna break it for you you can have that hey thank you so much for coming on really appreciate Wendy Martin expecting the Europe Middle East Africa and Russia for Cisco she's got our hand on the pulse and the future is the business model that's what's going on fundamental radical change across the board in all areas this the cue bringing you all the action here in Barcelona thanks for watching [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music]

(upbeat music) >> (faintly) Three, two, one. >> Eric, Bina, thanks again for coming back. So, what I want to do now is, I want to talk a little bit about some kind of trends within the storage world, and what the next few years are going to mean. Eric, I want to start with you. I was recently at IBM Think, and Ginni Rometty talked about the idea of "putting smart to work". Now, I can tell you that means something to me, because the whole notion of how data gets used, how work gets institutionalized around your data. What does storage do in that context of "put smart to work"? >> Well, I think there's a couple things. First, we got to realize that it's not about storage. It's about the data and the information that happens to sit on the storage. So, you have to have storage that's always available, always resilient, is incredibly fast, and as I said earlier, transparently moves things in and out of the cloud automatically, so that the user doesn't have to do it. Second thing that's critical is the integration of AI, artificial intelligence, both into the storage solution itself, and what the storage does, how you do it, and how it plays with the data, but also, if you're going to do AI on a broad scale ... For example, we're working with a customer right now, and their AI configuration is 100 petabytes, leveraging our storage underneath the hood of that big giant AI analytics workload. So that's why AI ... both think of it in the storage, to make the storage better and more productive with the data and the information that it has, but then also as the undercurrent for any AI solution that anyone's deployed, big, medium, or small. >> So Bina, I want to pick up on that, because, there's some advanced technologies that are being exploited within storage right now to achieve what Eric's talking about, but there's going to be a lot more. >> Absolutely. >> There's going to be more intensive application utilization of some of those technologies. What are some of the technologies that are becoming increasingly important, from a storage standpoint, that people have to think about as they try to achieve their digital transformation objectives? >> That's right. Peter. In addition to some of the basics around making sure your infrastructure is enabled to handle the SLAs and the level of performance that's required by these AI workloads. When you think about what Eric said, this data is going to reside on premise. It's going to be be behind a firewall, potentially in the cloud or multiple public clouds. How do you manage that data? How do you get a visibility to that data? And then, be able to leverage that data for your analytics. So, data management is going to be very important, but also being able to understand what that data contains, and be able to run the analytics, and be able to do things like tagging the metadata, and then doing some specialized analytics around that is going to be very important. The fabric to move that data, data portability from on premise into the cloud and back and forth, bi-directionally, is going to be very important as you look into the future. >> Obviously, things like IOT is going to mean bigger, more, more available. So a lot of technologies, in a big picture, are going to become more closely associated with storage. In fact, I like to say that, at some point in time, we got to stop thinking about calling this stuff storage, because it's going to be so central to the fabric of how data works within a business. Eric, I want to come back to you and say, this is some of the big picture technologies, but where do some of the little picture technologies, that nonetheless are really central to being able to build up this vision over the course of the next few years? >> Well a couple things. One is the move to NVMe. So we've integrated NVMe into our Flash System 9100. We have fabric support. We already announced back in February, actually, fabric support for NVMe over an Infiband infrastructure with our Flash System 900. We're extending that to all of the other interconnects from a fabric perspective for NVMe, whether that be ethernet or whether that be fiber channel. We put NVMe in the system. We also have integrated our custom flash models. Our flash core technology allows to take raw flash, and create, if you will, a custom SSD. Why does that matter? We can get better resiliency. We can get incredibly better performance, which is very tied into your applications, workloads, and use cases, especially in a data-driven multi-cloud environment. It's critical that the flash is incredibly fast. It really matters. And resilient ... what do you do? You try to move it to the cloud, and you lose your data. So, if you don't have that resiliency and availability, that's a big issue. I think the third thing is, what I call the "cloudification" of software. All of IBM storage software is cloudified. We can move things simultaneously into the cloud. It's all automated. We can move data around all over the place. Not only our data, not only to our boxes, we can actually move other people's array's data around for them, and we can do it with our storage software. So, it's really critical to have this "cloudification". It's really critical to have this new technology. NVMe from an end-to-end perspective for fabric, and then inside the system to get the right resiliency, the right availability, the right performance for your applications, workloads, and use cases, and you've got to make sure that everything is cloudified, and portable, and mobile. We've done that with the solutions that are wrapped into our Flash System 9100 that we launched a couple weeks ago. >> So you are both thought leaders in the storage industry, I think that's very clear. The whole notion of storage technology. You work with a lot of customers, you see a lot of use cases. So I want to ask you kind of one quick question to kind of close here, and that is, if there was one thing that you would tell a storage leader, a CIO, or someone who thinks about storage in a broad way, one mindset change that they have to make to start this journey and get it going so that it's going to be successful. What would that one mindset change be? Bina, what do you think? >> You know, I think it's really around, there's a lot of capabilities out there. It's really around simplifying your environment, and making sure that, as you're deploying these new solutions or new capabilities, that you've really got a partnership with a vendor that's going to help you make it easier. Take those complex tasks, make them easier, deliver those step-by-step instructions and documentation, and be right there when you need their assistance. I think that's going to be really important. >> So looking at it from a portfolio perspective, where best-of-breed is still important, but it's got to work together, because it leverages itself. >> Got to work together, absolutely. >> Eric, what would you say? >> Well I think the key thing is people think storage is storage. All storage is not the same. One of the central tenets at IBM storage is to make sure that we're integrated with the cloud. We can move data around transparently, easily, simply. Bina pointed out the simplicity. If you can't support the cloud, then you're really just a storage box. That's not what IBM does. Over 40 percent of what we sell is actually storage software. All that software works with all of our competitors gear. In fact, our Spectrum Virtualize for Public Cloud, for example, can simultaneously have data sets sitting in a cloud instantiation, and sitting on premises, and then we can use our Copy Data Management to take advantage of that secondary copy. That's all because we're so cloudified from a software perspective. So, all storage is not the same, You can't think of storage as, "I need the cheapest storage." It's got to be, "How's it drive business value for my ocean's of data?" That's what matters most. By the way, we're very cost-effective anyway, especially because of our custom flash module allows us to have a real price advantage. >> You ain't doing business at a level of 100 petabytes if you're not cost-effective. >> Right. Those are things that we see as really critical, is storage is not storage. Storage is really about data and information. >> Let me summarize your point, if I can really quickly. In other words, that we have to think about storage as the first step to great data management. >> Absolutely, absolutely, Peter. >> Eric, Bina, great conversation. >> Thank you. >> Alrighty. >> Thank you. >> I forgot the security (drowned out by music)

>> Hi, I'm Peter Burris and welcome to another Wikibon Action Item. (electronic music) Once again, we're broadcasting from theCUBE studios in beautiful Palo Alto. Here in the studio with me are George Gilbert and David Floyer. And remote, we have Neil Raden and Jim Kobielus. Welcome everybody. >> David: Thank you. >> So this is kind of an interesting topic that we're going to talk about this week. And it really is how are we going to find new ways to generate derivative use out of many of the applications, especially web-based applications that are have been built over the last 20 years. A basic premise of digital business is that the difference between business and digital business is the data and how you craft data as an asset. Well, as we all know in any universal Turing machine, data is the basis for representing both the things that you're acting upon but also the algorithms, the software itself. Software is data and the basic principles of how we capture software oriented data assets or software assets and then turn them into derivative sources of value and then reapply them to new types of problems is going to become an increasingly important issue as we think about the world of digital business is going to play over the course of the next few years. Now, there are a lot of different domains where this might work but one in particular that's especially as important is in the web application world where we've had a lot of application developers and a lot of tools be a little bit more focused on how we use web based services to manipulate things and get software to do the things we want to do and also it's a source of a lot of the data that's been streaming into big data applications. And so it's a natural place to think about how we're going to be able to create derivative use or derivative value out of crucial software assets. How are we going to capture those assets, turn them into something that has a different role for the business, performs different types of work, and then reapply them. So to start the conversation, Jim Kobielus. Why don't you take us through what some of these tools start to look like. >> Hello, Peter. Yes, so really what we're looking at here, in order to capture these assets, the web applications, we first have to generate those applications and the bulk of that worker course is and remains manual. And in fact, there is a proliferation of web application development frameworks on the market and the range of them continues to grow. Everything from React to Angular to Ember and Node.js and so forth. So one of the core issues that we're seeing out there in the development world is... are there too many of these. Is there any prospect for simplification and consolidation and convergence on web application development framework to make the front-end choices for developers a bit easier and straightforward in terms of the front-end development of JavaScript and HTML as well as the back-end development of the logic to handle the interactions; not only with the front-end on the UI side but also with the infrastructure web services and so forth. Once you've developed the applications, you, a professional programmer, then and only then can we consider the derivative uses you're describing such as incorporation or orchestration of web apps through robotic process automation and so forth. So the issue is how can we simplify or is there a trend toward simplification or will there soon be a trend towards simplification of a front-end manual development. And right now, I'm not seeing a whole lot of action in this direction of a simplification on the front-end development. It's just a fact. >> So we're not seeing a lot of simplification and convergence on the actual frameworks for creating software or creating these types of applications. But we're starting to see some interesting trends for stuff that's already been created. How can we generate derivative use out of it? And also per some of our augmented programming research, new ways of envisioning the role