David Shacochis, Lumen | AWS re:Invent 2022
(upbeat music) >> Hello, friends. Welcome back to The Cube's live coverage of AWS re:Invent 2022. We're in Vegas. Lovely Las Vegas. Beautiful outside, although I have only seen outside today once, but very excited to be at re:Invent. We're hearing between 50,000 and 70,000 attendees and it's insane, but people are ready to be back. This morning's keynote by CEO Adam Selipsky was full of great messages, big focus on data, customers, partners, the ecosystem. So excited. And I'm very pleased to welcome back one of our alumni to the program, David Shacochis, VP Enterprise Portfolio Strategy Product Management at Lumen. David, welcome back. >> Lisa, good to be here. The Five Timers Club. >> You are in the Five Timers Club. This is David's fifth appearance on the show. And we were talking before we went live- >> Do we do the jacket now and do we do the jacket later? >> Yeah, the jacket will come later. >> Okay. >> The Five Timers Club, like on SNL. We're going to have that for The Cube. We'll get you measured up and get that all fitted for you. >> That'd be better. >> So talk a little bit about Lumen. 'Cause last time you hear it wasn't Lumen. >> We weren't Lumen last time. So this is the first time... last time we were here on The Cube at re:Invent. This was probably 2019 or so. We were a different company. The company was called CenturyLink back then. We rebranded in 2020 to really represent our identity as a delivery of...as a solutions provider over our fiber network. So Lumen is the corporate brand, the company name. It represents basically a lot of the fiber that's been laid throughout the world and in North America and in enterprise metropolitan areas over the past 10 to 15 years. You know, companies like CenturyLink and Quest and Level 3, all those companies have really rolled up into building that core asset of the network. So Lumen is really the brand for the 21st century for the company, really focused on delivering services for the enterprise and then delivering a lot of value added services around that core network asset. >> So rebranding during the pandemic, what's been the customer feedback and sentiment? >> Yeah, I think customers have really actually appreciated it as certainly a more technology oriented brand, right? Sort of shifting away a little bit from some of the communications and telecom background of the company and the heritage. And while those assets that were built up during that period of time have been substantial, and we still build off of those assets going forward, really what a lot of the customer feedback has been is that it puts us in a posture to be a little bit more of a business solutions provider for customers, right? So there's a lot of things that we can do with that core network asset, the fiber networking a lot of the services that we launch on that in terms of public IP, you know, public internet capacity, private networking, private VPNs, VoIP and voice services. These are services that you'd expect from a company like that. But there's a lot of services inside the Lumen brand that you might surprise you, right? There's an edge computing capability that can deliver five milliseconds of latency within 95% of North American enterprise. >> Wow. >> There's a threat detection lab that goes and takes all of the traffic flowing over the public side of our network and analyzes it in a data lake and turns it into threat intelligence that we then offer off to our customers on a subscription basis. There's a production house that goes and, you know, does production networking for major sports arenas and sports events. There's a wide range of services inside of Lumen that really what the Lumen brand allows us to do is start talking about what those services can do and what networking can do for our customers in the enterprise in a more comprehensive way. >> So good changes, big brand changes for Lumen in the last couple of years. Also, I mean, during a time of such turmoil in the world, we've seen work change dramatically. You know, everybody...companies had to pivot massively quickly a couple years ago. >> Yep. >> Almost approaching three years ago, which is crazy amazing to be digital because they had to be able to survive. >> They did >> Now they're looking at being able to thrive, but now we're also in this hybrid work environment. The future of work has changed. >> Totally. >> Almost permanently. >> Yep. >> How is Lumen positioned to address some of the permanent changes to the work environments? Like the last time we were at re:Invented- >> Yeah. >> In person. This didn't exist. >> That's right. So really, it's one of the things we talk to our customers almost the most about is this idea of the future of work. And, you know, we really think about the future of work as about, you know, workers and workloads and the networks that connect them. You think about how much all of those demands are shifting and changing, right? What we were talking about, and it's very easy for all of us to conceptualize what the changing face of the worker looks like, whether those are knowledge workers or frontline workers the venues in which people are working the environments and that connectivity, predictability of those work desk environments changes so significantly. But workloads are changing and, you know we're sitting here at a trade show that does nothing but celebrate the transformation of workloads. Workloads running in ways in business logic and capturing of data and analysis of data. The changing methodologies and the changing formats of workloads, and then the changing venues for workloads. So workloads are running in places that never used to be data centers before. Workloads are running in interesting places and in different and challenging locations for what didn't used to be the data center. And so, you know, the workloads and the workloads are in a very dynamic situation. And the networks that connect them have to be dynamic, and they have to be flexible. And that's really why a lot of what Lumen invests in is working on the networks that connect workers and workloads both from a visibility and a managed services perspective to make sure that we're removing blind spots and then removing potential choke points and capacity issues, but then also being adaptable and dynamic enough to be able to go and reconfigure that network to reach all of the different places that, you know, workers and workloads are going to evolve into. What you'll find in a lot of cases, you know, the workers...a common scenario in the enterprise. A 500 person company with, you know, five offices and maybe one major facility. You know, that's now a 505 office company. >> Right. >> Right? The challenge of the network and the challenge of connecting workers and workloads is really one of the main conversations we have with our customers heading into this 21st century. >> What are some of the things that they're looking forward to in terms of embracing the future of work knowing this is probably how it's going to remain? >> Yeah, I think companies are really starting to experiment carefully and start to think about what they can do and certainly think about what they can do in the cloud with things like what the AWS platform allows them to do with some of the AWS abstractions and the AWS services allow them to start writing software for, and they're starting to really carefully, but very creatively and reach out into their you know, their base of enterprise data, their base of enterprise value to start running some experiments. We actually had a really interesting example of that in a session that Lumen shared here at re:Invent yesterday. You know, for the few hundred people that were there. You know, I think we got a lot of great feedback. It was really interesting session about the...really gets at this issue of the future of work and the changing ways that people are working. It actually was a really cool use case we worked on with Major League Baseball, Fox Sports, and AWS with the... using the Lumen network to essentially virtualize the production truck. Right? So you've all heard that, you know, the sports metaphor of, you know, the folks in the booth were sitting there started looking down and they're saying, oh great job by the guys or the gals in the truck. >> Yep. >> Right? That are, you know, that bring in that replay or great camera angle. They're always talking about the team and their production truck. Well, that production truck is literally a truck sitting outside the stadium. >> Yep. >> Full of electronics and software and gear. We were able to go and for a Major League Baseball game in...back in August, we were able to go and work with AWS, using the Lumen network, working with our partners and our customers at Fox Sports and virtualize all of that gear inside the truck. >> Wow. That's outstanding. >> Yep. So it was a live game. You know, they simulcast it, right? So, you know, we did our part of the broadcast and many hundreds of people, you know, saw that live broadcast was the first time they tried doing it. But, you know, to your point, what are enterprises doing? They're really starting to experiment, sort to push the envelope, right? They're kind of running things in new ways, you know, obviously hedging their bets, right? And sort of moving their way and sort of blue-green testing their way into the future by trying things out. But, you know, this is a massive revenue opportunity for a Major League Baseball game. You know, a premier, you know, Sunday night baseball contest between the Yankees and the Cardinals. We were able to go and take the entire truck, virtualize it down to a small rack of connectivity gear. Basically have that production network run over redundant fiber paths on the Lumen network up into AWS. And AWS is where all that software worked. The technical director of the show sitting in his office in North Carolina. >> Wow. >> The sound engineer is sitting in, you know, on his porch in Connecticut. Right? They were able to go and do the work of production anywhere while connected to AWS and then using the Lumen network, right? You know, the high powered capabilities of Lumens network underlay to be able to, you know, go and design a network topology and a worked topology that really wasn't possible before. >> Right. It's nice to hear, to your point, that customers are really embracing experimentation. >> Right. >> That's challenging to, obviously there was a big massive forcing function a couple of years ago where they didn't have a choice if they wanted to survive and eventually succeed and grow. >> Yeah. >> But the mindset of experimentation requires cultural change and that's a hard thing to do especially for I would think legacy organizations like Major League Baseball, but it sounds like they have the appetite. >> Yeah. They have the interest. >> They've been a fairly innovative organization for some time. But, you know, you're right. That idea of experimenting and that idea of trying out new things. Many people have observed, right? It's that forcing function of the pandemic that really drove a lot of organizations to go and make a lot of moves really quickly. And then they realized, oh, wait a minute. You know... I guess there's some sort of storytelling metaphor in there at some point of people realizing, oh wait, I can swim in these waters, right? I can do this. And so now they're starting to experiment and push the envelope even more using platforms like AWS, but then using a lot of the folks in the AWS partner network like Lumen, who are designing and sort of similarly inspired to deliver, you know, on demand and virtualized and dynamic capabilities within the core of our network and then within the services that our network can and the ways that our network connects to AWS. All of that experimentation now is possible because a lot of the things you need to do to try out the experiment are things you can get on demand and you can kind of pat, you can move back, you can learn. You can try new things and you can evolve. >> Right. >> Yep. >> Right. Absolutely. What are some of the things that you're excited about as, you know, here was this forcing function a couple years ago, we're coming out of that now, but the world has changed. The future of work as you are so brilliantly articulated has changed permanently. What are you excited about in terms of Lumen and AWS going forward? As we saw a lot of announcements this morning, big focus on data, vision of AWS is really that flywheel with Adams Selipsky is really, really going. What are you excited about going forward into 2023? >> Yeah, I mean we've been working with AWS for so long and have been critical partners for so long that, you know, I think a lot of it is continuation of a lot of the great work we've been doing. We've been investing in our own capabilities around the AWS partner network. You know, we're actually in a fairly unique position, you know, and we like to think that we're that unique position around the future of work where between workers, workloads and the networks that connect them. Our fingers are on a lot of those pulse points, right? Our fingers are on at really at the nexus of a lot of those dynamics. And our investment with AWS even puts us even more so in a position to go where a lot of the workloads are being transformed, right? So that's why, you know, we've invested in being one of the few network operators that is in the AWS partner network at the advanced tier that have the managed services competency, that have the migration competency and the network competency. You can count on one hand the number of network operators that have actually invested at that level with AWS. And there's an even smaller number that is, you know, based here in the United States. So, you know, I think that investment with AWS, investment in their partner programs and then investment co-innovation with AWS on things like that MLB use case really puts us in a position to keep on doing these kinds of things within the AWS partner network. And that's one of the biggest things we could possibly be excited about. >> So what does the go to market look like? Is it Lumen goes in, brings in AWS, vice versa? Both? >> Yeah, so a lot of being a member of the AWS partner network you have a lot of flexibility. You know, we have a lot of customers that are, you know, directly working with AWS. We have a lot of customers that would basically look to us to deliver the solution and, you know, and buy it all as a complete turnkey capability. So we have customers that do both. We have customers that, you know, just look to Lumen for the Lumen adjacent services and then pay, you know, pay a separate bill with AWS. So there's a lot of flexibility in the partner network in terms of what Lumen can deliver as a service, Lumen can deliver as a complete solution and then what parts of its with AWS and their platform factors into on an on-demand usage basis. >> And that would all be determined I imagine by what the customer really needs in their environment? >> Yeah, and sort of their own cloud strategy. There's a lot of customers who are all in on AWS and are really trying to driving and innovating and using some of the higher level services inside the AWS platform. And then there are customers who kind of looked at AWS as one of a few cloud platforms that they want to work with. The Lumen network is compatible and connected to all of them and our services teams are, you know, have the ability to go and let customers sort of take on whatever cloud posture they need. But if they are all in on AWS, there's, you know. Not many networks better to be on than Lumen in order to enable that. >> With that said, last question for you is if you had a bumper sticker or a billboard. Lumen's rebranded since we last saw you. What would that tagline or that phrase of impact be on that bumper sticker? >> Yeah, I'd get in a lot of trouble with our marketing team if I didn't give the actual bumper sticker for the company. But we really think of ourselves as the platform for amazing things. The fourth industrial revolution, everything going on in terms of the future of work, in terms of the future of industrial innovation, in terms of all the data that's being gathered. You know, Adam in the keynote this morning really went into a lot of detail on, you know, the depth of data and the mystery of data and how to harness it all and wrangle it all. It requires a lot of networking and a lot of connectivity. You know, for us to acquire, analyze and act on all that data and Lumen's platform for amazing things really helps forge that path forward to that fourth industrial revolution along with great partners like AWS. >> Outstanding. David, it's been such a pleasure having you back on The Cube. We'll get you fitted for that five timers club jacket. >> It sounds good. (Lisa laughs) >> I'll be back. >> Thanks so much for your insights and your time and well done with what you guys are doing at Lumen and AWS. >> Thanks Lisa. >> For David Shacochis, I'm Lisa Martin. You've been watching The Cube hopefully all day. This is our first full day of coverage at AWS re:Invent '22. Stick around. We'll be back tomorrow, and we know we're going to see you then. Have a great night. (upbeat music)
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partners, the ecosystem. Lisa, good to be here. You are in the Five Timers Club. We're going to have that for The Cube. 'Cause last time you hear it wasn't Lumen. over the past 10 to 15 years. a lot of the services and takes all of the traffic for Lumen in the last couple of years. because they had to be able to survive. The future of work has changed. This didn't exist. of the different places that, you know, of the main conversations we have the sports metaphor of, you know, about the team and their production truck. gear inside the truck. Wow. of the broadcast and many to be able to, you know, It's nice to hear, to your point, a couple of years ago where But the mindset of experimentation They have the interest. because a lot of the things The future of work as you are and the networks that connect them. of the AWS partner network have the ability to go and be on that bumper sticker? into a lot of detail on, you know, We'll get you fitted for It sounds good. and well done with what you guys are doing and we know we're going to see you then.
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JC Herrera, CrowdStrike, Craig Neri & Diezel Lodder, Operation Motorsport | CrowdStrike Fal.Con 2022
>>Welcome back to Falcon 2022. This is Dave LAN. We get a special presentation segment for you today. This is Walter Wall day one of day two's cube coverage, JC Herrera. Here's my designated cohost. Who's the chief human resource officer at CrowdStrike. Craig Neri is to my left. He's the beneficiary and the beneficiary trustee and ambassador of, of operation Motorsport and former us air force. Thank you for your service. Thank you. And Deel Lauder, who is CEO and co-founder of operation Motorsport. Jen, welcome to the cube. Thanks so much for coming on. Great to be JC set this up for us. Explain your role, explain the corporate giving the whole student connection and the veterans take us through that. >>Yeah, sure. Yeah. So as, as head of HR, one of the, one of the things that we do is, is help manage part of the corporate giving strategy. And, and one of those things that, that we love to do is to also invest in students and in our veterans, it's just a part of our giving program. So this partnership with operation Motorsport is really critical to that. And if you want to dive a little bit deeper into that, we just see that there's a gigantic skills gap in cyber security. And so when we, when there's over millions of open roles around the world and 700,000 of 'em in the us alone, we've gotta go close that gap. And so our next gen scholarships that come out of the, that are giving funds are, are awarded to students who are studying cyber security or AI. And the other side of that is that this partnership with operation motor sport, then we get the opportunity to do some internships with veterans through operation motor sport as well, the >>Number 700,000 now, but pre pandemic. I remember number 3 50, 300 50,000. It's it's doubled now just in the us. Amazing. All right, diesel, tell us about the mission of operation motor sport, like who are the beneficiaries let's get into it. >>So operation motor sport engages ill, injured, wounded service members, those that are medically retiring from the service or disabled veterans, these individuals be taken out of their units. They lose their team identity, their purpose. And, and what we do is those that apply to the program and have a desire to work around shiny objects and fast cars and all the great smells or just car guys or gals that we have some of those as well. They, we, we bring them onto the teams as beneficiaries. So embed them into a race team and give them opportunity to find something new. We're a recovery program. We're not about, you know, finding jobs for these folks. It's about networking and getting outta that, you know, outta the dark places where some of them end up going, because this is a, a huge change for them. And, and in doing so, we now expose them to crowd strike. You know, that's, that's one of the new relationships that, that we have where potentially if they want to, they can pursue new opportunities in areas like cyber security. >>And they're chosen through an application process. You're I'm, I'm inferring. >>Yeah. They just go online and say, you know, through word of mouth or through a friend or through the, the USO and other organizations, they go online and they click the apply here and they fill it out. And our beneficiary trustee, Craig, and calls 'em up and says, Hey, tell me about what you're looking for. And, and we, we pair them up with the race team and Craig, >>You're also a, a beneficiary in addition to being the beneficiary trustee. So explain that, what's your story? >>Right. So I started in this organization as a beneficiary. I was the one that hit the button on the website. And, and then a few minutes later, I got a phone call from then Tiffany Lader, diesel's wife, who's our executive director in the organization. And, and I had that same conversation that I now have with beneficiaries today. I did a, I did a full season with them last year in 2021 as a beneficiary. But at the end I realized how big of an impact that this has with folks. Transition can be very difficult, especially if they're ill injured or wounded. And so I asked if I could help if I could give back, cuz it meant such it had such a big impact on me. I'd like to, to help other veterans as well. Can I >>Ask you what made you hit that button? What made you apply? >>That's a great question. So I was one of the very fortunate ones that had a transition coach. I was in the military for 29 years and had a lot of great connections in the military and, and was connected to a coach, a transition coach and just exploring, you know, what that, what that would look like. And she was the one who said, Hey, why don't we, why don't we explore this passion of Motorsports that you have? My family had been going to, to Motorsports events for, you know, 50 years. And so, so I thought back, all right, this is, I like this idea. Let's, let's pursue this. So a quick Google search and operation Motorsport popped up and I hit the button and >>What programs are available in operation >>Motorsport? Yeah. So diesel kind of outline outlined it. We have basically three different programs. We have the, our immersion program, which is exactly what diesel described, where we take that veteran. And we actually immerse them in a race team. They're doing the, exactly what I was doing, doing tires and fuel and whatever the team needs them to do. We also have our emo sports program where folks who can't do the immersion program, immersion program is takes a pretty big time commitment sometimes. And so they just don't have the capacity or abilities to be able to do those. We could put 'em in our emo sports program where they can do it all virtually we're actually, we have a season going on right now where we, we have veterans racing in that emo sports program. And then we have a, a diversionary therapy program where we have a, a Patriot car corral set up at all these tracks. So they can go out with like-minded individuals and spend the day out there with those folks, other veterans. And we do pit pit tours and, and we get 'em out on the track for a little bit of a, you know, highway speeds, nothing ridiculous. But we, we did doing some highway speeds. So we have a, a few, few different ways for them to be >>Involved. So, so the number three is like a splash in the pond, whereas number ones, the, to like full immersion. Right? Correct. And so what are you doing in the full immersion? What is, what is that like? I mean, you're literally changing tires and, and, and you're >>Yeah. You name it. You're >>In the you're you're you're in that sort of sphere of battle, if you will. Right. >>The beauty of this is we could take somebody's capabilities and skill set and we can match it to whatever that looks like on a race team. Some people come in and have no experience whatsoever. And so we find a team that needs, you know, that has a development opportunities where they could come in, their, their initial job might be to fuel fuel cans or, you know, take tires off the car, wipe the car down, it's little things in the beginning. And then slowly as they start to grow and learn, then they take on bigger roles. But we also have different positions. They can be immersed in, in teams, but they can also be immersed in the series. So we have folks that are doing like tech inspections. We have folks that are doing race control up in the, up in the tower, directing race operations. So we have lots of opportunities, tons of potential. We, we foster those relationships and take the folks, whatever their capabilities and, and abilities are and find the right position for >>'em think, thinking about your personal experience, how, how did it, how would you say it affected you? >>Yeah. To understand that you really have to understand military transition. And I think that's where a lot of the folks that have never experienced this really struggle transition from the military is really difficult. And it's really difficult, even if you're, if you're not broken or you don't have some kind of illness or injury, but you add that factor into at the same time and it could be extremely difficult. And that's why we see like the 22, a day suicide rates with veterans, it's very, very high. Right? And so when you, when you come into this program, it, it is a little bit of a leap of faith, right? This is very new experience for somebody, right? For somebody like myself who had 29 years of experience in the military, very senior person in the military. And now you're at the bottom of the totem pole and trying to figure it all out again, it's, it's a, it's a big jump. But what you realize really quickly is a lot of the things that you experience in the military, you experience in that Pata, same exact things, lots of small team environment, lots of diversity, lots of challenges, lots of roadblocks ups downs, you, you deploy just like you would deploy in, in the military, you bring the cars to a track, you execute a mission, then you pack it up and bring it home. So it's, there's so many similarities in >>The process. I mean, yeah. Diesel hearing Craig explained that there are the similarities sound very clear, but, but, but how did how'd you come up with this idea? It makes sense now in retrospect, but somebody just said, Hey, you know, we have this and we have this and we can marry him or no, not >>Really. And it it's a funny story because I always said, I, I, I don't believe in reinventing the wheel, I believe in stealing the car. And so there's a sister organization that we have in the UK called mission Motorsport. And, and, and they invented this five years before we did. And, and they were successful. And I was, you know, through, through friendships and opportunities, I got to witness it in, in 2016. So went over to, to Wales in the UK and, and watched it in action. And we were there for one race weekend, race of remembrance, which is where we go back to, we'll be going back to November, taking 13 beneficiaries over to race in our own race team for a 12 hour race. And that's a whole other story, but that's where it all started. You know, we, we saw the opportunities and said, wow, they're changing lives through recovery, you know, through motor sport and the similarities and what they were achieving. >>Our initial goal was let's just come back and do this again next year, because we need to bring north American transitioning members over to, to witness this and take part. And then fast forward, we said, why stop there? And we stood up an organization. Now I'll tell you that the organization is not what it was, the, the initial vision. This is not where, I mean, I never imagine that we get to this point this day, especially with the announcement this morning, you know, with the partnership with CrowdStrike, it it's huge for us, but we've evolved into something that was very similar to the initial vision. And that was helping, helping medically transitioning service members with their own personal struggles and recovery. You know, the reason we call it operation Motorsport is because operations have no beginning and no end and our, and what we do makes us so different in that we're not a one and done, we take care of these guys. Even when they become alumni, they, they still come back. They, they come back to volunteer, they come back to check in their friends and, and all kinds. It's really, really neat. And, >>And JC of course, CrowdStrike has an affinity for Motorsports, right? You got the logo on the Mercedes. You you've got the safety car at, this is, I think it's called the safety car. Right. That's it? Yeah. So, okay. So that's an obvious connection, but, but where did the idea germinate for this partnership? >>There's so many things, but first and foremost, I think that the, the values of CrowdStrike and those of operation motors were very much aligned. If you think about it, we, we focus a lot on teamwork. There's no way we do these jobs without the teamwork part. We all love data. These guys are all in the data all the time, trying to figure out, you know, what your adversaries are doing. So there's that kind of component to it. And I'd say the last bit is critical thinking. So when we think about our organizations and how well aligned they are, that was a, that was a no brainer. And into the other side of it, we get the opportunity to do mentorship programs. I mean, I think both ways, hopefully I get invited to the Patriot corral. At some point I can go, go work on a car, but we'll do those both ways or mentorship opportunities. If folks from operation motor sport win a team up with a crowd striker. So >>Do you ever get to drive the car? Or is that just an awful question? No, that's >>A good question. Actually I do from the, from the track to the pits, very slow >>Speeds. They don't let you out in the train. That's right. No, I don't get to go out on the track. Diesel, you ever, you ever drive one >>Of these? I, I, I I've been on, on the track on, on different cars, not in the race cars that, that, that, that are on the team, but something that's unique in the Patriot corral, for instance, because JC brought that up is that when we do these Patriot corrals, part of that program at lunchtime is, is taking the individuals and doing parade laps. And now, you know, a parade lap. Well, what's the fun in that, but you drive highway speeds on a racetrack and your own personal car, following a pace car. That's a pretty cool experience. Cool. >>Yeah, that's very cool guys. Congratulations on this program and all your success and all the, the giving that you do for the community and, and your peers really appreciate you guys coming on the cube and telling me great story. Thanks >>For having, thanks for the opportunity. You're very >>Welcome. All right. Keep it right there. Everybody. Dave ante and Dave Nicholson, we'll be back from Falcon 2022 at the area in Las Vegas. You watching the cube.
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Thank you for your service. And if you want to dive a little bit deeper into that, It's it's doubled now just in the us. You know, that's, that's one of the new relationships that, that we have where And they're chosen through an application process. And our beneficiary trustee, Craig, and calls 'em up and says, You're also a, a beneficiary in addition to being the beneficiary trustee. And so I asked if I could help if I could give back, cuz it meant such it had to Motorsports events for, you know, 50 years. and we get 'em out on the track for a little bit of a, you know, highway speeds, nothing ridiculous. And so what are you doing in the full immersion? You're In the you're you're you're in that sort of sphere of battle, if you will. a team that needs, you know, that has a development opportunities where they could come in, in the military, you bring the cars to a track, you execute a mission, then you pack it up and bring it home. makes sense now in retrospect, but somebody just said, Hey, you know, we have this and we have this and we And we were there for one race weekend, race of remembrance, which is where we go back to, point this day, especially with the announcement this morning, you know, with the partnership with CrowdStrike, And JC of course, CrowdStrike has an affinity for Motorsports, right? These guys are all in the data all the time, trying to figure out, you know, Actually I do from the, from the track to the pits, very slow They don't let you out in the train. And now, you know, a parade lap. all the, the giving that you do for the community and, and your peers really appreciate you guys coming on For having, thanks for the opportunity. at the area in Las Vegas.