that artificial intelligence machine learning, etc, can play in identifying patterns of utilization so that we are better able to target those types of things that could be used for derivative or could be applied to derivative use. Have I got that right, Jim? >> Yeah, exactly. AI within robotic process automation, anything that could has already been built can be captured through natural language processing, through a computer image recognition, OCR, and so forth. And then trans, in that way, it's an asset that can be repurposed in countless ways and that's the beauty RPA or where it's going. So the issue is then not so much capture of existing assets but how can we speed up and really automate the original development of all that UI logic? I think RPA is part of the solution but not the entire solution, meaning RPA provides visual front-end tools for the rest of us to orchestrate more of the front-end development of the application UI and interaction logic. >> And it's also popping up-- >> That's part of broader low-code-- >> Yeah, it's also popping up at a lot of the interviews that we're doing with CIOs about related types of things but I want to scope this appropriately. So we're not talking about how we're going to take those transaction processing applications, David Floyer, and envelope them and containerize them and segment them and apply a new software. That's not what we're talking about, nor are we talking about the machine to machine world. Robot process automation really is a tool for creating robots out of human time interfaces that can scale the amount of work and recombine it in different ways. But we're not really talking about the two extremes. The hardcore IoT or the hardcore systems of record. Right? >> Absolutely. But one question I have for Jim and yourself is the philosophy for most people developing these days is mobile first. The days of having an HTML layout on a screen have gone. If you aren't mobile first, that's going to be pretty well a disaster for any particular development. So Jim, how does RPA and how does your discussion fit in with mobile and all of the complexity that mobile brings? All of the alternative ways that you can do things with mobile. >> Yeah. Well David, of course, low-code tools, there are many. There are dozens out there. There are many of those that are geared towards primarily supporting of fast automated development of mobile applications to run on a variety of devices and you know, mobile UIs. That's part of the solution as it were but also in the standard web application development world. know there's these frameworks that I've described. Everything from React to Angular to Vue to Ember, everything else, are moving towards a concept, more than concept, it's a framework or paradigm called progressive web apps. And what progressive web apps are all about, that's really the mainstream of web application development now is blurring the distinction between mobile and web and desktop applications because you build applications, JavaScript applications for browsers. The apps look and behave as if they were real-time interactive in memory mobile apps. What that means is that they download fresh content throughout a browsing session progressively. I'm putting to determine air quotes because that's where the progressive web app comes in. And they don't require the end-user to visit an app store or download software. They don't require anything in terms of any special capabilities in terms of synchronizing data from servers to run in memory natively inside of web accessible containers that are local to the browser. They just feel mobile even though they, excuse me, they may be running on a standard desktop with narrowband connectivity and so forth. So they scream and they scream in the context of their standard JavaScript Ajax browser obsession. >> So when we think about this it got, jeez Jim it almost sounds like like client-side Java but I think you're we're talking about something, as you said, that that evolves as the customer uses it and there's a lot of techniques and approaches that we've been using to do some of those things. But George Gilbert, the reason I bring up the notion of client-side Java is because we've seen other initiatives over the years try to do this. Now, partly they failed because, David Floyer, they focused on too much and tried to standardize or presume that everything required a common approach and we know that that's always going to fail. But what are some of the other things that we need to think about as we think about ways of creating derivative use out of software or in digital assets. >> Okay, so. I come at it from two angles. And as Jim pointed out, there's been a Cambrian explosion of creativity and innovation on frankly on client-side development and server-side development. But if you look at how we're going to recombine our application assets, we tried 20 years ago with EAI but that was, and it's sort of like MuleSoft but only was for on-prem apps. And it didn't work because every app was bespoke essentially-- >> Well, it worked for point-to-point classes of applications. >> Yeah, but it required bespoke development for every-- >> Peter: Correct. >> Every instance because the apps were so customized. >> Peter: And the interfaces were so customized. >> Yes. At the same time we were trying to build higher-level application development capabilities on desktop productivity tools with macros and then scripting languages, cross application, and visual development or using applications as visual development building blocks. Now, you put those two things together and you have the ability to work with user interfaces by building on, I'm sorry, to work with applications that have user interfaces and you have the functionality that's in the richer enterprise applications and now we have the technology to say let's program by example on essentially a concrete use case and a concrete workflow. And then you go back in and you progressively generalize it so it can handle more exception conditions and edge conditions. In other words, you start with... it's like you start with the concrete and you get progressively more abstract. >> Peter: You start with the work that the application performs. >> Yeah. >> And not knowledge of the application itself. >> Yes. But the key thing is, as you said, recombining assets because we're sort of marrying the best of EAI world with the best of the visual client-side development world. Where, as Jim points out, machine learning is making it easier for the tools to stay up to date as the user interfaces change across releases. This means that, I wouldn't say this as easy as spreadsheet development, it's just not. >> It's not like building spreadsheet macros but it's more along those lines. >> Yeah, but it's not as low-level as just building raw JavaScript because, and Jim's great example of JavaScript client-side frameworks. Look at our Gmail inbox application that millions of people use. That just downloads a new version whenever they want to drop it and they're just shipping JavaScript over to us. But the the key thing and this is, Peter, your point about digital business. By combining user interfaces, we can bridge applications that were silos then we can automate the work the humans were doing to bridge those silos and then we can reconstitute workflows in much more efficient-- >> Around the digital assets, which is kind of how business ultimately evolves. And that's a crucial element of this whole thing. So let's change direction a little bit because we're talking about, as Jim said, we've been talking about the fact that there are all these frameworks out there. There may be some consolidation on the horizon, we're researching that right now. Although there's not a lot of evidence that it's happening but there clearly is an enormous number of digital assets that are in place inside these web-based applications, whether it be relative to mobile or something else. And we want to find derivative use of or we want to create derivative use out of them and there's some new tools that allow us to do that in a relatively simple straightforward way, like RPA and there are certainly others. But that's not where this ends up. We know that this is increasingly going to be a target for AI, what we've been calling augmented programming and the ability to use machine learning and related types of technologies to be able to reveal, make transparent, gain visibility into, patterns within applications and within the use of data and then have that become a crucial feature of the development process. And increasingly even potentially to start actually creating code automatically based on very clear guidance about what work needs to be performed. Jim, what's happening in that world right now? >> Oh, let's see. So basically, I think what's going to happen over time is that more of the development cycle for web applications will incorporate not just the derivative assets, the AI to be able to decompose existing UI elements and recombine them. Enable flexible and automated recombination in various ways but also will enable greater tuning of the UI in an automated fashion through A/B testing that's in line to the development cycle based on metrics that AI is able to sift through in terms of... different UI designs can be put out into production applications in real time and then really tested with different categories of users and then the best suited or best fit a design based on like reducing user abandonment rates and speeding up access to commonly required capabilities and so forth. The metrics can be rolled in line to the automation process to automatically select the best fit UI design that had been developed through automated means. In other words, this real-world experimentation of the UI has been going on for quite some time in many enterprises and it's often, increasingly it involves data scientists who are managing the predictive models to sort of very much drive the whole promotion process of promoting the best fit design to production status. I think this will accelerate. We'll take more of these in line metrics on UI and then we brought, I believe, into more RPA style environments so the rest of us building out these front ends are automating more of our transactions and many more of the UIs can't take advantage of the fact that we'll let the infrastructure choose the best fit of the designs for us without us having to worry about doing A/B testing and all that stuff. The cloud will handle it. >> So it's a big vision. This notion of it, even eventually through more concrete standard, well understood processes to apply some of these AIML technologies to being able to choose options for the developer and even automate some elements of those options based on policy and rules. Neil Raden, again, we've been looking at similar types of things for years. How's that worked in the past and let's talk a bit about what needs to happen now to make sure that if it's going to work, it's going to work this time. >> Well, it really hasn't worked very well. And the reason it hasn't worked very well is because no one has figured out a representational framework to really capture all the important information about these objects. It's just too hard to find them. Everybody knows that when you develop software, 80% of it is grunt work. It's just junk. You know, it's taking out the trash and it's setting things up and whatever. And the real creative stuff is a very small part of it. So if you could alleviate the developer from having to do all that junk by just picking up pieces of code that have already been written and tested, that would be big. But the idea of this has been overwhelmed by the scale and the complexity. And people have tried to create libraries like JavaBeans and object-oriented programming and that sort of thing. They've tried to create catalogs of these things. They've used relational databases, doesn't work. My feeling and I hate to use the word because it always puts people to sleep is some kind of ontology that's deep enough and rich enough to really do this. >> Oh, hold on Neil, I'm feeling... (laughs) >> Yeah. Well, I mean, what good is it, I mean go to Git, right. You can find a thousand things but you don't know which one is really going to work for you because it's not rich enough, it doesn't have enough information. It needs to have quality metrics. It needs to have reviews by people who have used converging and whatever. So that's that's where I think we run into trouble. >> Yeah, I know. >> As far as robots, yeah? >> Go ahead. >> As far as robots writing code, you're going to have the same problem. >> No, well here's where I think it's different this time and I want to throw it out to you guys and see if it's accurate and we'll get to the action items. Here's where I think it's different. In the past, partly perhaps because it's where developers were most fascinated, we try to create object-oriented database and object oriented representations of data and object oriented, using object oriented models as a way of thinking about it. And object oriented code and object oriented this and and a lot of it was relatively low in the stack. And we try to create everything from scratch and it turned out that whenever we did that, it was almost like CASE from many years ago. You create it in the tool and then you maintain it out of the tool and you lose all organization of how it worked. What we're talking about here, and the reason why I think this is different, I think Neil is absolutely right. It's because we're focusing our attention on the assets within an application that create the actual business value. What does the application do and try to encapsulate those and render those as things that are reusable without necessarily doing an enormous amount of work on the back-end. Now, we have to be worried about the back-end. It's not going to do any good to do a whole bunch of RPA or related types of stuff on the front-end that kicks off an enormous number of transactions that goes after a little server that's 15 years old. That's historically only handled a few transactions a minute. So we have to be very careful about how we do this. But nonetheless, by focusing more attention on what is generating value in the business, namely the actions that the application delivers as opposed to knowledge of the application itself, namely how it does it then I think that we're constraining the problem pretty dramatically subject to the realities of what it means to actually be able to maintain and scale applications that may be asked to do more work. What do you guys think about that? >> Now Peter, let me say one more thing about this, about robots. I think you're all a lot more sanguine about AI and robots doing these kinds of things. I'm not. Let me read to you have three pickup lines that a deep neural network developed after being trained to do pickup lines. You must be a tringle? 'Cause you're the only thing here. Hey baby, you're to be a key? Because I can bear your toot? Now, what kind of code would-- >> Well look, the problems look, we go back 50 years and ELIZA and the whole notion of whatever it was. The interactive psychology. Look, let's be honest about this. Neil, you're making a great point. I don't know that any of us are more or less sanguine and that probably is a good topic for a future action item. What are the practical limits of AI and how that's going to change over time. But let's be relatively simple here. The good news about applying AI inside IT problems is that you're starting with engineered systems, with engineered data forms, and engineered data types, and you're working with engineers, and a lot of that stuff is relatively well structured. Certainly more structured than the outside world and it starts with digital assets. That's why a AI for IT operations management is more likely. That's why AI for application programming is more likely to work as opposed to AI to do pickup lines, which is as you said semantically it's all over the place. There's very, very few people that are going to conform to a set of conventions for... Well, I want to move away from the concept of pickup lines and set conventions for other social interactions that are very, very complex. We don't look at a face and get excited or not in a way that corresponds to an obvious well-understood semantic problem. >> Exactly, the value that these applications deliver is in their engagement with the real world of experience and that's not the, you can't encode the real world of human lived experience in a crisp clear way. It simply has to be proven out in the applications or engagement through people or not through people, with the real world outcome and then some outcomes like the ones that Neil read off there, in terms of those ridiculous pickup lines. Most of those kinds of automated solutions won't make a freaking bit of sense because you need humans with their brains. >> Yeah, you need human engagement. So coming back to this key point, the constraint that we're putting on this right now and the reason why certainly, perhaps I'm a little bit more ebullient than you might be Neil. But I want to be careful about this because I also have some pretty strong feelings about where what the limits of AI are, regardless of what Elon Musk says. That at the end of the day, we're talking about digital objects, not real objects, that are engineered, not, haven't evolved over a few billion years, to deliver certain outputs and data that's been tested and relatively well verified. As opposed to have an unlimited, at least from human experience standpoint, potential set of outcomes. So in that small world and certainly the infrastructure universe is part of that and what we're saying is increasingly the application development universe is going to be part of that as part of the digital business transformation. I think it's fair to say that we're going to start seeing AI machine learning and some of these other things being applied to that realm with some degree of success. But, something to watch for. All right, so let's do action item. David Floyer, why don't we start with you. Action item. >> In addressing this, I think that the keys in terms of business focus is first of all mobiles, you have to design things for mobile. So any use of any particular platform or particular set of tools has to lead to mobile being first. And the mobiles are changing rapidly with the amount of data that's being generated on the mobile itself, around the mobile. So that's the first point I would make from a business perspective. And the second is that from a business perspective, one of the key things is that you can reduce cost. Automation must be a key element of this and therefore designing things that will take out tasks and remove tasks, make things more efficient, is going to be an incredibly important part of this. >> And reduce errors. >> And reduce errors, absolutely. Probably most important is reduce errors. Is to take those out of the of the chain and where you can speed things up by removing human intervention and human tasks and raising what humans are doing to a higher level. >> Other things. George Gilbert, action item. >> Okay, so. Really quickly on David's point that we have many more application forms and expressions that we have to present like mobile first. And going back to using RPA as an example. The UiPath product that we've been working with, the core of its capability is to be able to identify specific UI elements in a very complex presentation, whether it's on a web browser or whether it's on a native app on your desktop or whether it's mobile. I don't know how complete they are on mobile because I'm not sure if they did that first but that core capability to identify in a complex, essentially collection and hierarchy of UI elements, that's what makes it powerful. Now on the AI part, I don't think it's as easy as pointing it at one app and then another and say go make them talk. It's more like helping you on the parts where they might be a little ambiguous, like if pieces move around from release to release, things like that. So my action item is say start prototyping with the RPA tools because that's probably, they're probably robust enough to start integrating your enterprise apps. And the only big new wrinkle that's come out in the last several weeks that is now in everyone's consciousness is the MuleSoft acquisition by Salesforce because that's going back to the EAI model. And we will see more app to app integration at the cloud level that's now possible. >> Neil Raden, action item. >> Well, you know, Mark Twain said, there's only two kinds of people in the world. The kind who think there are only two kinds of people in the world and the ones who know better. I'm going to deviate from that a little and say that there's really two kinds of software developers in the world. They're the true computer scientists who want to write great code. It's elegant, it's maintainable, it adheres to all the rules, it's creative. And then there's an army of people who are just trying to get something done. So the boss comes to you and says we've got to get a new website up apologizing for selling the data of 50 million of our customers and you need to do it in three days. Now, those are the kind of people who need access to things that can be reused. And I think there's a huge market for that, as well as all these other software development robots so to speak. >> Jim Kobielus, action item. >> Yeah, for simplifying web application development, I think that developers need to distinguish between back-end and front-end framework. There's a lot of convergence around the back-end framework. Specifically Node.js. So you can basically decouple the decision in terms of front-end frameworks from that and you need to write upfront. Make sure that you have a back-end that supports many front ends because there are many front ends in the world. Secondly, the front ends themselves seem to be moving towards React and Angular and Vue as being the predominant ones. You'll find more programmers who are familiar with those. And then thirdly, as you move towards consolidation on to fewer frameworks on the front-end, move towards low-code tools that allow you just with the push of a button, you know visual development, being able to deploy the built out UI to a full range of mobile devices and web applications. And to close my action item... I'll second what David said. Move toward a mobile first development approach for web applications with a focus on progressive web applications that can run on mobiles and others. Where they give a mobile experience. With intermittent connectivity, with push notifications, with a real-time in memory fast experience. Move towards a mobile first development paradigm for all of your your browser facing applications and that really is the simplification strategy you can and should pursue right now on the development side because web apps are so important, you need a strategy. >> Yeah, so mobile irrespective of the... irrespective of the underlying biology or what have you of the user. All right, so here's our action item. Our view on digital business is that a digital business uses data differently than a normal business. And a digital business transformation ultimately is about how do we increase our visibility into our data assets and find new ways of creating new types of value so that we can better compete in markets. Now, that includes data but it also includes application elements, which also are data. And we think increasingly enterprises must take a more planful and purposeful approach to identifying new ways of deriving additional streams of value out of application assets, especially web application assets. Now, this is a dream that's been put forward for a number of years and sometimes it's work better than others. But in today's world we see a number of technologies emerging that are likely, at least in this more constrained world, to present a significant new set of avenues for creating new types of digital value. Specifically tools like RPA, remote process automation, that are looking at the outcomes of an application and allow programmers use a by example approach to start identifying what are the UI elements, what those UI elements do, how they could be combined, so that they can be composed into new things and thereby provide a new application approach, a new application integration approach which is not at the data and not at the code but more at the work that a human being would naturally do. These allow for greater scale and greater automation and a number of other benefits. The reality though is that you also have to be very cognizant as you do this, even though you can find these, find these assets, find a new derivative form and apply them very quickly to new potential business opportunities that you have to know what's happening at the back-end as well. Whether it's how you go about creating the assets, with some of the front-end tooling, and being very cognizant of which front ends are going to be better or not better or better able at creating these more reusable assets. Or whether you're talking about still how relatively mundane things like how a database serialized has access to data and will fall over because you've created an automated front-end that's just throwing a lot of transactions at it. The reality is there's always going to be complexity. We're not going to see all the problems being solved but some of the new tools allow us to focus more attention on where the real business value is created by apps, find ways to reuse that, and apply it, and bring it into a digital business transformation approach. All right. Once again. George Gilbert, David Floyer, here in the studio. Neil Raden, Jim Kobielus, remote. You've been watching Wikibon Action Item. Until next time, thanks for joining us. (electronic music)