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Alteryx Democratizing Analytics Across the Enterprise Full Episode V1b
>> It's no surprise that 73% of organizations indicate analytics spend will outpace other software investments in the next 12 to 18 months. After all as we know, data is changing the world and the world is changing with it. But is everyone's spending resulting in the same ROI? This is Lisa Martin. Welcome to "theCUBE"'s presentation of democratizing analytics across the enterprise, made possible by Alteryx. An Alteryx commissioned IDC info brief entitled, "Four Ways to Unlock Transformative Business Outcomes from Analytics Investments" found that 93% of organizations are not utilizing the analytics skills of their employees, which is creating a widening analytics gap. On this special "CUBE" presentation, Jason Klein, product marketing director of Alteryx, will join me to share key findings from the new Alteryx commissioned IDC brief and uncover how enterprises can derive more value from their data. In our second segment, we'll hear from Alan Jacobson, chief data and analytics officer at Alteryx. He's going to discuss how organizations across all industries can accelerate their analytic maturity to drive transformational business outcomes. And then in our final segment, Paula Hansen, who is the president and chief revenue officer of Alteryx, and Jacqui Van der Leij Greyling, who is the global head of tax technology at eBay, they'll join me. They're going to share how Alteryx is helping the global eCommerce company innovate with analytics. Let's get the show started. (upbeat music) Jason Klein joins me next, product marketing director at Alteryx. Jason, welcome to the program. >> Hello, nice to be here. >> Excited to talk with you. What can you tell me about the new Alteryx IDC research, which spoke with about 1500 leaders, what nuggets were in there? >> Well, as the business landscape changes over the next 12 to 18 months, we're going to see that analytics is going to be a key component to navigating this change. 73% of the orgs indicated that analytics spend will outpace other software investments. But just putting more money towards technology, it isn't going to solve everything. And this is why everyone's spending is resulting in different ROIs. And one of the reasons for this gap is because 93% of organizations, they're still not fully using the analytics skills of their employees, and this widening analytics gap, it's threatening operational progress by wasting workers' time, harming business productivity and introducing costly errors. So in this research, we developed a framework of enterprise analytics proficiency that helps organizations reap greater benefits from their investments. And we based this framework on the behaviors of organizations that saw big improvements across financial, customer, and employee metrics, and we're able to focus on the behaviors driving higher ROI. >> So the info brief also revealed that nearly all organizations are planning to increase their analytics spend. And it looks like from the info brief that nearly three quarters plan on spending more on analytics than any other software. And can you unpack, what's driving this demand, this need for analytics across organizations? >> Sure, well first there's more data than ever before, the data's changing the world, and the world is changing data. Enterprises across the world, they're accelerating digital transformation to capitalize on new opportunities, to grow revenue, to increase margins and to improve customer experiences. And analytics along with automation and AI is what's making digital transformation possible. They're providing the fuel to new digitally enabled lines of business. >> One of the things that the study also showed was that not all analytics spending is resulting in the same ROI. What are some of the discrepancies that the info brief uncovered with respect to the changes in ROI that organizations are achieving? >> Our research with IDC revealed significant roadblocks across people, processes, and technologies. They're preventing companies from reaping greater benefits from their investments. So for example, on the people side, only one out of five organizations reported a commensurate investment in upskilling for analytics and data literacy as compared to the technology itself. And next, while data is everywhere, most organizations, 63% from our survey, are still not using the full breadth of data types available. Yet data's never been this prolific, it's going to continue to grow, and orgs should be using it to their advantage. And lastly organizations, they need to provide the right analytics tools to help everyone unlock the power of data. >> So they- >> They instead rely on outdated spreadsheet technology. In our survey, nine out of 10 respondents said less than half of their knowledge workers are active users of analytics software beyond spreadsheets. But true analytic transformation can't happen for an organization in a few select pockets or silos. We believe everyone regardless of skill level should be able to participate in the data and analytics process and be driving value. >> Should we retake that, since I started talking over Jason accidentally? >> Yep, absolutely we can do so. We'll just go, yep, we'll go back to Lisa's question. Let's just, let's do the, retake the question and the answer, that'll be able to. >> It'll be not all analytics spending results in the same ROI, what are some of the discrepancies? >> Yes, Lisa, so we'll go from your ISO, just so we get that clean question and answer. >> Okay. >> Thank you for that. On your ISO, we're still speeding, Lisa, so give it a beat in your head and then on you. >> Yet not all analytics spending is resulting in the same ROI. So what are some of the discrepancies that the info brief uncovered with respect to ROI? >> Well, our research with IDC revealed significant roadblocks across people, processes, and technologies, all preventing companies from reaping greater benefits from their investments. So on the people side, for example, only one out of five organizations reported a commensurate investment in upskilling for analytics and data literacy as compared to the technology itself. And next, while data is everywhere, most organizations, 63% in our survey, are still not using the full breadth of data types available. Data has never been this prolific. It's going to continue to grow and orgs should be using it to their advantage. And lastly, organizations, they need to provide the right analytic tools to help everyone unlock the power of data, yet instead they're relying on outdated spreadsheet technology. Nine of 10 survey respondents said that less than half of their knowledge workers are active users of analytics software. True analytics transformation can't happen for an organization in a few select pockets or silos. We believe everyone regardless of skill level should be able to participate in the data and analytics process and drive value. >> So if I look at this holistically, then what would you say organizations need to do to make sure that they're really deriving value from their investments in analytics? >> Yeah, sure. So overall, the enterprises that derive more value from their data and analytics and achieve more ROI, they invested more aggressively in the four dimensions of enterprise analytics proficiency. So they've invested in the comprehensiveness of analytics across all data sources and data types, meaning they're applying analytics to everything. They've invested in the flexibility of analytics across deployment scenarios and departments, meaning they're putting analytics everywhere. They've invested in the ubiquity of analytics and insights for every skill level, meaning they're making analytics for everyone. And they've invested in the usability of analytics software, meaning they're prioritizing easy technology to accelerate analytics democratization. >> So very strategic investments. Did the survey uncover any specific areas where most companies are falling short, like any black holes that organizations need to be aware of at the outset? >> It did, it did. So organizations, they need to build a data-centric culture. And this begins with people. But what the survey told us is that the people aspect of analytics is the most heavily skewed towards low proficiency. In order to maximize ROI, organizations need to make sure everyone in the organization has access to the data and analytics technology they need. And then the organizations also have to align their investments with upskilling in data literacy to enjoy that higher ROI. Companies who did so experience higher ROI than companies who underinvested in analytics literacy. So among the high ROI achievers, 78% have a good or great alignment between analytics investment and workforce upskilling compared to only 64% among those without positive ROI. And as more orgs adopt cloud data warehouses or cloud data lakes, in order to manage the massively increasing workloads- Can I start that one over. >> Sure. >> Can I redo this one? >> Yeah. >> Of course, stand by. >> Tongue tied. >> Yep, no worries. >> One second. >> If we could do the same, Lisa, just have a clean break, we'll go your question. >> Yep, yeah. >> On you Lisa. Just give that a count and whenever you're ready. Here, I'm going to give us a little break. On you Lisa. >> So are there any specific areas that the survey uncovered where most companies are falling short? Like any black holes organizations need to be aware of from the outset? >> It did. You need to build a data-centric culture and this begins with people, but we found that the people aspect of analytics is most heavily skewed towards low proficiency. In order to maximize ROI organizations need to make sure everyone has access to the data and analytics technology they need. Organizations that align their analytics investments with upskilling enjoy higher ROI than orgs that are less aligned. For example, among the high ROI achievers in our survey, 78% had good or great alignment between analytics investments and workforce upskilling, compared to only 64% among those without positive ROI. And as more enterprises adopt cloud data warehouses or cloud data lakes to manage increasingly massive data sets, analytics needs to exist everywhere, especially for those cloud environments. And what we found is organizations that use more data types and more data sources generate higher ROI from their analytics investments. Among those with improved customer metrics, 90% were good or great at utilizing all data sources, compared to only 67% among the ROI laggards. >> So interesting that you mentioned people, I'm glad that you mentioned people. Data scientists, everybody talks about data scientists. They're in high demand, we know that, but there aren't enough to meet the needs of all enterprises. So given that discrepancy, how can organizations fill the gap and really maximize the investments that they're making in analytics? >> Right, so analytics democratization, it's no longer optional, but it doesn't have to be complex. So we at Alteryx, we're democratizing analytics by empowering every organization to upskill every worker into a data worker. And the data from this survey shows this is the optimal approach. Organizations with a higher percentage of knowledge workers who are actively using analytics software enjoy higher returns from their analytics investment than orgs still stuck on spreadsheets. Among those with improved financial metrics, AKA the high ROI achievers, nearly 70% say that at least a quarter of their knowledge workers are using analytics software other than spreadsheets compared to only 56% in the low ROI group. Also among the high ROI performers, 63% said data and analytic workers collaborate well or extremely well compared to only 51% in the low ROI group. The data from the survey shows that supporting more business domains with analytics and providing cross-functional analytics correlates with higher ROI. So to maximize ROI, orgs should be transitioning workers from spreadsheets to analytics software. They should be letting them collaborate effectively and letting them do so cross-functionally. >> Yeah, that cross-functional collaboration is essential for anyone in any organization and in any discipline. Another key thing that jumped out from the survey was around shadow IT. The business side is using more data science tools than the IT side. And it's expected to spend more on analytics than other IT. What risks does this present to the overall organization, if IT and the lines of business guys and gals aren't really aligned? >> Well, there needs to be better collaboration and alignment between IT and the line of business. The data from the survey, however, shows that business managers, they're expected to spend more on analytics and use more analytics tools than IT is aware of. And this isn't because the lines of business have recognized the value of analytics and plan to invest accordingly, but a lack of alignment between IT and business. This will negatively impact governance, which ultimately impedes democratization and hence ROI. >> So Jason, where can organizations that are maybe at the outset of their analytics journey, or maybe they're in environments where there's multiple analytics tools across shadow IT, where can they go to Alteryx to learn more about how they can really simplify, streamline, and dial up the value on their investment? >> Well, they can learn more on our website. I also encourage them to explore the Alteryx community, which has lots of best practices, not just in terms of how you do the analytics, but how you stand up in Alteryx environment, but also to take a look at your analytics stack and prioritize technologies that can snap to and enhance your organization's governance posture. It doesn't have to change it, but it should be able to align to and enhance it. >> And of course, as you mentioned, it's about people, process, and technologies. Jason, thank you so much for joining me today, unpacking the IDC info brief and the great nuggets in there. Lots that organizations can learn and really become empowered to maximize their analytics investments. We appreciate your time. >> Thank you, it's been a pleasure. >> In a moment, Alan Jacobson, who's the chief data and analytics officer at Alteryx is going to join me. He's going to be here to talk about how organizations across all industries can accelerate their analytic maturity to drive transformational business outcomes. You're watching "theCUBE", the leader in tech enterprise coverage. >> Somehow many have come to believe that data analytics is for the few, for the scientists, the PhDs, the MBAs. Well, it is for them, but that's not all. You don't have to have an advanced degree to do amazing things with data. You don't even have to be a numbers person. You can be just about anything. A titan of industry or a future titan of industry. You could be working to change the world, your neighborhood, or the course of your business. You can be saving lives or just looking to save a little time. The power of data analytics shouldn't be limited to certain job titles or industries or organizations because when more people are doing more things with data, more incredible things happen. Analytics makes us smarter and faster and better at what we do. It's practically a superpower. That's why we believe analytics is for everyone, and everything, and should be everywhere. That's why we believe in analytics for all. (upbeat music) >> Hey, everyone. Welcome back to "Accelerating Analytics Maturity". I'm your host, Lisa Martin. Alan Jacobson joins me next. The chief of data and analytics officer at Alteryx. Alan, it's great to have you on the program. >> Thanks, Lisa. >> So Alan, as we know, everyone knows that being data driven is very important. It's a household term these days, but 93% of organizations are not utilizing the analytics skills of their employees, which is creating a widening analytics gap. What's your advice, your recommendations for organizations who are just starting out with analytics? >> You're spot on, many organizations really aren't leveraging the full capability of their knowledge workers. And really the first step is probably assessing where you are on the journey, whether that's you personally, or your organization as a whole. We just launched an assessment tool on our website that we built with the International Institute of Analytics, that in a very short period of time, in about 15 minutes, you can go on and answer some questions and understand where you sit versus your peer set versus competitors and kind of where you are on the journey. >> So when people talk about data analytics, they often think, ah, this is for data science experts like people like you. So why should people in the lines of business like the finance folks, the marketing folks, why should they learn analytics? >> So domain experts are really in the best position. They know where the gold is buried in their companies. They know where the inefficiencies are. And it is so much easier and faster to teach a domain expert a bit about how to automate a process or how to use analytics than it is to take a data scientist and try to teach them to have the knowledge of a 20 year accounting professional or a logistics expert of your company. Much harder to do that. And really, if you think about it, the world has changed dramatically in a very short period of time. If you were a marketing professional 30 years ago, you likely didn't need to know anything about the internet, but today, do you know what you would call that marketing professional if they didn't know anything about the internet, probably unemployed or retired. And so knowledge workers are having to learn more and more skills to really keep up with their professions. And analytics is really no exception. Pretty much in every profession, people are needing to learn analytics to stay current and be capable for their companies. And companies need people who can do that. >> Absolutely, it seems like it's table stakes these days. Let's look at different industries now. Are there differences in how you see analytics in automation being employed in different industries? I know Alteryx is being used across a lot of different types of organizations from government to retail. I also see you're now with some of the leading sports teams. Any differences in industries? >> Yeah, there's an incredible actually commonality between the domains industry to industry. So if you look at what an HR professional is doing, maybe attrition analysis, it's probably quite similar, whether they're in oil and gas or in a high tech software company. And so really the similarities are much larger than you might think. And even on the sports front, we see many of the analytics that sports teams perform are very similar. So McLaren is one of the great partners that we work with and they use Alteryx across many areas of their business from finance to production, extreme sports, logistics, wind tunnel engineering, the marketing team analyzes social media data, all using Alteryx, and if I take as an example, the finance team, the finance team is trying to optimize the budget to make sure that they can hit the very stringent targets that F1 Sports has, and I don't see a ton of difference between the optimization that they're doing to hit their budget numbers and what I see Fortune 500 finance departments doing to optimize their budget, and so really the commonality is very high, even across industries. >> I bet every Fortune 500 or even every company would love to be compared to the same department within McLaren F1. Just to know that wow, what they're doing is so incredibly important as is what we're doing. >> So talk- >> Absolutely. >> About lessons learned, what lessons can business leaders take from those organizations like McLaren, who are the most analytically mature? >> Probably first and foremost, is that the ROI with analytics and automation is incredibly high. Companies are having a ton of success. It's becoming an existential threat to some degree, if your company isn't going on this journey and your competition is, it can be a huge problem. IDC just did a recent study about how companies are unlocking the ROI using analytics. And the data was really clear, organizations that have a higher percentage of their workforce using analytics are enjoying a much higher return from their analytic investment, and so it's not about hiring two double PhD statisticians from Oxford. It really is how widely you can bring your workforce on this journey, can they all get 10% more capable? And that's having incredible results at businesses all over the world. An another key finding that they had is that the majority of them said that when they had many folks using analytics, they were going on the journey faster than companies that didn't. And so picking technologies that'll help everyone do this and do this fast and do it easily. Having an approachable piece of software that everyone can use is really a key. >> So faster, able to move faster, higher ROI. I also imagine analytics across the organization is a big competitive advantage for organizations in any industry. >> Absolutely the IDC, or not the IDC, the International Institute of Analytics showed huge correlation between companies that were more analytically mature versus ones that were not. They showed correlation to growth of the company, they showed correlation to revenue and they showed correlation to shareholder values. So across really all of the key measures of business, the more analytically mature companies simply outperformed their competition. >> And that's key these days, is to be able to outperform your competition. You know, one of the things that we hear so often, Alan, is people talking about democratizing data and analytics. You talked about the line of business workers, but I got to ask you, is it really that easy for the line of business workers who aren't trained in data science to be able to jump in, look at data, uncover and extract business insights to make decisions? >> So in many ways, it really is that easy. I have a 14 and 16 year old kid. Both of them have learned Alteryx, they're Alteryx certified and it was quite easy. It took 'em about 20 hours and they were off to the races, but there can be some hard parts. The hard parts have more to do with change management. I mean, if you're an accountant that's been doing the best accounting work in your company for the last 20 years, and all you happen to know is a spreadsheet for those 20 years, are you ready to learn some new skills? And I would suggest you probably need to, if you want to keep up with your profession. The big four accounting firms have trained over a hundred thousand people in Alteryx. Just one firm has trained over a hundred thousand. You can't be an accountant or an auditor at some of these places without knowing Alteryx. And so the hard part, really in the end, isn't the technology and learning analytics and data science, the harder part is this change management, change is hard. I should probably eat better and exercise more, but it's hard to always do that. And so companies are finding that that's the hard part. They need to help people go on the journey, help people with the change management to help them become the digitally enabled accountant of the future, the logistics professional that is E enabled, that's the challenge. >> That's a huge challenge. Cultural shift is a challenge, as you said, change management. How do you advise customers if you might be talking with someone who might be early in their analytics journey, but really need to get up to speed and mature to be competitive, how do you guide them or give them recommendations on being able to facilitate that change management? >> Yeah, that's a great question. So people entering into the workforce today, many of them are starting to have these skills. Alteryx is used in over 800 universities around the globe to teach finance and to teach marketing and to teach logistics. And so some of this is happening naturally as new workers are entering the workforce, but for all of those who are already in the workforce, have already started their careers, learning in place becomes really important. And so we work with companies to put on programmatic approaches to help their workers do this. And so it's, again, not simply putting a box of tools in the corner and saying free, take one. We put on hackathons and analytic days, and it can be great fun. We have a great time with many of the customers that we work with, helping them do this, helping them go on the journey, and the ROI, as I said, is fantastic. And not only does it sometimes affect the bottom line, it can really make societal changes. We've seen companies have breakthroughs that have really made great impact to society as a whole. >> Isn't that so fantastic, to see the difference that that can make. It sounds like you guys are doing a great job of democratizing access to Alteryx to everybody. We talked about the line of business folks and the incredible importance of enabling them and the ROI, the speed, the competitive advantage. Can you share some specific examples that you think of Alteryx customers that really show data breakthroughs by the lines of business using the technology? >> Yeah, absolutely, so many to choose from. I'll give you two examples quickly. One is Armor Express. They manufacture life saving equipment, defensive equipments, like armor plated vests, and they were needing to optimize their supply chain, like many companies through the pandemic. We see how important the supply chain is. And so adjusting supply to match demand is really vital. And so they've used Alteryx to model some of their supply and demand signals and built a predictive model to optimize the supply chain. And it certainly helped out from a dollar standpoint. They cut over a half a million dollars of inventory in the first year, but more importantly, by matching that demand and supply signal, you're able to better meet customer demand. And so when people have orders and are looking to pick up a vest, they don't want to wait. And it becomes really important to get that right. Another great example is British Telecom. They're a company that services the public sector. They have very strict reporting regulations that they have to meet and they had, and this is crazy to think about, over 140 legacy spreadsheet models that they had to run to comply with these regulatory processes and report, and obviously running 140 legacy models that had to be done in a certain order and length, incredibly challenging. It took them over four weeks each time that they had to go through that process. And so to save time and have more efficiency in doing that, they trained 50 employees over just a two week period to start using Alteryx and learn Alteryx. And they implemented an all new reporting process that saw a 75% reduction in the number of man hours it took to run in a 60% run time performance. And so, again, a huge improvement. I can imagine it probably had better quality as well, because now that it was automated, you don't have people copying and pasting data into a spreadsheet. And that was just one project that this group of folks were able to accomplish that had huge ROI, but now those people are moving on and automating other processes and performing analytics in other areas. So you can imagine the impact by the end of the year that they will have on their business, potentially millions upon millions of dollars. And this is what we see again and again, company after company, government agency after government agency, is how analytics are really transforming the way work is being done. >> That was the word that came to mind when you were describing the all three customer examples, transformation, this is transformative. The ability to leverage Alteryx, to truly democratize data and analytics, give access to the lines of business is transformative for every organization. And also the business outcome you mentioned, those are substantial metrics based business outcomes. So the ROI in leveraging a technology like Alteryx seems to be right there, sitting in front of you. >> That's right, and to be honest, it's not only important for these businesses. It's important for the knowledge workers themselves. I mean, we hear it from people that they discover Alteryx, they automate a process, they finally get to get home for dinner with their families, which is fantastic, but it leads to new career paths. And so knowledge workers that have these added skills have so much larger opportunity. And I think it's great when the needs of businesses to become more analytic and automate processes actually matches the needs of the employees, and they too want to learn these skills and become more advanced in their capabilities. >> Huge value there for the business, for the employees themselves to expand their skillset, to really open up so many opportunities for not only the business to meet the demands of the demanding customer, but the employees to be able to really have that breadth and depth in their field of service. Great opportunities there, Alan. Is there anywhere that you want to point the audience to go to learn more about how they can get started? >> Yeah, so one of the things that we're really excited about is how fast and easy it is to learn these tools. So any of the listeners who want to experience Alteryx, they can go to the website, there's a free download on the website. You can take our analytic maturity assessment, as we talked about at the beginning, and see where you are on the journey and just reach out. We'd love to work with you and your organization to see how we can help you accelerate your journey on analytics and automation. >> Alan, it was a pleasure talking to you about democratizing data and analytics, the power in it for organizations across every industry. We appreciate your insights and your time. >> Thank you so much. >> In a moment, Paula Hansen, who is the president and chief revenue officer of Alteryx, and Jacqui Van der Leij Greyling, who's the global head of tax technology at eBay, will join me. You're watching "theCUBE", the leader in high tech enterprise coverage. >> 1200 hours of wind tunnel testing, 30 million race simulations, 2.4 second pit stops. >> Make that 2.3. >> Sector times out the wazoo. >> Way too much of this. >> Velocities, pressures, temperatures, 80,000 components generating 11.8 billion data points and one analytics platform to make sense of it all. When McLaren needs to turn complex data into winning insights, they turn to Alteryx. Alteryx, analytics automation. (upbeat music) >> Hey, everyone, welcome back to the program. Lisa Martin here, I've got two guests joining me. Please welcome back to "theCUBE" Paula Hansen, the chief revenue officer and president at Alteryx, and Jacqui Van der Leij Greyling joins us as well, the global head of tax technology at eBay. They're going to share with you how Alteryx is helping eBay innovate with analytics. Ladies, welcome, it's great to have you both on the program. >> Thank you, Lisa, it's great to be here. >> Yeah, Paula, we're going to start with you. In this program, we've heard from Jason Klein, we've heard from Alan Jacobson. They talked about the need to democratize analytics across any organization to really drive innovation. With analytics, as they talked about, at the forefront of software investments, how's Alteryx helping its customers to develop roadmaps for success with analytics? >> Well, thank you, Lisa. It absolutely is about our customers' success. And we partner really closely with our customers to develop a holistic approach to their analytics success. And it starts of course with our innovative technology and platform, but ultimately we help our customers to create a culture of data literacy and analytics from the top of the organization, starting with the C-suite. And we partner with our customers to build their roadmaps for scaling that culture of analytics, through things like enablement programs, skills assessments, hackathons, setting up centers of excellence to help their organization scale and drive governance of this analytics capability across the enterprise. So at the end of the day, it's really about helping our customers to move up their analytics maturity curve with proven technologies and best practices, so they can make better business decisions and compete in their respective industries. >> Excellent, sounds like a very strategic program, we're going to unpack that. Jacqui, let's bring you into the conversation. Speaking of analytics maturity, one of the things that we talked about in this event is the IDC report that showed that 93% of organizations are not utilizing the analytics skills of their employees, but then there's eBay. How Jacqui did eBay become one of the 7% of organizations who's really maturing and how are you using analytics across the organization at eBay? >> So I think the main thing for us is when we started out was is that, our, especially in finance, they became spreadsheet professionals instead of the things that we really want our employees to add value to. And we realized we had to address that. And we also knew we couldn't wait for all our data to be centralized until we actually start using the data or start automating and being more effective. So ultimately we really started very, very actively embedding analytics in our people and our data and our processes. >> Starting with people is really critical. Jacqui, continuing with you, what were some of the roadblocks to analytics adoption that you faced and how did you overcome them? >> So I think eBay is a very data driven company. We have a lot of data. I think we are 27 years around this year, so we have the data, but it is everywhere. And how do you use that data? How do you use it efficiently? How do you get to the data? And I believe that that is definitely one of our biggest roadblocks when we started out and just finding those data sources and finding ways to connect to them to move forward. The other thing is that people were experiencing a lot of frustration. I mentioned before about the spreadsheet professionals. And there was no, we were not independent. You couldn't move forward, you would've put it on somebody else's roadmap to get the data and to get the information if you want it. So really finding something that everybody could access analytics or access data. And finally we have to realize is that this is uncharted territory. This is not exactly something that everybody is used to working with every day. So how do you find something that is easy, and that is not so daunting on somebody who's brand new to the field? And I would call those out as your major roadblocks, because you always have, not always, but most of the times you have support from the top, and in our case we have, but at the end of the day, it's our people that need to actually really embrace it, and making that accessible for them, I would say is definitely not per se, a roadblock, but basically a block you want to be able to move. >> It's really all about putting people first. Question for both of you, and Paula we'll start with you, and then Jacqui we'll go to you. I think the message in this program that the audience is watching with us is very clear. Analytics is for everyone, should be for everyone. Let's talk now about how both of your organizations are empowering people, those in the organization that may not have technical expertise to be able to leverage data, so that they can actually be data driven. Paula. >> Yes, well, we leverage our platform across all of our business functions here at Alteryx. And just like Jacqui explained, at eBay finance is probably one of the best examples of how we leverage our own platform to improve our business performance. So just like Jacqui mentioned, we have this huge amount of data flowing through our enterprise and the opportunity to leverage that into insights and analytics is really endless. So our CFO Kevin Rubin has been a key sponsor for using our own technology. We use Alteryx for forecasting all of our key performance metrics, for business planning, across our audit function, to help with compliance and regulatory requirements, tax, and even to close our books at the end of each quarter. So it's really going to remain across our business. And at the end of the day, it comes to how do you train users? How do you engage users to lean into this analytic opportunity to discover use cases? And so one of the other things that we've seen many companies do is to gamify that process, to build a game that brings users into the experience for training and to work with each other, to problem solve and along the way, maybe earn badges depending on the capabilities and trainings that they take. And just have a little healthy competition as an employee base around who can become more sophisticated in their analytic capability. So I think there's a lot of different ways to do it. And as Jacqui mentioned, it's really about ensuring that people feel comfortable, that they feel supported, that they have access to the training that they need, and ultimately that they are given both the skills and the confidence to be able to be a part of this great opportunity of analytics. >> That confidence is key. Jacqui, talk about some of the ways that you're empowering folks without that technical expertise to really be data driven. >> Yeah, I think it means to what Paula has said in terms of getting people excited about it, but it's also understanding that this is a journey and everybody is at a different place in their journey. You have folks that's already really advanced who has done this every day. And then you have really some folks that this is brand new or maybe somewhere in between. And it's about how you get everybody in their different phases to get to the initial destination. I say initial, because I believe a journey is never really complete. What we have done is that we decided to invest, and built a proof of concept, and we got our CFO to sponsor a hackathon. We opened it up to everybody in finance in the middle of the pandemic. So everybody was on Zoom and we told people, listen, we're going to teach you this tool, it's super easy, and let's just see what you can do. We ended up having 70 entries. We had only three weeks. So and these are people that do not have a background. They are not engineers, they're not data scientists. And we ended up with a 25,000 hour savings at the end of that hackathon from the 70 entries with people that have never, ever done anything like this before. And there you have the result. And then it just went from there. People had a proof of concept. They knew that it worked and they overcame the initial barrier of change. And that's where we are seeing things really, really picking up now. >> That's fantastic. And the business outcome that you mentioned there, the business impact is massive, helping folks get that confidence to be able to overcome sometimes the cultural barriers is key here. I think another thing that this program has really highlighted is there is a clear demand for data literacy in the job market, regardless of organization. Can each of you share more about how you're empowering the next generation of data workers? Paula, we'll start with you. >> Absolutely, and Jacqui says it so well, which is that it really is a journey that organizations are on and we as people in society are on in terms of upskilling our capabilities. So one of the things that we're doing here at Alteryx to help address this skillset gap on a global level is through a program that we call SparkED, which is essentially a no-cost analytics education program that we take to universities and colleges globally to help build the next generation of data workers. When we talk to our customers like eBay and many others, they say that it's difficult to find the skills that they want when they're hiring people into the job market. And so this program's really developed just to do just that, to close that gap and to work hand in hand with students and educators to improve data literacy for the next generation. So we're just getting started with SparkED. We started last May, but we currently have over 850 educational institutions globally engaged across 47 countries, and we're going to continue to invest here because there's so much opportunity for people, for society and for enterprises, when we close the gap and empower more people with the necessary analytics skills to solve all the problems that data can help solve. >> So SparkED has made a really big impact in such a short time period. It's going to be fun to watch the progress of that. Jacqui, let's go over to you now. Talk about some of the things that eBay is doing to empower the next generation of data workers. >> So we basically wanted to make sure that we kept that momentum from the hackathon, that we don't lose that excitement. So we just launched the program called eBay Masterminds. And what it basically is, is it's an inclusive innovation in each other, where we firmly believe that innovation is for upskilling for all analytics roles. So it doesn't matter your background, doesn't matter which function you are in, come and participate in in this where we really focus on innovation, introducing new technologies and upskilling our people. We are, apart from that, we also said, well, we shouldn't just keep it to inside eBay. We have to share this innovation with the community. So we are actually working on developing an analytics high school program, which we hope to pilot by the end of this year, where we will actually have high schoolers come in and teach them data essentials, the soft skills around analytics, but also how to use Alteryx. And we're working with, actually, we're working with SparkED and they're helping us develop that program. And we really hope that at, say, by the end of the year, we have a pilot and then also next year, we want to roll it out in multiple locations in multiple countries and really, really focus on that whole concept of analytics for all. >> Analytics for all, sounds like Alteryx and eBay have a great synergistic relationship there that is jointly aimed at especially going down the stuff and getting people when they're younger interested, and understanding how they can be empowered with data across any industry. Paula, let's go back to you, you were recently on "theCUBE"'s Supercloud event just a couple of weeks ago. And you talked about the challenges the companies are facing as they're navigating what is by default a multi-cloud world. How does the Alteryx Analytics Cloud platform enable CIOs to democratize analytics across their organization? >> Yes, business leaders and CIOs across all industries are realizing that there just aren't enough data scientists in the world to be able to make sense of the massive amounts of data that are flowing through organizations. Last I checked, there was 2 million data scientists in the world, so that's woefully underrepresented in terms of the opportunity for people to be a part of the analytics solution. So what we're seeing now with CIOs, with business leaders is that they're integrating data analysis and the skillset of data analysis into virtually every job function, and that is what we think of when we think of analytics for all. And so our mission with Alteryx Analytics Cloud is to empower all of those people in every job function, regardless of their skillset, as Jacqui pointed out from people that are just getting started all the way to the most sophisticated of technical users. Every worker across that spectrum can have a meaningful role in the opportunity to unlock the potential of the data for their company and their organizations. So that's our goal with Alteryx Analytics Cloud, and it operates in a multi cloud world and really helps across all sizes of data sets to blend, cleanse, shape, analyze, and report out so that we can break down data silos across the enterprise and help drive real business outcomes as a result of unlocking the potential of data. >> As well as really lessening that skill gap. As you were saying, there's only 2 million data scientists. You don't need to be a data scientist, that's the beauty of what Alteryx is enabling and eBay is a great example of that. Jacqui, let's go ahead and wrap things with you. You talked a great deal about the analytics maturity that you have fostered at eBay. It obviously has the right culture to adapt to that. Can you talk a little bit and take us out here in terms of where Alteryx fits in as that analytics maturity journey continues and what are some of the things that you are most excited about as analytics truly gets democratized across eBay? >> When we're starting up and getting excited about things when it comes to analytics, I can go on all day, but I'll keep it short and sweet for you. I do think we are on the top of the pool of data scientists. And I really feel that that is your next step, for us anyways, is that how do we get folks to not see data scientists as this big thing, like a rocket scientist, it's something completely different. And it's something that is in everybody in a certain extent. So again, partnering with Alteryx who just released the AI ML solution, allowing folks to not have a data scientist program, but actually build models and be able to solve problems that way. So we have engaged with Alteryx and we purchased the licenses, quite a few. And right now through our Masterminds program, we're actually running a four month program for all skill levels, teaching them AI ML and machine learning and how they can build their own models. We are really excited about that. We have over 50 participants without a background from all over the organization. We have members from our customer services. We have even some of our engineers are actually participating in the program. We just kicked it off. And I really believe that that is our next step. I want to give you a quick example of the beauty of this is where we actually just allow people to go out and think about ideas and come up with things. And one of the people in our team who doesn't have a data scientist background at all, was able to develop a solution where there is a checkout feedback functionality on the eBay side where sellers or buyers can verbatim add information. And she built a model to be able to determine what relates to tax specific, what is the type of problem, and even predict how that problem can be solved before we as a human even step in, and now instead of us or somebody going to verbatim and try to figure out what's going on there, we can focus on fixing the error versus actually just reading through things and not adding any value, and it's a beautiful tool and I was very impressed when I saw the demo and definitely developing that sort of thing. >> That sounds fantastic. And I think just the one word that keeps coming to mind, and we've said this a number of times in the program today is empowerment. What you're actually really doing to truly empower people across the organization with varying degrees of skill level, going down to the high school level, really exciting. We'll have to stay tuned to see what some of the great things are that come from this continued partnership. Ladies, I want to thank you so much for joining me on the program today and talking about how Alteryx and eBay are really partnering together to democratize analytics and to facilitate its maturity. It's been great talking to you. >> Thank you, Lisa. >> Thank you so much. (cheerful electronic music) >> As you heard over the course of our program, organizations where more people are using analytics who have deeper capabilities in each of the four Es, that's everyone, everything, everywhere, and easy analytics, those organizations achieve more ROI from their respective investments in analytics and automation than those who don't. We also heard a great story from eBay, great example of an enterprise that is truly democratizing analytics across its organization. It's enabling and empowering line of business users to use analytics, not only focused on key aspects of their job, but develop new skills rather than doing the same repetitive tasks. We want to thank you so much for watching the program today. Remember you can find all of the content on thecube.net. You can find all of the news from today on siliconangle.com and of course alteryx.com. We also want to thank Alteryx for making this program possible and for sponsoring "theCUBE". For all of my guests, I'm Lisa Martin. We want to thank you for watching and bye for now. (upbeat music)
SUMMARY :
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Jon Dahl, Mux | AWS Startup Showcase S2 E2
(upbeat music) >> Welcome, everyone, to theCUBE's presentation of the AWS Startup Showcase. And this episode two of season two is called "Data as Code," the ongoing series covering exciting new startups in the AWS ecosystem. I'm John Furrier, your host of theCUBE. Today, we're excited to be joined by Jon Dahl, who is the co-founder and CEO of MUX, a hot new startup building cloud video for developers, video with data. John, great to see you. We did an interview on theCube Conversation. Went into big detail of the awesomeness of your company and the trend that you're on. Welcome back. >> Thank you, glad to be here. >> So, video is everywhere, and video for pivot to video, you hear all these kind of terms in the industry, but now more than ever, video is everywhere and people are building with it, and it's becoming part of the developer experience in applications. So people have to stand up video into their code fast, and data is code, video is data. So you guys are specializing this. Take us through that dynamic. >> Yeah, so video clearly is a growing part of how people are building applications. We see a lot of trends of categories that did not involve video in the past making a major move towards video. I think what Peloton did five years ago to the world of fitness, that was not really a big category. Now video fitness is a huge thing. Video in education, video in business settings, video in a lot of places. I think Marc Andreessen famously said, "Software is eating the world" as a pretty, pretty good indicator of what the internet is actually doing to the economy. I think there's a lot of ways in which video right now is eating software. So categories that we're not video first are becoming video first. And that's what we help with. >> It's not obvious to like most software developers when they think about video, video industries, it's industry shows around video, NAB, others. People know, the video folks know what's going on in video, but when you start to bring it mainstream, it becomes an expectation in the apps. And it's not that easy, it's almost a provision video is hard for a developer 'cause you got to know the full, I guess, stack of video. That's like low level and then kind of just basic high level, just play something. So, in between, this is a media stack kind of dynamic. Can you talk about how hard it is to build video for developers? How is it going to become easier? >> Yeah, I mean, I've lived this story for too long, maybe 13 years now, when I first build my first video stack. And, you know, I'll sometimes say, I think it's kind of a miracle every time a video plays on the internet because the internet is not a medium designed for video. It's been hijacked by video, video is 70% of internet traffic today in an unreliable, sort of untrusted network space, which is totally different than how television used to work or cable or things like that. So yeah, so video is hard because there's so many problems from top to bottom that need to be solved to make video work. So you have to worry about video compression encoding, which is a complicated topic in itself. You have to worry about delivering video around the world at scale, delivering it at low cost, at low latency, with good performance, you have to worry about devices and how every device, Android, iOS, web, TVs, every device handles video differently and so there's a lot of work there. And at the end of the day, these are kind of unofficial standards that everyone's using. So one of the miracles is like, if you want to watch a video, somehow you have to get like Apple and Google to agree on things, which is not always easy. And so there's just so many layers of complexity that are behind it. I think one way to think about it is, if you want to put an image online, you just put an image online. And if you want to put video online, you build complex software, and that's the exact problem that MUX was started to help solve. >> It's interesting you guys have almost creating a whole new category around video infrastructure. And as you look at, you mentioned stack, video stack. I'm looking at a market where the notion of a media stack is developing, and you're seeing these verticals having similar dynamics with cloud. And if you go back to the early days of cloud computing, what was the developer experience or entrepreneurial experience, you had to actually do a lot of stuff before you even do anything, provision a server. And this has all kind of been covered in great detail in the glory of Agile and whatnot. It was expensive, and you had that actually engineer before you could even stand up any code. Now you got video that same thing's happening. So the developers have two choices, go do a bunch of stuff complex, building their own infrastructure, which is like building a data center, or lean in on MUX and say, "Hey, thank you for doing all that years of experience building out the stacks to take that hard part away," but using APIs that they have. This is a developer focused problem that you guys are solving. >> Yeah, that's right. my last company was a company called Zencoder, that was an API to video encoding. So it was kind of an API to a small part of what MUX does today, just one of those problems. And I think the thing that we got right at Zencoder, that we're doing again here at MUX, was building four developers first. So our number one persona is a software developer. Not necessarily a video expert, just we think any developer should be able to build with video. It shouldn't be like, yeah, got to go be a specialist to use this technology, because it should become just of the internet. Video should just be something that any developer can work with. So yeah, so we build for developers first, which means we spend a lot of time thinking about API design, we spend a lot of time thinking about documentation, transparent pricing, the right features, great support and all those kind of things that tend to be characteristics of good developer companies. >> Tell me about the pipe lining of the products. I'm a developer, I work for a company, my boss is putting pressure on me. We need video, we have all this library, it's all stacking up. We hired some people, they left. Where's the video, we've stored it somewhere. I mean, it's a nightmare, right? So I'm like, okay, I'm cloud native, I got an API. I need to get my product to market fast, 'cause that is what Agile developers want. So how do you describe that acceleration for time to market? You mentioned you guys are API first, video first. How do these customers get their product into the market as fast as possible? >> Yeah, well, I mean the first thing we do is we put what we think is probably on average, three to four months of hard engineering work behind a single API call. So if you want to build a video platform, we tell our customers like, "Hey, you can do that." You probably need a team, you probably need video experts on your team so hire them or train them. And then it takes several months just to kind of to get video flowing. One API call at MUX gives you on-demand video or live video that works at scale, works around the world with good performance, good reliability, a rich feature set. So maybe just a couple specific examples, we worked with Robin Hood a few years ago to bring video into their newsfeed, which was hugely successful for them. And they went from talking to us for the first time to a big launch in, I think it was three months, but the actual code time there was like really short. I want to say they had like a proof of concept up and running in a couple days, and then the full launch in three months. Another customer of ours, Bandcamp, I think switched from a legacy provider to MUX in two weeks in band. So one of the big advantages of going a little bit higher in the abstraction layer than just building it yourself is that time to market. >> Talk about this notion of video pipeline 'cause I know I've heard people I talk about, "Hey, I just want to get my product out there. I don't want to get stuck in the weeds on video pipeline." What does that mean for folks that aren't understanding the nuances of video? >> Yeah, I mean, it's all the steps that it takes to publish video. So from ingesting the video, if it's live video from making sure that you have secure, reliable ingest of that live feed potentially around the world to the transcoding, which is we talked a little bit about, but it is a, you know, on its own is a massively complicated problem. And doing that, well, doing that well is hard. Part of the reason it's hard is you really have to know where you're publishing too. And you might want to transcode video differently for different devices, for different types of content. You know, the pipeline typically would also include all of the workflow items you want to do with the video. You want to thumbnail a video, you want clip, create clips of the video, maybe you want to restream the video to Facebook or Twitter or a social platform. You want to archive the video, you want it to be available for downloads after an event. If it's just a, if it's a VOD upload, if it's not live in the first place. You have all those things and you might want to do simulated live with the video. You might want to actually record something and then play it back as a live stream. So, the pipeline Ty typically refers to everything from the ingest of the video to the time that the bits are delivered to a device. >> You know, I hear a lot of people talking about video these days, whether it's events, training, just want peer to peer experience, video is powerful, but customers want to own their own platform, right? They want to have the infrastructure as a service. They kind of want platform as a service, this is cloud talk now, but they want to have their own capability to build it out. This allows them to get what they want. And so you see this, like, is it SaaS? Is it platform? People want customization? So kind of the general purpose video solution does it really exist or doesn't? I mean, 'cause this is the question. Can I just buy software and work or is it going to be customized always? How do you see that? Because this becomes a huge discussion point. Is it a SaaS product or someone's going to make a SaaS product? >> Yeah, so I think one of the most important elements of designing any software, but especially when you get into infrastructure is choosing an abstraction level. So if you think of computing, you can go all the way down to building a data center, you can go all the way down to getting a colo and racking a server like maybe some of us used to do, who are older than others. And that's one way to run a server. On the other extreme, you have just think of the early days of cloud competing, you had app engine, which was a really fantastic, really incredible product. It was one push deploy of, I think Python code, if I remember correctly, and everything just worked. But right in the middle of those, you had EC2, which was, EC2 is basically an API to a server. And it turns out that that abstraction level, not Colo, not the full app engine kind of platform, but the API to virtual server was the right abstraction level for maybe the last 15 years. Maybe now some of the higher level application platforms are doing really well, maybe the needs will shift. But I think that's a little bit of how we think about video. What developers want is an API to video. They don't want an API to the building blocks of video, an API to transcoding, to video storage, to edge caching. They want an API to video. On the other extreme, they don't want a big application that's a drop in white label video in a box like a Shopify kind of thing. Shopify is great, but developers don't want to build on top of Shopify. In the payments world developers want Stripe. And that abstraction level of the API to the actual thing you're getting tends to be the abstraction level that developers want to build on. And the reason for that is, it's the most productive layer to build on. You get maximum flexibility and also maximum velocity when you have that API directly to a function like video. So, we like to tell our customers like you, you own your video when you build on top of MUX, you have full control over everything, how it's stored, when it's stored, where it goes, how it's published, we handle all of the hard technology and we give our customers all of the flexibility in terms of designing their products. >> I want to get back some use case, but you brought that up I might as well just jump to my next point. I'd like you to come back and circle back on some references 'cause I know you have some. You said building on infrastructure that you own, this is a fundamental cloud concept. You mentioned API to a server for the nerds out there that know that that's cool, but the people who aren't super nerdy, that means you're basically got an interface into a server behind the scenes. You're doing the same for video. So, that is a big thing around building services. So what wide range of services can we expect beyond MUX? If I'm going to have an API to video, what could I do possibly? >> What sort of experience could you build? >> Yes, I got a team of developers saying I'm all in API to video, I don't want to do all that transit got straight there, I want to build experiences, video experiences on my app. >> Yeah, I mean, I think, one way to think about it is that, what's the range of key use cases that people do with video? We tend to think about six at MUX, one is kind of the places where the content is, the prop. So one of the things that use video is you can create great video. Think of online courses or fitness or entertainment or news or things like that. That's kind of the first thing everyone thinks of, when you think video, you think Netflix, and that's great. But we see a lot of really interesting uses of video in the world of social media. So customers of ours like Visco, which is an incredible photo sharing application, really for photographers who really care about the craft. And they were able to bring video in and bring that same kind of Visco experience to video using MUX. We think about B2B tools, videos. When you think about it, all video is, is a high bandwidth way of communicating. And so customers are as like HubSpot use video for the marketing platform, for business collaboration, you'll see a lot of growth of video in terms of helping businesses engage their customers or engage with their employees. We see live events obviously have been a massive category over the last few years. You know, we were all forced into a world where we had to do live events two years ago, but I think now we're reemerging into a world where the online part of a conference will be just as important as the in-person component of a conference. So that's another big use case we see. >> Well, full disclosure, if you're watching this live right now, it's being powered by MUX. So shout out, we use MUX on theCUBE platform that you're experiencing in this. Actually in real time, 'cause this is one application, there's many more. So video as code, is data as code is the theme, that's going to bring up the data ops. Video also is code because (laughs) it's just like you said, it's just communicating, but it gets converted to data. So data ops, video ops could be its own new category. What's your reaction to that? >> Yeah, I mean, I think, I have a couple thoughts on that. The first thought is, video is a way that, because the way that companies interact with customers or users, it's really important to have good monitoring and analytics of your video. And so the first product we ever built was actually a product called MUX video, sorry, MUX data, which is the best way to monitor a video platform at scale. So we work with a lot of the big broadcasters, we work with like CBS and Fox Sports and Discovery. We work with big tech companies like Reddit and Vimeo to help them monitor their video. And you just get a huge amount of insight when you look at robust analytics about video delivery that you can use to optimize performance, to make sure that streaming works well globally, especially in hard to reach places or on every device. That's we actually build a MUX data platform first because when we started MUX, we spent time with some of our friends at companies like YouTube and Netflix, and got to know how they use data to power their video platforms. And they do really sophisticated things with data to ensure that their streams well, and we wanted to build the product that would help everyone else do that. So, that's one use. I think the other obvious use is just really understanding what people are doing with their video, who's watching what, what's engaging, those kind of things. >> Yeah, data is definitely there. You guys mentioned some great brands that are working with you guys, and they're doing it because of the developer experience. And I'd like you to explain, if you don't mind, in your words, why is the MUX developer experience so good? What are some of the results you're seeing from your customers? What are they saying to you? Obviously when you win, you get good feedback. What are some of the things that they're saying and what specific develop experiences do they like the best? >> Yeah, I mean, I think that the most gratifying thing about being a startup founder is when your customers like what you're doing. And so we get a lot of this, but it's always, we always pay attention to what customers say. But yeah, people, the number one thing developers say when they think about MUX is that the developer experience is great. I think when they say that, what they mean is two things, first is it's easy to work with, which helps them move faster, software velocity is so important. Every company in the world is investing and wants to move quickly and to build quickly. And so if you can help a team speed up, that's massively valuable. The second thing I think when people like our developer experience is, you know, in a lot of ways that think that we get out of the way and we let them do what they want to do. So well, designed APIs are a key part of that, coming back to abstraction, making sure that you're not forcing customers into decisions that they actually want to make themselves. Like, if our video player only had one design, that that would not be, that would not work for most developers, 'cause developers want to bring their own design and style and workflow and feel to their video. And so, yeah, so I think the way we do that is just think comprehensively about how APIs are designed, think about the workflows that users are trying to accomplish with video, and make sure that we have the right APIs, make sure they're the right information, we have the right webhooks, we have the right SDKs, all of those things in place so that they can build what they want. >> We were just having a conversation on theCUBE, Dave Vellante and I, and our team, and I'd love to get you a reaction to this. And it's more and more, a riff real quick. We're seeing a trend where video as code, data as code, media stack, where you're starting to see the emergence of the media developer, where the application of media looks a lot like kind of software developer, where the app, media as an app. It could be a chat, it could be a peer to peer video, it could be part of an event platform, but with all the recent advances, in UX designers, coders, the front end looks like an emergence of these creators that are essentially media developers for all intent and purpose, they're coding media. What's your reaction to that? How do you see that evolving? >> I think the. >> Or do you agree with it? >> It's okay. >> Yeah, yeah. >> Well, I think a couple things. I think one thing, I think this goes along through saying, but maybe it's disagreement, is that we don't think you should have to be an expert at video or at media to create and produce or create and publish good video, good audio, good images, those kind of things. And so, you know, I think if you look at software overall, I think of 10 years ago, the kind of DevOps movement, where there was kind of a movement away from specialization in software where the same software developer could build and deploy the same software developer maybe could do front end and back end. And we want to bring that to video as well. So you don't have to be a specialist to do it. On the other hand, I do think that investments and tooling, all the way from video creation, which is not our world, but there's a lot of amazing companies out there that are making it easier to produce video, to shoot video, to edit, a lot of interesting innovations there all the way to what we do, which is helping people stream and publish video and video experiences. You know, I think another way about it is, that tool set and companies doing that let anyone be a media developer, which I think is important. >> It's like DevOps turning into low-code, no-code, eventually it's just composability almost like just, you know, "Hey Siri, give me some video." That kind of thing. Final question for you why I got you here, at the end of the day, the decision between a lot of people's build versus buy, "I got to get a developer. Why not just roll my own?" You mentioned data center, "I want to build a data center." So why MUX versus do it yourself? >> Yeah, I mean, part of the reason we started this company is we have a pretty, pretty strong opinion on this. When you think about it, when we started MUX five years ago, six years ago, if you were a developer and you wanted to accept credit cards, if you wanted to bring payment processing into your application, you didn't go build a payment gateway. You just probably used Stripe. And if you wanted to send text messages, you didn't build your own SMS gateway, you probably used Twilio. But if you were a developer and you wanted to stream video, you built your own video gateway, you built your own video application, which was really complex. Like we talked about, you know, probably three, four months of work to get something basic up and running, probably not live video that's probably only on demand video at that point. And you get no benefit by doing it yourself. You're no better than anyone else because you rolled your own video stack. What you get is risk that you might not do a good job, maybe you do worse than your competitors, and you also get distraction where you've just taken, you take 10 engineers and 10 sprints and you apply it to a problem that doesn't actually really give you differentiated value to your users. So we started MUX so that people would not have to do that. It's fine if you want to build your own video platform, once you get to a certain scale, if you can afford a dozen engineers for a VOD platform and you have some really massively differentiated use case, you know, maybe, live is, I don't know, I don't have the rule of thumb, live videos maybe five times harder than on demand video to work with. But you know, in general, like there's such a shortage of software engineers today and software engineers have, frankly, are in such high demand. Like you see what happens in the marketplace and the hiring markets, how competitive it is. You need to use your software team where they're maximally effective, and where they're maximally effective is building differentiation into your products for your customers. And video is just not that, like very few companies actually differentiate on their video technology. So we want to be that team for everyone else. We're 200 people building the absolute best video infrastructure as APIs for developers and making that available to everyone else. >> John, great to have you on with the showcase, love the company, love what you guys do. Video as code, data as code, great stuff. Final plug for the company, for the developers out there and prospects watching for MUX, why should they go to MUX? What are you guys up to? What's the big benefit? >> I mean, first, just check us out. Try try our APIs, read our docs, talk to our support team. We put a lot of work into making our platform the best, you know, as you dig deeper, I think you'd be looking at the performance around, the global performance of what we do, looking at our analytics stack and the insight you get into video streaming. We have an emerging open source video player that's really exciting, and I think is going to be the direction that open source players go for the next decade. And then, you know, we're a quickly growing team. We're 60 people at the beginning of last year. You know, we're one 50 at the beginning of this year, and we're going to a add, we're going to grow really quickly again this year. And this whole team is dedicated to building the best video structure for developers. >> Great job, Jon. Thank you so much for spending the time sharing the story of MUX here on the show, Amazon Startup Showcase season two, episode two, thanks so much. >> Thank you, John. >> Okay, I'm John Furrier, your host of theCUBE. This is season two, episode two, the ongoing series cover the most exciting startups from the AWS Cloud Ecosystem. Talking data analytics here, video cloud, video as a service, video infrastructure, video APIs, hottest thing going on right now, and you're watching it live here on theCUBE. Thanks for watching. (upbeat music)
SUMMARY :
Went into big detail of the of terms in the industry, "Software is eating the world" People know, the video folks And if you want to put video online, And if you go back to the just of the internet. lining of the products. So if you want to build a video platform, the nuances of video? all of the workflow items you So kind of the general On the other extreme, you have just think infrastructure that you own, saying I'm all in API to video, So one of the things that use video is it's just like you said, that you can use to optimize performance, And I'd like you to is that the developer experience is great. you a reaction to this. that to video as well. at the end of the day, the absolute best video infrastructure love the company, love what you guys do. and the insight you get of MUX here on the show, from the AWS Cloud Ecosystem.