>> Hi, this is Peter Burris with another Wikibon Action Item Quick Take. David Floyer, big news from Redmond, what's going on? >> Well, big Microsoft announcement. If we go back a few years before Nadella took over, Ballmer was a great believer in one Microsoft. They bought Nokia, they were looking at putting Windows into everything, it was a Windows led, one Microsoft organization. And a lot of ambitious ideas were cut off because they didn't get the sign off by, for example, the Windows group. Nadella's first action, and I actually was there, was to announce Office on the iPhone. A major, major thing that had been proposed for a long time was being held up internally. And now he's gone even further. The focus, clear focus of Microsoft is on the cloud, you know 50% plus CAGR on the cloud, Office 365 CAGR 41% and AI, focusing on AI and obviously the intelligent age as well. So Windows 10, Myerson, the leader there, is out, 2% CAGR, he missed his one billion Windows target, by a long way, something like 50%. Windows functionality is being distributed, essentially, across the whole of Microsoft. So hardware is taking the Xbox and the Surface. Windows server itself is going to the cloud. So, big change from the historical look of Microsoft, but, a trimming down of the organization and a much clearer focus on the key things driving Microsoft's fantastic increase in net worth. >> So Microsoft retooling to take advantage and be more relevant, sustain it's relevance in the new era of computing. Once again, this has been a Wikibon Action Item Quick Take. (soft electronic music)

>> Hi, I'm Peter Burris, and welcome to a Wikibon Action Item Quick Take. Jim Kobielus, lots going on in the world of AI and storage. If we think about what happened in storage over the years, it used to be for disc space, get data into a persistent state, and for some of the flash base, it's get data out faster. What happened this week between Pure and NVIDIA to make it easier to get data out faster, especially for AI applications? >> Yeah Peter, this week at NVIDIA's annual conference, GPU technology conference, they announced a partnership with Pure Storage. In fact they released a jointly developed product called AIRI...A-I-R-I standing for AI Ready Infrastructure. What's significant about AIRI is that it is a... Well, I'll tell you years ago, I'm showing my age there was this constant well of data warehousing appliance, a pre-bundled, pre-integrated assembly of storage and compute and software for specific workloads. Though, I wouldn't use the term appliance here, it's a similar concept. In the AI space, there's a need for pre-integrated storage and compute devices...racks...for training workloads and other core, very compute and very data-intensive workloads for AI And that's what the Pure Storage NVIDIA AIRI is all about. It includes Pure Storage's Flashblade storage technology, plus four NVIDIA DCX supercomputers that are running the latest GPUs, the Tesla V100. As well as providing a fast interconnect of NVIDIA's. Plus, also bundling software, NVIDIA's AI frame was from modeling, there's a management tool from Pure Storage. What this is, this is a harbinger of what we expect, and Wikibon will be a broader range from these vendors and others of pre-built optimized AI storage products for premises based deployment, for hyperquads, really for complex AI pipelines involving data... Scientist data, engineers and others. We're very excited about this particular product, we think it has great potential and we believe there's a lot of pent-up demand for these kinds of pre-built hardware products. And that, in many ways, was by far the most significant story in the AI space this week. >> All right, so this has been...thanks very much for that Jim. So, more to come, moving more compute closer to the data. Part of a bigger trend. This has been a Wikibon Action Item Quick Take. >> (smooth techno music)

>> [Peter] Hi, this is Peter Burris. Welcome to Wikibon Research's Friday research meeting on theCUBE. (tech music) Today, we're going to talk about something that's especially important, given the events of this week. As many of you know, Apple announced a new iOS 11, and a whole bunch of new devices. Now we're not going to talk about the devices so much, but rather some of the function that's being introduced in iOS 11. Specifically, things like facial recognition. An enormous amount of processing is going to go into providing that type of service on devices like this, and that processing capability, those systems capabilities, are going to be provided by some new technologies that are related to artificial intelligence, big data, and something called deep learning. And the challenge that the industry's going to face is, where will this processing take place? Where will the data be captured? Where will the data be stored? How will the data be moved? What types of devices will actually handle this processing? Is this going to all end up in the cloud, or is it going to happen on increasingly intelligent smart devices? What about some of the different platform? And, ultimately, one of the biggest questions of all is, and how are we going to bring some degree of consistency and control to all of these potentially distributed architectures, platforms, and even industries, as we try to weave all of this into something that serves all of us and not just a few problems. Now to kick this off, Jim Kobielus, why don't you start by making a quick observation in what we mean by deep learning. >> [Jim] Yeah, thank you, Peter. Deep learning. The term has been around for a number of years. Essentially, it's machine learning, but with more layers of neuron, and able to do higher level abstractions from the data. Abstractions, such as face recognition, natural language processing, and speech recognition, and so forth, so when we talk about deep learning now, as a client, to what extent can more of these function? Face recognition as in iOS 11, or iPhone 10. What then will this technology, with capability, be baked into all edge endpoints now? >> [Peter] Jim, I'm having a little bit of a problem hearing you, so maybe we can make sure that we can hear that a little bit better. But, very quickly, and very importantly, it suggests that, the term deep learning suggests something a little different than I think we're actually going to see. Deep learning suggests that there's going to be a centralization, a function for some process. It's going to be the ultimate source of value. And I don't think we mean that. When we talk about deep learning, let's draw a distinction between deep learning, as a process, and deep learning as a set of systems and designs and investment that's going to be made to deliver on this type of business function. Does deep learning fully capture what's going to happen here? >> [James] Is this for me, Peter? Can you hear me, Peter? >> [Peter] I can hear you better now, a little bit saturated. >> [James] Okay, I got my earbuds in. Yeah, essentially the term deep learning is a broad paradigm that describes both the development pipeline function that quite often will, more often than not, will be handled in the cloud among distributed teams, and those function of deep learning that can be brought to the edge, to the end devices, the mobile devices, the smart sensors. When we talk about deep learning at the edge, as enabled through chip sets, we're talking about functions such as local sensing, local inference, from the data that's being acquired there, local actuation as it were taking action, like an autonomous vehicle steering right or left, based on whether there is an obstacle in their path. So really, in the broadest sense, you need that full infrastructure to do all the building and the tuning and the training of deep learning models, and, of course, you need the enabling chip sets and tools to build those devices, those functions, deep learning functions, that need to be pushed for local, often autonomous execution at endpoints. >> [Peter] So, David Floyer, that strongly suggest that, in fact, deep learning is suggestive of a new system architecture model that is not going to be large and centralized, but rather is going to be dependent upon where data actually exists and how proximate it is to the set of events that we're both monitoring, and ultimately trying to guide, as we think about new automation, new types of behavior. Take us through our thinking on some of these questions of where the data's going to reside, where the function's going to reside, and ultimately, how the architecture's going to evolve. >> [James] I think you're on mute, David. >> [David] Yes, I would put forward the premise that the majority of the processing of this data and the majority of the spend on equipment for this data will exist at the edge. Neal brought forward a very good differentiation between second-hand data, which is where bit data is today, and primary data, which is what we're going to be analyzing and taking as decisions on at the edge. As senses increase the amount of data and smart senses come, so we're going to see more and more of a processing shift from the traditional centralized, to the edge. And taking Apple as another example, they're doing locally, all of this processing of data. Siri, itself, is becoming more and more local, as opposed to centralized, and we're seeing the shift of computing down to the edge. And if we look at the amount of computing we're talking about, we're talking, with the Apple 10, it's six hundred billion operations a second. That's a lot of computing power. We see the same thing in other industries. There's the self-driving car. If you take the Nvidia Drive-2 it has a huge amount of computing power within that to process all of the different sources of data in a device which is costing less than $1,000, $600, $700. So much lower pricing of processing, et cetera. Now the challenge of data, the traditional model, is that all of the data goes to the center, is the cost of all this data, moving it from the edge to the center is just astronomical. It would never happen. So only a sum set of that data will be able to be moved. And people who develop systems, AI systems, for example, at the edge, will have to have simulation factories very local to them to do it, so car manufacturers, for example, having a small city, if you like, where they have very, very fast communication devices. And the amount of data that can be stored, as well, from this new primary source of data is going to be very, very small, so most of that data either is processed immediately, or it disappears. And after it's processed, in our opinion, most of that will disappear, 99% of that class will disappear completely. So the traditional model of big data is being turned upside down by these new and prolific sources of data, and the value will be generated at the edge. That's where the value is in recognizing a bad person coming into a building, or recognizing your friends, or recognizing that something is going wrong with a smart sensor locally. The vibrations are too high, or whatever the particular example is. That value will be generated at the edge by new classes of people and new classes of actors is this space. >> [Peter] So, Neil Raden, one of the interesting things that we're talking about here, is that we're talking about here is that we're talking about some pretty consequential changes in the nature of the applications, and the nature of the architectures and infrastructures that we're going to build to support these applications. But those kinds of changes don't take place without serious consideration of the business impacts. Is this something that companies are going to do, kind of willy-nilly? How deeply are companies going to have to think about how deeply are users going to have to think about deploying these within their business? Because it seems like it's going to have a pretty consequential impact on how businesses behave. >> [Neil] Well, they're going to need some guidance, because there just aren't enough people out there with the skill to implement this sort of thing for all the companies that may want to do it. But more importantly than that, I think that our canonical models, right now, for deep learning and intelligence at the edge are pretty thin. We talk about autonomous cars or facial recognition, something like that, there's probably a lot more things we need to think about. And from that we can derive some conclusions about how to do all this. But when it comes to the persistence of data, there's a difference between a B to C application, where we're watching people click, and deciding next best offer, and anything that happened a few months ago was irrelevant, so maybe we can throw that data away. But when you're talking about monitoring the performance of an aircraft in flight or a nuclear power plant, or something like that, you really need to keep that data. Not just for analytical purposes, but probably for regulatory purposes. In addition to that, if you get sued, you want to have some record of actually what happened. So I think we're going to have to look at this whole business, and all of its different components, before we can categorically say, yes we saved this data, here's the best application. Everything should be done in the cloud. I don't think we really know that yet. >> [Peter] But the issue that's going to determine that decision is going to be a combination of costs today, although we know that those costs are going to change over time, and knowledge of where people are and the degree to which people really understand some of these questions. And, ultimately, what folks are trying to achieve as they invest to get to some sort of objective. So there's probably going to be a difference in the next few years between, in which we do a lot of learning about deep learning systems, and some steady state that we get to. And my guess is that the ecosystem is going to change pretty dramatically between now and then. So it may be the telcos think that they're going to enjoy a bonanza on communications costs over the next few years, as people think about moving all this data. If they try to do that, that's going to have an impact on how Amazon and Google, and some of the big cloud suppliers invest to try to facilitate the movement of the data. But there's a lot of uncertainty here. Jim, why don't you take us through some of the ecosystem questions. What role will developers play? Where's the software going to end up? And to what degree is this going to end up in hardware and is going to lead to or catalyze kind of a Renaissance in the notion of specialized hardware? >> [James] Yeah, those are great questions. I think most of the functionality, meaning the local sensing and inference, and actuation, is inevitably going to end up in hardware, in highly specialized and optimized hardware for particular use cases. In other words, smart everything. Smart appliances, smart clothing, smart lamps, smart... You know, what's going to happen is that more and more of what we now call deep learning will just be built-in by designers and engineers of all sorts, regardless of whether they have a science or a computer background. And so it's, I think going to be part of the material fabric of reality, the bringing intelligence that, with that said then, if you look at the chip set architectures, and if we can use the term chip set here, that will enable this vast palette of embedding of this intelligence in physical reality. The jury is really out about whether it will be GPUs, like in video, of course, it's power out behind GPUs, versus CPUs, versus FPGAs, A6, there's various neuromorphic chip sets from IBM and others. It'll be, it's clearly going to be a fairly very innovative period of great ferment in innovation in the underlying hardware substrate, the chip sets, to enable all these different use cases in embedding of all this. In terms of developer, take the software developers. Definitely, they're still very much at the core of this phenomenon, when I say they, data scientists, as the core developers of this new era who are the ones who are building these convolutional neural networks and recurrent neural networks, and long, short-term, and so forth. All these DL algorithms very much are the province of data scientists, for the new generation of data scientists who specialize in those areas and that who work hand-in-hand with traditional programmers and so forth, to put all of this intelligence into a shape that can then be embedded and might, containerized, whatever, and brought into some degree of harmonization with the physical hardware layer into which hardware could be used for terms like, clothing, smart clothing. What gave us that, now we have a new era where the collaborations are going to be diverse among nontraditional job, or skills categories, who are focused on bringing AI into everything that touches our lives. It's wide open now. >> [Peter] so David Floyer, let me throw it over to you, because Jim's raised some interesting points about where the various propositions, the value propositions, and how the ecosystem is going to emerge. This sounds like a, once again, going back to the role that consumer markets are going to play from a volume, cost, and driving innovation standpoint. Are we seeing kind of a repeat of that, are the economics going to, of volume going to also play a role here? Muted? >> [David] Yes, I believe so, very strongly. If you look at technologies and how they evolve. If you look for example at Intel, and how they became so successful in the chip market. They developed the chips with Microsoft for the PC. That was very, very successful, and from that they then created the chip set for the data senses, themselves. When we look at the consumer volumes, we see a very different marketplace. For example, GPUs are completely winning in the consumer market. So Apple introduced GPUs into their ARM processes this time around. Nvidia has been very, very successful, together with ARM, in producing systems for self-driving cars. Very, very powerful systems. So we're looking at new architectures. We're looking at consumer architectures, that in Nvidia's case came from game playing, and in ARM, has come all of the distributed ecosystems, the clients, et cetera, all ARM-based. We're seeing that it's likely that consumer technologies will be utilized in these ecosystems because volume wins. Volume means reduction in price. And when you look at, for example, the cost of an ARM processor within an Apple iPhone, it's $26.90. That's pretty low compared with the thousands of dollars you're talking about for a processor going into a PC. And when you look at the processing power of these things, in terms of operation, they're actually greater power. And same with Nvidia with the GPUs. So yes, I think there is a potential for a big, big change. And a challenge to the existing vendors that they have to change and go for volume and pricing for volume in a different way than they do at the moment. >> [Peter] So that's going to have an enormous impact, ultimately, on the types of hardware designs that we see emerge over the course of the next few years. And the nature of the applications that the ecosystem is willing to undertake. I want to pivot and bring it back to the notion of deep learning as we think about the client. Because it ultimately describes a new role for analytics and how analytics are going to impact the value propositions, the behaviors, and ultimately, the experience of consumers, and everybody, has with some of these new technologies. So Neil, what's the difference between deep learning-related analytics on the client, and a traditional way of thinking about analytics? Take us through that a little bit. >> [Neil] Deep learning on the client? You mean at the edge? >> [Peter] Well deep learning on a client, deep learning on the edge, yeah. Deep learning out away from the center. When we start talking about some of this edge work, what's the difference between that work and the traditional approach for data analytics, data warehousing, et cetera? >> [Neil] Well, my naive point of view is deep learning involves crunching through tons of data in training models to come up with something you can deploy. So I don't really see deep learning happening at the edge very much. I think David said this earlier, that the deep learning is happening in the big data world when they have trillions of observations to use. Am I missing your point? >> [Peter] No, no. We talked earlier about the difference between deep learning as a process and deep learning as a metaphor for a new class of systems. So when we think about utilizing these technologies, whether it's deep learning, or AI, whatever we call it, and we imagine deploying more complex models close to the edge, what's that mean from the standpoint of the nature of the data that we're going to use, the approach, the tooling that we're going to use, the approach we're going to take organizationally, institutionally, to try to ensure that that work happens. Is there a difference between that and doing data warehousing with financial systems? >> [Neil] Well, there's a difference in terms of the technology. I think that 10 years ago, we were talking about complex event processing. The data wasn't really flowing from centers, it was scraping Web screens and that sort of thing, but it was using decision-making technology to look for patterns and pass things along. But you have to look at the whole process of decision making. If you're talking about commercial organizations, it's not really that much in commercial organizations that requires complex, real-time, yeah, making decisions about supply chain or shop floor automation, or that sort of thing. But from a management point of view, it's not really something that you do. The other part of decision making that troubles me is, I wrote about this 10 years ago, and that was we shouldn't be using any kind of computer-generated decision making that affects human lives. And I think you could even expand that to living things, or harming the environment and so forth. So I'm a little bit negative about things like autonomous cars. It's one thing to generate a decision-making thing that issues credit cards, and maybe it's acceptable to have 5% or 3% of decision just completely wrong. But it's that many wrong in autonomous driving, especially trucks, the consequences are disastrous. So we have to be really careful about this whole thing with IoT, we've got to be a lot more specific about what we mean, what kinds of architectures, and what kind of decisions we're trying on. >> [Peter] I think that's a great point, Neil. There's a lot that can be done, and then the question is that we have to make sure that it's done well. We understand some of the implications, and again, I think there's a difference between a transition period and a steady state. We're going to see a lot of change over the next few years. The technology's making it possible to do so, but there's going to be a lot of social impacts that ultimately have to be worked out. And I'll get, we'll get to some of those in a second. But George, George Gilbert, I wanted to give you an opportunity to talk a little bit about the way that we're going to get this done. Talk about how we're, where's this training going to take place, per what Neil said? Is the training going to take place at the edge? Is the training going to take place in the cloud? Institutionally, what is the CIO and the IT organization have to do to prepare for this? >> [George] So I think the sort of widespread consensus is that the inferencing and sort of predicting for the low latency actions will be at the edge, and some smaller amount of data goes up into the cloud training, but the class of training that we will do over time changes. And we've been very fixated on sort of the data centricity, like most of the data's at the edge a little bit in the center. And Neil has talked about sort of secondary, or reference data, to help build the model from the center. But the models themselves that we build in the center and then push out, will change in the sense that we look at the compute intensity. The compute intensity of the cloud will be, will evolve, so that it's more advantageous there to build models that become rich enough to be like simulation. So in other words, it's not do I, if I see myself drifting over the lane marker on the right, do I correct left? But you have a whole bunch of different, different knobs that get tuned, in that it happens over time. So that the idea of the model is almost like a digital twin, but not of, let's say, just an asset or physical device, but almost like a domain, in that that model, it's very compute intensive, it generates a lot of data sets, but then the model itself can be distilled down and pushed out to the edge. Or, essentially, guiding or informing decisions, or even making decisions with a lot more knobs than you would have with a more simplistic model. >> [Peter] So, Ralph, I know that we've spent some time looking at some of the market questions of this. Based on this conversation, can you kind of give a summary of how much data volume we think is happening, data movement's happening? What's the big, broad impact on some of the segments and opportunities over the course of the next couple of years? >> [Ralph] Yeah, I think the, think back maybe 10 years, the amount of unstructured data that was out there was not all that great. Obviously, in the last 10 years of war, there's a lot more of it. So the growth of data is dramatically increasing. Most of it is going to be in the mobile area. So there's just a lot of it out there. And this, I think fishing for where you derive value from that data is really critical for moving optimization of processes forward. But I think I agree with Neil that there's a lot of work to be done yet about how that actually unfolds. >> [Peter] And there's also a lot of work to be done in areas like, what will the role of, who's going to help define how a lot of these platforms are going to be integrated together. What's the role of standards? What role will government play? There's an enormous number of questions