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David Lehanski, NHL & Rob Smedley, Formula 1 | AWS re:Invent 2021
(tubular bells chiming) >> Welcome back to theCUBE's coverage, AWS re:Invent 2021. I'm John Furrier your host of theCUBE. We're here, get all the action wall-to-wall coverage. The keynotes with the new CEO, Adam Leschi just happened. A lot of action wall-to-wall coverage for days, and we'd love cloud computing because it impacts business. We love all that, but when it impact sports, we love it even more because it can relate to it. You can see the two great guests here from the NHL Formula 1. We got David Lehanski the EVP of business development and innovation at the NHL, Rob Smedley, director of data systems at Formula 1. Gentlemen, thanks for joining me today in theCUBE. >> Thanks for having us. >> So obviously formula one we know is very data driven. Pun intended, NHL has a lot of action going on as well with innovation streaming, et cetera. Let's get into it. You're both Amazon customers, right? We'll start with you. Formula 1, big partnership with AWS. What's that about? how you guys look at this cloud as you guys go to the next level? Cause you're under a lot of pressure with the data, from the cars and standards and all that good stuff. What's up. >> What's going on? >> Well, I mean, you know, it started probably four or five years ago with the acquisition of Liberty media and formula 1, and there was a real drive towards data. There was a real drive towards, you know, unearthing all of the data that we've got, you know, formula 1, arguably probably generates the most data, this most sports data of any sport on the planet. You know, we have car telemetry data, timing data, metadata, image data, you know, we own all the video data, and the audio data of driver radio, tire data, weather data, you put all that together. You got to, you know, a real massive data. And it was just about trying to unearth that and, and engage the fans more. And that's where the partnership with AWS come from. >> And the competitiveness in formula one I know is really high. You got a lot of smart people on these teams looking for an edge. And I know it's like, it's a whole new world with data as things get exposed. So I got to ask you, what is your job? Are you there to like to corral the data that kind of set standards? What's your role? >> Well, my role is essentially, to use the data at central league level, if you want, for all the franchises, that's all 20 drivers, within the 10 teams to try to, you know, use that data in whatever way possible, whether it's the new car or whether it's the F1 insights powered by AWS to try to engage the fans more. You know, we've understood that data, is really important to tell the story of Formula 1. And it's really important to reach different demographics as well. The younger demographics, the young, the gen Zedders is, you know, those types of guys, it's really important to get to them, because you can condense and at one hour 45 race down to five minutes, right. Which is what they want. So this has been a really important step for us. And a really important part of that journey has been the enablement. >> And I can see the whole e-sports thing I could see after a race. Okay. Now the fans race amongst themselves, as the technology simulation gets better, only headroom there. So to speak. >> Yeah, yeah, absolutely. I mean, that's what we're, you know, that's probably the next generation of what we want to do with the data is we want to make it much more interactive. We're already giving, you know, through the insights and through, you know, the way that, we're trying to tell stories with the different data assets we're already trying to do that, in a much more proactive way of telling the story. The next level of that. is completely immersive, is interactive. And that's what we call the 21st drivers. So there's 20, formula 1 drivers. Right. But, we want to build systems using the data and gamification where you can embed yourself and immerse yourself in that, in the races, the 21st driver and race against the other guys on a Sunday afternoon. >> Awesome. Dave, let's get to the NHL National Hockey League. You guys are doing a lot of good stuff. You're the EVP of innovation and what's going on over there. How do you see the cloud helping you guys innovate. what's on your agenda and what's your role? >> Wow. I don't know if we have enough time, but at the highest level, you know, we're trying to expand and enhance the way we produce and present our game to the world. You know, our sport, we have some similarities, but there's a lot of differences based on the uniqueness of the sport. Statistics, hadn't really been a big part of the National Hockey League in the way people consume the game. I always say, you know, goaltenders have two statistics that have been used to evaluate them. And they were the same ones that were used to evaluate them back in 1917. So almost again a hundred years where it hasn't really evolved that much, but we think there's so much there that can really enrich and transform the game. So we're trying to partner with AWS and the best technology companies in the world to figure out how we can start to capture that data and turn it into meaningful content and experiences that allow fans to go a little bit deeper and a little bit broader. >> Yeah, I can see the data being used for also seeing what the NFL is doing a lot with the safety. Hits are getting harder and faster in the NHL. I mean, the collisions, the equipment, everyone is going faster. That's a big safety issue too. Isn't it? >> There is a safety component too. And it, look, that is one of the unique things about our sports. Both of us are speed involved. The speed though, for us, it's not just on the ice, it's also the pace of play, right? So when you have a stoppage, it's typically 10 or 15 seconds long. So there's not a lot of time to integrate data, to tell stories, to build and graphics and visualizations. So the first phase for us was to build the tracking system that could capture the positional, the positions of the puck and the players throughout the course of every game. And that's generating a massive amount of new data. Now we're trying to add video to that data so we could start to use it to create entirely new experiences. >> What are you guys thinking about from a fan experience as you look at the analytics. Are they interested in more like the, where the puck is, how fast people are going, what are some of the analytics sharing? >> So it depends, Right? So from a fan standpoint, you know, avid fans really want to, they want to go deep and they want understand controlled zone entries and like, you know, things that are really inherent to, you know, the core factors for determining outcome. Casual fans, they like just on knowing speed, right? How fast is the puck moving? How fast are the players moving. Before we had the system, we weren't able to produce it. Before we had AWS, you won't be able to produce that in real time and overlay it onto a game. So we could go even deeper when it comes to players and coaches and media partners, but the ability to build a solution that works in real time to give them the data and the video that they can use to tell those stories is born from AWS. >> And that brings up a great point. I'd love to ask both of you, if you can answer this question about the fan expectations. One of the big trends coming out of this re-invent this year as cloud is creating more capabilities, but the users and the consumers have new expectations. They want it on mobile, they want the highlights, they want everything. They want the data, there are data junkies. They want everything, cause they're immersing, into the experience with multiple touchpoints. TV, app. Whatever. >> I think that's right. And I think that it's up to, you know, as David's just saying that the two sports here with a lot of similarities and you can see that we're both on the same journey and that's because it's been driven in the end by the consumers, it's been driven by our customers. And, I think that now we're on, you know, what I would call the data flywheel, where there's a lot of inertia and it's just getting stronger and stronger and stronger. And this was, if we go back say three, four years when we started the partnership with AWS and we started to get really deep into the data and understand, you know, what the objectives of this whole exercise were, we always knew that there'd be a point where it started to build a lot of momentum and have a lot of inertia and that's, what's happening now. There's a real thirst for it, right? And it's not just, you know, even the naysayers, you know, even the people that kind of looked at it and went, well, why are you filling my screen with data exactly the same as what Dave says, you know, since you know, the goaltender since 1917, you've used the same two stats to evaluate that particular player. In formula 1 it's been exactly the same. So we started to introduce stuff which had been the same state as core for 70 years. And they say, well, what's all this about. Now, those people can't live without that. Right? It's become, a key part of the broadcast. >> And it creates new products, like things like Netflix, who would've thought a series would be on Formula 1, a soap opera for formula 1 in behind the scenes, driving to survive has been quite an acceleration for fan base. I mean, techies in Silicon valley and all around the world have told us like, hey, you know what? That exposes the nerdiness of Formula 1. Kind of cool. So who would have thought, I mean, there's going to be shows on this whole other level. >> I think, another point to add it is about increasing your distribution points and getting your content out to as many people as possible through as many platforms as possible. But I think in addition to that, it's really about, Rob started to touch on this personalization and customization. What can you do within those platforms to give fans the ability to sort of create their own experience? Right? So data highlights, huge, huge, huge level of importance. >> I think community is going to be a big part of this too. As you start to see the data creates more interactions and more progression, if you will. Community, I'm a Bruins fan in California. There's not a lot of Bruins fans, mostly sharks fans, but I got to get online. Where am I? Where's my tribe. I want to hang, that's not just on Twitter. >> Yeah >> So there's a whole another level coming. How do you guys see community developing in your sports? >> I think the community is the biggest factor in all of this. Right? And it's kind of bringing together. It's a global sports community, first and foremost, but then you've got these pockets. So you've got NHL, NFL, you've got formula 1 and they're all gaining popularity, but it's all through really everybody being on this same journey. Everybody's on this same journey of involving tech in the sport of revolutionizing their particular sport. And it's building this global community. I mean, In formula 1, we've got a billion fans worldwide, but that's growing, it's growing every single year, but it's only growing because we're starting now to get to that younger demographic, formerly one could never get to the demographic, you know, formula 1 fans looked like us, but now it's starting to really improve our system. >> The virtualization of this hybrid world we're living in opens up the doors for more access. >> Absolutely. Yeah. And I think that's the key point here. And again, they've touched on it. It's the personalization. It's using data and platforms and packages to personalize somebody's engagement with their particular sport. >> I got a couple of questions from the fan base, I knew you guys were coming on. I want to get to you , first, Rob, how has F1 been using Amazon and the cloud to develop the new 2022 race car? >> Well, I mean, it, I would say it's no exaggeration to say Amazon technology enabled, was the key enabler in as being able to design that 2022 car, you know, we designed it in a virtual environment called computational fluid dynamics. You know, the simulations, when we were first running design iterations, were taking something like 40 hours with when we started running it on the EC2, you know, spinning up 7,000 calls, something like that. We got that down to seven hours, manageable. We designed the whole new car. >> Awesome. On the NHL, the question here for you, is that okay, how is the young generation coming into the game? What's changed with the innovation that's impacting, how the games played and how the young guns are coming up? Is there any in technology enabling that? >> Sure. You know, so we're looking at the type of content that younger fans are gravitating to, obviously highlights and dance games, but we talked about it before the ability to see what they want to see with regard to that. So, you know, where we're trying to get to is where you could watch a game and ultimately decide whether or not you want to turn on a right rail of real-time statistics for your favorite player, for your favorite team, for a specific event, whether or not you want to turn on the ability to network with your friends across social platforms, whether or not you want to turn on the betting functionality, whether or not you want to turn on the game functionality. Right? So this is how the younger generation really wants to consume the data, like sort of, they want to see what they want to see, when and how they want to see it. So we're working on that. And then there's everything that goes beyond that. The world of NFTs and VR and AR and alternate forms of content distribution, none of that would be capable or available if not for the ability to capture process and distribute data and video in an aggregate in real time. >> You know, I really think we're onto something so new here. And if you guys are really kind of illustrating the whole point of how being in person, the old model of physical, I don't have to go into arena to watch hockey or go watch formula 1, and hopefully it's on TV. Maybe it's got coverage here and there, but now with hybrid, you can integrate the experiences from the physical in-person where the asset is. >> Absolutely. >> And to virtual and just open up completely new hybrid use cases. I mean, this is brand new. There's no standards. >> Not, exactly. And that's something that we're really starting to look at, which is the event of the future. You know? So how would you bring, how do you mismatch? How would you bring that whole data experience and that whole broadcast experience to the actual event, the live event, and how would you bring the live event to somebody's front room? It's the hybrid model, right? And this is definitely next generation of how we're using the data. We're working with AWS. We're calling it event of the future. It's really, really exciting. I mean, you can imagine going there, to a formula 1 race, you're sat in the stands. You're no longer, you know, watching a car pass every few seconds and wondering what's going on. You've now got AR, VR that you can kind of put up and lay-up across what's going on the track. >> Well, a lot of people would love to get you guys' reaction to this comment online. Cause this is big, I see a lot of naysayers out there because they're so locked into the business model of the physical location. There's a lot of investment in events like this, wants me to buy tickets and show up. So they call it a one-way door here in the industry, they don't want to go through that one way door, but I'm saying that door has already been passed. It's like you're in this hybrid world is here. If you don't get out in front of it, you're going to be toast. So the question is, how do you guys think about this when you talk about the business model of experience? Cause you have to get in there and it's not super great right now on virtual. It could be better. It has to get better. So it's a balance. How do you guys talk about that in your respective fields to educate the potential? I won't say naysayers, but yeah. >> Yeah no, no, no. So we believe it wholeheartedly. You know, when you think about the inner arena experience, there's a lot of infrastructure that needs to be in place to be able to deliver those types of experiences to fans, while they're in the building, we wholeheartedly believe that the people who are paying the most to see our games should get the best possible experience. So there should be no replay, they don't get, there should be no game that they can't access, no application that they couldn't have on their phone, but you need to have, you know, fairly advanced wireless in the arena infrastructures in place. You need to have a lot of cloud infrastructure and services there. So, you know, that's why we're leveraging Kinesis and SageMaker and AWS elemental services to get all of it condensed, operating in the cloud and distributed. So if you're a fan at a game, they're 18,000 other people, like you trying to access a mobile phone to place a bet on a real-time event that just happened, you can actually do it, but a lot needs to go into that. >> Yeah, that's really good insight because what you're pointing out is is that the physical location is the first party asset. That's the key. You build on that, invest in that and then feed it out into the next world and then figure that out. Do you agree with that. >> Absolutely. 100 percent correct. Well, 100 percent agree with everything that David just said. And we've got probably, you know, an even bigger challenge because we've got these 20 sites where we lift and shift 20, 23 races, you know, all round the world where we lift and shift every couple of weeks, and they're not arenas either. They're, you know, these are huge sites. These are you know, five, six kilometer by five, six kilometer square sites. So trying to do everything that David just said in that space, we can open it. >> Yeah, we just turn the lights off, it's over, he's got to pack it all up. >> The private 5G is going to totally help. You can run drones and have full blanket coverage over the location. That's good. That's good stuff. Final question for you guys on data, because I think this is something that we've been kind of talking about on theCUBE over the past year, we see open source software has become a huge success. Do you guys see opening up the data to your fan base and seeing e-sports races in formula 1, is just going crazy. Everyone loves it. It's not there yet but the equipment having your own car in your living room, but it's close, pretty close, it's there. Opening up the data, how do you see that potential? Because there are people who want to maybe code on top of it. How do you guys view that? >> Well, I think it, has to, I mean, Dave, again, touched on this earlier when he talked about, you know, the difference between the casual and the avid. The avid, you'll never, ever satisfy the average thirst for data, right. They want to do what I did and sit on a pit wall and manage a grand Prix team. And that's great, you know, it shouldn't just be for a privilege, you know, 10, 20 people in the world to do that. We should be able to give everybody that experience because we have the technology and the ability and the know how to be able to do that. And that's where, you know, again, partnership with AWS, where we're talking about something called the virtual pit wall. So, you know, the pit stands where it's kind of like the mission control. We want to be able to bring that to the average. And it's just getting deeper and deeper layers where you can set up your bespoke environment. You can set it up just as if you were a race engineer or a team strategist, one of those guys, and you can just get deeper and deeper. And then you start to lay over that. You start to build your own models. We bring in simulation into that whole area. And, you know, it's exactly the same as what you have in the teams. You just go deeper and deeper and deeper. >> What's it like to be on the pit wall there, managing teams. what's it. (men laughing) >> Hmm scary sometimes >> Nerve wrecking. >> Nerve-wracking, I mean, I talked about, you know, the gen Zedders who want the, you know, a two hour race to pass in five minutes, it passes in five minutes. Cause there's so much going on. You know, it's kind of like being the coach or the, you know, the football manager, you know, you're under a lot of pressure. You've got to make the right decisions. You've got to, you know, you've got to make decisions in split seconds. Everybody's an expert 10 seconds after the decision has been made. It's that type of thing, but it's great fun, you know. >> I can see virtual Formula 1 being a hot total hit because with all the data and now autonomous vehicles, you can almost have a collective kind of team approach, like swapping out AI in the cars in real time from the virtual pit. >> Yeah. And again, you know, I'm just going to name check deep racer because you know, AWS deep racer, you know, we formula 1, and AWS deep racer. We did an activation about a year back in the first lockdown, in the first COVID lockdown. So we took a couple of formula 1 drivers, Daniel Ricardo being one of them. And then we built out this deep racer platform and we're trying to look at how we can bring that more, you know, more together. So you've got this virtual, sorry, this AI car, this autonomous car, and you've got formula 1. And how do we merge those two worlds together? And again, that's just trying to immerse people more in the experience. >> Alright, final question. What's the coolest thing you got going on in each of your respective innovation fields with AWS? What would you highlight your favorite innovation or coolest thing you're doing? >> Well, I can't tell you about the coolest, right. That's for sure. Look, I just think what we're doing with AWS with regard to AIML around data and statistics analytics, based on what I said earlier, the evolution of statistics and analytics and hockey really hasn't taken hold, we're there now. The ability to really take a game that's has so much volatility, and we're the only professional teams sport that has personnel changes occurring in life play. So you never really know who's on the ice and the ability now to deliver real-time graphics and visualizations in the broadcast based on movements that had just played within milliseconds. And, we're starting to do that today with shot and save analytics with AWS. So where that can go in the future is really, what's probably the most exciting because it'll totally transform the way fans consumer our game. >> The NHS has always been on the cutting edge on the tech. Been following you guys for years, congratulations. Rob, the coolest thing you're working on, from Amazon, that's cool, and in formula 1 that's in your plate right now. >> Do you know what, I mean, there's so much going on at the minute. It's really difficult to choose any one thing. I think the whole partnership it's everything that we wanted it to be that, you know, the whole way that we're moving data forward and where we're revolutionizing this sport in a lot of ways, you know, sport has sat still for a long time. And to go through that digital transformation, you know, with Amazon and you know, in all the various areas that we're working on, I just think it's all, you know, it's all really, really cool. I mean, it's just moving forward at such a pace. Now. >> If you don't mind me asking why I got you here on the whole data thing, I'm just thinking about if I was on a team, I'd be like, okay, there's a whole new wild west. It's this arbitrage of data, we'll get over on the other team. Do you have to watch out, do you guys talk about like watching teams actually, I mean, it's actually innovative that they can get an edge, but an unfair advantage if they actually had used the data, is there like discussion around, like who can use the data, which teams? >> Of course. I mean, you know, when you get down to the franchises, each team can only use its individual data. You know, that's where we have key insight up at the league level because we've got, you know, a subset of all of the teams data. So we can kind of see everything that's going on. >> And watch out for the hackers coming in and get that data. >> Oh, well, alright, we've got pretty good security. >> Guys, thanks for coming on. I love the sports angle on this. It's really awesome. I think this is a great example of how cloud and digital lifestyle is coming together. The tech integration with the fan experience and the business models are super compelling, and I think that's illustration to just every other business. Thanks for coming on theCUBE. Appreciate it. >> Awesome. >> Thank you. >> Okay so theCUBE's coverage here at AWS re:Invent. I'm John furrier, your host in theCUBE. You're watching the leader in event tech covers theCUBE. Thanks for watching. (soul music)
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and innovation at the NHL, as you guys go to the next level? that we've got, you know, And the competitiveness to try to, you know, And I can see the whole e-sports thing I mean, that's what we're, you know, How do you see the cloud but at the highest level, you know, and faster in the NHL. it's not just on the ice, What are you guys thinking but the ability to build a One of the big trends coming even the naysayers, you know, in behind the scenes, driving to survive the ability to sort of create and more progression, if you will. How do you guys see community to the demographic, you know, The virtualization of this It's the personalization. I want to get to you , it on the EC2, you know, how is the young generation the ability to see what they want to see And if you guys are really And to virtual and just open up and how would you bring the live event love to get you guys' reaction the most to see our games it out into the next world And we've got probably, you know, he's got to pack it all up. the data to your fan base and the know how to be able to do that. on the pit wall there, the gen Zedders who want the, you know, from the virtual pit. deep racer because you know, What's the coolest thing you got going on and the ability now to been on the cutting edge that we wanted it to be that, you know, the whole data thing, I mean, you know, and get that data. alright, we've got pretty good security. and the business models I'm John furrier, your host in theCUBE.