here. But one thing we all agree on ultimately, is that this is an emerging source of, or this technology is an emerging source of dramatic new types of business value taking on problems that we've never thought about taking on before. And it's going to have an enormous impact on how IT organizations work with business, how they work with each other, how businesses work together. This is the centerpiece of the new digital business transformation. Alright, so let me summarize this week's findings. The first observation we make is that this week, Apple introduced facial recognition directly in iOS 11, and it wowed much of the industry, and didn't get a lot of people excited for a variety of reasons, but it does point to the idea that increasingly we're going to see new classes of deep learning, AI, machine learning, and other big data-type technologies, being embedded more deeply in systems as a way of improving the quality of the customer experience, improving operational effectiveness and efficiency, and ultimately, even dramatically improving the ratio between product and service revenue in virtually everything that we can think about. Now, that has led folks to presume that there's, again, going to be this massive migration of workload back into the cloud, both from a data standpoint, as well as from a workload standpoint. But when we stop and think about what it really means to provide this value, it's pretty clear that for a number of reasons, including real-time processing to provide these services, the cost of moving data from one point to another, and that the characteristics of the intellectual property controls, et cetera, restricts the pressure to try to move all this data from the edge, client, and device back into the cloud. And that the new architectures, increasingly, are going to feature a utilization of dramatic new levels of processing on devices. We observe, for example, that the new iPhone is capable of performing 600 billion instructions per second. That's an unbelievable amount of processing power. And we're going to find ways to use that up, to provide services closer to end users without forcing a connection. This is going to have enormous implications, overall, in the industry. Questions, for example, like how are we going to institutionally set up the development flow? We think we're going to see more model building at the center, with a constrained amount of the data, and more execution of these models at the edge. But we note that there's going to be a transition period here. There's going to be a process by which we're learning what data's important, what services are important, et cetera. We also think it's going to have an enormous impact, for example, on even describing the value proposition. If everything is sold as a product, that means the cost of moving the data, the cost of liability, et cetera, on these devices is going to be extreme. It's going to have an enormous impact on the architectures and infrastructures we use. If we think in terms of services, that might have a different, or lead to a different set of ecosystem structures being put in place, because it will change the transaction costs. The service provider, perhaps, is going to be more willing to move the data, because they'll price it into their service. Ultimately, it's going to have a dramatic impact on the organization of the technology industry. The past 25, 30, 40 years have been defined, for the first time, by the role that volume plays within the ecosystem. Where Microsoft and Intel were the primary beneficiaries, or were primary beneficiaries of that change. As we move to this notion of deep learning and related technologies at the edge, providing new classes of behavior, it opens up the opportunity to envision a transitioning of where the value is up and down the stack. And we expect that we're going to see more of that value be put directly into hardware that's capable of running these models with enormous speed and certainty in execution. So a lot of new hardware gets deployed, and then the software ecosystem is going to have to rely on that hardware to provide the data and build the systems that are very data rich to utilize and execute on a lot of these, mainly ARM processors that are likely to end up in a lot of different devices, in a lot of different locations, in its highly distributed world. The action item for CIOs is this. This is an area that's going to ensure that a role for IT within the business, as we think about what it means for a business to exploit some of these new technologies, in a purposeful and planful and architected way. But it also is going to mean that more of the value moves away from the traditional way of thinking about business systems with highly stylized data to a more clear focus on how consumers are going to be supported, devices are going to be supported, and how we're going to improve and enhance the security and the utilization of more distributed, high quality processing at the edge, utilizing a new array of hardware and software within the ecosystem. Alright, so I'm going to close out this week's Wikibon Friday Research Meeting on theCUBE, and invite you back next week where we'll be talking about new things that are happening in the industry that impact your lives and the industry. Thank you very much for attending. (tech music)

>> Welcome to the AWS Startup Showcase: New Breakthroughs in DevOps, Data Analytics, and Cloud Management Tools. I'm Lisa Martin. I'm pleased to welcome JT Giri, the CEO and founder of nOps, to the program. JT, welcome. It's great to have you. >> Thank you, Lisa. Glad to be here. >> Talk to me about nOps. This was founded in 2017, you're the founder. What do you guys do? >> Yeah. So just a little bit background on myself. You know, I've been migrating companies to AWS ever since EC2 was in beta. And you know, in the beginning I had to convince people like, "Hey, you should move to cloud." And the question people used to ask me, like, "Is cloud secure?" I'm glad no one is asking that question anymore. So, as I was building and migrating customers to the cloud, one of the things I realized very early on, is just cloud, there are so many resources, so many teams provisioning resources, then how do you align with your business goals? So we created nOps so that, for a mission, how do you are you build a platform where you make sure every single change and every single resource in the cloud is aligned with the business needs, right? Like we really helped people to make the right trade-offs. >> So you mentioned you've been doing this since EC2 was in beta, and we just celebrated, with AWS, EC2's 15th birthday. So you've been doing this awhile. You don't look old enough, but you've been doing this for awhile. So one of the things that I read on the website, I always love to understand messaging, that nOps says about itself, "The first cloud ops platform "designed to sync revenue growth across your teams." Talk to me about how you do that. >> Yeah. So one of the problems we see in the market right now, there are a lot of tools, there are a lot of dashboards that shows like, "Hey, you have this many issues, "here's the opportunity to fix issues. "And here are the security issues." We're more focused on how do we take those issues from a backlog and fixing those issues. Right? So our focus is more on operationalizing, so your teams could actually own that, prioritize, and actually remediate those issues. So that's where we focus our energy. >> Got it. Let's talk about cloud ops now, and how it varies or differs from traditional cloud management. >> Yeah, I think, like I mentioned, cloud management seems to be more like visibility. And everyone knows that there are challenges in their cloud environment. But when you focus more on the operation side, what we really try to do, from an issue, how do you actually fix that issue? How do you prioritize? How do you make the right trade-offs. Right? Trade offs is important because we make a lot of decisions in the cloud when you're building your infrastructure. Sometime you might have to prioritize for costs, sometime you might have to prioritize based on the SLA. You might have to add more resources to hit your SLAs. So we really help you to prioritize. And we build sort of accountability. You know, you can create roles. Most of the time, what we noticed, I truly believe that if it's everyone's responsibility, it's no one's responsibility. You know? So what we do is we help, within the tool, to establish clear roles and responsibilities. And we show audit log of people reviewing and fixing security issues. And we show audit log of people fixing and reviewing cost issues. That's one way we're trying to bring accountability. >> I like what you said, if everyone's responsible, then really no one is. And that seems to be a persistent problem that we see in businesses across industries, is just still that challenge with aligning IT and business. And especially with the dynamics of the market, JT, that we've seen in the last 18 months, things are moving so quickly. Talk to me about how you guys have been helping companies, especially in the last 18 months, with such change to get that alignment. So that that visibility and those clear roles are established and functional. >> Yeah. You know, what we really do is obviously listen to the customers. Right? And one of the challenges we hear over and over is like, you know, I know I have issues in the cloud environment that I really need help prioritizing. And they're really looking for a framework where they can come in and say, "Okay these are the people who are responsible for security. "These are the people who are responsible for the cost." So as part of onboarding with nOps, that's one of the things you do, you define your workloads. By the way, we automatically create your workload across all your accounts. And then we allow you to move resources around if you like. But then one of the first thing we do is assign roles and responsibilities for each one of these workloads. Oh, it's been incredible to see, when you have that kind of accountability, people actually do make sure that the resources are aligned with the business needs. >> So are you seeing, I mean, that's kind of a cultural shift. That changed management is a challenging process. How are you seeing that evolve in organizations who've been used to doing things maybe in a little bit of a blinders on kind of mode? >> Yeah. Well, changed management is an area where we spent a lot of time, because in cloud, changed management is almost like a fire hose. Right? There's so many changes and you could have 20 people or 20 different teams making changes. I think what people really want is sort of root cause analysis. Like, "Hey, this is what changed here. "Here's why it changed. "And here's how actions we could take, or you could take." So this is where we focus on this, where nOps focuses on. We really help people to show the root cause analysis, these three, four things, these three, four changes are related to this cost increase or these security issues. And we show like a clear path on taking action on those issues. >> That's critical. The ability to show the paths, to take the action to remediate or make any changes, course corrections. As we've learned in the last 18 months, real time is no longer for so many industries, a nice-to-have. The ability to be able to pivot on the fly is a survival and thriving mechanism. So that is really key. I do want to talk about the relationship with nOps and AWS. Here we are at the AWS startup showcase. Give me a little overview on the partnership. >> It's been an incredible. Like I said, I have a long history of working with AWS, and I started a consulting company, a very, very successful one. And so I have years of working with AWS partner teams. I think it's incredible. We were the first company in this, maybe not first, maybe very early. We were part of this Well-Architected framework. And when I came out of that training, the Well-Architected training, I was so excited. I was like, "Wow, this is amazing." You know? Because, to me, whenever you're building infrastructure, you really are making trade-offs. You know, sometime you optimize for cost, sometime you optimize for reliability. So it has been incredible to work with the Well-Architected team. Or Amazon also has this, another program, called FTR: Foundational Technical Review. We've been working closely with that team. So yeah, it's been amazing to collaborate with AWS. >> It sounds pretty synergistic. Have you had a chance influence infrastructure, and some of the technical direction? >> Oh, absolutely. Yeah. We work very closely. One of the cool thing about AWS is that they do take customers' feedback very, very seriously. And, Lisa, also other way around. Right? If AWS is going to build something, having that insight into the roadmap is very beneficial. Because if they're doing it, there's no point of us trying to reinvent the wheel. So that kind of synergy is very helpful. >> That's