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Ven Savage, Morgan School District | Next Level Network Experience
>>from around the globe. It's the Cube with digital coverage of next level network experience event brought to >>you by info blocks. Okay, welcome back, everyone. This is the Cube's coverage of the next level networking experience. Virtual event within four blocks. I'm John Furrow, your host of the Cube. We're here in our Palo Alto, Calif. Studios as part of our remote access during Covic, getting the interviews and the stories and sharing that with you. We got a great guest here, then savages the network operations manager at Morgan School District in Utah. A customer of info blocks to share a story. Then thanks for coming on. >>Thanks for having >>me. First of all, the Red Sox had a plus interview. I would say right now is gonna go great. Go Sox. Which baseball was in season. Great to have you on. Um, >>we'll get there. We'll >>get there. Um, my Yankee fans say when I say that. But anyway, Miss baseball, um, you know. But that brings up covert 19 baseball season sports. Life has been impacted. Your district. Like many school districts around the world, we're told to shut down, send workers home. That meant sending kids home, too. So we got the educators, get the administration, and you've got the kids all going home. >>Yeah. >>What did you do to keep things going? Because then stop. They had to do the remote learning and new things were emerging. New patterns, new traffic, new kinds of experiences. What did you learn? What's going on? >>Well, first we tried to lock the doors and pretend we weren't there, but they found us. Um, really? I mean, real quickly in our school district, we're not a 1 to 1 operation, so the, uh that caused a big change for us. Um, we had to quickly adapt. And we chose to use chromebooks because that's what we have for the students to use in their classes. So getting that, uh, squared away and send out into the family's was was a big challenge. But then on top of that being the school district, we then had to decide. Okay, how do we protect and filter provide the filtering that the students are gonna need even though they're at home? So there's some relative safety there when they're online and and accessing your email and things like that. So those were. Our two are probably our two. Biggest hurdles was, you know, ramping up the devices and then and then providing, making sure, you know, the network access from a filtering and consistency standpoint was going to work. >>You know, I got to ask you because I see this kind of disruption you don't You don't read about this in the i t. Manual around disaster recovery and, you know, disruption to operations. But essentially, the whole thing changes, but you still got to connect to the network, DNS. You gotta get the access to the content. You got content, you get systems. You got security all to be managed while in flight of dealing with connection points that remote. So you've got the disruption and the craziness of that, and then you've got this big I o t experiment basically edge of the network, you know, in all over the place. You know, on one hand, you kind of geek out and say, Wow, this is really kind of a challenge is an opportunity to solve the problem at the same time, you know, What do you do? So take us through that because that's a is a challenge of locking down the security in a borderless environment. People are everywhere. The students business has to get done. You got to resolve to. The resource is >>so thankfully, we had migrated If it blocks several years ago. Um and just this last, I would say in October, I finally got us on. Ah, cloud the blocks. One threat defense Cloud portion of it too. So from a security standpoint, we already had a really good, um foundation in place from both the DNs aspect and the DNS security aspect. Um so that was to be honest, most users. It was seamless transition. In many regards, both users didn't even realize they were being, You know, pushed through the info blocks is cloud DNs server, you know, which was providing security and filtering. So that was a big plus for us because it it was less man hours. We had to spend troubleshooting people's DNS resolutions. Why sites Wouldn't you know? Maybe they weren't being filtered correctly. All that was was to be honest, perfect. Where other platforms we had previously were just a nightmare to manage, >>like, for example, of the old way versus the new way here and marital, is it? What files configuration will take us through? What? You >>know, it was like a separate. It was a separate product content filter that works in conjunction with the firewall. Um, and I'm not going to name the company's name. I don't want, you know, even though many company but it seemed with that product we were spending, on average about 3 to 4 hours a day fixing false positives just from a filtering aspect because it would interfere with the DNS. And it does. It didn't really do it. I mean, how it filters is not based on DNS. Totally right. So by migrating temple blocks are DNS and the filtering the security is all handling at the DNs level. And it was just much more, um, to be I mean, frankly, honestly, is much more invisible to the end user. So >>more efficient. You decouple filtering from DNs resolution. Got it. All right, this is the big topic. I've been talking with info blocks people on this program in this event is on how this new d d I layer DNs d XP and I p address management kind of altogether super important. It's critical infrastructure Yeah. No spoilers, Enterprise. You're borderless institution. Same thing you go to school as a customer. How does the d I lay out this foundational security play for delivering this next level experience? What's your take on that? >>Well, for our like, for a school platform, we we use it in a number of ways. Besides, I mean, the filtering is huge, but just for the ability, like, for example, one of the components is is response policy zones or DNS firewalls what they call it, and that allows you one to manage, um, traditional, like DNS names, right? P addresses you can. You can manage those by creating essentially a zone that is like a white list of blacklist rewrite. So you've got a lot of control, and again it's filtering at the DNs level, so it's looking based on DNS responses inquiry. The other aspect of that is, is the feeds that you receive from info blocks. So by subscribing to those, we, um we have access to a lot of information that info Blocks and their partners have created identifying, you know, bad actors, malware attack vectors based on again DNs, uh, traffic, if you will, and so that takes a load office. Not having to worry. I'm trying to do all that on our own. I mean, we've seen a lot of attacks minimized because of the feeds themselves. So that again frees us up. We're a very small school district. In some regards, there's a I am the only network person in the district, and there's like, a total of four of us that manage, you know, kind of the support aspect. And so, being able to not have to spend time researching or tracking down, you know, breaches and attacks as much because of the DNS. Security frees me up to do other things, you know, like in the more standard networking realm, from a design and implementation. >>Great. Thanks for sharing that. I want to ask about security as a very competitive space security here and everyone promising it different things at different security things. You know, by I gotta ask you, why did you guys decide to use info blocks and what's the reason behind it? >>Well, to be frankly honest, I'm actually in info blocks trainer and I've been training for 15 years, so I kind of had an agenda when I first took this job to help out the school district. In my experience, I've been doing working in networking for over 20 years. And in my experience, I ever boxes one of the most easy and in best managed DNS solutions that I've come across. So, um, you know, I might be a little biased, but I'm okay with that. And so I I pushed us to be honest, to get there and then from the security aspect has all that has evolved. It just makes to me it makes sense. Why not wrap the more things you can maybe wrapped together. And so you know, when you're talking about attacks, over 90% of attacks use DNS. So if I have a solution that is already providing my DNS and then wraps the security into it, it just makes the most sense for me. >>Yeah. I mean, go back. The info box is DNA. You got cricket. Liu Stuart Bailey, the founder, was this is zero. This didn't just wake up one day and decided to start up these air practitioners early days of the Internet. They know DNS cold and DNS is we've been evolved. I mean, and when it needs that when you get into the DNS. Hacks and then you realize Okay, let's build an abstraction layer. You've seen Internet navigation discovery, all the stuff that's been proven. It is a critical infrastructure. >>Well, and to be honest, it's It's one of those services that you can't can't filter the firewall right. You have to have it. You have to. It's that foundation layer. And so it makes sense that Attackers air leveraging it because the fire will has to let it through in and out. And so it's a natural, almost a natural path for them to break in. So having something that speaks native DNS as part of your security platform makes more sense because it it can understand and see those attacks, the more sophisticated they become as well. >>So I gotta ask you, since you're very familiar info blocks and you're actually deploying its great solution. But I got this new DD I Layer, which is an abstraction, is always a great evolution. Take away complexity and more functionality. Cloud certainly cloud natives everywhere. That's but if it's for what is the update, if if I'm watching this month, you know I've been running DNS and I know it's out there. It's been running everything. And I got a update, my foundation of my business. I got to make my DNS rock solid. What's the new update? What's info blocks doing now? I know they got DNS chops seeing that on it. What's new about info blocks? What do you say? >>Well, it's, you know, they have a couple things that they've been trying to modify over the last several years. In my opinion, making more DNS like a you know, like software as a service, you know, service on demand, type of approach. That's a yes. So you have the cloud components to where you can take a lot of the heavy lifting, maybe off of your network team's shoulders. Because it is, it is. Um, I think people will be surprised how many customers out there. I have, ah, teams that are managing the DNS and even the D HCP aspect that that's not really what their experiences and then they don't They don't have, ah, true, maybe background Indians, and so having something that can help make that easier. It's almost, you know, hey, maybe used this term it almost sounds like it's too simple, but it's almost like a plug and play approached for some. For some environments, you know you're able to pop that in, and a lot of probably the problems they've been dealing with and not realizing what the root cause was will be fixed. So that's always a huge component with with info blocks. But their security is really what's come about in the last several years, Um, and and back as a school district, you know, our besides securing traffic, which every customer has to do, um, we have our you know, we're We have a lot of laws and regulations around filtering with with students and teachers. So anyone that's using a campus own device And so for us this I don't think people realized that the maturity that the filtering aspect of the blocks one defence now it's it's really evolved over the last couple of years. It's become a really, really good product and, like I said earlier, just work seamlessly with the data security. So it is going to be using >>an SD Wan unpacked everything. You go regular root level DNs is it? So I gotta ask you. How is the info blocks helping you keep network services running in system secure? >>Well, I think I think we're more on just the DNs d It does R d eight DNS and DCP. So from that standpoint, you know, in the five years almost we've been running that aspect. We have had very little if if maybe one or two incidents of problems with, you know from a DNS TCP so so are our users are able to connect, you know, when they turn on their computer To them, the Internet's up. You know, there's no there's no bumps in the road stopping them from from being able to connect. So that's a huge thing. You know, you don't have to deal with those Those constant issues again is a small team that just takes time away from the big projects. You're trying to, um, and then to the being able to now combine things. Security filtering solution. Uh, that alone has probably saved us. Oh, we'll probably you know, upwards of 500 man hours in the last eight months. So where normally we would be spending those hours again, troubleshooting issues that false positives, things like that. And there's a small team that just sucks the life out of you when you have to. You always spend time on that. >>I mean, you always chasing your tails. Almost. You want to be productive. Automation plays >>a >>key role in that, >>right? Yeah. >>So I got to ask you, you know, just a general question. I'm curious. You know, one of the things I see is sprawling of devices. WiFi was a great example that put an access point up a rogue access point, you know, as you get more connections. De HCP was amazing about this is awesome. But also, you had also de HCP problem. You got the the key Management is not just around slinging more d HDP around. So you got the trend? Is more connections on the eyepiece? Not how does info blocks make that easier? Because for people who may not know, the DNS ends announcing TCP and IP address management. They're all kind of tied together. Right? So this >>is the >>magic of DD I in my head. I want to get your thoughts on how you see that. Evolving. >>Yeah, I think that's another kind of back twice. It's kind of almost like a plug and play for a lot of customer environments. They're getting, you know, you're getting the DSP, DNs and eye Pam all wrapped in once you have this product that speaks, well, those languages, if you will and that And, um along with some of the reporting services and things of that nature. Um, when I look for, like, a Mac address in my influx database, I'm not just going to get ah, Mac address and what the i p addresses. I'm not just going to get the DNs like the host name. Maybe you know, the beauty and fully qualified domain name. Either I have the ability to bring in all this information that one. The client is communicating with the DCP DNS server on top of things like metadata that you can configure in the database to help really color in the picture of your network. So when you're looking at what device is using this I p when we talk about rogue devices or things like that, uh, I can get so much more information out of info blocks that almost almost to the point where you're almost being able to nail down the location of where the devices that even if it's a wireless client because it works in conjunction with some of our wireless appointments, too. So within, you know, a matter of minutes we have almost all the information we would need to take whatever action is appropriate for something like that, that getting used to take us hours and hours to troubleshoot. >>Appreciate a lot of the other interviews I've done with the info blocks, folks. One of the things that came out of them is the trailing. You can see the trail they're getting. They got to get in somewhere. DNS is the footprints of there you got? That's the traffic, and that's been helping on a potential attacks in D DOS is, for example, no one knows what that is, but DNS is what he said. A lot of the surface areas, DNS. With the hackers are makes it easier to find things. >>Well, you know, by integrating with the cloud I've I've got, you know, that the cloud based with the blocks one, it added a advanced DNS security, which helps protect skins Adidas as well as any cast to help provide more availability because I'm pushing on my DNs traffic through those cloud servers. It's like I've I'm almost equivalent of a very large organization that would normally spend millions of millions of dollars trying to do this on their own. So I'm getting the benefits and kind of the equivalent from that cloud hybrid approach that normally we would never have have. The resource is, >>Well, then I really appreciate you taking the time out of your busy day to remote into the Cube studios. Talk about next level networking experience, so I want to just ask you, just put your experience hat on. You've been You've seen some waves. You've seen the technology evolve when you hear next level networking and when you hear next level networking experience almost two separate meetings. But next level networking means next level. Next level networking experience means is some experience behind it. One of those two phrases mean to you next level networking and next level networking experience. >>Well, to me, I always look at it as the evolution of being able to have a user experience that's consistent no matter where you're located, with your home in your office and special with in today's environment. We have to be able to provide that consistent experience. But what I think what a lot of people may not think about or my overlook if you're just, you know, more of an end user is along with that experience, it has to be a consistent excess security approach. So if I'm an end user, um, I should be able to have the access the, um and the security, which, you know, you know, filtering all that fun stuff to not just allow me the connectivity, but to bring me, you know, that to keep the secure wherever I met. And ah, um, I think schools, you know, obviously with code and in the one the one that everyone was forced to do. But I think businesses And generally I think that's, you know, years ago, Cisco when I worked with Cisco, we talked about, you know, the remote user of the mobile user and how Cisco is kind of leading, uh, the way on that. And I think, you know, with the nature of things like this pandemic, I think being able to have your your users again have that consistent experience, no matter where they're at is going to be key. And so that's how I see when I think of the network evolution, I think that's how it it has to go. >>Well, we appreciate your your time sharing your insights Has a lot of a lot of people are learning that you've got to pour the concrete to build the building. DNS becoming kind of critical infrastructure. But final question for you. I got you here, you know? How you doing? Actually, schools looks like they're gonna have some either fully virtual for the next semester or some sort of time or set schedule. There's all kinds of different approaches. This is the end of the day. It's still is this big i o t experiment from a traffic standpoint. So new expectations create new solutions. What do you see on the horizon? What challenges do you see as you ride this way? Because you've got a hold down the fort, their school district for 3000 students. And you got the administration and the faculty. So you know What are you expecting? And what do you hope to see Evolve Or what do you want to stay away from? What's your opinion? >>I think? I think my my biggest concern is, you know, making sure our like, our students and staff don't, uh, you know, run into trouble on by say that more from, you know, you know, by being, you know, being exposed to attacks, you know, their data with Delta becomes, you know, comes back to our data as a district. But, you know, the student data, I think I think, you know, with anything kids are very vulnerable. Ah, very role, vulnerable targets for many reasons. You know, they're quick to use technology that quick to use, like social media, things like that. But they're they're probably the first ones to do security Does not, you know, across their mind. So I think my big my big concern is as we're moving this, you know, hybrid, hybrid approach where kids can be in school where they're going to be at home. Maybe they'll change from the days of the week. It'll fluctuate, uh, keeping them secure, you know, protecting them from themselves. Maybe in a way, if I have to be the guy is kind of the grumpy old dad it looked at. I'm okay with wearing that hat. I think that's my biggest. Our concern is providing that type of, uh, stability and security. So parents at the end of that could be, you know, I have more peace of mind that their kids you know, our online even more. It's great >>that you can bring that experience because, you know, new new environments, like whether it zooming or using, try and get the different software tools that are out there that were built for on premise premises. You have now potentially a click here. Click there. They could be a target. So, you know, being safe and getting the job done to make sure they have up time. So the remote access it again. If you've got a new edge now, right? So the edge of the network is the home. Exactly. Yeah. Your service area just got bigger. >>Yeah. Yeah, we're in. You know, I'm everybody's guest, whether they like it or not. >>I appreciate that. Appreciate your time and good luck. And let's stay in touch. Thanks for your time. >>Hey, thanks for having me. You guys have a good rest of your weekend? Day two. State State. >>Thank you very much. It's the Cube's coverage with info blocks for a special next level networking experience. Pop up event. I'm John for the Cube. Your host. Thanks for watching. Yeah, yeah, yeah.
SUMMARY :
It's the Cube with digital coverage of next you by info blocks. Great to have you on. we'll get there. um, you know. What did you do to keep things going? making sure, you know, the network access from a filtering and consistency standpoint experiment basically edge of the network, you know, in all over the place. blocks is cloud DNs server, you know, which was providing security and filtering. I don't want, you know, even though many company but Same thing you go to school as a customer. lot of information that info Blocks and their partners have created identifying, you know, why did you guys decide to use info blocks and what's the reason behind it? And so you know, when you're talking about attacks, over 90% of attacks use DNS. I mean, and when it needs that when you get into the DNS. Well, and to be honest, it's It's one of those services that you can't can't What do you say? So you have the cloud components to where you can take a lot of the heavy lifting, maybe off How is the info blocks helping you keep network services running in system secure? So from that standpoint, you know, in the five years almost we've I mean, you always chasing your tails. Yeah. you know, as you get more connections. I want to get your thoughts on how you see that. So within, you know, a matter of minutes we have almost Appreciate a lot of the other interviews I've done with the info blocks, folks. Well, you know, by integrating with the cloud I've I've got, you know, that the cloud based You've seen the technology evolve when you hear next but to bring me, you know, that to keep the secure wherever I met. I got you here, you know? on by say that more from, you know, you know, by being, So, you know, being safe and getting the job done to make sure they have You know, I'm everybody's guest, whether they like it or not. I appreciate that. You guys have a good rest of your weekend? Thank you very much.
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Dan Havens, Acronis | Acronis Global Cyber Summit 2019
>>From Miami beach, Florida. It's the queue covering a chronics global cyber summit 2019 brought to you by Acronis. >>Okay, welcome back. Everyone's the cubes covers two days here in Miami beach. The Fontainebleau hotel for the Kronos has global cyber summit 2019. It's inaugural event around a new category emerging called cyber protection. Um, this isn't a wave that's going to be part of the modernization a week we've been calling cloud 2.0 or whatever you want to call it. A complete modernization of the it technology stack and development environment includes core data center to the edge and beyond. Our next guest is Dan havens, chief growth officer per Chronis. Dan, thanks for coming on. Appreciate it. And thank you for having me, Dan. So, uh, what does chief growth officer mean? You guys obviously are growing, so obviously we see some growth there. Yeah, numbers are there. What she, what she, we have a couple of divisions in the company where we see we can really accelerate the business. >>So we came in and we wanted to make some large investments here. One of those areas was sports. You're seeing race cars out here on the floor, you're seeing all kinds of baseball teams, soccer teams, and we're talking to everybody. We have 40 teams now that are using our technology for competitive advantage on the field. Uh, the other areas, OEM, so, uh, original equipment manufacturers, everybody from making a camera to a server somewhere, having a Cronus be embedded, that's a big angle for us and we just didn't have a lot of focus. So I came into to build those divisions. I've actually joined the CEO before in a prior life in his last company and did something similar for him on a similar, uh, back there and we had violent success. So yeah, it's been a lot of fun. I've been here a year and a half and we're killing it. >>We got triple digit growth in the sporting category and similar in the OEM. It's interesting, you know, I look at a lot of these growth companies and the kind of a formula. You see, you guys have a very efficient and strong product platform engineering group. A lot of developers, a lot of smart people in the company, and a strong customer facing for the lack of a better word, field. The group you're in, you're involved, this is not, and you got marketing supporting it in the middle. Yep. So nice, efficient organizational structure on a massive way. But cyber, because this isn't your grandfather's data projection, this is a platform. What's the pitch? So the key here for us is we have to always say, and, and it, it's, it's hard to simplify and we're easy. In fact, we're cost-effective. Sometimes I'll even say I'm cheap and I'm easy. >>And that does not go out of style for an enterprise, right? So our ability to take good old fashioned backup and these things that other people need and basically extend that across. Now I can have one window where I can control, keep 'em out. If somebody gets in or from the inside or a disaster happens. I from this one place can recover my data. I'm secure with my data. I have the ability to notarize my data. So this one, and by the way, key simple interface. Customers love simple. This one simple interface to be able to do that. Now it takes a lot of engineering that goes behind that. I have plenty of, I have fancy engineering degrees and all that, but I try forget that when I'm talking to a customer because at the end of the day it's gotta make sense. A mind that doesn't know, says no. >>And I think we do a pretty good job of simplifying the message, but as they get under the covers and they roll it out, they recognize that there's, you know, we, we, we have more engineers per employee capita than any company that would have 1600 employees. Simple, easy to use. It reduces the steps it takes to do something as a winning business model. You kind of come from that school you mentioned, you know, cheap and easy. That's what is key. Yeah. But we're in a world where complexity is increasing and costs are increasing. Yep. These are two dynamics that are facing every enterprise, cyber it everywhere. What's your story when you want to educate that person so they can get to that? Yes. I want to work with you guys. What's that? What's that getting to? Yes. Processed motion look like. So the beautiful part is is we sell software right now. >>Software can be purchased complex. You install it, you can figure, you do everything yourself. We also can sell that from a cloud standpoint. So now you consume it like a service. Just like you consume Netflix at home, right? I can now consume this protection as a service. You have bolts spectrums covered. Most enterprises are somewhere in the middle. We call that hybrid. So the idea here is that there's going to be components where this data's not leaving these four walls. It might be government agency, it might be some compliance factor, but the ability to be able to say yes anywhere on that spectrum, it makes it very easy for an executive to say, okay, but we have a very, as you leverage the cloud, the OnRamp for this can be as simple as turning on the surface and pointing it at a data source. I mean, you're a student of history, obviously even in this business for awhile, you've done been there longer than you'd think. >>Data protection was kind of like that. Afterthought, backup data recovery all based upon, yeah, we might have an outage or a flood or hurricane Sandy who knows what's going to happen. You know, some force majority out there might happen, but security is a constant disrupter of business continuity. The data's being hijacked and ransomware to malware attacks. This is a major disruption point of a world that was supposed to be a non disruptive operational value proposition. Yeah, so the world has changed. They went from a niche, well, we've got their architecture of throwing back up. You've got to think about it from day one at the beginning. This seems to be your, your story for the company. You think about security from the beginning with data protection. There's only one club in the bag, so to speak. Talk about that dynamic and how's that translating into your customer's storytelling customer engagements to show you, you used an interesting word at the beginning, disaster recovery years ago, I started my tech industry in 1992 right? >>Disaster recovery is when we're going to have a flood or a hurricane and the building's going to burn down. What we find is most of our customers, that's certainly happens, but that's not the driver. The driver now is somebody after my data because the world has changed. Not only has the amount of data we're collecting change, but the ability to illegally monetize somebody else's data has become reality and you have social media that is socializes if you get breached and so forth. So there's a number of drivers. Number one, I don't want to be turned out of business. Number two, I don't want to be ransom. Then number three, I certainly don't want to do the cover of the wall street journal tomorrow morning as a top executive who looked past data. We literally watch brands, I won't mention the brand now, but a very large fortune 1000 what's called out yesterday. >>We see it every few days and we watched the carnage of their brand get deluded because they weren't protected. So I think it's the perfect storm up. I've got a ton of data, so it's coming in from all directions. Secondly, I I'm concerned about, you know, my brand and been able to protect that data and then you know, what do I do? And the disaster in this case is not necessarily flood or fire. It's that somebody from the inside or outside got in the gym. Pretend that I'm a decision maker. I'm like, my head's exploding. I'm got all this carnage going on. I don't want to get fired yet. I know I'm exposed. Nothing's yet happened yet. Maybe I settled the ransomware thing, but I know I'm not in a good place. What's your story to any, what's your pitch to me? What's in it for me? Tell me. >>Tell me the posture and the, well, we're halfway home. If you say, I know I'm not in a good place, right? Cause oftentimes somebody has to get bit first or they have to see their neighbor get bit first and then they say, Hey come in. One of my first plays would be let's find out what place you really are. I can do that very quickly and an assessment, we can gather your systems, we can get a sense for our, where's your data? Where it's flowing from. What are you doing? What are you doing to protect it? We typically will come back and there's going to be spots where there's blind spots. Sometimes they're fully naked, right? But the good news is is now we know the problem, so let's not waste any time, but you can get onboard and baby steps or you know, we can bandaid it or we can really go into full surgery however you want to move forward. >>But the idea is recognizing this has to be addressed because it's a beast. Every single device that's out there on the floor, in any enterprise, any company is a way in and a POC are critical for your business model. You want to get them certainly candy taste, show the value quickly has a POC, gets structured unit assessment. You come in on a narrow entry nail something quick, get a win. What's the, what's the playbook? Love PLCs because we're so fast and easy meaning oftentimes you do PLCs cause you're complex software and you're trying to prove your point and so forth. I love to push a POC cause I can do it inside of days, but I get the customer to take the drive. It's just on the car lot. If I get you to drive it down the block, you're not bringing it back. You're bringing it home to the neighbors. >>Right. That is the case with our software and our hit rate is key. But again it's because it's straightforward and it's easy. So though most sales cycles don't push for pilot. I can't wait to get a pilot but we don't need 30 days to do it in a couple of days. They're going to recognize I can do this too. You have a good track record of POC. If I get, this is going to be the most conceding. You might have to edit this out. If I get an audience, I will win. That is the most conceited statement on the planet. And if I get the audience and they will look, and this is why we use the sports teams. Sports teams are the cool kids using this. And if I get an executive to say, what are you guys doing with the red Sox? If I could get him or her to look, it's game over. >>Hey being bad ass and having some swagger. It's actually a good thing if you got the goods to back it up. That's not fun. Piece here is that the product works well and it's not this massive mountain to hurdle. It is. We can get started today and take bites as we go, but you mentioned sports. Let's get into that talk track. As we have been covering sports data for now six years on the cube in San Francisco. We were briefly talking about it last night at the reception, but I think sports teams encapsulates probably the most acute use case of digital transformation because they have multiple theaters that are exploding. They got to run their business, they got a team to manage and they got fan experience and their consumers, so you've got consumerization of it. You got security of your customers either in a physical venue from a potential terrorist disaster could happen to just using analytics to competitive venture from the Moneyball model to whatever sports really encapsulates what I call the poster child of using digital into a business model that works. >>You've been successful with sports. We interviewed Brian shield yesterday. Yup. Red Sox, vice-president technology. He was very candid. He's like, look it, we use analytics. It helps us get a competitive, not going to tell you the secrets, but we have other issues that people not thinking about drone strikes while the games going on, potential terrorist attacks, gathering the people, you know, adding on East sports stadium to Fenway park. They have a digital business model integrating in real time with a very successful consumer product and business in sports. This has been a good market for you guys. What's been the secret to success? >> Explosive market? Couple things. First off, you summarized well, sports teams are looking for competitive advantage, so anything that can come in under that guys is gonna get some attention plus data, fan data, system data, ticket data. Um, in baseball, they're studying every single pitch of pictures ever thrown. >>They have video on everything. This is heavy lift data, right? So a place to put it saved money, a place to protect it, a pace to access it so that all of my Scouts that are out in the field with a mobile device have the ability to upload or evaluate a player while they're out still on them and on the field somewhere maybe in another country. And then add the added caveat in our sexiest piece. And that's artificial intelligence. You mentioned Moneyball, right? Uh, the, the entire concept of, of stat of statistics came out in the Moneyball concept and you know, we all saw the movie and we all read the book, but at the end of the day, this is the next step to that, which is not just written down statistics. Now we can analyze data with machine learning and we have very, we have unique baseball examples where there's absolutely no doubt they have the data. >>It's the ability to, how do I turn that to where I can be more competitive on our racing team. So we're actually working with teams improving, changing the car on the track during the race, using our software fact. We always look forward to opportunities where somebody says, Hey, come in and talk about that because it's incredibly sexy to see. Um, but sports are fun because first off they're the cool kids. Secondly, they're early adopters. If it's gonna give competitive advantage, uh, and third, they hit all the vectors. Tons of data have to protect it. >> It's our life in the business models digital too. So the digital transformation is in prime time. We cannot ignore the fact that people want wifi. They got Instagram, Facebook, all of these, they're all conscious of social media. There are all kinds of listening sports club, they have to be, they have to be hip, right? >>And being out front like that, think about the data they have come in at. And so not just to be smart on the field, they have to be smart with our customer. They're competing with that customer for four of their major sports or whatever. Major sports in the, in the, in the, in our case in this fashionable to be hip is cool for the product, but now you think about how they run their business. They've got suppliers, um, that have data and trusting suppliers with data's. There's a difficult protection formula. They've got national secure security issues. They have to protect, well they have to protect as a big part, but they have to protect, well first off these, these archives of data that are of 20 races ago or of this pitcher pitched three years ago and I have a thousand of his pitches and I'm looking for towels. >>That is, that's mission critical. But also, uh, to boot you have just business functions where I'm a, I'm a team and I have a huge telco sponsor and we are shifting back and forth and designing what their actual collateral is going to be in the stadium. They're actually using a Chronis to be able to do that up in the cloud where they can both collaborate on that. Not only doing it, but being able to protect it that way. It's, it's more efficient for them. It's interesting. I asked Brian shield this question, I asked her how does baseball flex and digital with the business model of digital with the success of the physical product or their actual product baseball. And he said an interesting thing. He's like the ROI models just get whacked out because what's the ROI of an investment in technology? It used to be total cost of ownership. >>The class that's right under the under the iceberg to sharpen whatever you use, you use that. We don't use that. We think about other consequences like a terrorist attack. That's right. So so the business model, ROI calculation shifting, do you have those kinds of conversations with some of these big teams and these sports teams? Because you know they win the world series, their brand franchise goes up if they win the national championship, but whatever their goal is has real franchise value. There's numbers on that. There's also the risk of say an attack or some sort of breach. >> Well, I won't mention the names, I won't mention the teams by name, but I have a half a dozen teams right now and two that are actually rolling out that are doing facial recognition just for security, a fan's entering their stadium. So they are taking the ownership of the safety of their fan to the level of doing visual or facial recognition coming into their stadium. >>Obviously the archive to measure against is important and we can archive that, but they're also using artificial intelligence for that. So you're absolutely right. They owe their fan a safe experience, not only a safe experience with good experience and so forth. And we love to be associated whenever we can with wins and losses. But to your point, how do you get, or how do you show a TCO on a disaster and nobody wants to, and by the way, we've seen enough of that to know it's looming. And there's also the supply chain too. I can buy a hotdog and a beer from Aramark, which is the red socks. They say supplier that's not owned by the red Sox. They have a relationship. But my data's in, I'm a consumer of the red Sox. I'm procuring a, you know, some food or service from a vendor. Yeah, yeah. My data's out there. >>So who protects that? Well, these are unique questions that come up all the time. Again, that's a business decision for the customer. The idea is with cloud collaboration, it's technically quite easy, but again, they have to decide where they're gonna commingle their data, how they're going to share. But the idea here is, again, back to the spectrum, fully cloud and accessible and locked down airtight government's scenario where we have a, you know, a lock bottom line is you get to pick where you want to be on there and there's going to be times where my example of talking to the, uh, the telco vendor, we're, we're actually going to share our data together and we're going to make us faster, make a quicker return and design this collateral for our stadium faster. Those are business decisions, but they're allowed because it, Coronas can be as hybrid as you need to be along the site. >>And again, that resonates with an executive. They never want to be wearing handcuffs and they don't want to pay overpay for stuff to not use our stuff. And if you decide to consume cloud, you, you just pay as you go. It's like your electricity bill. All right. So the red Sox are a customer of you guys. You have or they use your service. What other sports teams have you guys engaged with who you're talking to? Give a taste of some of the samples. So European, we have a couple of formula one teams. We have a racing point. We have the Williams team and formula E we have to cheetah the dragon team. We have a adventury, we also have Neo. So we have a good presence in the racing clubs. We have a ton of a world rally cars and, and, and motorcycle motorcross and so forth. >>Then you step over into European football. So we, we, we started in cars and recognize this is hot. So then we got our first, uh, European team, uh, and we had arsenal. As a matter of fact, we have one of the legends here signing with us today. And you know, I mean, they're rock stars, right? People follow them. Anyway, so we have arsenal and we did man city. Um, and we just landed, uh, Liverpool just did that this quarter, two weeks ago. I literally just, the ink is still drying. Um, and then you move into the United States, which I brought the, you know, I brought the circus to town on January one, 2019. First when was the Boston red Sox. We quickly followed that up. You'll see us on the home run fence at San Diego Padres. Volts bought for different reasons, but both very sexy reasons. So it's the reason. >>What were the main drivers? So in the case of the Boston red Sox, it was, it was a heavy lift on video. A lot of on the protection side. Um, the, uh, San Diego was file sync and share. So the example I was giving of, um, being able to share with your largest telco vendor or with your largest investors slash sponsor for your stadium, um, that was the driver. Now what's funny about both is as they get started, he's always expanding, right? So we have the baseball teams, we did land this quarter, the Dallas stars. So that's our first hockey club. I really want. And my goal is to try to get a couple in each of the main four categories and then some of the subs, um, just cause you get the cool kids, you get a tipping point. Everybody then wants to know what's going on. I have a hundred and play. >>And so we, we typically try to qualify regional where it makes sense. Um, uh, we're, you know, we're very close with a team here in the region. So, you know, they, in the feedback from, from the, from the successes you had implementations, why, what's uh, what's been the feedback from the customers. So here's the file in this. Sounds like I'm just tripping with sales guy and I apologize. Warning signs. Okay. If they use it, we're home free. So when you get Brian or any one of these guys that are using it, all I have to do is make sure that a new customer hears this person who has no reason to say anything else and just expose them to it. Because it's this unknown, scary thing that we're trying to protect against and being able to do that and have the freedom of how aggressive or you know, what metaphor am I going to cover that? >>And then also, uh, you know, the, obviously the economics work is you pay as you go. Um, it's, you know, it's a good story. Well, Dan, congratulations on the success. Um, great to see you guys really digging in and getting those PLCs and being successful. We watching your growth. Final question for you yes. Is all the data and the patterns that you see and all of customers. What's the number one reason why a Cronus is selected and why you women? I think that's an interesting question and I think that it's a couple of reasons. Number one, we work, we're easy. We have an enormous footprint. So there's a lot to reference from. Many people have already used us on the consumer side, so we're safe. So that's one reason I would also tell you however, that we have a great ecosystem because a Kronos is different than most software companies. >>Most software companies have a huge outside sales force that sells direct to customer a Chronis. Everybody here is a partner. We sell through a service provider to a channel member through a, through a, a, a, an ISV. Um, and then we have some direct enterprise. But the idea is there's a variety of solutions that can be baked on this foundation. And I think people like that variety. I, they, they like the, like the freedom of I'm not just trapped with this one thing. I can buy it and all options are available and I will tell you an it, nobody wants to be locked down. Everybody wants options, safety in numbers. They want their data protected with the whole cyber land lens. And they know everything's changing every six months. Something's different. And I don't want to be handcuffed in my desk. I want all options available. I think that's our best value from all right, Dan, thanks for coming on. Dan havens, chief growth officer, but Krohn is weird. The Chronis global cyber summit. I'm John Ford. Stay tuned for more cube coverage after this short break.
SUMMARY :
global cyber summit 2019 brought to you by Acronis. A complete modernization of the it technology So I came into to build those divisions. So the key here I have the ability to notarize my data. So the beautiful part is is we sell software right now. So the idea here is that there's going to Yeah, so the world has changed. is most of our customers, that's certainly happens, but that's not the driver. And the disaster in this case is not necessarily flood or fire. But the good news is is now we know the problem, But the idea is recognizing this has to be addressed because it's a beast. And if I get an executive to say, what are you guys doing with the red Sox? Piece here is that the product works well and it's not this massive What's been the secret to success? First off, you summarized well, sports teams are looking for competitive advantage, have the ability to upload or evaluate a player while they're out still on them and on the field somewhere maybe It's the ability to, how do I turn that to where I can be more competitive on our racing team. So the digital transformation is the field, they have to be smart with our customer. But also, uh, to boot you have just So so the business model, ROI calculation shifting, So they are taking the ownership of the safety of their fan to the Obviously the archive to measure against is important and we can archive that, but they're also using artificial intelligence for But the idea here is, again, back to the spectrum, fully cloud and accessible and So the red Sox are a customer of you guys. So it's the reason. the subs, um, just cause you get the cool kids, you get a tipping point. So here's the file in this. What's the number one reason why a Cronus is selected and why you women? I can buy it and all options are available and I will tell you an it,
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H.E. Aymen Tawfiq Almoayed & Max Peterson, AWS | AWSPS Summit Bahrain 2019
>> From Bahrain, it's theCUBE. Covering AWS Public Sector Bahrain. Brought to you by Amazon Web Services. >> Welcome back, everyone, to CUBE coverage here in Bahrain for AWS Summit. Cloud computing's changing the landscape, startups, business, government, and society. We're here with a special guest, His Excellency, Aymen Tawfiq Almoayed. Thank you very much, thanks for coming, thanks for joining us. >> Thank you for having me. >> And of course Max Peterson, Vice President of International Sales, Worldwide Public Sector for Amazon Web Services. >> Good to be here, John. >> Your Excellency, this program you're doing with Amazon, this MOU you've signed is interesting, I want to unpack it, because it speaks to the bigger picture of how the region is shaped by its generational shift of cloud computing and the people here. This is a really big part of this modernization plan. >> No question, no question. So the program that the government adopted, so Vision 2030, which was adopted a while ago, is based on one premise, one key premise. That the government is going to move from operator to regulator, and our focus would be to focus on and establish, create almost, an open, just, competitive environment. So the idea is for us to provide the platform and then allow the meritocratic system to let those that can aspire to opportunities and reach these opportunities come up through the system. So this program really sets the stage to get a new level going. >> Explain the difference with this program and why it's different than some of the things we've been hearing. We saw a cloud computing degree coming out of the University of Bahrain. We're seeing a lot of job skill training. This is different, this is a unique thing. Can you give a more detail around how it works. >> So, what we're doing is we're looking at very quick wins. And for us, six months, for somebody to spend six months, one year, in Amazon is a very quick win. This is not an extended degree. What this is is it's an opportunity to interact with the best of the best in their world sector. And to, honestly it's almost like a reset, where what Max and I were talking about earlier is somebody that spends a year with Amazon, I think that something happens to the pulse rate, right. So your pulse literally starts to beat much faster. >> Max knows all about that. >> Exactly, exactly. We hear about their traveling patterns, and that in itself is amazing. So in any case, so the reason it's different from a degree is it gives you real-life vocational experience. It gives you the networking opportunity. It gives you the lifestyle exposure. And then it gives you the shortcuts in organization. >> So you're exposing them to the excellence of what a culture looks like, Amazon in this case. They're hard-charging, they're fast. Anyone who's worked with Amazon knows that they move pretty quickly. But they're disciplined. It's a world-class organization. It's like a sports team being promoted to varsity or the pro team. Work their way up from the entry-level. >> So maybe the difference as well is, in this sort of program it's sink or swim. It's really as simple as that. I mean, you need to hit the ground running and take off. Maybe with a degree, it's much less so. With a degree, you go through your first year, your second year, your sophomore and so on. So what we do, what we want, is we want our youth to hit the ground running. We want very quick wins and I have no doubt that once the first trench, first team goes out to Amazon, comes back, I'm sure that the ripple effect that you see in industry and you see in the marketplace will be tremendous. >> Max, what's your take on this? 'Cause obviously you're on the Amazon side. You're taking them in Amazon Web Services here in Bahrain, or is it outside corporate headquarters in Seattle? Is there a definition around? >> All good questions. First, we're excited to be the first company that is partnered with the Ministry on this effort. We're sure many others are going to join, but we're excited to be first. I think what makes it different is the aspect of experiential. There's a lot of experiential learning that's going on different than the academic learning. Equally or maybe even more necessary is the sort of organizational cultural learning. Just what does it take to operate at world scale or at pace. And then to be able to bring that back to the region. We'll do that wherever we've got the right mix of skills. So it could be in Bahrain, where we've got a big office now, it could be in London, could be Washington, D.C., could be Seattle. >> Your Excellency, we always talk about on theCUBE over the years, tech athletes. Because, you know, to be an athlete, you got to have durability, intelligence, stability. Being a tech athlete, the travel schedules, we were just joking last night about it, you mentioned it. But also the intelligence and the integrity to do this at this speed. So this is kind of, I love the theme, so I want you to elaborate why this connects in with your vision and how did this idea get started, what was the origination around this effort? >> So initially the, again, if one takes a step back, we started experimenting about a year ago, a year and a half ago with the sports sector. So what we were doing with the sports sector, because it was a much smaller sector. What we're trying to experiment there is, if you were to allow our athletes to interact with the best in class, what would happen? Would they live up to that experience or not? And so one of the segments that we were looking at is, for example, triathlons. So about two years ago, this sport, triathlons in general, just simply didn't exist in the region. So two, maximum three years ago, they just, they were nonexistent. So His Highness had ordered that we go ahead and see if we can develop this and see if we can develop the athletes for it. And so what we needed to do, essentially, was pick some-- >> Find the athletes. (laughs) >> Is find the athletes, exactly. Send them out, we did a few triathlons. They did Kuna and Florida, came back, loved it, the addiction and the adrenaline kicked in, and then we started arranging duathlons and then triathletes here in Bahrain. Of course, I don't know if you know this, a year, fast forward, a year and a half later, and BE13, which is our triathlon team, is number one in the world. Simply it's number one in the world. Now we're doing this, we tried this with biking. So we sent a team to the Tour de France, and we started to do exactly the same thing. We were aspiring to look at greats like Sky team and the rest, and just learning from them, imitate, and then innovate, and-- >> One, if you have to have the talent to begin with, your theory is put 'em in, let 'em see it, and they'll either level up or they won't. It's self selection. >> Absolutely, no question. >> And you want to bring that formula to tech. >> It's pure meritocratic sink or swim. So we've got, so there's two, there's two phrases that we live by, all right. Number one, our role is open, competitive, just environment. That's it, all right. The number two is we open doors with no hand-holding. Simply no hand-holding, but we'll get you the opportunity. But if Amazon calls us and says participant number 606 or whatever isn't up to the cut, then they're not up to the cut. And what our youth have proven to us time after time is they're always up to the cut. As long as you make that clear, they-- >> The expectation defines the experience. So if you say this is what it is, you can swim or you can sink, your choice, people will tap out, they won't even jump in. >> I like the tech athletes piece. >> Yeah, I'm loving it, absolutely. >> Well, I mean, a lot of tech athletes, it takes a lot of energy, it is like you said, you don't know what it takes to build a company, it's really hard, I mean, it's not easy. >> It is, and the thing, just like this program, the thing that was interesting about the University of Bahrain idea was they're going to try and immerse everybody, because cloud and technology now is immersed in any field. I mean, anything becomes digital. And we were talkin' earlier about e-sports, so you need a whole bunch of great tech athletes to start bringing e-sports services to the world. >> Absolutely. >> Do you see e-sports emerging? >> Yeah, no doubt. So what we did on Friday is we signed the first agreement, this is the first time that a region hosts, we're hosting BLASTPro's finals in Bahrain, this is going to be on the 13th and the 14th of December, and that's running, streaming on Twitch. So we're excited, we're excited to be doing this with the guys at BLASTPro, and we're excited to be using Amazon's infrastructure to do it. So yes, absolutely, there is amazing things to be seen in e-sports and we're excited. >> This is awesome, digital disruption, you guys have been so proactive on this. I was commenting this morning on Twitter, then stats went out about entrepreneurship in Silicon Valley in the U.S., 51% of all ventures fail. And some other ones, 4% become unicorns, but it was all about optionality, et cetera, et cetera, and entrepreneurs are about getting on the right wave and falling and trying again, and this is, you guys have been very proactive on this. >> Right, so that's exactly why we think that sports plays a big role. So the idea behind the program was simply to gamify everything. The idea behind this program, the idea behind adopting the new bankruptcy law in Bahrain, and the new reform regulations that are coming in, all we're doing is we're gamifying things. What we're simply saying is when you fall, it's OK to fall. As long as you get back up and hit the ground running once again, we're OK with that. So you'll start to hear phrases that are pretty interesting. Like I said, with the entrepreneurships, what we're looking at is unlocking levels. So we're gamifying. With education we're doing exactly the same thing, we're looking at vocational training where you get to unlock levels. So as long as people know that the name of the game is just to stay in the game, and then outpace everybody else, then we're good. >> And the funding's been fantastic. You guys have been supporting it with resources. Now that the region's up and running, Max, do you feel good about the development so far with the new region? Therese was just on earlier, she mentioned first day they turned it on, a bunch of companies were launched already. >> Besides the cannons and the confetti that shot out today at the summit, the other exciting thing's I think when we launched the region, we had over 350 different companies, many small businesses, small and medium enterprises that put their offerings into the AWS Marketplace. When it was launched, anybody in the region, anybody in Bahrain, could literally turn on 1,700 different types of software solutions at the push of a button, so I think that's big. I think we heard how 35 local companies have created migration offerings and fast-start offerings. We heard from one great entrepreneur on stage today and we heard from government about how government's operating faster than business, I think Sheikh Salman threw down a bit of a challenge to the rest of the government and state enterprises and even corporations. And then of course I think we saw the digital bank of the future from Bank ABC with their first virtual banking assistant up on stage who, by the way, lives in the cloud over Bahrain. >> Yeah, digital employee, we had a great chat about that. This speaks to the generational shift, this is something that's going to be an interesting footnote in history. The sea change around expectations, you brought this up earlier, I think this is important. The younger generation, they want the world to be at a different speed, and they don't want an intolerant blockers in their way. And so whoever can be out front on setting up the environment, whether it's society, government, citizen services, but money-making potential, banks got to operate. So this is the replatforming of society is happening. >> No question, yeah, no question. I'll give you just the, when you compare ministries, when you compare government entities, you would walk in and you'd assume the ultra-bureaucratic system is still in place where you've got to go through tiers and so on and so forth. As far as the youth at the Ministry of Youth is involved, these guys are running things with chats, we've got internal chat systems, and so there is no memo-writing process where you then have to escalate it, and then it goes to the minister's office and so on. Absolutely not. These guys are on the likes of Slack, the likes of Teams from Microsoft and so on, and that's how government is run. >> Max, email's for old people like us. >> Hey, modern digital governments are redesigning the way all this stuff works, and it doesn't, the thing that's interesting to me is it doesn't just impact these things that you would think of as tech. I thought the example of going from 130 days to 5 days for permitting approvals-- >> For building permits, sure. >> That takes out a massive amount of inefficiency from the industry, right, and it enables that very industry to then move faster, instead of government as a blocker to so many of these things, becomes an enabler. And I think it's that attitude about modernized, customer-focused or citizen-focused that is the hallmark of what folks are doing now to make a difference. >> Well, thanks for coming in and sharing the insights. Your Excellency, great to see you. I have one final question, take a minute to explain to the folks what is the Ministry of Youth and Sports Affair, what's the charter, you going to add tech athletes to the mix now that we've kind of defined that term? But take a minute to explain-- >> Tech athletes. So the vast majority of the population is under the age of 35. The ministry's mandate is to make sure that anybody within that constituency, their touchpoints are being managed in the right way. So our job, very, very simply, is to be effectively the change agent for them, number one, and number two, to protect their interests. So we're the ones that are negotiating regulations that come in, but what touchpoint really is relevant? We're negotiating new laws that impact youth when it comes to their trades, new laws that impact youth when it comes to their rights, new laws-- >> Whether it's culture or art or whatever. >> Any touchpoints, so effectively we're customer-relations for youth, or client relations for youth. So that's that from one perspective. With regards to sports, we're simply regulators. So what we're doing is we're moving from an operator model to a regulator model, and what we're trying to do is we're trying to create a sports industry. So instead of us focusing on the actual tournament itself only, we're looking at sports diplomacy, we're looking at sports industry, we're looking at human performance and things like that. So any sectors that we can catalyze to grow in Bahrain that relates in any way, shape, or form to sports, whether it was medicinal development, technological development, regulations or otherwise, that falls under Ministry of Youth and Sports. >> You're charged to look at the whole individual across all spectrums touchpoints. >> Exactly >> That's awesome. >> So we're a horizontal as opposed to a vertical. >> Your Excellency, great to have you on theCUBE, great topic, could talk about it forever. We love sports, of course, on theCUBE, we love talkin' sports, Max, you're a tech athlete. >> I'm a tech athlete, I learned that today. Brilliant. >> You go from city to city, hit a home run everywhere you go. >> I'm looking for the next league to compete in. >> Guys, thanks so much for the insights. CUBE coverage here at AWS Summit in Bahrain, I'm John Furrier, thanks for watching. (bright music)
SUMMARY :
Brought to you by Amazon Web Services. Cloud computing's changing the landscape, And of course Max Peterson, of how the region is shaped by its generational shift So the program that the government adopted, Explain the difference with this program the best of the best in their world sector. So in any case, so the reason it's different from a degree to varsity or the pro team. I'm sure that the ripple effect that you see in industry Max, what's your take on this? is the aspect of experiential. But also the intelligence and the integrity And so one of the segments that we were looking at Find the athletes. is number one in the world. One, if you have to have the talent to begin with, Simply no hand-holding, but we'll get you the opportunity. So if you say this is what it is, it takes a lot of energy, it is like you said, It is, and the thing, just like this program, this is going to be on the 13th and the 14th of December, and entrepreneurs are about getting on the right wave So as long as people know that the name of the game Now that the region's up and running, Max, do you feel good at the summit, the other exciting thing's I think So this is the replatforming of society is happening. and then it goes to the minister's office and so on. the thing that's interesting to me customer-focused or citizen-focused that is the hallmark Well, thanks for coming in and sharing the insights. So the vast majority of the population So any sectors that we can catalyze to grow in Bahrain You're charged to look at the whole individual Your Excellency, great to have you on theCUBE, I'm a tech athlete, I learned that today. You go from city to city, Guys, thanks so much for the insights.
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Power Panel | VMworld 2019
>> Narrator: Live from San Francisco celebrating 10 years of high tech coverage, It's the Cube! Covering VM World 2019 Brought to you by VMware and its ecosystem partners >> Hello everyone and welcome to the Cube's coverage here in San Francisco, California of the VMWorld 2019. I'm John Furrier with my cohost Dave Vellante Dave, 10 years covering VMWorld since 2010, it's been quite a ride, lot of changes. >> Dave: Sure has. >> John: We're going to do a Power Panel our format we normally do it remote guests in our Palo Alto and Boston studios in person because we're here. Why not do it? Of course, Keith Townsend, CTO Advisor friend of the Cube, Cube host sometimes and Sarbjeet Johal, cloud architect cloud expert, friends on Twitter. We're always jammin' on Twitter. So we'll have to take it to the video. Guys, thanks for joining us on the Power Panel. >> Good to see you, Gents. >> Good seein' ya. >> Good to be here. >> Yeah, I, I hope we don't come to blows, Sarbjeet. I mean we've had some passionate conversations over the past couple months. >> Yeah, Santoro, yes, yes. >> John: The activity has been at an all time high. I mean, snark aside, there's real things to talk about. >> Yes. >> I mean we are talking about VMware a software company, staying with their roots. We know what happened in 2016 The Amazon relationship cleared the air so to speak, pun intended. Vcloud air kind of goes it's way stock prices go up and to the right Yeah, fluctuations happening but still financially doing well. >> Keith: Yeah. >> Customers have clarity. They're an operate. They run, they target operators not developers. We're living in a DevOps world we talk about this all the time dev and ops this is the cloud world that they want Michael Dell was on the Cube Dell Technologies owns VMware they put Pivotal on VMware moves are being made. Keith, how do you make sense of it? What's your take? You've been on the inside. >> Well, you know, VMware has a tough time. Pat came in, 2013, we remember it. He said we are going to double down on virtualization. He is literally paying the cost for that hockey stick movement VMware has had this reputation of being an operator based company Infrastructure based, you go into accounts, you're stuck in this IT Infrastructure cells movement. VMware has done awesome over the past year. Few years, I had to eat a little crow and say that the move to eject Pivotal was the right thing for the Stock but for the reputation, VMware is stuck so Pat, what, tallied up 5 billion dollars in sales, in purchases last week to get out of this motion of being stuck in the IT Infrastructure realm Will it pay off? I think it's going to be a good conversation because they're going to need those Pivotal guys to push this PKS vision of theirs. This PKS and Kubernetes vision that they have >> Well they got to figure it out but certainly it's a software world and one of the things that's interesting we were talking before we started is, they are stuck in that operator world but it's part of DevOps, Dev and Ops. This is the world that they operate in Google's cloud shows how to do it. You got SRE's run things and developers this program infrastructure is code. This is the promise of this new generation. Sarbjeet, we talk about it all the time on Twitter developers coding away not dealing with the infrastructure, that's the goal >> Yeah, traditionally, developers never sort of mucked around with infrastructure. Gradually we are moving into where developers have to take care of infrastructure themselves the teams are like two person teams we hear that all the time. They are responsible for running the show from beginning to the end. Operations are under them, it's Dev and Ops are put together, right? But I'll speak from my own personal experience with working at VMware in the past that from all the companies which are operations focused, that's HP, IBM, and Oracle to a certain extent. So portfolio and all that. And BMC, and CA, those are pure companies in the operations space, right? I think VMware is one of those which values software a lot. So it's a purely, inside the VMware it's purely software driven. But to the outside, what they produce what they have produced in the past that's all operations, right? So I think they can move that switch because of the culture and then with Pivotal acquisition I think it will make it much easier because there's some following of the Pivotal stack, if you will the only caveat I think on that side is it is kind of a little bit of interlocking-ish, right? That is one of the fears I have. >> Who's not, even RedHat these days is, locking you in. >> Yeah, you know, I pulled some interesting stat metadata from a blog post from Paul Fazzone announcing the Pivotal acquisition. He mentioned Kubernetes 22 times. He mentioned Pivotal Cloud Foundry once. So VMware is all in on this open-shift type movement I think VMware is looking at the Red shift I mean Red OpenShift acquisition by IBM and thinking, "Man, I wish we didn't have this "Sense of relationship with Pivotal "So we could have went out and bought RedHat." >> Well that's a good point about Kubernetes, I think you're right on that. And remember, we've been covering Open Stack up until about a year ago, and they changed the name it's now something else, but I remember when Open Shift wasn't doing well. >> Keith: I do too! >> And what really was a tipping point for them was they had all the elements, but it was Kubernetes that really put them in a position to take advantage of what they were trying to do and I think you're right, I think VMware sees that, now that IBM owns RedHat and Open Shift, it's clear. But I think the vSphere deal with Project Pacific points out that they want to use Kubernetes as a distraction layer for developers, and have a developer interface to vSphere. So they get the operators with vSphere, they put Kubernetes in there and they say, "Hey developers, use us." Now I think that's a hedge also against Pivotal 'cause if that horse doesn't come across the track to the finish line, you know... >> It's definitely a hedge on Containers just a finer point of what you were saying there was a slight difference in the cash outlay for RedHat, 34 billion versus the cash outlay for Pivotal was 800 million. So they picked up an 800 million dollar asset or a 4 billion dollar asset for 2.7 billion. >> Hold on, explain that because 2.7 billion was the number we reported you're saying that VMware put out only 800 million in cash, which, what's that mean? >> That's correct. So they put out 800 million in cash to the existing shareholders of Pivotal, which is a minority of the shareholders. Michael Dell owns 70% of it, VMware owns 15% of it. So they take the public shareholders get the 800 million >> John: They get taken out, yep. >> Michael Dell gets more VMware stock, so now he owns more of VMware. VMware already owns 15% of Pivotal, so for 800 million, they get Pivotal. >> So, the VMware independent shareholders get... they get diluted. >> Right. >> Did they lose out in the deal is the question and I think the thing that most people are missing in this conversation is that Pivotal has a army of developers. Regardless of whether developers focus on PCF or Kubernetes is irrelevant. VMware has a army, a services army now that they can point towards the industry and say, "We have the chops to have "The conversation around why you should "Come to us for developing." >> So I want to come back to that but just, a good question is, Do the VMware shareholders get screwed? Near term, the stock drops, right? Which is what happens, right? Pivotal was up 77% on the day that the Dow dropped 800 points. Here's where I think it makes sense, and there are some external risks. Pivotal plus Carbon Black, the combination they shelled out 2.7 billion in cash. They're going to add a billion dollars to VMware's subscription business next year. VMware trades at 5x revenue multiple, so the shareholders will, in theory, get back 5 billion. In year two, it's going to be 3 billion that they're going to add to the subscription revenue so in theory, that's 15 billion of value added. I think that goes into the thinking, so, now, are people going to flock to VMware? Are Kubernetes developers going to flock to VMware? I mean to your point, that to me, that's the value of Pivotal is they can get VMware into the developer community. 'Cause where is VMware with developers? Nobody, no developers in this audience. >> That's true. >> What are your guys' thoughts on that? >> Yeah, I think that we have to dissect the workload of applications at the enterprise level, right? There are a variety of applications, right, from SAPs Oracles of the world those are two heavyweights in the application space. And then there's a long trail of ISVs, right. And then there's homegrown applications I think where Pivotal plays a big role is the homegrown applications. When you're shipping a lot as an ISV or within your enterprise, you're writing software you're shipping applications to the user base. It could be internal for partners, for customers, right, I think that's where Pivotal plays Pivotal is pivotal, if you will. >> I think that's a good bet too, one of the things we've been pulling the CESoEs data for when we got reinforced we started pulling CESoEs in our network, and it's interesting. They're under the gun to produce security solutions and manage the vendors and do all that stuff they're all telling us, the majority of them are telling us that they're building their own stacks internally to handle the crisis and the challenge of security, which I think's a leading indicator versus the kind of slow, slower CIO which LOVES multi-anything. Multi-vendor, control, a deal with contracts CESoEs, they don't have the DOGMA because they can't have the DOGMA. They got to deliver and they're saying, "We're going to build a stack "On one cloud. "Have a backup cloud, "I want all my developer resources "On this cloud, not fork my team "And I'm going to build a stack "And then I'm going to ship APIs "And say to my suppliers, in the RFP process, "If you support these APIs, "You could do business with us." >> Keith: So, if you don't -- >> That's kind of a cutting edge. If you don't, you can't, you can't. And that's the new normal. We're seeing it with the Jedi deal with Oracle not getting, playing 'cause they're not certified at the level that Amazon is, and you're going to start to see these new requirements emerging this is a huge point. I think that's where Pivotal could really shine not being the, quote, developer channel for VMware. I think it's more of really writing apps >> And John, I think people aren't even going to question that model. Capital One is probably the poster child for that model they actually went out and acquired a start-up, a security, a container security start up, integrated them into their operations and they still failed. Security in the cloud is hard. I think we'll get into a multi-cloud discussion this is one of the reasons why I'm not a big fan of multi-cloud from an architecture perspective, but from a practical challenge, security is one of the number one challenges. >> That's a great point on Capital One in fact, that's a great example. In fact, I love to argue this point. On Twitter, I was heavily arguing this point which is, yeah, they had a breach. But that was a very low-level it's like the equivalent of a S3 bucket not being configured, right? I mean it was so trivial of a problem but still, it takes one whole-- (hearty laughing) One, one entry point for malware to get in. One entry point to get into any network where it's IOT This is the huge challenge. So the question there is, automation. Do you do the, so, again, these are the, that's a solvable problem with Capital One. What we don't know is, what has Capital One done that we don't know that they've solved? So, again, I look at that breech as pretty, obviously, major, but it was a freakin' misconfigured firewall. >> So, come back to your comments on multi-cloud. I'm inferring from what you said, and I'd love to get your opinion, Sarbjeet. That multi-cloud is not an architectural strategy. I've said this. It's kind of a symptom of multiple vendors playing but so, can multi-cloud become, because certainly VMware IBM RedHat, Google with Anthos, maybe a little bit less Microsoft but those three-- >> Dell Technologies. >> Cisco, Cisco and certainly Dell all talking about multi-cloud is the clear strategy that's where CIOs are going, you're not buying it. Will it ever become a clear strategy from an architectural standpoint? >> Multi-cloud is the NSX and I don't mean NSX in VMware NSX it's the Acura NSX of enterprise IT. The idea of owning the NSX is great it brings me into the showroom, but I am going to buy, I'm going to go over to the Honda side or I'm going to go buy the MDX or something more reasonable. Multi-cloud, the idea, sure it's possible. It's possible for me to own a NSX sports car. But it's more practical for me to be able to shop around I can go to Google via cloud simple I mean I can go via cloud simple to Azure, GCP or I can go BMC, I have options to where I land, but to say that I am going to operate across all three? That's the NSX. >> If you had a NSX sports car, by the way, to use the analogy in my mind is great one, the roads aren't open yet. So, yeah, okay great. (hearty laughing) >> Or you go to Germany and you're in California. So, the transport, and again in the applications you could build tech for good applications all you want, and they're talking about tech for good here but if it's insecure, those apps are going to create more entry points. Again, for cyber threats, for malware, so again, the security equation, and you're right is super important, and they don't have it. >> Dave: What's your thought on all (mumble)? >> Sarbjeet: I think on multi-cloud you are, when you are going to use multi-cloud you going to expand the threat surface if you will 'cause you're putting stuff at different places. But I don't think it, like as you said Dave, the multi-cloud is not more of an architectural choice, it's more like a risk mitigation strategy from the vendor point of view. Like, Amazon, who they don't compete with or who they won't compete with in the future we don't know, right? So... >> You mean within the industry. >> Yeah, within the industry right-- >> Autos or healthcare or... >> Sarbjeet: Yeah, they will, they are talking about that, right? So if you put all, all sort of all your bets on that or Azure, let's say even Azure, right? They are not in that kind of category, but still if you go with one vendor, and that's mission critical and something happens like government breaks them up or they go under, sideways, whatever, right? And then your business is stuck with them and another thing is that the whole US business, if you think about it at a global scale, like where US stands and all that stuff and even global companies are using these hourglass providers based in US, these companies are becoming like they're becoming too big to fail, right? If you put everything on one company, right, and then something happens will we bail them out? Right, will the government bail them out? Like stuff like that. Like banks became too big to fail, I think. I think from that point of view, bigger companies will shift to multi-cloud for, to hedge, right, >> Risk Mitigation >> Risk mitigation. >> Yeah, that's, okay, that's fair. >> I mean, I believe in multi-cloud in one definition only. I think, for now, the nirvana of having different workload management across utility bases, that's fantasy. >> Keith: Yeah, that's fantasy. >> I think you could probably engineer it, but there might not be a workload for that or maybe data analytics I could see moving around as a use case, certainly, but I think-- >> D-R! >> The reality is, is that all companies will probably have multiple clouds, clearly like, if you're going to run Office 365, and it's going to be on Azure, you're an Azure customer, okay. You have Azure cloud. If you're building your security stack on Amazon, and got a development team, you're on Amazon. You got two clouds. You add Google in there, big tables, great for certain things you know, Big Query, you got Google. You might even have Alibaba if you're operating in China So, again, you going to have multiple clouds the question is, the workloads define cloud selection. So, I've been on this thing, if you got a workload, an app, that app should choose its best infrastructure possible that maximizes what the outcome is. >> And John, I think what people fail to realize, that users, when you give them a set of tools, they're going to do what users do, which is, be productive. Just like users went out and took credit cards swiped it and got Amazon. If you, if in your environment you have Amazon you have GCP, you have Azure, you have Salesforce, O-365, and a user has access to all five platforms, whether or not you built a multi-cloud application a user's going to find a way to get their work done with all five, and you're going to have multi-cloud fallout because users will build data sets and workloads across that, even if IT isn't the one that designed it. >> All right, guys, final question of the Power Panel Dave, I want to include this for you too, and I'll weigh in as well. Take a minute to share what you're thinking right now is on the industry. What's taking up your attention? What's dominating your Twittershpere right now? What's the bee in your bonnet? What's the hot-button issue that you're kicking the tires on, learning about, or promoting? Sarbjeet, we'll start with you. What's on top of the mind for you these days? >> I think with talk about multi-cloud all the time, that's in discussions all the time and then Blockchain is another like slow-moving train, if you will, I think it's arriving now, and we will see some solutions coming down the pike from different, like a platformization of the Blockchain, if you will, that's happening, I think those are two actually things I keep my eyes on and how developers going to move, which side to take and then how the AWSs dominance is challenged by Microsoft and Google there's one thing I usually talk about on Twittersphere, is that there's a data gravity and there's a scales gravity, right? So people who are getting trained on Amazon, they will tend to stay with them 'cause that's, at the end of the day, it's people using technology, right? So, moving from one to another is a challenge. Whoever throws in a lot of education at the developers and operators, they will win. >> Keith, what are you gettin' excited about? >> So, CTO advisor has this theory about the data framework, or data infrastructure. Multi-cloud is the conversation about workloads going here, there, irrelevant, it's all about the data. How do I have a consistent data policy? A data protection policy, data management policy across SAS, O-365, Sales Force Workday, my IAF providers, my PATH providers, and OMPRIM, how do I move that data and make sure another data management backup company won Best of VMWorld this year. This is like the third or fourth year and a reason it's not because of backup. It's because CIOs, CDOs are concerned about this data challenge, and as much as we want to talk about multi-cloud, I think well, the industry will discover the problem isn't in Kubernetes the solution isn't in Kubernetes it's going to be one of these cool start-ups or one of these legacy vendors such as NetAp, Dell, EMC that solves that data management layer. >> All right, great stuff. My hot button is cloud 2.0 as everyone knows, I think there's new requirements that are coming out, and what got my attention is this enterprise action of VMware, the CIA deal at Amazon, the Jedi deal show that there are new requirements that our customers are driving that the vendors don't have, and that's a function that cloud providers are going to provide, and I think that's that's the canary in the coal mine. >> I've got to chime in. I've got to chime in. Sorry, Lenard, but it's the combination what excites me is the combination of data plus machine intelligence and cloud scale. A new scenario of disruption moving beyond a remote set of cloud services to a ubiquitous set of digital services powered by data that are going to disrupt every industry. That's what I get excited about. >> Guys, great Power Panel. We'll pick this up online. We'll actually get the Power Panels working out of our Palo Alto studio. If you haven't seen the Power Panels, check them out. Search Power Panels the Cube on Google, you'll see the videos. We talk about an issue, we get experts it's an editorial product. You'll see more of that online. More coverage here at VMWorld 2019 after this short break. (lively techno music)
SUMMARY :
of the VMWorld 2019. friend of the Cube, Cube host sometimes over the past couple months. I mean, snark aside, there's real things to talk about. The Amazon relationship cleared the air You've been on the inside. and say that the move to eject Pivotal and one of the things that's interesting of the Pivotal stack, if you will is, locking you in. announcing the Pivotal acquisition. about Kubernetes, I think you're right on that. 'cause if that horse doesn't come across the track just a finer point of what you were saying because 2.7 billion was the number we reported get the 800 million so for 800 million, they get Pivotal. So, the VMware independent shareholders get... and say, "We have the chops to have I mean to your point, that to me, from SAPs Oracles of the world and manage the vendors and do all that stuff And that's the new normal. Capital One is probably the poster child for that model it's like the equivalent of a S3 bucket and I'd love to get your opinion, Sarbjeet. all talking about multi-cloud is the clear strategy The idea of owning the NSX is great the roads aren't open yet. in the applications you could build But I don't think it, like as you said Dave, You mean the whole US business, if you think about it I mean, I believe in multi-cloud and it's going to be on Azure, you're an Azure customer, okay. fail to realize, that users, when you give them What's the bee in your bonnet? like a platformization of the Blockchain, if you will, This is like the third or fourth year that the vendors don't have, Sorry, Lenard, but it's the combination We'll actually get the Power Panels
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Gayatri Sarkar, Hype Capital | Sports Tech Tokyo World Demo Day 2019
(rhythmic techno music) >> Hey welcome back everybody, Jeff Frick here with theCube. We're at Oracle Park on the shores of McCovey Cove. We're excited to be here, it's a pretty interesting event. Sports Tech Tokyo World Demo Day. It's kind of like an accelerator but not really, it's kind of like Y Combinator but not really, it's a little bit different. But it's a community of tech start-ups focusing on sports with a real angle on getting beyond sports. We're excited to have our next guest, who's an investor and also a mentor, really part of the program to learn more about it and she is Gayatri Sarkar, the managing partner from Hype Capital. Welcome. >> Thank you. Thank you for inviting me here. >> Pretty nice, huh? (laughs) >> Oh, I just love the view. >> So you said before we turned on the cameras, well first off Hype Capital, what do you guys invest in? What's kind of your focus? >> So Hype Capital is part of one of the biggest ecosystems in sports which is Hype Sports Innovation. We have 13 accelerators all around the world. We are just launching the world's first E-sports accelerator with Epsilon and SK Gaming, one of the biggest gaming company. So we are part of the ecosystem for a pretty long time. And now, we have Hype Capital, VC Fund investing in Europe, Israel, and now in U.S. >> So you mentioned that being a mentor is part of this organization. It's something special. I think you're the first person we've had on who's been a mentor. What does that mean, what does that mean for you? But also what does it mean for all the portfolio companies? >> Sure, I'm a mentor at multiple accelerators. But being a part of Sports Tech Tokyo I saw the very inclusive community that is created by them and the opportunity to look at various portfolio companies and also including our portfolio companies as part of it. One of our portfolio company where we had the lead investors, 'Fun with Balls' they're part of this. >> What's it called, Fun with Balls? >> Fun with Balls, very interesting name. >> Good name. (laughs) >> Yeah, they're from Germany and they came all the way from Germany to here. So, yeah, I'm very excited, because as I said it's an inclusive community, and sports is big. So we are looking at opportunities where deep-techs, where it can be translated into various other verticals, but sports can also be one of the use cases, and that's our focus as investors. >> Right, you said your focus was really on AI, machine learning, you have a big data background a tech background. So when you look at the application of AI in sports what are some of the things that you get excited about. >> Yeah, so for me when I'm looking at investments definitely the diversification of sports portfolio. How can I build my portfolio from esports, gaming, behavioral science in sports to AI, ML, AR, opportunities in material science and various other cases. Coming back to your question it's like how can I look into the market and see the opportunities that, okay can I invest in this sector? Like what's the next big trend? And that's where I want to invest. Obviously, product/market fit, promise/market fit because there's a fan engagement experience that you get in sports, not in any other market the network effect is huge, and I think that's what VVC's are very excited in sports and I think this is right now the best time to invest in sports. >> So promise/market fit, I've never heard that before what does that mean when you say promise/market fit? >> Interesting question so promise/market fit was coined by Union Square Venture VC fund. And they think that where there's the network effect or your engagement with your consumers, with your clients, and with your partners can create a very loyal fan base and I think that is very important. You may see that in other technology sector but, not, it is completely unparalelled when it comes to sports. So, I request all the technologies that are actually trying to build they are use cases, they should focus on sports because the fan engagement, the loyal experience the opportunities, you will not get anywhere else. >> Right >> And I think this is the market that I, and other investors are looking for that, if deep-tech investors and deep-tech technologies are coming into this market we see the sports ecosystem not to be a trillion dollar but a multi-trillion dollar market. >> Right, but it's such a unique experience though, right? I mean some people will joke that fans don't necessarily root for the team, they root for the jersey, right? The players come and go, we're here at Oracle Park which was AT&T park, which was SBC Park, which was I can't even remember, Pac bell I think as well. So you know, is it reasonable for a regular company that doesn't have this innate connection to a fanbase that a lot of sports organizations do that's historical, and family-based, and has such deep roots that can survive maybe down years, can survive a crappy product, can survive kind of the dark days and generally they'll be there when things turn back around. Is that reasonable for a regular company to get that relationship with the customer? >> So, you asked me one of the most important questions in the investors relationship, or investors life which is the cyclicality of the industry and I feel like sports is one industry that has survived the cyclicality of that industry. Because, as you say, a crappy product will not survive you have to focus on customer service so you have to focus, that, okay even if you have the best product in the world how can I make my product sticky? These are the qualities that we are looking into when we are investing in entrepreneurs. But the idea is that if we are targeting startups and opportunities, our focus is that okay, you may have the worlds best product but the founder's should have the ability to understand the market. Okay, there are opportunities, if you look at Facebook if you look at various other companies they started with a product that was maybe like okay, friend site, dating site and they pivoted, so you need to understand the economy you need to understand the market and I think that's what we are looking into the entrepreneurs. And, to answer your question, the family offices they are actually part of this whole startup ecosystem they are saying if there is an opportunity because they are big, they are giant and they are working with legacy techs like Microsoft, Amazon. It's very difficult for the legacy techs to be agile and move fast, so it's very important for them if they can place themselves at a 45 degree angle with the startup ecosystem, and they can move faster. So that's the opportunity for them in the sport's startup ecosystem. >> All right, well Gayatri thanks for taking a few minutes and hopefully you can find some new investments here. >> No, thank you so much thank you so much for your time. >> Absolutely, she's Gayatri, I'm Jeff you're watching The Cube, we are at Oracle Park On the shores of historic McCovey Cove I got to get together with Big John and practice this line thanks for watching, and we'll see you next time. (rhythmic techno music)
SUMMARY :
really part of the program to learn more about it Thank you for inviting me here. So Hype Capital is part of one of the biggest ecosystems So you mentioned that being a mentor and the opportunity to look at various portfolio companies (laughs) one of the use cases, and that's our focus as investors. So when you look at the application of AI in sports and I think this is right now the best time to the opportunities, you will not get anywhere else. And I think this is the market that I, and other investors root for the team, they root for the jersey, right? and they pivoted, so you need to understand the economy and hopefully you can find some new investments here. thank you so much for your time. I got to get together with Big John and practice this line
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Brendan Harris, SeventySix Capital | Sports Tech Tokyo World Demo Day 2019
>> Hey, welcome back. You're ready, Jeff? Rick! Here with the Cube were Oracle Park recently, A T and T Park just renamed. It's a beautiful day home in San Francisco Giants. They're on the road. We're here at a pretty interesting event is called Sports Tech. Tokyo World Demo Day brought together a coalition of about 100 startups. 25 of them are given demos today on technology as it relates to sports. But even more importantly, that can then be used in other in others. Beyond sports. We're excited to have an athlete on not just another tech crazy guy. He's Brendan Harris. He's an athlete in residence at 76 Capital. Brendan. Thanks for stopping by. >> Thanks for having me. >> So what is the effort, Principles and entrepreneur in residence? Where is the athlete residents do? It is >> essentially a play on the entrepreneur in residence. I was introduced to 76 Capital finished playing in 15 and I was doing my MBA at Warden and in Philly and got introduced Thio Wayne and the guys at 76. And they are kind of putting together an athlete venture group. Whether they're bringing in a lot of athletes don't wannabe investors and kind of providing them access to deal >> flow and >> um, >> and then also leveraging their social capital. So, uh, he was He was kind of tickled when he came when he coined the term athlete residents and he threw it on my business card. And and that's where we're at, >> right? So I'm just curious your perspective as an athlete as you look around at all the technology that's going into sports, right? Kind of the big categories are, you know that which helps the players play better. There's that which helps the people run, the team's better. And then there's that, which is really kind of part of the fan experience. I mean, you actually to go down and try to put wood on a ball coming at you in 90 plus miles an hour. All this other stuff. Do you see it as is it interesting is distraction. Is it entertaining? I mean, how do you look at it from an athlete's perspective? >> So yeah, so a lot to impact. So first of all, I have this ah, equally the equal view of fascination and frustration where a lot of this wasn't he wasn't around when I when I was playing it, certainly from the field. Now we're taking in things like recovery and rest and sleep. Ah, but I think players and me personally are fascinated with How can we improve on field performance? And I think baseball. It's such a perfect game and you fail so often, being able to turn to turn things that were previously subjective and applied data and in tech to make them objective and give you answers. I think it's fascinating and the ways that we can use data to to kind of promote performance and health and and all those things air Very fascinating. So from players, point of view, we're all about it. But at the same time, I think it certainly says why I've loved to get into sports. Tech is there's a lot of data that's just noise that's coming in and things. And so the tough part is, um, kind of weeding through and what is actionable info on what can actually help improve the on field performance? And then along with that, you know, we want to feel the product on the field, but also what the service is for the consumer and the fans are. And how can we improve that and then engage them? Because certainly sports are part of the culture and part of life now, and it's fascinating. These fans want to know more and more and more, certainly what's going >> on. And it's been It's been a >> great journey, >> right? So on the fan experience specifically, and we've been we've been here a number of years. Bill Styles, a good friend of mine off another word and other work. Brad and and, you know, talking about high density WiFi and you know the app on your phone and delivered, you know, food delivered to your seats. I mean, >> as a as an >> athlete on the field. Do you look at kind of all these things is as a distraction. Do you appreciate? It's kind of a more competitive environment these days in terms of people's attention and kind of that entertainment dollar. But I would imagine from between the lines it looks like Hey, you know, the game's down here people. It's been >> interesting because, um, you know, one of the problems of a major league baseball's been trying to address his pace of games right. And if you really look at the data, they're not that much longer. What's different? We're wired differently, right? So our attention spans are short and we're constantly so our technology. So these, you know, guys like Bill, you are trying to leverage that and try to have your food delivered and try to increase the social component. Increased the value in the in venue experience so that you're not only watching the game, but you're socially enjoying at the same time and kind of fill in those gaps. Ah, lot of it is yes on. And I think there's been balls flying into the stands since baseball's been playing, but they need to put the netting up. Has come a lot of times because nobody's watching. Some people aren't not nobody, but a lot of people aren't watching. The games are getting hit with a lot of these foul balls. So there is that component where you know there's there's some unbelievable things are going off on the sides. But um, you know it's baseball is still gonna be kind of very somewhat within within the confines. >> The other piece that I find really interesting on the data side, right? Is there so much data? Right? There's data data data. Obviously, baseball is built on data and arguments about data and conversations about data, but now it's kind of gone to this next Gen with, you know, wins over replacement and all these other things. But sometimes it's funny to me. It feels like they're forgetting the object of the game is to win the game. And it feels like sometimes the metadata has now become more important than the data. Did you win or lose and is not necessarily being used as a predictor for future performance? But it's almost like a standalone game in and of itself. Like we forget. The object is to win the game and win a championship, not to have the highest war number views since that frustration is that sound? Yeah, I think what you're getting >> into a lot of times is our know how are we making decisions right? And in the game? A lot of times people forget that human beings are out there performing and so I think that's how we've gotten into Moneyball 2.0, looking at development and certainly mental health in focus and game preparation have come into play more and you're seeing some managers. I mean, Mickey Callaway just came out and said 80% my, you know, Susan's go against the data, which which I thought was a little bit interesting, but, ah, so there is that fine line right where you have to filter in what's noise and what's actionable. And at the same time, um, you know, allow you know, your managers and your decision makers some flexibility to go with, You know, they're they're in the heat of the battle and they kind of know their guys. And they know the human element that's involved. So it's it's an interesting, you know, trying to balancing act, >> right? So from your from your new job in your new role, what are some of the things you hope to see today? What are some things that you're excited about? Um, you know, from kind of an investor. And having played the game as well. As you know, I'm looking forward to the evolution of sports. Two >> things specifically how the, uh certainly bias the performs on the field in the human element. And certainly everybody wants workout secrets, and I don't feel like it's whether it's athletes or the kind of weekend warrior or people that are, you know, kind of your senior citizens. And I don't think it's a simple as this has worked, and you should do this. It's a very personalized experience now. And I think some of this personalized digital fitness is fascinating to me on and then how it relates to and how your body relates to, you know, your diet and nutrition, your sleep, your recovery. I think all those air fascinating that, uh, advances that I want to look into more. And the second is a CZ, I kind of mentioned is the fan engagement aspect. How do we drive those those fans that digital, >> um, and >> make it actionable and monetize, right? So that you know, you have your fans that are following you know, your Facebook, twitter and all those things. And so how do you not only gauge them, but collect that data and then kind of personalized that experience? Engage your fan in a way that can kind of grow your brand. Yeah, it's interesting to me, >> really interesting to have to have your perspective, and I'm sure will be a great day and you see all kinds of crazy stuff. So thanks for taking a few minutes. >> Yeah, Any time. >> All right. He's Brendan. I'm Jeff. You're watching The Cube were at Oracle Park in San Francisco. Thanks for watching. We'll see you next time.