excellent. Let's talk about customers, now. I always loved talking about customer use cases and outcomes. You guys have a great story with Uber. Walk us through what the challenges were, how nOps came in, what you deployed, and how the business is being impacted positively. >> Yeah, I think Uber and all the enterprises, they sort of have the same challenge, right? There are many teams provisioning infrastructure. How do you make sure all those resources are aligned with your business needs? And in addition to that, not only you have different teams provisioning resources, there are different workloads. And these workloads have different requirements. Right? Some are production workloads, some are just maybe task workloads. So one of the things Uber did, they really embraced sort of nOps' way of managing infrastructure, building accountability, sharing these dashboards with all the different teams. And it was incredible, because within first 30 days they were able to save up to 15%. This was in their autonomous vehicle unit. And they spent a lot of money. And having to see that kind of cost saving, it was just amazing. And we see this over and over. And so like when customers are using platform, it's just incredible how much cost savings are there. >> So Uber, you said, in their autonomous vehicle department saved 15% in just the first 30 days alone. And you said that's a common positive business outcome that you're seeing from customers across industries, is that immediate cost savings. Tell me a little bit more about that as a differentiator of nOps' business. >> Yeah. Because as I mentioned earlier, one of the things we do, we bring accountability. Right? Most of the time when people, before nOps, maybe there are resources that are not accounted for. There is not clear owners, there's no budgets, there's no chargebacks. So I do think that's a huge differentiator of nOps, because, as part of onboarding, as you establish these roles and these responsibilities, you find so much unaccounted resources. And sometimes you don't even need those resources, and you shut them down. And those are the easiest next steps. Right? Like, you don't need to architect, you just shut it down. Like no one needs these resources. So that, I do believe, that's our strength. And we were able to demonstrate this over and over, this, on average, 15-30% cost saving in the first month or so. >> That's excellent. That's a lot of what customers, especially these days, are looking for, is cost optimization across the organization. What are some of the things that you've seen, that nOps has experienced in the last 18 months, with so much acceleration? Anything that surprised you, any industries that you see as really leading edge here, or prime candidates for your technology? >> Yeah. A couple of things. We see a lot of partners, a lot of other consulting company, leveraging nOps as a part of their offering. That's been amazing, we have a lot of partners who really leverage nOps as a go to market and ongoing management of their customers. And I do see that shift from the customer side as well. I think the complexity of cloud continues to kind of increase, like you just mentioned, it sounds like from last 18 months, it accelerated even more. How do you stay up to date, you know? And how do you always make sure that you're following best practices? So companies bring in partners to help them implement solutions. And then these partners are leveraging tools like nOps. And we've seen a lot of momentum around that. >> Tell me a little bit about how partners are leveraging nOps. What are some of the synergistic benefits on both sides? >> Yeah, so normally partners leverage nOps, you know, they will use it for Well-Architected assessments. And, you know, I've personally done a lot of these Well-Architected assessments. And, you know, early on, I kind of learned that, assessments are only good if you're able to move forward with fixing issues in the customer's environment. So what we really do, we really help customers, or sorry, we really help partners to actually do these Well-Architected assessments automatically. We auto discover issues, and then we help them to create proposals so they can present it to the customers like, "Hey, here are the five things we can help you with, "and here's how much it will cost." And, you know, we really streamline that whole process. And it's amazing that some partners used to take like days to do these assessments. Now they can do it an hour. And we also increase the close rate on SoW's because they are a lot more clear. You know, like here are the issues and here's how we can help you to fix those issues. >> You got some great business metrics there, in terms of speed and reduction in cost, reduction in speed. But it sounds like what you're doing is helping those partners build a business case for their customers far more efficiently and more clearly than they've ever been able to do before. >> Absolutely. Yeah, yeah. And... >> Go ahead. >> Yeah, so absolutely. Before nOps, everyone is using spreadsheets most of the time. Right? It's spreadsheets to collect information, and emails back and forth. And after the partner's start using nOps, they use nOps to facilitate these assessments. And once they have these customers as ongoing customers, they use nOps for checks and balances to make sure they're constantly aligned. Right? And we have a lot of success of having real revenue impact on partners' business, by leveraging nOps. >> Excellent. That's true value and true trust there. Last question. Where can you point folks, a CTA or URL that you want people to go to to learn more about nOps? >> Yeah. Basically just go to nops.io and just put on signup. Yeah. I love doing this stuff. I love talking to the customers. Feel free to reach out to me, as well: jt@nops. I would love to have a conversation. But yeah, just nops.io is the best place to get started. >> Awesome, nops.io. And I can hear enthusiasm for this, and your genuineness comes through the zoom screen here, JT. I totally thought that the whole time. Thank you for talking to me about nOps, how you guys are helping organizations really embrace cloud ops and evolve from traditional cloud management tools. We appreciate your time. >> Thanks, Lisa. >> For JT Giri, I'm Lisa Martin. You're watching the AWS Startup Showcase.

>> from Cambridge, Massachusetts. It's the Cube covering M I T. Chief data officer and information quality Symposium 2019. Brought to you by Silicon Angle Media. >> Welcome back to M I. T. Everybody. This is the Cube. The leader in live coverage. My name is David wanted. I'm here with my co host, Paul Gill, in this day to coverage of the M I t cdo I Q conference. A lot of acronym stands for M I. T. Of course, the great institution. But Chief Data officer information quality event is his 13th annual event. Lars to Maria's here is the managing partner of Brass Rat Capital. Cool name Lars. Welcome to the Cube. Great. Very much. Glad I start with a name brass around Capitol was That's >> rat is reference to the M I t school. Okay, Beaver? Well, he is, but the students call it a brass rat, and I'm third generation M i t. So it's just seen absolutely appropriate. That is a brass rods and capital is not a reference to money, but is actually referenced to the intellectual capital. They if you have five or six brass rats in the same company, you know, we Sometimes engineers arrive and they could do some things. >> And it Boy, if you put in some data data capital in there, you really explosions. We cause a few problems. So we're gonna talk about some new regulations that are coming down. New legislation that's coming down that you exposed me to yesterday, which is gonna have downstream implications. You get ahead of this stuff and understand it. You can really first of all, prepare, make sure you're in compliance, but then potentially take advantage for your business. So explain to us this notion of open government act. >> Um, in the last five years, six years or so, there's been an effort going on to increase the transparency across all levels of government. Okay, State, local and federal government. The first of federal government laws was called the the Open Data Act of 2014 and that was an act. They was acted unanimously by Congress and signed by Obama. They was taking the departments of the various agencies of the United States government and trying to roll up all the expenses into one kind of expense. This is where we spent our money and who got the money and doing that. That's what they were trying to do. >> Big picture type of thing. >> Yeah, big picture type thing. But unfortunately, it didn't work, okay? Because they forgot to include this odd word called mentalities. So the same departments meant the same thing. Data problem. They have a really big data problem. They still have it. So they're to G et o reports out criticizing how was done, and the government's gonna try and correct it. Then in earlier this year, there was another open government date act which said in it was signed by Trump. Now, this time you had, like, maybe 25 negative votes, but essentially otherwise passed Congress completely. I was called the Open as all capital O >> P E >> n Government Data act. Okay, and that's not been implemented yet. But there's live talking around this conference today in various Chief date officers are talking about this requirement that every single non intelligence defense, you know, vital protection of the people type stuff all the like, um, interior, treasury, transportation, those type of systems. If you produce a report these days, which is machine, I mean human readable. You must now in two years or three years. I forget the exact invitation date. Have it also be machine readable. Now, some people think machine riddle mil means like pdf formats, but no, >> In fact, what the government did is it >> said it must be machine readable. So you must be able to get into the reports, and you have to be able to extract out the information and attach it to the tree of knowledge. Okay, so we're all of sudden having context like they're currently machine readable, Quote unquote, easy reports. But you can get into those SEC reports. You pull out the net net income information and says its net income, but you don't know what it attaches to on the tree of knowledge. So, um, we are helping the government in some sense able, machine readable type reporting that weaken, do machine to machine without people being involved. >> Would you say the tree of knowledge You're talking about the constant >> man tick semantic tree of knowledge so that, you know, we all come from one concept like the human is example of a living thing living beast, a living Beeston example Living thing. So it also goes back, and they're serving as you get farther and farther out the tree, there's more distance or semantic distance, but you can attach it back to concept so you can attach context to the various data. Is this essentially metadata? That's what people call it. But if I would go over see sale here at M I t, they would turn around. They call it the Tree of Knowledge or semantic data. Okay, it's referred to his semantic dated, So you are passing not only the data itself, but the context that >> goes along with the data. Okay, how does this relate to the financial transparency? >> Well, Financial Transparency Act was introduced by representative Issa, who's a Republican out of California. He's run the government Affairs Committee in the House. He retired from Congress this past November, but in 2017 he introduced what's got referred to his H R 15 30 Um, and the 15 30 is going to dramatically change the way, um, financial regulators work in the United States. Um, it is about it was about to be introduced two weeks ago when the labor of digital currency stuff came up. So it's been delayed a little bit because they're trying to add some of the digital currency legislation to that law. >> A front run that Well, >> I don't know exactly what the remember soul coming out of Maxine Waters Committee. So the staff is working on a bunch of different things at once. But, um, we own g was asked to consult with them on looking at the 15 30 act and saying, How would we improve quote unquote, given our technical, you know, not doing policy. We just don't have the technical aspects of the act. How would we want to see it improved? So one of the things we have advised is that for the first time in the United States codes history, they're gonna include interesting term called ontology. You know what intelligence? Well, everyone gets scared by the word. And when I read run into people, they say, Are you a doctor? I said, no, no, no. I'm just a date. A guy. Um, but an intolerant tea is like a taxonomy, but it had order has important, and an ontology allows you to do it is ah, kinda, you know, giving some context of linking something to something else. And so you're able Thio give Maur information with an intolerant that you're able to you with a tax on it. >> Okay, so