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They're on the road. and the guys at 76. And and that's where we're at, Kind of the big categories are, you know that which helps the players play better. And then along with that, you know, we want to feel the product on the you know, talking about high density WiFi and you know the app on your phone and delivered, you know, the game's down here people. So these, you know, guys like Bill, you are trying to leverage that and try to have but now it's kind of gone to this next Gen with, you know, wins over replacement and all these other things. And at the same time, um, you know, allow you know, As you know, I'm looking forward to the evolution of sports. it's athletes or the kind of weekend warrior or people that are, you know, kind of your senior citizens. So that you know, you have your fans that are following really interesting to have to have your perspective, and I'm sure will be a great day and you see all kinds of crazy stuff. We'll see you next time.
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Mark Phillip, Are You Watching This?! | Sports Tech Tokyo World Demo Day 2019
>> Hey, welcome back, everybody. Jeffrey here with the Cube were Rhetorical Park in San Francisco on the shores of McCovey Cove. I just love saying that we >> haven't been here since >> 2014. We're excited to be back for a really interesting event is called Sports Tech Tokyo World Demo Day. This next guest has been at it for a number of years. A really cool technology. We're excited for the conversation and to welcome Mark Philip. He's the founder and CEO of Are >> You watching this Mark? >> Great to see you. Good to see you, too. Absolutely. So, first off, you've been Thio Park before. Here I have. It's been way too long. >> There are >> a few iconic stadiums in the world, and this has got to be one of the great. So let's get into it. So what is are you watching this all about? >> We are the best friend that is >> giving the digital tap on the shoulder when it's time to run to the couch. We monitor pitch by pitch, shot by shot data to figure out when the game gets exciting. I love my Yankees till death, but the >> Yankees Red Sox occasionally tend to >> take over my entire night when they play each other. So being able to get that tap on the shoulder saying, Hey, it's time to tune in or stop raking the leaves, there's a no hitter through eight. Okay, that's what we try to do. Okay, so let's break it down before we get some of the applications into which actor doing So You guys air, You're actively watching these games. You've got some type of an algorithm based on scoring plays. Pitch count. Are we? What are some of the things that drive? Whether this is an exciting game or not, it's a great question. The easiest way to think about it is if you imagine what a win probability graph looks like. So game probably starts off in the middle. Might go up or down based on who's winning, the more violently that graph goes up and down generally, the more exciting the game is, so when probability is a big factor. But also you think about rarity whether it's we had a no hitter last night, we had the Astros with a four picture no hitter a few weeks ago. You know, those sort of things that you don't see often, even if the game's nine nothing, even if the wind probabilities and changing. If that's a no hitter, that's something you want to turn into, right? And so are you tapping into just kind of some of the feeds that are out there in terms of what's happening in the game or you actually watching and using a I in terms of actually looking at a screen and making judgments? Sure, thankfully, I'm not watching or else I would never leave the house. But for us, it's about getting that real time live data. Okay, so I can see balls and strikes on my servers faster than I can see it on live TV, which is a little bit mind bending of time. So we work with the the official data sources. So whether it's a company like sport radar or stats or opt or Abels and pretty much anyone around the globe, we pull in that real time data so we can give people that tap on. The show says Hey, run to the couch. Run to the bar, tune in. Something interesting is about to happen, right? But what's entering your B to B play. So your customers are not me. Jeff, go to the couch. You're working through other people that might be motivated to have me run to the count. So how does your business model work? Who are some of your customers? What are some of the ways that they use your service? >> I'm I'm the guy behind the guy. I'm behind the >> Red Curtain, pulling the strings, you know, for us not to paint with an overly broad brush. But we're based in Austin, Texas, and one of the big things about a city like ours versus the city like this is that our companies tend to skew very B to B versus the Bay Area, which generally excuse a lot more B to C. So pitching to the cable companies, the sports providers, probably CBS Sports is our oldest customer right now. We work with small startups, more established folks, and everyone uses this differently. But the goal is the vision. Is that whether it's your DVR recording automatically when the game gets good or just making sure that, you know, maybe you want to place a bet on the Giants or if you are, ah, glutton for punishment my lowly Knicks if the if the spreads. Good enough, you know, getting that nudge when games get exciting is an accelerant. Not just for watching in, but I think, for fandom. Yeah, well, when Kevin Durant comes back, you'll get a bit more exciting >> Nets, not Nick's. I'm gonna give you one free one. So we had a conversation >> before we turn the cameras on about, you know, kind of this. This never ending attention span competition and the never ending shrinking of consumable media. And how you guys really play an interesting role in that evolution, where if you can give us a little bit deeper background, >> I think it's fascinating. You look at >> the N B A. That really any league. If you rewind five years ago, you have to pay to 5300 bucks to get access to anything digitally, and then you got access to everything, and then the NBA's said, Well, maybe just want to buy one team, so we'll let you pay things around 80 bucks and they just want to watch. One game will sell it to you for eight. I just want 1/4 with such for dollar 99 if you just want a few minutes with silty for 99 >> cents, and now they've done that really, really quietly. >> But I think it's seismic because I think all leagues we're gonna have to follow and do this. So if you look at these snack passes and especially as thes NFL rights are coming up, I could easily imagine someone like a YouTube or, I should say, a Google if they were to grab these rights, how easy would be to go to YouTube and get a game for a few bucks and how well their entire infrastructure would work. But rewind to today when you have 10 to 20 states that are online. As far as gambling goes, you take gambling. You take excitement analytics and you take the snack passes and you kind of mix him up in a pot and you get this vision of I can send you a Texas is Hey, LeBron has 60 points with 3/4. Do you want to pay 99 cents tow, Watch the finish, or do you want, let's say, place a wager on if he's gonna be Kobe's 81 point Lakers record and then we'll let you watch for free. And so getting both sides of that equation, whether your die hard or casual fan, it's hard to say no to both those options, right? And do you see within your customer base that drive to the smaller segmentation of snack packs? Is that driven by customer demand, or are they trying to get ahead of it a little bit and offer, you know, kind of different sizes of consumption, I guess, would be the right. >> Sure, I think the horse is out of the barn. I mean, imagine if >> we were still buying complete albums. Of course, we're buying tracks when we just wanna track the idea that we have to buy an entire season. No foul, 2430 games in an MLB season. Why won't you let me buy just one game? I say MLB leaves a million dollars on the table every single time is no hit bid because there's tons of people who have cut the cord, don't want to run to the bar, but would happily pay 99 cents to stream the last inning of a game on their phone on their commute. So I think it is a combination of digital. What shoring in that We're able to do these three single track sort of purchases, but also its people continue to cut the cord and rethink about how they spend their media dollars. It makes sense really interesting. So we're here. It's sports Tech, World Demo Day. What do you hope to get out of today? Why are you here? Gosh, at least to pay homage to the reason why I went to Tokyo for the first time and had life changing Rama and I feel like I need to sort of complete >> the cycle. Uh, sports like >> Tokyo is an amazing program. There's lots of different events that have shaped different ways. But there's something really unique about this. And when we all lands in Tokyo, I think it was something like 80 different entrepreneurs that came into met to meet with all of the Japanese sponsors. Everyone had the same vibe of just really happy >> to be there. >> They didn't take a percentage of these startups coming in, so you really saw different sizes, not just early stage, but late stages well and everyone was there, too. Connects and innovate and do interesting things together. So many of us were there for the first time that there's just a vibe to this event that I haven't seen in my 10 plus years in sports. Tak interesting. Well, Mark, great to sit down with you. Really cool story. And, um, I guess I'll be watching for your watching for your app. Is the man behind the man coming through my phone? Real sand Sounds great. >> All right. He's >> Mark. I'm Jeff. You're watching the Cube World. World Tech demo today here at Oracle Park. Thanks for watching. We'll see you next time.
SUMMARY :
I just love saying that we We're excited for the conversation and to welcome Mark Philip. Great to see you. So what is are you watching this all about? giving the digital tap on the shoulder when it's time to run to the couch. So being able to get that tap on the shoulder saying, I'm I'm the guy behind the guy. the game gets good or just making sure that, you know, maybe you want to place a bet I'm gonna give you one free one. before we turn the cameras on about, you know, kind of this. I think it's fascinating. bucks to get access to anything digitally, and then you got access to everything, But rewind to today when you have 10 I mean, imagine if Why are you here? the cycle. entrepreneurs that came into met to meet with all of the Japanese sponsors. They didn't take a percentage of these startups coming in, so you really saw different sizes, He's We'll see you next time.
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Sezin Aksoy, AXS | Sports Tech Tokyo World Demo Day 2019
(upbeat music) >> Hey, welcome back everybody. Jeff Frick with The Cube. If you can't tell over my shoulder, we are at Oracle Park. It's a glorious day. The marine layer is burning off and it is really spectacular. We're happy to be here. Haven't been here since, I think 2014. It's an interesting event called Sports Tech Tokyo World Demo Day. About 25 technology companies in the sports area are giving demos all day today. It's a huge program, and we're excited to have our next guest coming from the analytics side. She's Sezin Aksoy, Global Data Strategy and Analytics for AXS. >> Correct. >> Welcome. >> Thank you. >> Absolutely. >> Glad to be here. >> So Global Data Strategy. Everything's all about data. >> Correct. >> So, somebody's really happy to have you on board. What are so... What do you, what are you working on, what was top of line. >> Sure, so it's going to sound cheesy but data is the power of the world. >> Yes. >> It's going to empower people making better decisions, so that's kind of my role is at AXS. So AXS is the ticketing platform for live entertainment events. We operate in the US, Europe, as well as in Japan. And, if you think about it, when a consumer comes to your website, that's the first touchpoint that you have. Whether they buy the ticket or don't. Whether they buy or sell, and transfer the ticket, or they attend the event, all those are various touchpoints that we are collecting. So that we can inform our clients to make better decisions with data. >> Right. >> Whether it's pricing decisions, or marketing decisions, or scanning an event, which gates will be more busier than others. So, that's kind of what my team works on. >> Excellent. So, let's jump into a little bit on the dynamic pricing. >> Sizen: Hm mm. >> Because we saw, we've seen dynamic pricing. And you said you were in the airline industry. >> Correct. >> We've seen it in the hotel industry. >> Yup. >> My father in law talks about when he was doing dynamic pricing as a young kid. >> Sizen: Okay. Just making a call when somebody came through the door, at eleven o'clock. >> Sizen: Yeah. (laughs) >> Jeffrey: What's my marginal cost... >> Okay, yep. >> Jeffrey: with somebody in that room or not. There's really slow to get beyond, kind of the entertain, oh excuse me, the travel industry for other people... >> Hm mm. Yep. >> To kind of get on board the dynamic pricing. >> Yeah. We saw the Giants here... >> Yep. >> Actually a couple of years ago. We came by, they were starting to do dynamic pricing. >> Sizen: Hm mm. >> A Friday night Dodger game, compared to a Tuesday day... >> Sizen: Yep. >> Milwaukee game, very, very different. >> Sizen: Hm mm. >> So, what are some of the factors going in, what are some of the resistance, >> Sizen: Yeah. >> that had to be overcome for people to actually accept that it's okay to charge more for a Friday night Dodger game, than a Tuesday afternoon Milwaukee game. >> Yep, so yeah, so my background start with the airlines, which is where dynamic pricing, revenue management started at, specifically the American Airlines. If you think about there are a lot of similarities between airlines and live entertainments. Fixed costs, you have to, flight has to go, or the game has to be played no matter how many people are there. So, you really have a limited time to really maximize your revenue. And you kind of have a product that the demand level is different by day, whether it's a Tuesday game or Friday game. It really something you have to study the sort of the behavior from the consumers when they buy their tickets. What are the factors they put into play to make that decision? And in that mix, San Francisco Giants was one of the first teams that actually incorporated dynamic pricing about ten years ago, that slowly. The challenges with it is we are not as the consumer, not as trained to know that the price may change. Hotels, airlines been doing it for years and years. >> Right. >> And for them, also it didn't start from like doing all the flights in day one. So it's really needs to be a phased approach. It needs to be a lot of education for the public, and to think about the right way to think about it is, you want incentivize people to buy early. And you want to make sure they are the ones that getting the best price, and not necessarily the people that are buying last minute. >> Right. >> If you're buying last minute, then you must accept that it maybe the available today you're not looking for or the price not you looking for. But I will say though that plans change, people decide to not attend the game. The reason is that, potential for finding other seats for that similar game. But, really for you, have your plans. It's better to buy early, and that's kind of what the industries needs to be trained on, more and more. >> Right. >> Was there more opportunity in getting additional value out of that high demand game? Or was the bigger opportunity in getting, kind of lowering the prices on the less desirable games, and getting kind of marginal revenue on that side. Where was the easy money made, >> Yeah. >> Jeffrey: On dynamic pricing? I mean the immediate impact is from the high value seats for the high value games, cause that's really is your premium product at that point. But in the meantime, there's always a low number of seats that you have in your premium area. And if you find the right price, and if you start earlier. And really the goal is to sell all the seats, and to fill all the seats. >> Right. >> Also, just selling the seats is not, doesn't get you far enough. You want to make sure people actually come to the game, and they're the people that are going to attend the game. Right? >> Right. >> So, if you kind of, the lower level has many more seats, so it's really has to be both ways. It can't be in one area, either dynamic pricing and you don't do it. It's just all about training the public and consumers. >> Right. Now, the other interesting you said in your kind of intro, was keeping track of... What are the busiest turnstiles? And where people coming? And the flow within the game. >> Sizen: Yep. >> What are some of the analytics that you do there, >> Sizen: Yep. >> And how are teams using those... >> Sizen: Yep. >> that information to provide a better fan experience? >> Yeah, so we have scanned data, and we actually have it real time. So, we are able to provide the teams. We have kineses streams, not to go too technical, to kind of empower them to do their game operations in a certain way. So example would be, you could study the past games and understand where people came from. Typically for a Friday game verse a Tuesday game, your crowd will look different, right. The Friday game, maybe the more the families or Saturday or Sunday. But Tuesday may be more corporate world, right. So understanding they're patterns, but also than having that data accessible to you to real time. So, that way you're able to see how many people are coming in from this one gate to other. You can man the gates differently that way. And the real time data is not something that comes just easily. There's a lot of infrastructure built for it. >> Right. >> But we've done it at AXS, and we've been able to provide to the teams so they can manage their getting in better. >> Right. >> So real time's interesting cause you know a lot of these conversations about real time, and I would say, "How do you define real time?" And in my mind, it's in time to do something about it. >> Exactly. >> So, using real time, I mean are there things they can do in real time to either lighten the load at an overdone gate, or... >> Sizen: Yeah. >> What are some of the real time impacts that people are using this data to do? >> Yeah, so exactly the example you provided. Like making sure there are more people at this one gate as opposed to others. But also, like knowing who's coming into the arena. So AXS's I-D ticketing, I-D based ticketing platform, so we actually know who's coming in. It's a rotating barcode, so if you just copy-paste the ticket, and text your friend. That doesn't work, that eliminates fraud as well. But because we know who's coming in, you can actually empower your sales reps as a team to make sure you are, you know, if they are coming to a suite or a premium area. So in so actually just scanned in, so you kind of come up with ideas for sales reps. As well as some of the marketing activations, like... It could be that you have people that typically come in late. You want to incentivize them. You could actually come up with promotions on merch and food and beverage to incentivize them early, right? Or at the same time you can actually, there are some platforms that do marketing activation. You may have had a lot of hotdogs left that you couldn't sell. Towards the late quarter, you could send a message to everyone saying, "Okay, ya know, hot dogs are 20 percent off." >> Right, right. >> So that, you need real time for it, for data for that. Cause you again need to know how many people scanned in. You may want to know how many people scanned out. So for some conferences and other type events, you want to make sure there's a Fire Marshall rules, so you want to make sure. So all the real time data is helpful for that if you just look at the purchaser data, you're not going to get that specifically there. >> That's really interesting cause I was going to say, What are some of the next things that we can expect to see dynamic pricing applied to, and you just went through them which are really situational specific. >> Yep. >> Opportunities to clear inventory, to do whatever. >> Exactly, it's not just a ticket purchase. It could be applied to other things as well. >> Right, Right. >> Yeah. >> How cool. So what other kind of data sets are you looking at to help teams that maybe we're not thinking about. >> Sure, just when people buy their tickets. What marketing may have they done, so that we can understand the web traffic, and did they buy the ticket when you send out that email. Or did they buy it three days later. So that's one area. As well as sort of, the inventory that you have available for that game. Does it sell faster for that Friday game versus a Tuesday game? We also, we're a comprehensive marketplace where we have both primary and secondary in the same map. To give the convenience back to the consumers, so you kind of have a chance to see all the inventory available in front of you. So, a bit of understanding how tickets transact in the secondary marketplace is helpful for the teams to really price their product better. Cause sometimes we have... I work for a team, so I have that background where you may have just 20 price points, and you've done it for 20 years but it's been certainly changing then. But now that you have all these different data points on the second, you also you kind of maybe is like, 'Okay I need 40 price points really because there's that much differentiation demand. >> Wow, really sophisticated analysis... >> Yeah, it's a passion area for me, so... >> And doing the real time, real time data flow and everything. >> Yeah, yeah. A really interesting, interesting conversation. >> Yeah. >> To go so far beyond just dynamic pricing. >> Exactly. >> It uses more sophisticated methods to get more value, provide better experience for the fans. >> And actually in Japan, they do more about dynamic pricing. So they utilize our platform to actually able to price every seat differently if they wanted to. We've just went out with on sales for Big League teams, and that's how they apply that. So it's been used elsewhere, maybe in the U-S in sports. It's definitely catching up, and it's much much big difference from the 10 years ago. But, I think Japan has already been kind of doing that. >> Excellent. >> Mm hm. >> Well Sizen, thanks for taking a few minutes, and sharing those stories. There's a lot going on behind the scenes that may not be conscious of, but hopefully we're getting the benefit of. >> Yeah, thank you. >> All right. Sizen, and I'm Jeff. Yes, we're live. They're banging on something down there. I'm not sure what, but keep watching. We'lls be here at Oracle Park in San Francisco. Thanks for watching, and see ya next time. (upbeat music)
SUMMARY :
our next guest coming from the analytics side. So Global Data Strategy. So, somebody's really happy to have you on board. Sure, so it's going to sound cheesy So AXS is the ticketing platform So, that's kind of what my team works on. So, let's jump into a little bit on the dynamic pricing. And you said you were My father in law talks about when he Sizen: Okay. kind of the entertain, oh excuse me, the travel industry Yep. We saw the Giants here... Actually a couple of years ago. to a Tuesday day... that had to be overcome for people to actually accept or the game has to be played no matter So it's really needs to be a phased approach. for or the price not you looking for. kind of lowering the prices on the less desirable games, And really the goal is to sell all the seats, and they're the people that are going to attend the game. So, if you kind of, the lower level has many more seats, Now, the other interesting you said that data accessible to you to real time. to provide to the teams so they can manage And in my mind, it's in time to do something about it. they can do in real time to either lighten the load Yeah, so exactly the example you provided. So all the real time data is helpful for that What are some of the next things that we can expect It could be applied to other things as well. So what other kind of data sets are you looking at for the teams to really price their product better. And doing the real time, A really interesting, interesting conversation. provide better experience for the fans. and it's much much big difference from the 10 years ago. There's a lot going on behind the scenes Sizen, and I'm Jeff.
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Todd Sims, AXS | Sports Tech Tokyo World Demo Day 2019
>> Hey, welcome back, everybody. Jefe Rick here with the Cube. Where? It Oracle Park in San Francisco, on the stork with cubby code. We're excited to be here. They're moving a lot of dirt, I think downstairs. But we're at a very cool event. It's called Sports Tech Tokyo World Demo Day. And we're excited. Have our next guest. He's Todd Simms s VP of corporate development from access taught. Great to see you. Great >> to be here. Thank you. Absolutely. So, for people are familiar with access. Give us kind of the company over here. >> We're a global ticketing company. We were launched out of ah global sports and entertainment company called E E G in 2011. And we serve live the live entertainment market and ticketing. Excellent. >> All over the world, >> different types of events. >> E e g. Is a global company with a run venues worldwide. And we serve them as well as third party clients. >> Okay, great. So we're here. It's sports tech, Tokyo. It's a little bit different. Type of an organization. Kind of an incubator. Not really an incubator kind of association, early association, but certainly a community. Why are you guys here. What is this organization mean to you? Why is that important? >> Yeah, it's really important. We We launched our ticketing service in Tokyo last year, and you know, that's a market that we love. It's a vibrant large market with super passionate fans, both on the sports side and on the music side. What it really needs is more of an ecosystem. It can't just be a new, innovative ticketing platform needs all the bells and whistles around it to really innovate the fan experience. And that's what these startups are doing. I >> just I just love this job because, you know, you think of many industries if you're not familiar with them, and they seem really simple on the outside and like everything, once you get under the covers, >> a lot more going on. So >> from the outside, looking in a ticket is a ticket. Yeah, what's the innovation and tickets? What's different about somebody in Japan buying a ticket to watch a baseball game than >> somebody find a ticket to come here to talk >> a little bit about what we're bringing to Tokyo and what we brought to our platform of clients here in the States as well as in Europe, and that's really a digital I. D based ticketing system. So when you walk into the Staples Center at L. A live in Los Angeles, that thing that's getting scanned is not a ticket. It's an identity, it's you. And what's being reviewed is whether you have access to that building on that night or not. So what that allows for is full data around the customer base. Every president of every team wants to know two things. They want to know who's in there building, and they wanna have some control, whether it's economic control or otherwise on the secondary market. Our digital I D ticketing system enables both of that, and that's kind of the innovation that we're bringing to the Tokyo market. >> But I would imagine when you say, you know it's me, you know the opportunities way beyond that because now you know what in my preference is, how often do I come? What kind of beer do I like to drink? It just opens up a whole kind of CR m ah, world of opportunity for this relationship between the team now in that person with that barker, >> absolutely, and that happens today, but what you're missing is every time someone comes in with a paper ticket, you're really not sure who's entering the building. So that eliminates that piece of that. And it gets all these teams with analytic departments to really have a full picture of their fan base. So, you know, they may have been investing in some of this and capturing 60 70% of their who's in the building. Now they have 100% right, >> and I would imagine they've been doing this for a long time, with kind of their season ticket base and knowing they're in the building. But it got a lot of data on their season ticket holders. How is that? You know, changed. What can they apply there to? The casual fan that maybe bought a ticket on the secondary market and his, you know, common is sitting in the bleachers? >> Well, it's huge >> for up sales and establishing that relationship. A lot of teams, if you've you know, just buying a single ticket off a secondary market, you're nowhere in that database now because of our I D based system. Those people are now prospects for either mini pack or a season ticket back. It's right. Just >> curious how the rise of the secondary market really impacted the teams and how they think about their own ticket based. I think the 1st 1 is probably StubHub back in the day for some, and it all happened kind of outside the purveyor of leagues and outside the purveyor of the teams. Likely, they're pretty smart and figured out we need to be a piece of this. So how did that kind of evolution change the way the teams think about their fans? Well, look, I mean, teams >> like music promoters, they Sometimes they like the brokers getting involved because it takes risk off the table. I think teams air realizing, though, that a riel yield management perspective on their ticket inventory to really revenue manage this appropriately. They have to take a holistic approach on their >> tickets, and any time you >> have a segment of your >> ticket base where you really don't have control of pricing distribution, >> all of that, it really hurts and it has an impact on your unsold primaries. So what teams are looking to do is gain more control and manages inventory more holistically to do that you really need to know all the data. And again, the I. D based ticketing system enables secondary sales. But at least you are tracking those sales and, you know, from one person to the next who who sold it, who bought it >> right? I'm curious to get your perspective on on the difference between if you arm or >> entertainment focused. So you know, the Rolling Stones were in town a couple nights ago, and it's really a one shot deal for the Rolling Stones in the Bay Area that night versus the Giants game, right where you're hoping that your people come back over and over. Did they think of it differently? Or is it Maur? You know, Jeff, you like music? You went to the Rolling Stones last night. Maybe you'll come and see somebody else tonight. Is that is that well, can't were they? No doubt, sports teams are >> a lot smarter about their fan base. They have loyalty built in. They have got history, you know there's variability. There's night of game. And then there's weather in who's on the mound and all of those factors. But promoters are, ah, lot more in the dark about, you know, Is this an artist that you know? How much credence can they put in the last two? Or they did. It's too been two years. Is that artist still going to sell appropriately or similarly than they did last time again? The secondary market on the music side is made a bigger issue because of that variability, and those promoters are willing to take risk off the table. But the same thing applies in order for them to really manage and revenue manage that tour. They really need to know who's buying and grab some of that secondary economics out of the system. Right? And that's again, what our platform enables, and that's what we're really bringing to the Tokyo market. It's really exciting. That's a great market for >> us. I was gonna say just to close. >> You know what's special about the Tokyo market either? From an opportunity side, we're kind of a unique way which they do things or unique way in which the kind of the fan experiences as you look at that market. >> Well, it's interesting. I mean, in a culture that is so reliant on such interesting technology, these ticketing technology is actually quite old, and so we're excited to bring that. We've got great partners past Revo is our partner there, and they're really selling that through the Yahoo ticketing channel. Uh, they we have we just signed the B league, which is the professional basketball league will be rolling them out in their fall season coming up soon here. But basically, they are looking for the same things. We're looking for more data and Maura capturing of the secondary market, and we can bring that to them. >> All right. Well, Todd, thanks for taking a few minutes. Pull the covers back off ticketing A lot more going on than people think. Thank you very much. All right, He's >> taught. I'm Jeff. You're watching The Cube. Were Rhetorical Park on the shores of >> McCovey Cove in San Francisco. Thanks for watching. We'll see you next time.
SUMMARY :
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Javier Altamirano, Sportradar | Sports Tech Tokyo World Demo Day 2019
>> Hey, welcome back, everybody. Jefe Rick here with the Cube were at Oracle Park, and they're moving a bunch of dirt downstairs, but we're happy to be her. Anyway. We're here to really cool thing called Sports Tech Tokyo World Demo Day. And we're excited to have our next guest. He's heavier. Altamirano, the director of innovation for sport Radar of your Nice to see you. >> Hi. Nice to see you, Jeff. Thank you for having me. >> So for people aren't familiar with sport radar. What you guys all about? >> Yes, the world all about sports date on day and fan engagement. So whenever you want to place a a safe ah, bad Latina market, that's biddings. Regulated are mostly in Europe, for example. Ah, you would use ultimately our data also, whenever you're looking for first time Ah, stat line coming out or you're one to power your fantasy game. That data ultimately comes from us. So >> we talked about before we turn the cameras on. There's lots of sources of data, but your guy's unique value proposition, speed and accuracy is all right. >> Absolutely, Absolutely. You want to think >> of sports data like the same us? Your ticker from the stock market, right? You want to have it fast and reliable as possible. We've been doing that for almost two decades. We have experience, keys and experience in many different ways of collecting. Collecting data from around the world were 2000 people strong 30 offices around the world, dedicated just to collect and into into work with data and evolve and change the narrative of how people talk about sports. >> Okay. Were you guys base? Where's headquarters, >> eh? So we're ahead course in St Gallen, Switzerland, and in the US we have offices in San Francisco in a Minneapolis, uh, New York and endless magazines. All >> right, cool. So we're here in sports Tech? Tokyo will Demo day. What do you doing here? What does this event all about for you? >> Absolutely. This is >> Ah, great events. The grain. And they were shot out to Michael Pearlman and scram Ventures, and they're putting together this ecosystem, right? They want to bring all the best technology, the best sports technology that's out there in the world. Uh, you know, with Japan having all these events leading up to the Olympics next year, bowl so all the way through 2026 what they do, Jeff. They come up and they bring all of those large, great companies that they have conglomerates. And they make you make all of this, um, big opportunity for everyone who's due in something with sports technology in some way, shape or form. And then there's a lot of collaboration. There's investment. There's a lot of things happening there. We we definitely would certainly fit in, especially with our accelerator program. >> Okay. And then, are you guys already in the market in Japan, or is this just kind of a new boost? Into what? What you've already got? >> Things definitely knew boost >> for us. Uh, Asia? Absolutely. Ah, A future focus of also pressing and future focus of us. There's great things happening there, for sure. >> Okay, Now you're director of innovation. So you're actually looking for Toby to be opportunities to take your technology in some different directions, tell us a little bit more about what you're working on? >> Absolutely. Um, I leave the accelerate our program where we provide our data to Some early stage companies were doing something innovative with sports data, so that allows us to a keep tabs on, keep a pulse on innovation that's happening outside of our walls s Oh, that's our external innovation initiatives. But that allows early stage companies to get data and to use their funds into product or marketing or what have you so that they can really develop it and really, you know, uh, deliver something that which we think they can >> write. And you said, you have a couple of partner companies that are here today, correct? >> Absolutely. Absolutely. Yeah, we have two companies who made it to the finalists were absolutely, very, very proud of those that Edison and also a really So So the guy's a shock. It ah, Edison and Colin and steam, Really, they're great people, and I'm really in a really happy and on really proud to to see them here. >> Good. So what are they doing with your data that's unique in it? Different? >> Absolutely. So what? Edison? What is Zoom with our data's? Our data allows him to better tag and better identify each player that's showing on on the screen. Edison's technology allows for a personalization that its unique you and I could be watching the same game. Let's say we're watching European soccer and your run all the fun, and I'm a messy fun. So you would see targeted messaging and targeted information on Mass. And I will see targeted information on Ronaldo even though we're both watching the same game. That's what, uh, their technology allows an hour. Data propels >> them coming through the lower thirds and the graphics. And how is that house that >> excited zone over late? So it's overlays. >> Html overlays that they can. They provide. So especially for O. T t providers. >> Okay, because obviously I need to have the apse. They know it's me watching and not you for for >> what, exactly that allows for personalization. It's all about personalization, and that's that's definitely something We're very interested in a sport. Reiter. We believe that's the future personalization of the experience watching and engaging with sports. >> It's interesting, though, gives so much of the sports is the communal effect, right? I mean, so much of so much of the greatness of sports is that, you know, two people from different sides of the city can come together and stand shoulder to shoulder and root for their team. So I don't know. Is there some some downside to >> the civilization >> because they kind of or does. It doesn't support the community, because now I hang out with a bunch of other messy A fans and you hang out with their own, although family curious, kind of where personalization fits with community in kind of engaging >> with think baseball park, you know, putting the move to send that and a nice curveball, But definitely you, maybe you you have a >> lot of massive fans who, you know, But they may not be watching the game with you, right? So when you're watching at home, then you're gonna have that experience, and that can allow them for more communication with other people who like the same things that you like, right. But really, personalization is out there in and it's everywhere, right? Like you're everything that you're getting it more and more targeted and we want to avoid you was one of always spam, right? So if anything, a message, that is, if somebody wants to sell your allow those shirt while you're ah, big messy fund, you're probably not gonna like seeing that ad right. So and neither the advertiser will want to advertise you something that you? Definitely not like so that's exactly >> yeah. No, it's interesting. One of my favorite lines about Big Data, right is when it's done well, it's magic. And when it's done poorly, it's creepy. Definitely. Make sure you're gonna tell me the right jersey and other wrong. Absolutely. Alright. Well, Javier. Well, thanks for taking a few minutes. And good luck to your to your two. Ah, entrance into the finals. >> Absolutely. I Thank you so >> much for the opportunity, Jeff. And you're looking forward to seeing the finals >> here. All right. He saw me have Jeff, You're watching. The Cube were in Oracle Park on the shores of McCovey Cove. Thanks for watching. We'll see you next time.
SUMMARY :
Altamirano, the director of innovation Thank you for having me. So for people aren't familiar with sport radar. So whenever you want There's lots of sources of data, but your guy's unique value proposition, Absolutely, Absolutely. of sports data like the same us? So we're ahead course in St Gallen, Switzerland, and in the US we have offices in San Francisco What do you doing here? Absolutely. And they make you make all of this, um, big opportunity What you've already got? Ah, A future focus of also So you're actually looking for Toby to be opportunities to take or what have you so that they can really develop it and really, you know, uh, deliver something that which And you said, you have a couple of partner companies that are here today, correct? the guy's a shock. So you would see targeted messaging and targeted And how is that house that So it's overlays. So especially for O. T t providers. They know it's me watching and not you for for of the experience watching and engaging with sports. of sports is that, you know, two people from different sides of the city can come together and It doesn't support the community, because now I hang out with a bunch of other messy A fans So and neither the advertiser will want to advertise you something that you? And good luck to your to your two. We'll see you next time.
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Michael Proman, Scrum Ventures | Sports Tech Tokyo World Demo Day 2019
(upbeat music) >> Welcome back, everybody, Jeff Frick here with theCube. We are at Oracle Park, formerly AT&T Park, recently named Oracle Park. Right on the shores of McCovey Cove, in downtown San Francisco. We haven't been here since Sport's Data, I think 2014. I can't believe it's been five years. So maybe now the Giants' situation will turn as we make a run for the pennant. We're here at a really interesting event, it's called Sports Tech Tokyo World Demo Day. And we're here with kind of the master of ceremonies, if you will, he's Mike Proman, the Managing Director of Scrum Ventures. Mike, great to see you. >> Great to be here. Thanks again for the time. >> Absolutely. So what is this day all about? Give us the low down. >> Yeah so, start up frenzy, right? Sports tech community's just in it's infancy right now. There's a lot of fragmentation though, in this world. And how do we best connect start ups to best-in-class companies, right? Japanese companies, there's a lot of excitement in Japan right now. We have Rugby World Cup coming up next month, we have the Olympics next year. How do we enable the start up community to realize those opportunities from a partnership perspective? So, we set out on this journey about a year ago. Bringing together companies of all different stages, all different geographic regions, and all different areas of focus within sports tech. And our job was to connect them to opportunities in Japan. What we kind of uncovered along the journey right, is that this is a community. And that we're building a platform here that transcends Asia, right. We want to help this community, and whether it's connecting them with the venture audience, or otherwise, we feel this is a great reflection of innovation coming in to this industry. >> Now you took kind of an interesting tact. You've called them, before we turned the cameras on, kind of a cohort, kind of an incubator, not really an incubator. So how is this thing structured, how do people get involved? What are some of the benefits of being part of this group versus out there slogging it on your own? >> Well, absolutely, and I think everyone's first reaction is, oh, this is just another accelerator, right? And we've really made a point of not identifying ourselves as an accelerator, for a variety of reasons. Number one, it's a stage-agnostic cohorts, right. So a lot of the companies that are representative here today, the 159 in our cohort, they've raised 10, 20, 30, $40 million. In many respects, they're all grows up, right. They don't need a quote unquote, a traditional accelerator. But our reality is, everybody needs acceleration. And particularly in Asia, Japan in particular, right? You need allies, you need advocates, you need facilitators. And people who are going to help revenue optimization, as well as just breaking the door in some cases. There's a lot of high profile content coming to that region, and if we can help people, it all comes back to us, long term. >> Right, right. And then the other piece, obviously, is the investment piece. 'Cause you work with a number of Japanese investment firms, so that's really kind of part of the, you know, we're sitting in San Franscisco, the event's called Tokyo, the Olympics are a year way, and you're from the Mid-West. So, you're kind of bringing it all together here in San Franscisco. >> You know, sport is the great unifier, right. So this is a great opportunity for us to speak to other industries, and bring the venture community into this conversation. Because, as you know, it's about top-line growth for a lot of these startups, but in many cases, they need capital to be able to accelerate into that growth. And so, you know, it's a very exciting time, and we're here to help support everybody. Our DNA, we're investors, right. We're a venture capital firm. But at the end of the day, what ends up happening is, these companies needs advocacy and connections, and that's what we're here to provide. >> Right, so, you said 100 plus companies in cohort. So, there's a lot of things going on in sports tech, but what are some of the really oddball ones that you're seeing a little further out than maybe most people aren't thinking about. >> Yeah, you know, the trends to me that I'm really excited about personally, are those opportunities that transcend the industry, right. Where is there opportunity for us to democratize things, from just a lead athletes, right, into things that you and I both need. So look at athlete performance. Look at recovery health, as an industry focus, right. Hydration, you look at mental health, sleep health, dietary health, you know. Players of the Giants, they need that, right? But you and I need that too. So where are those technologies that are innovators or thought leaders and leading the way in those spaces? The nice thing about Sports Tech Tokyo is we focus in athlete performance, stadium experience, and fan engagement, right. And there are 13 sub-categories, so it's a very broad based cohort, a lot of different areas of expertise. But bringing them all together is what's most rewarding. >> What's your favorite piece of it? I mean, it's hard to pick your favorite kid, but a couple of interesting companies in the portfolio that you'd like to highlight. >> Everyone's always saying, oh, you put me on the spot. No, absolutely not, Jeff. But in reality, my background is, I've been an entrepreneur for 10 plus years before this. And I've worked with brands like Coca Cola, and the NBA. What excites me most-- >> So we framed you up with a Coke bottle, by the way. >> Thank you very much. That was a nice product placement there. The nice thing is, I'm seeing technology today that didn't fundamentally exist a year or two ago. So I could tell you my favorite right now, in 2 weeks that might be entirely different, right. You're going to meet somebody from Misapplied Sciences, and they are doing some of the most breakthrough, cutting edge tech that, it's mind boggling, in terms of what they can do. And what's great about a company like Misapplied, is that they're doing it in sports, but they're also doing it in retail, and other high-dense environments. And so to me, those are the winners in this cohort. The ones that can transcend sport, and add value to so many other places. >> Right, so, before I let you go, you got a busy day ahead. What's the run of the day, what should people expect who are coming through the gates here at Oracle today? >> Well I said this is not your traditional accelerator. Well, this is not your traditional demo day, by any means, right. Traditionally, demo day is a bunch of company pitches, and then there's maybe some conversation afterwards. To us, this is a celebration of a broader cohort, right. Our 100 plus mentors that make up the Sports Tech Tokyo community. And we wanted to celebrate those individuals, right. The 100 mentors, the 400 plus attendees we have here today. So, think of it as an extended cocktail party, right. We want people to connect, and connect at scale. And so that's the back half of the day. The front half of the day is more content oriented. We have a lot of industry experts, again, common theme is transcending the vertical. Looking at opportunities to bring the venture community into the conversation. >> All right, well Mike, good luck and have a great and very busy day. >> Yeah, thank you so much. Appreciate it Jeff. >> He's Mike, I'm Jeff, you're watching theCube. We're at Oracle Park in San Francisco on the shores of McCovey Cove, thanks for watching. We'll see you next time. (upbeat digital music)
SUMMARY :
So maybe now the Giants' situation will turn Thanks again for the time. So what is this day all about? And how do we best connect start ups What are some of the benefits of being part of this group So a lot of the companies that are representative is the investment piece. And so, you know, it's a very exciting time, Right, so, you said 100 plus companies in cohort. Players of the Giants, they need that, right? but a couple of interesting companies in the portfolio Everyone's always saying, oh, you put me on the spot. So we framed you up And so to me, those are the winners in this cohort. What's the run of the day, what should people expect And so that's the back half of the day. and very busy day. Yeah, thank you so much. on the shores of McCovey Cove, thanks for watching.
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Brendan Harris, SevintySix Capital | Sports Tech Tokyo World Demo Day 2019
(upbeat music) >> Hey welcome back everybody, Jeff Rick here with theCUBE. We're at Oracle Park, recently AT&T Park just renamed, it's a beautiful day. Home of San Francisco Giants, they're on the road, we're here at a pretty interesting event, it's called Sports Tech Tokyo World Demo Day, brought together coalition of about 100 startups. 25 of them are giving demos today on technology as it relates to sports but even more importantly, that can then be used in others beyond sports. We're excited to have an athlete on, not just another tech, crazy guy. He's Brendan Harris, he's an athlete and resident at SeventySix Capital. Brendan, thanks for stopping by. >> Thanks for having me. >> So what is that, I've heard principles and entrepreneur residence\\\, what does a athlete residence do? >> It is essentially a play on the entrepreneuring residence. I was introduced to SeventySix Capital, I finished playing at 15 and I was doing my MBA at Wharton and in Philly, and got introduced to Wayne and the guys at SeventySix and they are kind of putting together an athlete venture group where they're bringing in a lot of athletes that want to be investors and kind of providing them access to deal flow. And then also leveraging their social capitals, so, he was kind of tickled when he coined the term athlete in residence and threw it on my business card and that's where we're at. >> Right so I'm just curious, your perspective as an athlete as you look around at all the technology that's going into sports, right. Kind of the big categories are that which helps the players play better, there's that which helps the people run the teams better, and then there's that which is really kind of part of the fan experience, I mean, you actually had to go down and try to put wood on a ball coming at you 90 plus miles an hour, all this other stuff, do you see it as interesting, is it a distraction, is it entertaining? How do you look at from an athlete's perspective? >> So, yeah, so a lot to impact, so, first of all, I have this equal view of fascination and frustration where a lot of this wasn't around when I was playing, certainly from the field, now we're taking in things like recovery and rest and sleep, but I think players and me personally, are fascinated with how can we improve on field performance and I think baseball's such an imperfect game and you fail so often. Being able to turn things that were previously subjective and apply data and tech to make them objective and give you answers, I think it's fascinating. The ways that we can use data to kind of promote performance and health and all those things are very fascinating. So from a player's point of view, we are all about it but at the same time, I think this is why I've loved to get into sports tech is there's a lot of data that's just noise that's coming in and things and so the tough part is kind of weeding through and what is actionable info and what can actually help improve beyond field performance and then, along with that, we want to feel the product on the field, but also what what the services for the consumer and the fans are and how can we improve that and then engage them because certainly sports are a part of the culture and part of life now and it's fascinating, these fans want to know more and more and more, certainly what's going on and it's been a great journey. >> Right so on the fan experience specifically, we've been here a number of years, Bill Styles' a good friend of mine, and another Wharton grad. And talking about high density WiFi and the app on your phone and food delivered to your seat, I mean as an athlete on the field, do you look at kind of of all these things as a distraction, do you appreciate it's more competitive environment these days in terms of people's attention and kind of that entertainment dollar but I would imagine from the between the lines it looks like, hey, the game's down here people. >> Yeah. (laughing) It's been interesting because one of the problems major league baseball's been trying to address is pace of games right? And if you really look at the data, they're not that much longer. What's different, we're wired differently, right? So our attention spans are shorter and we're constantly addicted to our technology. So these guys like Bill, are trying to leverage that and try to have your food delivered and try to increase the social component, increase the value in the in-venue experience so that you're not only watching the game but you're social enjoying it at the same time and kind of filling those gaps. A lot of it is, yes, and I think, there has been balls flying into the stands since baseball's been playing but the need to put the netting up has come a lot of times because nobody's watching. Some people aren't, not nobody, but a lot of people aren't watching the games are getting hit with a lot of these foul balls. So there's that component, where there's some unbelievable things are going off on the sides but it's baseball still going to be kind of very similar within the confines of lines. >> The other piece that I find really interesting on the data side right, is there's so much data, right? There's data, data, data. Obviously baseball's built on data and arguments about data and conversations about data. But now it's kind of gone to this next gen with wins over replacement and all these other things, but sometimes it's funny to me. It feels like they're forgetting the object of the game is to win the game and it feels like sometimes the metadata has now become more important than the data. Did you win or lose and it's not necessarily being used as a predictor for future performance but it's almost like a stand alone game in and of itself. We forget the object is to win the game and win a championship, not to have the highest award number. Do you sense that frustration, does that sound like something you see-- >> Yeah, I think what you're getting into a lot of times is how are we making decisions, right and in the game a lot of times people forget that human beings are out there performing and so I think that's how we've gotten into Moneyball 2.0 when looking at development. Certainly mental health in focus and game preparation have come into play more and you're seeing some managers, Mickey Callaway just came out said 80% of my distances go against the data which I thought was a little bit interesting but so there is that fine line where you have to filter in what's noise and what's actionable and at the same time, allow your managers and your decision makers some flexibility to go with they're there in the heat of the battle and they kind of of know their guys and they know the human element that's involved. It's an interesting balancing act. >> Right so from your new job and your new role, what are some of the things you hope to see today, what are somethings that you're excited about from an investor and in having played the game as well as looking forward to the evolution of sports? >> Two things, specifically how the, I'm certainly biased to the performance on the field, and the human element and certainly, everybody wants workout secrets and I don't feel like it's, whether it's athletes or the kind of weekend warrior or people that are senior citizens. I don't think it's as simple as, this is work and you should do this, it's a very personalized experience now and I think some of this personalized digital fitness is fascinating to me and then how it relates to and how your body relates to your diet, your nutrition, your sleep, your recovery, I think all those are fascinating that advances that I want to look into more. And then second is, as I kind of mentioned, is the fan engagement aspect and how do we drive those fans, that digital, and make it actionable and monetized, right. So that you have your fans that are following your Facebook, your Twitter, and all those things and so how do you, not only engage them but collect that data and then kind of personalize that experience, engage your fan in a way that can kind of grow your brand. It will be interesting to me. >> Really interesting to have your perspective and I'm sure it will be a great day and you'll see all kind of crazy stuff. So thanks for taking a few minutes. >> Yeah, anytime, thanks for having me. >> All right, he's Brendan, I'm Jeff, you're watching theCUBE. We are at Oracle Park in San Francisco, thanks for watching, we'll see you next time. (upbeat music)
SUMMARY :
as it relates to sports but even more importantly, and kind of providing them access to deal flow. and try to put wood on a ball coming at you and so the tough part is kind of weeding through and what and the app on your phone and food delivered and try to have your food delivered We forget the object is to win the game and at the same time, allow your managers and the human element and certainly, and I'm sure it will be a great day thanks for watching, we'll see you next time.
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Matt Kobe, Chicago Bulls | MIT CDOIQ 2019
>> 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. In Cambridge, Massachusetts. Everybody You're watching The Cube, the Leader and Live Tech coverage. My name is Dave Volante, and it's my pleasure to introduce Matt Kobe, who's the vice president of business strategy Analytics of Chicago Bulls. We love talking sports. We love talking data. Matt. Thanks for coming on. >> No problem getting a date. So talk about >> your role. Is the head of analytics for the Bulls? >> Sure. So I work exclusively on the business side of the operation. So we have a separate team that those the basketball side, which is kind of your players stuff. But on the business side, um, what we're focused on is really two things. One is being essentially internal consultants for the rest of the customer facing functions. So we work a lot with ticketing, allow its sponsorship, um, marketing digital, all of those folks that engage with our customer base and then on the backside back end of it, we're building out the technical infrastructure for the organization right. So everything from data warehouse to C. R M to email marketing All of that sits with my team. And so we were a lot of hats, which is exciting. But at the end of the day, we're trying to use data to enhance the customer and fan experience. Um and that's our aim. And that's what we're driving towards >> success in sports. In a larger respect. It's come down to don't be offended by this. Who's got the best geeks? So now your side of the house is not about like you say, player performance about the business performances. But that's it. That's a big part of getting the best players. I mean, if it's successful and all the nuances of the N B, A salary cap and everything else, but I think there is one, and so that makes it even more important. But you're helping fund. You know that in various ways, but so are the other two teams that completely separate. Is there a Chinese wall between them? Are you part of the sort of same group? >> Um, we're pretty separate. So the basketball folks do their thing. The business folks do their thing from an analytic standpoint. We meet and we collaborate on tools and other methods of actually doing the analysis. But in terms of, um, the analysis itself, there is a little bit of separation there, and mainly that is from priority standpoint. Obviously, the basketball stuff is the most important stuff. And so if we're working on both sides that we'd always be doing the basketball stuff and the business stuff needs to get done, >> drag you into exactly okay. But which came first? The chicken or the egg was It was the sort of post Moneyball activity applied to the N B. A. And I want to ask you a question about that. And then somebody said, Hey, we should do this for the business side. Or was the business side of sort of always there? >> I think I think, the business side and probably the last 5 to 7 years you've really seen it grown. So if you look at the N. B. A. I've been with the Bulls for five years. If you look at the N. B. A. 78 years ago, there was a handful of Business analytics teams and those those teams had one or two people at him. Now every single team in the NBA has some sort of business analytics team, and the average staff is seven. So my staff is six full time folks pushed myself, so we'll write it right at the average. And I think what you've seen is everything has become more complex in sports. Right? If you look at ticketing, you've got all the secondary markets. You have all this data flowing in, and they need someone to make sense of all that data. If you look at sponsorship sponsorship, his transition from selling a sign that sits on the side of the court for these truly integrated partnerships, where our partners are coming to us and saying, What do we get out of? This was our return. And so you're seeing a lot more part lot more collaboration between analytics and sponsorship to go back to those partners and say, Hey, here's what we delivered And so I think you it started on the basketball side, certainly because that's that's where the, you know that is the most important piece. But it quickly followed on the business side because they saw the value that that type of thinking can bring in the business. >> So I know this is not, you know, your swim lane, but But, you know, the lore of Billy Beane and Moneyball and all that, a sort of the starting point for sports analytics. Is that Is that Is that a fair characterization? Yeah. I mean, was that Was that really the main spring? >> I think it It probably started even before that. I think if you have got to see Billy being at the M I t Sports Analytics conference and him thought he always references kind of Bill James is first, and so I think it started. Baseball was I wouldn't say the easiest place to start, But it was. It's a one versus one, right? It's pitcher versus batter. In a lot of cases, basketball is a little bit more fluid. It's a team. Sport is a little harder, but I think as technology has advanced, there's been more and more opportunities to do the analytics on the basketball side and on the business side. I think what you're seeing is this huge. What we've heard the first day and 1/2 here, this huge influx of data, not nearly to the levels of the MasterCard's and others of the world. But as more and more things moved to the mobile phone, I think you're going to see this huge influx of data on the business side, and you're going to need the same systems in the same sort of approach to tackle it. >> S O. Bill James is the ultimate sports geek, and he's responsible for all these stats that, no, none of us understand. He's why we don't pay attention to batting average anymore. Of course, I still do. So let's talk about the business side of things. If you think about the business of baseball, you know it's all about maximizing the gate. Yeah, there's there's some revenue, a lot of revenue course from TV. But it's not like football, which is dominated by the by the TV. Basketball, I think, is probably a mix right. You got 80 whatever 82 game season, so filling up the stadium is important. Obviously, N v A has done a great job of of really getting it right. Free agency is like, fascinating. Now >> it's 12 months a year >> scored way. Talk about the NBA all the time and of course, you know, people like celebrities like LeBron have certainly helped, and now a whole batch of others. But what's the money side of the n ba look like? Where's the money coming from? >> Yeah, I mean, I think you certainly have broadcast right, but in many ways, like national broadcast sort of takes care of it itself. In some ways, from the standpoint of my team, doesn't have a lot of control over national broadcast money. That's a league level thing. And so the things that we have control over the two big buckets are ticketing and sponsorship. Those those are the two big buckets of revenue that my team spends a lot of time on. Ticketing is, is one that is important from the standpoint, as you say, which is like, How do we fill the building right? We've got 41 home game, supposed three preseason games. We got 44 events a year. Our goal is to fill the building for all 44 of those events. We do a pretty good job of doing it, but that has cascading effects into other revenue streams. Right, As you think about concessions and merchandise and sponsorship, it's a lot easier to spell spot cell of sponsorship when you're building is full, then if you're building isn't full. And so our focus is on. How do we? How do we fill the building in the most efficient way possible? And as you have things like the secondary market and people have access to tickets in different ways than they did 10 to 15 years ago, I think that becomes increasingly complex. Um, but that's the fun area that's like, That's where we spend a lot of time. There's the pricing, There's inventory management. It's a lot of, you know, is you look a traditional cpg. There's there's some of those same principles being applied, which is how do you are you looking airline right there? They're selling a plane. It's an asset you have to fill. We have ah, building. That's an asset we have to fill, and how do we fill it in the most optimal way? >> So the idea of surge pricing demand supply, But so several years ago, the Red Sox went to a tiered pricing. You guys do the same If the Sox are playing Kansas City Royals tickets way cheaper than if they're playing the Yankees. You guys do a similar. So >> we do it for single game tickets. So far are season ticket holders. It's the same price for every game, but on the price for primary tickets for single games, right? So if we're playing, you know this year will be the Clippers and the Lakers. That price is going to be much more expensive, so we dynamically price on a game to game basis. But our season ticket holders pay this. >> Why don't you do it for the season ticket holders? Um, just haven't gone there yet. >> Yeah, I mean, there's some teams have, right, so there's a few different approaches you convey. Lovely price. Those tickets, I think, for for us, the there's in years past. In the last few years, in particular, there's been a couple of flagship games, and then every other game feels similar. I think this will be the first year where you have 8 to 10 teams that really have a shot at winning the title, and so I think you'll see a more balanced schedule. Um, and so we've We've talked about it a lot. We just haven't gone to that made that move yet? >> Well, a season ticket holder that shares his tickets with seven other guys with red sauce. You could buy a BMW. You share the tickets, so but But I would love it if they didn't do the tiered. Pricing is a season ticket holder, so hope you hold off a while, but I don't know. It could maximize revenues if the Red Sox that was probably not a stupid thing is they're smart people. What about the sponsorships? Is fascinating about the partners looking for our ally. How are you measuring that? You're building your forging a tighter relationship, obviously, with the sponsors in these partners. Yeah, what's that are? Why look like it's >> measured? A variety of relies, largely based on the assets that they deliver. But I think every single partner we talk to these days, I also leave the sponsorship team. So I oversee. It's It's rare in sports, but I stayed over business strategy and Alex and sponsorship team. Um, it's not my title, but in practice, that's what I do. And I think everyone we talked to wants digital right? They want we've got over 25,000,000 social media followers with the Bulls, right? We've got 19,000,000 on Facebook alone. And so sponsors see those numbers and they know that we can deliver impression. They know we can deliver engagement and they want access to those channels. And so, from a return on, I always call a return on objectives, right? Return on investment is a little bit tricky, but return on objectives is if we're trying to reel brand awareness, we're gonna go back to them and say, Here's how many people came to our arena and saw your logo and saw the feature that you had on the scoreboard. If you're on our social media channels or a website, here's the number of impressions you got. Here is the number of engagements you got. I think where we're at now is Maura's Bad Morris. Still better, right? Everyone wants the big numbers. I think where you're starting to see it move, though, is that more isn't always better. We want the right folks engaging with our brands, and that's really what we're starting to think about is if you get 10,000,000 impressions, but they're 10,000,000 impressions to the wrong group of potential customers, that's not terribly helpful. for a brand. We're trying to work with our brands to reach the right demographics that they want to reach in order to actually build that brand awareness they want to build. >> What, What? Your primary social channels. Twitter, Obviously. >> So every platform has a different purpose way. Have Facebook, Twitter, instagram, Snapchat. We're in a week. We bow in in China and you know, every platform has a different function. Twitter's obviously more real time news. Um, you know the timeline stuff, it falls off really quick. Instagram is really the artistic piece of it on, and then Facebook is a blend of both, and so that's kind of how we deploy our channels. We have a whole social team that generates content and pushes that content out. But those are the channels we use and those air incredibly valuable. Now what you're starting to see is those channels are changing very rapidly, based on their own set of algorithms, of how they deliver content of fans. And so we're having to continue to adapt to those changing environments in those social >> show impressions. In the term, impressions varies by various platforms. So so I know. I know I'm more familiar with Twitter impressions. They have the definition. It's not just somebody who might have seen it. It's somebody that they believe actually spent a few seconds looking at. They have some algorithm to figure that out. Yeah. Is that a metric that you finding your brands are are buying into, for example? >> Yeah. I mean, I think certainly there they view it's kind of the old, you know, when you bought TV ads, it's how many households. So my commercial right, it's It's a similar type of metric of how many eyeballs saw a piece of content that we put out. I think we're the metrics. More people are starting to care about his engagements, which is how many of you actually engaged with that piece of content, whether it's a like a common a share, because then that's actual. Yeah, you might have seen it for three seconds, but we know how things work. You're scrolling pretty fast, But if you actually stopped to engage it with something, that's where I think brands are starting to see value. And as we think about our content, we have ah framework that our digital team uses. But one of the pillars of that is thumb stopping. We want to create content that is some stopping that people actually engage with. And that's been a big focus of ours. Last couple years, >> I presume. Using video, huge >> video We've got a whole graphics team that does custom graphics for whether it's stats or for history, historical anniversaries. We have a hole in house production team that does higher end, and then our digital team does more kind of straight from the phone raw footage. So we're using a variety of different mediums toe reach our fans >> that What's your background? How'd you get into all of this? >> I spent seven years in consulting, so I worked for Deloitte on their strategy group out of Chicago, And I worked for CPG companies like at the intersection of Retailer and CPG. So a lot of in store promotional work helping brands think through just General Revenue management, pricing strategy, promotional strategy and, um stumbled upon greatness with the Bulls job. A friend gave me the heads up that they were looking to fill this type of role and I was able to get my resume in the mix and I was lucky enough to get get the job, and it's been when I started. We're single, single, single, so it's a team of one. Five years later, we're a team of six, and we'll probably keep growing. So it's been an exciting ride and >> your background is >> maths. That's eyes business. Undergrad. And then I got a went Indian undergrad business and then went to Kellogg. Northwestern got an MBA on strategy, so that's my background. But it's, you know, I've dabbled in sports. I worked for the Chicago 2016 Olympic bid back in the day when I was at Deloitte. Um, and so it's been It's always been a dream of mine. I just never knew how I get there like I was wanted to work in sports. They just don't know the path. And I'm lucky enough to find the path a lot earlier than I thought. >> How about this conference? I know you have been the other M I T. Event. How about this one? How we found some of the key takeaways. Think you >> think it's been great because a lot of the conferences we go to our really sports focus? So you've got the M. I T Sports Analytics conference. You have seat. You have n b a type, um, programming that they put on. But it's nice to get out of sports and sort of see how other bigger industries are thinking about some of the problems specifically around data management and the influx of data and how they're thinking about it. It's always nice to kind of elevated. Just have some room to breathe and think and meet people that are not in sports and start to build those, you know, relationships and with thought leaders and things like that. So it's been great. It's my first time here. What are probably back >> good that Well, hopefully get to see a game, even though that stocks are playing that well. Thanks so much for coming in Cuba. No problems here on your own. You have me. It was great to have you. All right. Keep right, everybody. I'll be back with our next guest with Paul Gill on day Volante here in the house. You're watching the cue from M I T CEO. I cube. Right back
SUMMARY :
Brought to you by Silicon Angle Media. Welcome back to M. I. T. In Cambridge, Massachusetts. So talk about Is the head of analytics for the Bulls? But on the business side, um, what we're focused on is really two things. the house is not about like you say, player performance about the business performances. always be doing the basketball stuff and the business stuff needs to get done, A. And I want to ask you a question about that. it started on the basketball side, certainly because that's that's where the, you know that is the most important So I know this is not, you know, your swim lane, but But, you know, the lore of Billy Beane I think if you have got to see Billy being at the M So let's talk about the business side of things. Talk about the NBA all the time and of course, you know, And so the things that we have control over the two big buckets are So the idea of surge pricing demand supply, But so several years ago, It's the same price for every game, Why don't you do it for the season ticket holders? I think this will be the first year where you have 8 to 10 teams that really have a shot at winning so hope you hold off a while, but I don't know. Here is the number of engagements you got. Twitter, Obviously. Um, you know the timeline stuff, it falls off really quick. Is that a metric that you finding your brands are are More people are starting to care about his engagements, which is how many of you actually engaged with that piece of content, I presume. We have a hole in house production team A friend gave me the heads up that they were looking to fill this type of role and I was able to get my resume in the But it's, you know, I've dabbled I know you have been the other M I T. Event. you know, relationships and with thought leaders and things like that. good that Well, hopefully get to see a game, even though that stocks are playing that well.