it's a taxonomy on steroids? >> Yes, exactly what? More flexible, >> Yes, but it's critically important for artificial intelligence machine warning because if I can give them until ology of sort of how it goes up and down the semantics, I can turn around, do a I and machine learning problems on the >> order of 100 >> 1000 even 10,000 times faster. And it has context. It has contacts in just having a little bit of context speeds up these problems so dramatically so and it is that what enables the machine to machine? New notion? No, the machine to machine is coming in with son called SP R M just standard business report model. It's a OMG sophistication of way of allowing the computers or machines, as we call them these days to get into a standard business report. Okay, so let's say you're ah drug company. You have thio certify you >> drugged you manufactured in India, get United States safely. Okay, you have various >> reporting requirements on the way. You've got to give extra easy the FDA et cetera that will always be a standard format. The SEC has a different format. FERC has a different format. Okay, so what s p r m does it allows it to describe in an intolerant he what's in the report? And then it also allows one to attach an ontology to the cells in the report. So if you like at a sec 10 Q 10 k report, you can attach a US gap taxonomy or ontology to it and say, OK, net income annual. That's part of the income statement. You should never see that in a balance sheet type item. You know his example? Okay. Or you can for the first time by having that context you can say are solid problem, which suggested that you can file these machine readable reports that air wrong. So they believe or not, There were about 50 cases in the last 10 years where SEC reports have been filed where the assets don't equal total liabilities, plus cheryl equity, you know, just they didn't add >> up. So this to, >> you know, to entry accounting doesn't work. >> Okay, so so you could have the machines go and check scale. Hey, we got a problem We've >> got a problem here, and you don't have to get humans evolved. So we're gonna, um uh, Holland in Australia or two leaders ahead of the United States. In this area, they seem dramatic pickups. I mean, Holland's reporting something on the order of 90%. Pick up Australia's reporting 60% pickup. >> We say pick up. You're talking about pickup of errors. No efficiency, productivity, productivity. Okay, >> you're taking people out of the whole cycle. It's dramatic. >> Okay, now what's the OMG is rolling on the hoof. Explain the OMG >> Object Management Group. I'm not speaking on behalf of them. It's a membership run organization. You remember? I am a >> member of cold. >> I'm a khalid of it. But I don't represent omg. It's the membership has to collectively vote that this is what we think. Okay, so I can't speak on them, right? I have a pretty significant role with them. I run on behalf of OMG something called the Federated Enterprise Risk Management Group. That's the group which is focusing on risk management for large entities like the federal government's Veterans Affairs or Department offense upstairs. I think talking right now is the Chief date Officer for transportation. OK, that's a large organization, which they, they're instructed by own be at the, um, chief financial officer level. The one number one thing to do for the government is to get an effective enterprise worst management model going in the government agencies. And so they come to own G let just like NIST or just like DARPA does from the defense or intelligence side, saying we need to have standards in this area. So not only can we talk thio you effectively, but we can talk with our industry partners effectively on space. Programs are on retail, on medical programs, on finance programs, and so they're at OMG. There are two significant financial programs, or Sanders, that exist once called figgy financial instrument global identifier, which is a way of identifying a swap. Its way of identifying a security does not have to be used for a que ce it, but a worldwide. You can identify that you know, IBM stock did trade in Tokyo, so it's a different identifier has different, you know, the liberals against the one trading New York. Okay, so those air called figgy identifiers them. There are attributes associated with that security or that beast the being identified, which is generally comes out of 50 which is the financial industry business ontology. So you know, it says for a corporate bond, it has coupon maturity, semi annual payment, bullets. You know, it is an example. So that gives you all the information that you would need to go through to the calculation, assuming you could have a calculation routine to do it, then you need thio. Then turn around and set up your well. Call your environment. You know where Ford Yield Curves are with mortgage backed securities or any portable call. Will bond sort of probabilistic lee run their numbers many times and come up with effective duration? Um, And then you do your Vader's analytics. No aggregating the portfolio and looking at Shortfalls versus your funding. Or however you're doing risk management and then finally do reporting, which is where the standardized business reporting model comes in. So that kind of the five parts of doing a full enterprise risk model and Alex So what >> does >> this mean for first? Well, who does his impact on? What does it mean for organizations? >> Well, it's gonna change the world for basically everyone because it's like doing a clue ends of a software upgrade. Conversion one's version two point. Oh, and you know how software upgrades Everyone hates and it hurts because everyone's gonna have to now start using the same standard ontology. And, of course, that Sarah Ontology No one completely agrees with the regulators have agreed to it. The and the ultimate controlling authority in this thing is going to be F sock, which is the Dodd frank mandated response to not ever having another chart. So the secretary of Treasury heads it. It's Ah, I forget it's the, uh, federal systemic oversight committee or something like that. All eight regulators report into it. And, oh, if our stands is being the adviser Teff sock for all the analytics, what these laws were doing, you're getting over farm or more power to turn around and look at how we're going to find data across the three so we can come up consistent analytics and we can therefore hopefully take one day. Like Goldman, Sachs is pre payment model on mortgages. Apply it to Citibank Portfolio so we can look at consistency of analytics as well. It is only apply to regulated businesses. It's gonna apply to regulated financial businesses. Okay, so it's gonna capture all your mutual funds, is gonna capture all your investment adviser is gonna catch her. Most of your insurance companies through the medical air side, it's gonna capture all your commercial banks is gonna capture most of you community banks. Okay, Not all of them, because some of they're so small, they're not regularly on a federal basis. The one regulator which is being skipped at this point, is the National Association Insurance Commissioners. But they're apparently coming along as well. Independent federal legislation. Remember, they're regulated on the state level, not regularly on the federal level. But they've kind of realized where the ball's going and, >> well, let's make life better or simply more complex. >> It's going to make life horrible at first, but we're gonna take out incredible efficiency gains, probably after the first time you get it done. Okay, is gonna be the problem of getting it done to everyone agreeing. We use the same definitions >> of the same data. Who gets the efficiency gains? The regulators, The companies are both >> all everyone. Can you imagine that? You know Ah, Goldman Sachs earnings report comes out. You're an analyst. Looking at How do I know what Goldman? Good or bad? You have your own equity model. You just give the model to the semantic worksheet and all turn around. Say, Oh, those numbers are all good. This is what expected. Did it? Did it? Didn't you? Haven't. You could do that. There are examples of companies here in the United States where they used to have, um, competitive analysis. Okay. They would be taking somewhere on the order of 600 to 7. How 100 man hours to do the competitive analysis by having an available electronically, they cut those 600 hours down to five to do a competitive analysis. Okay, that's an example of the type of productivity you're gonna see both on the investment side when you're doing analysis, but also on the regulatory site. Can you now imagine you get a regulatory reports say, Oh, there's they're out of their way out of whack. I can tell you this fraud going on here because their numbers are too much in X y z. You know, you had to fudge numbers today, >> and so the securities analyst can spend Mme. Or his or her time looking forward, doing forecasts exactly analysis than having a look back and reconcile all this >> right? And you know, you hear it through this conference, for instance, something like 80 to 85% of the time of analysts to spend getting the data ready. >> You hear the same thing with data scientists, >> right? And so it's extent that we can helped define the data. We're going thio speed things up dramatically. But then what's really instinct to me, being an M I t engineer is that we have great possibilities. An A I I mean, really great possibilities. Right now, most of the A miles or pattern matching like you know, this idea using face shield technology that's just really doing patterns. You can do wonderful predictive analytics of a I and but we just need to give ah lot of the a m a. I am a I models the contact so they can run more quickly. OK, so we're going to see a world which is gonna found funny, But we're going to see a world. We talk about semantic analytics. Okay. Semantic analytics means I'm getting all the inputs for the analysis with context to each one of the variables. And when I and what comes out of it will be a variable results. But you also have semantics with it. So one in the future not too distant future. Where are we? We're in some of the national labs. Where are you doing it? You're doing pipelines of one model goes to next model goes the next mile. On it goes Next model. So you're gonna software pipelines, Believe or not, you get them running out of an Excel spreadsheet. You know, our modern Enhanced Excel spreadsheet, and that's where the future is gonna be. So you really? If you're gonna be really good in this business, you're gonna have to be able to use your brain. You have to understand what data means You're going to figure out what your modeling really means. What happens if we were, You know, normally for a lot of the stuff we do bell curves. Okay, well, that doesn't have to be the only distribution you could do fat tail. So if you did fat tail descriptions that a bell curve gets you much different results. Now, which one's better? I don't know, but, you know, and just using example >> to another cut in the data. So our view now talk about more about the tech behind this. He's mentioned a I What about math? Machine learning? Deep learning. Yeah, that's a color to that. >> Well, the tech behind it is, believe or not, some relatively old tech. There is a technology called rd F, which is kind of turned around for a long time. It's a science kind of, ah, machine learning, not machine wearing. I'm sorry. Machine code type. Fairly simplistic definitions. Lots of angle brackets and all this stuff there is a higher level. That was your distracted, I think put into standard in, like, 2000 for 2005. Called out. Well, two point. Oh, and it does a lot at a higher level. The same stuff that already f does. Okay, you could also create, um, believer, not your own special ways of a communicating and ontology just using XML. Okay, So, uh, x b r l is an enhanced version of XML, okay? And so some of these older technologies, quote unquote old 20 years old, are essentially gonna be driving a lot of this stuff. So you know you know Corbett, right? Corba? Is that what a maid omg you know, on the communication and press thing, do you realize that basically every single device in the world has a corpus standard at okay? Yeah, omg Standard isn't all your smartphones and all your computers. And and that's how they communicate. It turns out that a lot of this old stuff quote unquote, is so rigidly well defined. Well done that you can build modern stuff that takes us to the Mars based on these old standards. >> All right, we got to go. But I gotta give you the award for the most acronyms >> HR 15 30 fi G o m g s b r >> m fsoc tarp. Oh, fr already halfway. We knew that Owl XML ex brl corba, Which of course >> I do. But that's well done. Like thanks so much for coming. Everyone tried to have you. All right, keep it right there, everybody, We'll be back with our next guest from M i t cdo I Q right after this short, brief short message. Thank you