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Greg Karamitis, DraftKings | Actifio Data Driven 2019
>> from Boston, Massachusetts. It's the queue covering active eo 2019. Data driven you by activity. >> Welcome back to Boston, Everybody. Money >> belong here with my co host, a student of John >> Kerry's. Also here today You watching the Cuban leader and on the ground tech coverage. This is day one of active fio 19 data driven content Conference hashtag data driven 19 red cara minuses. Here is the senior vice president of fantasy Sports A draftkings Greg. Thanks for coming on. What a cool title. >> Yeah, it's It's, you know, I was joking with my wife. Anytime you could be working fantasy sports, it's a great place to be. Everybody's a little bit jealous. >> So the formula is easy, right? Offer big giant prizes and everybody comes And that's all there is suing. Anybody can come >> in. I just have the dream job right now. >> So hugely competitive market. You guys, you become the >> leader. We were in the radio. Check out your websites. I mean, take us through the draft kings and your ascendancy. How you got here? >> So, you know, company started in 2012 initially around sort of the major big American sports on DH. Then really a CZ. We started scale that we saw there was a huge consumer interest in the product players that would come on. We're very, very, very sticky. Um, and we've just been kind of, you know, pushing, pushing on growing that using these. So the initial founders are three former analyst. So come on. It's always been sort of a very analytically driven company. So they looked at what we were dealing with, and it was we had L TVs that were way higher than our cracks. So let's keep marketing and growing and growing and growing and finding out ways to offer a better product. So, over 2015 we did a major marketing blitz, blew up the company Absolutely huge. Um, and since then we've been just constantly innovating, adding new sports, adding new features on DH, adding ways toe on the product. And then even more recently, just about a year ago, we expanded also into online sports betting over New Jersey has that's become a legal product across the U. S. So it's been a great time to be at the company a lot of fun. >> What what was your first sport was like Amazon started in books and then, you know, scaled out what was your first sport. So it's actually the first sport was >> baseball because of the time that they actually launched. So is the middle of April. Sporting calendar is a little bit thin. Right then, so is it was baseball to start, and then once football season started, that's really when things take on >> 2015 is when you started the marketing blitz and I remember just here in the ads and it was just intense, like a while. This company's going for it. So you sort of took >> all the chips I went >> all in and it worked. Yeah, I mean, it's part of the, you know, the lifeblood of the company. It's We're a company that ends up being taking risks, but we take calculated risks. So at any given point, you sort of say, like, Hey, what is the what is the range of outcomes over here? We're not playing for second place. We want to be a market leader, so you have to take risks in order, be a market leader. So let's take calculated risks. Let's make sure we're not being insane, but you know we did the math. We figured out what? This is A This is a worthwhile shot. We pushed him for it. Andi really took off from their love to bet on >> sure things. Yeah, well, Greg, we know the people that play the fantasy for it feel that data is what differentiates whether they're going to live in, you know, winner lose. Talk to us a little bit about the data journey inside your business And how that helped differentiate draftkings in the market. Yes. So we think Death draftkings >> is one of the most analytically based companies in the, you know, definitely in the market, but also into sort of like General Cos right now we use our analytics platform to inform pretty much everything we dio on. Go to your point. You're joking. You know, it seems like fantasy sports is easy throughout some giant prizes there, and everything will take care of itself. You know, running a fantasy sports car company. If you throw out a contest that's too big, you lose a ton of money. There's a lot of asymmetric risk in the business where if we're right, we make a little bit more. But if we're wrong. We lose a ton very, very, very fast. So our ability to be very, very sound analytically is what allows us to sort of pushed the envelope and grow, grow, grow but not, you know, lose our heads along the way. You know, some of the fun of that is really, you know, when we first ran, I think one of the most game changing contest we ran was actually back in October of 2014. It was the very first millionaire maker contest I could still remember. It was Week five of the 2020 14 NFL season where we said, Hey, this it's crazy. We need crazy things that happen in order for it to work. But if we're on a $20 contest to enter with $1,000,000 top prize and 2,000,000 of total prizes, it could go viral, go absolutely crazy. And if it loses, here's how it'll losing. Here's how much will hurt us. It's a worthwhile risk. Let's go for it. So that sort of energy of, you know, doing discipline analysis and constantly sort of them. Taking the risk on the back of it is what allowed us to build >> up the brand value that you would have got out of that was sort of worth that risk in part anyway. And you wouldn't have to hurt presumably. >> Exactly. We knew our downside. As long as you know your downside, you're normally in a pretty good spot to take those risks. >> So where do you >> see this All going mean? So the company has grown. You're at this kind of critical mass now, Like we said, highly competitive, you know, knock down. You know, if you take your eye off the ball. So how do you guys keep this going? >> So we have a huge challenge ahead of us over the next couple of years, as sports betting becomes legal across the US, we need to make sure that we are one of the top competitors in that market. Sports betting in the US, we expect to be an absolutely enormous market. It will probably be significantly larger than the fantasy sports market in terms of absolute revenue and even, you know, on order of magnitude more competitive. So we need to be executing each step along the way a CZ markets open up. We need to be able to get into getting two market very, very fast. And that means our tech team needs to be working feverishly to make sure that we can hit the requirements that each legislator and each regulator puts on market entry in their state. We didn't mean making sure we're constantly figuring out what are the product elements that are absolutely critical for our for our users. Is it Maura around the live betting experiences that around the different markets that you offer? It's around pricing. And how do we find these things, these different lovers and told them to make sure that we're putting out a great product for users. And if we do that and throw a great product after users were pretty sure we can make you want >> to be one stop shopping presumably, right? I mean, all sports, right? But But then you've got these niche sports betting. I mean eggs, invest. Example. I could think of this horse racing. You know where it is alive. It's gonna video. It's got commentators on the ground that you know the business really well. Is >> that Is that the strategy to go sort of horizontal and so be a one stop shop or you >> gonna sort of pick your spots? What is the day to tell you? >> You know, I think we're constantly talking about it. One of the things that allowed our fantasy sports business to grow so fast was going a little bit more horizontal. So we offered Gulf in Mass at a time period when the primary competitors and the space vandal did not. On DH, we built that product into one of our largest sports. It's, you know, right up there with MLB in terms of the actual size that that comes in a Z have gone also horizontal, we pulled in other places, like NASCAR. Mm, a great sports that people are interested in. It gets more users into our platform. And honestly, if uses are interested in a product, we don't want them to have to go elsewhere. We want to be able to have the offerings that any sort of, you know, critical mass type environment is going toe is gonna have >> Well, it's that experience, right? Well, I like to shop in Amazon. You do, too, because I >> trusted. And it's the same user experience. So, Greg, one of things >> I'm hearing from you is something that everybody tries for, but it's really challenging that speed. How do you react that fast and move the company into new markets and new offerings and keep innovating? You know, culturally technology wise, you know, How does Draftkings do that? You know, I think a za company, you know, from really every single person that we recruit in higher We've been actually execution Aly disciplined throughout the company's history. It's It's something that our founders did a great job of instilling in the culture right at the gates. I mean, we've tried to foster all the way along the way, which is all the best strategies of the world. They're going to fail if you can't execute well and every single person down the company knows that. And we try to, you know, enable each person to be as autonomous as possible in their ability to execute their their portion of the business that allows us to move really, really, really fast. You know, we disseminate that responsibility quickly, and each leader and sort of each person knows what they have to do to execute. There's a high degree of accountability behind that, you know, I'd like to say there's some. There's some magic recipe that's, um, secret sauce, but it's a lot of just great people doing great work everyday. Well, Greg, you know it's any your competitors that they look at, You know, Boston's been been doing pretty well in Draftkings era, you know, for the last few years. ES o Boston's been a great market for us. We've expanded Conover here on DH. The sports teams have been fantastic, although the Bruins it was a little bit sad about Game seven over there, but it happens. >> So his m o be the flagship news that no, I wouldn't say >> that MLB was first, primarily just of the time of the year when we launched. NFL is always going to go, are not always going to be, but for the for the foreseeable future is the dominant US sport on will remain the dominant US for >> no reason. I mean, kids there watch MLB anymore. Maybe the maybe the playoffs and the games. It was a game. I think I'm some Father's day was like almost five hours long, you know, gets called. You can come in and out. But you know what some of the trends. You see soccer. Is that growing NFL? Obviously huge. Do you see so niche sports like lax coming on. >> So, uh, you know, starting point NFL has been huge. We actually launched a new product Ah, little over a year ago called Showdown, which allowed you start to do fantasy for a single game as opposed to the combination of games that's taken off fantastically because that's tapping into more of the I'm going to sit down and watch this game, and I would love to have a fantasy team on that on this game. That's really expanded the audience like that. That >> was genius because, look, if you're >> out of the running, it doesn't matter because I'm weak. On top of that N b A and NHL on fire. The embassy put out a great product is an actual sport league. You know, the Finals were great. You hate to see the injuries, but it was a great final. Siri's very competitive. The NHL Finals has been very, very competitive. Golf is growing phenomenally as a sport, way farm or interesting golf than I ever anticipated when I first started with the company and it's one of the most exciting things. When the Masters comes each year, every screen has turned to it and we see a huge player. Player number is kind of coming into that one. Beyond that, you know NASCAR. What's been interesting? NASCAR's been having a tough couple years, but the Truck series for us? We launched it this year and the trucks have been great. I don't know if you've watched NASCAR Trucks. They're wildly entertaining. Uh, you know, Emma, you got the big fighter. So every sport sort of has its moments. It's a matter of like picking those moments and figuring out how to make >> the most of them. Do you see boxing at all making a comeback? >> So we have thought about how to get boxing into a into a fantasy. We don't have it at the moment. We're putting a lot of thought into it, so we are actually seeing through. We've seen, you know, we've been in the M M A space and we've seen the growth out from there where that sports doing great and you look at places like Bela Tor. The Professional Fighters league is other leagues, and then boxing is the next step. There's a lot of interest there. I don't think they have the right products yet to be able to kind of engage with that extra way. So that's one of things we're working on. Also, you need a marquee fighter. You always need a marquee fighter. Kind of helped bring in the interest over on that side. So, um, be interesting to see with Taki on sort of the downside of his career. At this point on DH, Mayweather hasn't been fighting much. Will be interesting to see. Who's that next meeting with Adam. But >> I grew up in an era >> of Marquis fighters. What? They would fight, you know, they literally fight 6 70 times a year, you know, and you had used huge names on DSO, and then mm comes along and he's really hurt, >> but it feels like it's tryingto so to resuscitate. Yeah. I mean, I think these things could >> be a little bit cyclical. Like you get one Marquis fighter out there like so my wife, this Filipino. So I'm a huge backing out fan now way watch every fight. Even when we were living in remote locations that forces watching at weird hours. He's a type of athlete that could bring popularity of the sport. So if there was a major U. S. Fighter that gains that degree of sort of, you know that that degree of fame people will be into it, I think >> Do do do your analytics sort of have a probe into the activity at the at the fan level at the sports level, not just the fantasy level or the betting level? Is that a sort of ah ah predictor for you? Yet we >> see a lot of correlations between how many people play our sport are fantasy game, and how many people actually follow the underlying sport. Way can also see trends in terms of If I'm from Boston, I probably pick more patriots in my fantasy lineups than, uh, normal on DH. You can actually see that as people play different sports that you know, the number one Q. Be drafted in in Boston is almost always gonna be Tom Brady. And once you leave that you start seeing Aaron Rodgers pop up. Let's really, really fast. So you see these little micro trends where it's like you are still a sports fan of your local team in your local environment, but it manifest itself in the fantasy. >> So what you think that is? Do you think it's fan affinity >> or do you think it's just the sort of lack of knowledge out inside? You're sort of a circle of trust. >> I think it's probably a combination. I mean, I could say is, you know, following the Celtics in the mid to thousands, I knew the depth of the Celtics pension, how they would use their rotation better than anybody else, Probably better than anybody else in the coaches would probably disagree. But it's like I knew that James Posey was a huge value play on Saturday nights. I knew. I kind of with I feel the Eddie House nights. Uh, so, you know, on your local team, you probably know those players at the not the top top echelon All Stars, but the guy's right beneath. You know them a little bit better and probably more comfortable using >> what's your favorite sport. >> So my favorite sport, from a fantasy perspective, is I play all the basket. I play all football, played basketball just during play offs, and I played baseball. But baseball I'm strictly a fantasy player. I don't really follow the sport to play. I'm just playing fantasy. Okay, >> That's great. So, what do you think? The conference. Here. >> You have you Have you had any timeto interact? I know you were swamped after coming off the stage. >> You know, it looks like a great turnout over here. There's a lot of enthusiasm amongst them from people. I was a little bit late to the late to show up this morning, so I got a bit Swanson eager to go and be able to catch up a bit more. >> Okay, Well, Greg, thanks so much for coming on. The Cuba's great to have your every pleasure meeting you. >> All right, people. Right there. Still, when I >> was back with our next guest, John for it is also in the house. You wanted The Cube from active field data driven 19. Right back
SUMMARY :
Data driven you by activity. Welcome back to Boston, Everybody. Here is the senior vice president of fantasy Sports A draftkings Greg. Yeah, it's It's, you know, I was joking with my wife. So the formula is easy, right? You guys, you become the How you got here? So, you know, company started in 2012 initially around sort of the major big American sports So it's actually the first sport was So is the middle of April. So you sort of took Yeah, I mean, it's part of the, you know, the lifeblood what differentiates whether they're going to live in, you know, winner lose. You know, some of the fun of that is really, you know, And you wouldn't have to hurt presumably. As long as you know your downside, you're normally in a pretty good spot to take those risks. Like we said, highly competitive, you know, knock down. Is it Maura around the live betting experiences that around the different markets that you offer? It's got commentators on the ground that you know the business really One of the things that allowed our fantasy sports business to grow so fast was going a Well, I like to shop in Amazon. And it's the same user experience. And we try to, you know, enable each person to be as autonomous as possible in their ability to execute their the dominant US for you know, gets called. So, uh, you know, starting point NFL has been huge. Uh, you know, Do you see boxing at all making a comeback? you know, we've been in the M M A space and we've seen the growth out from there where that sports doing great and you look at They would fight, you know, they literally fight 6 70 times a year, you know, I mean, I think these things could So if there was a major U. S. Fighter that gains that degree of sort of, you know that that degree that you know, the number one Q. Be drafted in in Boston is almost always gonna be Tom Brady. or do you think it's just the sort of lack of knowledge out inside? I mean, I could say is, you know, following the Celtics in the mid to thousands, I don't really follow the sport to play. So, what do you think? You have you Have you had any timeto interact? I was a little bit late to the late to show up this morning, so I got a bit Swanson eager to go and be able The Cuba's great to have your every pleasure meeting you. Still, when I was back with our next guest, John for it is also in the house.
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Bipin Jayaraj, Make-A-Wish® America | VeeamON 2019
>> live from Miami Beach, Florida It's the que covering demon 2019. Brought to you, by the way, >> Welcome back to Vima on 2019 in Miami. Everybody, we're here at the Fountain Blue Hotel. This is Day two of our coverage of the Cube, the leader in live Tech. And I'm David Dante with Peter Bors. Pippen. Jay Raj is here. He's the vice president and CEO of Make A Wish America. Just that awesome foundation nonprofit people. Thanks for coming on the Cube. >> Thank you for having me appreciate it. >> So make a wish. Children with wishes and have terminal illnesses. You guys make them come true. It's just a great organizations. Been around for a long time, I think, since the early eighties, right, >> 39 years and going >> years and hundreds of thousands of wishes made. So just how did you get Teo make a wish that all come about >> it? It wasn't interesting journey. I was consulting in I t for multiple big companies. And, you know, two years back, it was through a recruiting channel that I got an opportunity to start some conversations as the CIA and make a wish. Uh, the thing that got me in the opportunity was predominately about enterprises and just to give you a little bit off, make official operations. Make a Wish was Founded and Phoenix, Arizona. And but we also operate a 60 chapters across the United States that it is 60 chapters each of the chapter there 501 C three companies themselves with the CEO and abort. Essentially, it is 60 plus one. The national team kind of managing. All of the chapters are helping the chapters. National does not do any wish. Granting all the wish planning happens to the chapters. But National helps the chapters with the distribution of funding models brand. And thanks for That's a couple of years back in the national board talked about in our dream and mission, which is granting every eligible child the notion ofthe enterprise. You know, working as an enterprise came into four and it being a great piece off providing shared services and thanks for that. So I was brought on board and we took on I would call as the leader today said and dashes dream off. Bringing together all the 60 chapters and the city chapter's essentially are split across 120 locations. So Wade took on a project off. You know, combining our integrating all of their infrastructure needs into one place. And Phoenix without ada, sent a provider. You know, we worked with a partner. Phoenix. Now fantastic partners >> there. We had them on the other day. >> Yep, yep. Yeah, MacLaren. I mean, and the team, they did a great job. And, you know, when we had to move all of the data, everything from the 60 chapters applications everything into a centralized data center, locations that we managed right now from Make a Wish National office and provide a service back to the chapters That gives you a little bit off. You know, from behind the scenes. What happened? >> You provide the technical overview framework for all the 60 chapters. >> It almost sounds like a franchise model. >> It's what we call a Federated model back in the nonprofit. >> But but but but because make a wish is so driven by information. Yep. Both in the application as well as the programs to deliver thie brand promise. And the brand execution has got to be very, very closely tied to the quality of a shared services you provide >> exactly. Exactly. And like I said, the reason I talked about them being a separate companies themselves is you know, as I always say to my 60 CEOs, Ah, I should be able to provide the services because they wanted, because they have a choice to go outside and have their own partner. Another thing for that which they can. But they would want to work with the national team and get my, you know, work through our services rather than having have to because of the very it's A. It's a big difference when it comes to, but I've been lucky on privileged to you have these conversations with the CEO's. When I start talking to them about the need for centralization, the enterprise society assed much, there are questions when he start leading with the mission and the business notion of why we need to do that, it's It's fantastic. Everybody is in line with that. I mean, there's no question, then, as toe Hey, guys, uh, let me do all the Operation Manisha fight and leave it to me and I'll in a handler for you, and I let you guys go to what you do best. which is granting wishes. So then it becomes it doesn't become a question off, you know, should be a shouldn't way. And of course, to back that up. But I was talking to the dean, folks, It just solutions. Like VMware, Veeam. It makes it much simpler even from a cost prospect. You not for me to manage a bigger team s so that I can take those dollars and give it back to the business to grant another wish. So it's it's pretty exciting that >> way. So you set the standards. Okay, here's what you know, we recommend and then you're you're saying that adoption has been quite strong. Yeah, I remember Peter. Don't say easy. I used to run Kitty Sports in my local town in which is small town. And there was, you know, a lot of five or six or seven sports, and I was the sort of central organization I couldn't get six sports to agree that high man is 60 different CEO's. But that's okay. So not easy. But so how were you able to talk leadership or leading as we heard from Gino Speaker today? How were you able to get those guys, you know, aligned with your vision. >> Uh, it's it's been fantastic. I've had a lot ofthe good support from our executive came from a leadership team because leadership is always very important to these big initiatives are National board, which comprises off some of the that stuff best leaders in America and I have the fortune toe be mentored by Randy Sloan, who used to be the CEO of Southwest. And before that, you see a global CEO for, uh, you know, Popsicle. You know, he always told me, but but I mean CIA job. One thing is to no the technology, but completely another thing. Toe building relationships and lead with the business conversation. And so a typical conversation with the CEO about Hey, I need to take the data that you have all the I t things that you have and then me doing it. And then there are questions about what about my staff and the's conversations. Because you know, it's a nonprofit is a very noble, nice feeling, and you wouldn't want the conversations about, you know, being rift and things like that are being reduced producing the staff and thinks of that. But you know as he walked through that and show the benefits of why we doing it. They get it. And they've been able to repurpose many off the I. D functions back in tow, revenue generation model or ofhis granting in our team. And in many cases, I've been ableto absolve some off their folks from different places, which has worked out fine for me, too, because now I have kind of a power user model across the United States through which I can manage all these 120 locations. It's very interesting, >> you know, site Reliable and Engineering Dev Ops talks about thie error budget or which is this notion of doo. You're going tohave errors. You're going to have challenges. Do you want it in the infrastructure you wanted the functions actually generating value for the business? I don't know much about Make a wish. I presume, however, that the mission of helping really sick kids achieve make achieve a wish is both very rewarding, very stressful. He's gotta be in a very emotional undertaking, and I imagine it part of your message them has got to be let's have the stress or that emotional budget be dedicated to the kids and not to the technology >> completely agree. That's that. That's been one of my subjects, as you asked about How is it going about? It's about having the conversation within the context of what we talked about business and true business. Availability of data. You know, before this enterprise project data was probably not secure enough, which is a big undertaking that we're going down the path with cyber security. And you know, that is a big notion, misplaced notion out there that in a non profits are less vulnerable. Nobody. But that's completely untrue, because people have found out that nonprofits do not probably have the securing of walls and were much more weight being targeted nonprofits as a whole, targeted for cyber security crimes and so on and so forth. So some of these that I used to, you know, quote unquote help or help the business leaders understand it, And once they understand they get it, they ableto, you know, appreciate why we doing it and it becomes the conversation gets much more easier. Other What's >> the scope of the size of the chapters is that is a highly variable or there is. >> It is highly variable, and I should probably said, That's Thesixty chapters. We look at it as four categories, so the cat ones are what we call the Big Ice, the Metro New Yorkers and Francisco Bay Area. They're called Category one chapters anywhere between 4 1 60 to 70 staff. Grant's close to around 700 wishes you so as Make a Wish America, we ran close toe 15,600 wishes a year, and cat ones do kind of close to 700 15,600 400 to 700. And then you get into care to scare threes and cat for scat force are anywhere between, you know, given example Puerto Rico or Guam territory there. Cat Force New Mexico is a cat for three staff members Gammas operated by two staff members and 20 volunteers. They grant about 3 2 20 12 to 15 which is a year, so it's kind of highly variable. And then, you know, we talk about Hawaii chapter. It's a great example. They cat once predominate because of the fact that you know, they they do. There's not a lot ofthe wishes getting originated from how I but you know, Florida, California and how your three big chapters with a grand are a vicious ist with a lot of grant, you know, wish granting. So there's a lot off, you know, traffic through those chapters >> so so very distributed on diverse. What's the relationship between data and the granting of wishes? Talk about the role of data. >> Should I? I was say this that in a and I probably race a lot of fibrosis and my first introductory session a couple of years back when I John make a wish with the CEO's uh, when we had the CEO meeting and talk to them about I leaders the days off making decisions based on guts are gone. It has to be a data driven decision because that's where the world is leading to be. Take anything for that matter. So when we talk about that, it was very imperative going back to my project that the hall we had all of the data in one place or a semblance off one single place, as opposed to 60 different places to make decisions based on wish forecast, for example, how many wishes are we going to do? How many wishes are coming in? How's the demand? Was the supply matching up one of the things that we need to do. Budget purposes, going after revenue. And thanks for that. So data becomes very important for us. The other thing, we use data for the wish journeys. Essentially, that's a storytelling. You know, when I you know, it was my first foray into for profit Sorry, nonprofit. And me coming from a full profit is definitely a big culture shock. And one of the things they ask us, what are we selling? Its emotions and story. And that's our data. That is what you know. That's huge for us if we use it for branding and marketing purposes. So having a good semblance off data being ableto access it quickly and being available all the time is huge for us. >> Yeah, and you've got videos on the site, and that's another form of data. Obviously, as we as we know here, okay. And then, from a data protection standpoint, how do you approach that? Presume you're trying to standardize on V maybe is way >> are actually invested in veeam with them for a couple of years right now, as we did the consolidation of infrastructure pieces Veeam supporters with all of the backup and stories replication models. Uh, we're thinking, like Ratmir talked about act one wi be a part of the journey right now, and we're looking at active. What that brings to us. One of the things that you know, dream does for us is we have close to 60 terabytes of data in production and close to another 400 terabytes in the back of things. And, uh, it's interesting when they look about look at me equation, you think about disaster recovery back up. Why do you need it? What? The business use cases case in point. This classic case where we recently celebrated the 10th anniversary ofthe back wish bad kid in San Francisco, we have to go back and get all the archives you know, in a quick fashion, because they're always often requests from the media folks to access some of those. They don't necessarily come in a planned manner. We do a lot of things, a lot of planning around it, but still there are, you know, how How did that come about? What's the story behind? So you know, there are times we have to quickly go back. That's one second thing is having having to replicate our data immediately. Another classic case was in Puerto Rico. There was a natural disaster happened completely. Shut off. All the officers work down. We had to replicate everything what they had into a completely different place so that they could in a vpn, into an access that other chapters and our pulled in to help. They were close to 10 wish families close to 10 which families were stranded because of that. So, you know, gaining that data knowledge of where the family is because the minute of his journey starts. Everything is on us till the witch's journey ends. So we need to make sure everything is proper. Everything goes so data becomes very crucial from those pants >> you're tracking us. I mean, if you haven't been on the make a Wish site is some amazing stories. There I went on the other day. There's a story of ah, of 13 year old girl who's got a heart condition. Who wanted to be a ballerina. A kid with leukemia five years old wants to be a You want to be a chef. My two favorites, I'll share What? It was this kid Brandon a 15 year old with cystic fibrosis. I wanted to be a Navy seal. You guys made that happen. And then there was this child. Colby was 12 years old and a spinal muscular issue. You want to be a secret agent so very creative, you know, wishes that you ran >> way had another wish a couple of years last year in Georgia, where they wish kid wanted to go to Saturn. Yes, yes, it was huge. I mean, and you know the best part about us once we start creating those ideas, it's amazing how much public support we get. The community comes together to make them wish granting process. Great. Now. So I got involved in that. They gave the wish Kato training sessions to make sure that he is equipped when he goes into. And we had a bushel reality company create the entire scene. It was fabulous. So, you know, the way you talk about data and the technology is now some of the things I'm very excited about us usage off thes next Gen technology is like our winter reality to grant a wish. I mean, how cool would that be for granting a wish kid who is not able to get out of the bed. But having able to experience a the Hawaii is swimming. Are being in Disney World enough a couple of days? That's That's another use case that we talked about. That other one is to put the donors who pay the money in that moment off granting, you know, they are big major gift, uh, donors for make a wish. Sometimes we were not able to be part of a fish, but that would be pretty cool if you can bring the technology back to them and you know not going for them. You know pretty much everybody and make the ass through that rather than a PowerPoint or a storytelling, when the storytelling has to evolve to incorporate all of that so pretty excited >> and potentially make a participatory like, say, the virtual reality and then even getting in more into the senses and the that the smells. And I mean this is the world that we're entering the machine intelligence, >> which you still have to have, But you still have to be a functioning, competent, operationally sound organization. There've been a number of charities, make a wish is often at the top of the list of good charities. But there were a number of charities where the amount of money that's dedicated to the mission is a lot less an amount of money, dedicated administration of fundraising, and they always blame it. Systems were not being able to track things. So no, it's become part of the mission to stay on top of how information's flowing because it's not your normal business model. But the services you provide is really useful. Important. >> Sure, let me percent you the business conundrum that I have personally as a 90 leader. It takes close to $10,400 on an average to grant a wish. Uh, and, uh, partly because of me. But being part of the mission, plus me as a 90 leader wanting to understand the business more, I signed up. I'm a volunteer at the local Arizona chapter. I've done couple of expanding myself, and, uh, the condom is, if asked, if you want to go, uh, you know, do the latest and greatest network upgrade for $10,400 are what do you want to, uh, you know and make the network more resilient cyber security and all that stuff. What do you want to go grant? Another wish as a 90 leader probably picked the former. But as a volunteer, I would be like, No, it needs to go to the kid. It's Ah, it's It's an interesting kind of number, you know? You have to find the right balance. I mean, you cannot be left behind in that journey because at many points of time s I talked about it being a cost center. It being a back office. I think those days have clearly gone. I mean, we we evolved to the point where it is making you steps to be a participant b A b a enabler for the top line to bring in more revenues, tow no augment solutions for revenue and things. For that sofa >> rattles the experience or exact role citizens. And in your case, it's the experience is what's being delivered to the degree that you can improve the experience administratively field by making operations cheaper. Great. But as you said, new digital technologies, they're going to make it possible to do things with the experience that we could even conceive of. Five >> wears a classic example. Williams and Beam. I couldn't have taken the data from 60 chapters 120 locations into one single location manageable, and it reduced the cost literally reduce the cost of the 60 instances in one place without technology is like, you know what Sharia virtual machines. And and then to have a backup robust backup solution in a replication off it. It's fantastic. It's amazing >> there. And that's against here. You could give back to the dash chapters and backing, But thanks so much for sharing your story. You Thank you. Thank you. You're welcome. Alright, keep it right there. Buddy. Peter and I were back with our next guest. You watching the Cube live from V mon from Miami? 2019. We're right back. Thank you.
SUMMARY :
live from Miami Beach, Florida It's the que covering of the Cube, the leader in live Tech. since the early eighties, right, you get Teo make a wish that all come about And, you know, two We had them on the other day. And, you know, And the brand execution has got to be very, But they would want to work with the national team and get my, you know, And there was, you know, a lot of five or six or seven CEO for, uh, you know, Popsicle. you know, site Reliable and Engineering Dev Ops talks about thie error budget or And you know, They cat once predominate because of the fact that you know, Talk about the role of data. You know, when I you know, it was my first foray into for from a data protection standpoint, how do you approach that? One of the things that you know, dream does for us is we have close to 60 You want to be a secret agent so very creative, you know, wishes that you ran the way you talk about data and the technology is now some of the things I'm very excited about us usage and the that the smells. But the services you provide I mean, you cannot be left behind it's the experience is what's being delivered to the degree that you And and then to have a backup You could give back to the dash chapters and backing, But thanks so much for
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Niall Fitzgerald, Spark NZ | Red Hat Summit 2019
>> Man: Live from Boston, Massachusetts, it's theCUBE, covering Red Hat Summit 2019. Brought to you by Red Hat. >> And we are back live in Boston as we continue our coverage here on theCUBE of Red Hat Summit 2019. It is our sixth year here at the show and this year obviously some huge announcements. A significant moment it's been for Red Hat, we heard from Jim Whitehurst a little bit ago. Stu Miniman, John Walls, we're now joined as well by Niall Fitzgerald, who is the GM of IT Application Architecture and Design at Spark NZ. Niall, good afternoon, or I guess good morning still we're in an Eastern time zone. >> Yeah it's the middle of the night in New Zealand I'd say. >> Yeah, so Spark NZ New Zealand. Tell us a little bit first off about Spark NZ. What the folks back home are doing right now, work-wise, and your role with the company. >> Yeah, so Spark is the largest provider of telecommunication services in New Zealand. All the traditional type of services you'd expect, mobile, broadband, et cetera. We came out of the traditional kind of post office, so we've a lot of heritage, and about four years ago we rebranded from Telecom New Zealand into Spark. To represent that we were changing from being a telco into much broader range of digital services. Our purpose is to help all New Zealanders win big in the digital world. >> Niall, step back for a second. Talk to our audience that might not know the telecom industry as well as you, I've been an observer and participator in the industry but you know back in the dot com boom it was like limitless bandwidth and we're gonna do all these wonderful things, and cloud and digitization, have put some new opportunities as well as stresses and strains on your industry so, you know what's going on and you said you rebranded? >> Yeah, look, I think it's well-known it's been a tough last few years for most telcos in the world. I was listening to Red Hat talking yesterday about 60 consecutive quarters or more of growth, I don't think there's any telco in the world that probably has the same story. Like most, we're facing kinda decline in all the traditional revenues like voice and text and things like that, so we're all having to kinda rebrand ourselves and deliver much higher levels of customer service. People expect the same levels of service from us that they do from Amazon, Google, and everyone else. In Spark what that means to us is we've moved into lots of new things as you said, things like ICT, we're now very big in cloud, we've recently launched a Spark Sports brand and we've got streaming right to the key events like Formula 1. We're going to stream the Rugby World Cup, which is a massive event for New Zealanders, so looking forward to seeing that and Ireland on the all blacks in the final in September this year. So yeah, lot going on. Tough times but forcing us to keep changing every year. >> And so, about these changes that you're making whether technologically based, let's just deal with that. What is that ultimately going to do for you in terms of better customer service delivery? So, you've got inherent challenges, you've talked about them at all, that the world's changing, how we use this medium, this communication opportunity is changing, and you've been just a little behind the wave, hard to keep up with it, so rapidly changing. How much of a challenge is that? And then how are you going to address this going forward? How do you stay relevant? >> Yeah I think we're lucky in one regard because if I look back about five, seven years ago we were like most traditional telcos. We had a spaghetti for want of a better description of systems, and then we had all was multiples of everything, at the time we had 19 integration layers and 10 billing systems and it wasn't uncommon. But way back in 2012 we actually embarked on a massive transformation program, and we spent five years consolidating all of that infrastructure so going into about 2017 we were very lucky in that we had a massive foundation laid already, so what that then enabled us to do was to actually push away calls from our contact centers into mobile apps, into digital adoption. We've been a big embracer of things like big data and robotic process automation as well to try and take cost out of our industry. So, I think we're quite well placed. Now that allows us to do things like innovate new products for our customers so we bundle things like Spotify and Netflix. It allows to introduce things like Spark Sports brand, which we couldn't have done five years ago before the transformation We just wouldn't have been able to enable these things with our existing kind of legacy IT estate. >> So how's open-source play into all this for you? >> Yeah open-source, I suppose our first foray into open-source was when we went to start embracing big data and automation. So we started using things like Hadoop and various other things and our entire platform is based around open-source. We changed to an IMS network recently and we started embracing things like OpenStack, and then it really took us to a new level recently when we started working on Red Hat's Fuse, and OpenShift we started implementing that. >> Okay, so the OpenStack show for many years, the last few years we saw the telcos coming in specifically for network function virtualization or NFV. Is that what you're using in that space? >> Yeah, we are. Interestingly, at this conference I've heard a lot of people talk about OpenShift and OpenStack, obviously, particularly in the telco game. We actually came out a bit differently from the application space. So we had an integration platform that we had put in through this transformation phase which had served us well, and was connecting all of our 40, 50 systems together. But it was coming up to a life cycle event, and we decided we'd look externally and see had we options beyond just upgrading it. So we started looking around, and we effectively found Fuse, and in bringing in Fuse we then brought OpenShift in, which is quite different to what I've seen from a number of other people, they're bringing in things like OpenShift and building on top of it. We did it the other way around, you know? And we did it primarily for cost reasons, you know? >> Yeah, so talk a little bit about that impact of Fuse and OpenShift, what that means. Were you already down the containerization journey, or did that help drive >> Niall: No, no some of that modernization? >> That's exactly what happened. If I'm honest we hadn't really explored containerization too much because we had come to the end of our kind of transformation journey. Open-source and containerization wasn't around when we went through that. So we kinda needed some really core reasons to move on, so, yeah effectively what happened was we looked at Fuse, I was gonna say primarily for cost, but we were looking for something that we could migrate to where it makes sense. We were looking for something that wasn't a massive lift for the people who worked in our integration already, so they could be rescaled into it, and interestingly we turned agile recently which has changed the way we look at the needs of our systems. So our old integration platform, if we needed to deploy a change we had to take an outage, which was fine when we had a centralized IT department who deployed once a month and took a two hour outage, but when you have 20 tribes all developing features in isolation and they wanna go straight through to production, if everybody took an outage then our systems wouldn't really be up very often. So one of the key things that we were looking at for our new integration platform was can we deploy hot and can we scale? So that's basically where Fuse came into us. >> Okay, so can you? >> We can and we do. Still a little bit nervous about pressing the button mid-day and doing stuff >> Right, simultaneously and thinking this has really gotta work, right? >> Yeah then normally, >> We saw it today though on the demo stage, on the keynote. You know, simultaneous operations going on. >> No, we do it, and they normally don't tell me when they're doing it they just do it and tell me it worked afterwards, but no it's actually been really successful and you can imagine connection 40 or 50 systems together is effectively the equivalent of about 2,000 API's and we managed to migrate, we're about 70% of the way through. But we've managed to migrate those without actually impacting the systems that use them and that's probably been one of our most successful IT projects that I've seen. >> It's funny, you said we were towards the end of our transformation journey, and of course I think we all understand, it is just, I might've reached a marker in my journey, but it needs to be a continuous process. And you went through an agile transformation. So bring us in a little bit. Organizationally, what happened there. Some of the good, the bad, and the ugly of agile, 'cause I mean agile's always an ongoing thing. >> It is, yeah. So about the start of last year we started to think about agile and the need to change our ways of working. And we looked at a number of models overseas, and companies like Spotify and various banks, and we settled on a model of chapter and tribes. And we took about six months in looking at what that meant for us as an organization and all of the things that we needed to change. Everything from, people's contracts to people's titles. We got rid of all complex titles and moved down to simple things like Developer, Tester, et cetera. We had to train our people in agile so we ran boot camps for over 2,000 people. We had one with 500 people attend. We had to review all of our processes and see where we had centralized things like IT governance or procurement. How do you actually manage this when you have up to 20 different people effectively, or tribes doing their own developments, so over a period of about six months we went through all of these. We started with a concept of some forerunner tribes so we could figure out how this thing actually works, you know? And get some lessons. And then on the first of July last year, about a 2,000 people in various buildings packed up their stuff in their desks and moved into a new world, into their tribes with different working spaces and different collaboration areas and all the tools that we need. So, yeah we're about nine months down that journey now and it's been good. >> How many total employees? >> We have about 5,000 in total. >> 5,000, so you had 500 at one time. 10% of your workforce in training at one time. >> That's right, yeah. Absolutely. >> How do you keep the wheels on the bus rolling? Because I mean you're asking people not only to learn new skills, but learn them in a new environment, and learn them literally in a new place. I mean that's just massive change and I think, we're human beings. We're creatures of habit to a certain extent. You had to hit a lot of bumps along the way. >> Yeah, so one of the key things we did upfront was we said the operate part of our business, which is effectively things like our contact center, our sales staff, our service desks, we will not go agile with those on the first day, because they operate in a slightly different way of working. The people in our stores, et cetera. So we had a concept of agile light and agile heavy. So we kinda parked them for a minute so that we wouldn't do exactly what you say and let the wheels fall off the trolley. And we took to people that were the IT developers, the product development staff, and all of that, which came to just over about 2,000 people, and we firstly flipped those 2,000 people and put those through bootcamp. But even as you say, scheduling the boot camps, we made sure that we always had the right people on the ground and we would schedule smaller boot camps for them later if we needed to do it, but yeah. >> So nine months in now. You talking to your peers, if they're gonna go through. Any key learnings, what were some of the most challenging things that you ran into? >> I think probably the major one is that agile at its heart is a way of working, and despite the name it's actually quite prescriptive in how you should work, you know? When you pick up the agile book it tells you all the ceremonies you need to run and the processes that you need to run as well. And I think you need to be pragmatic in how you implement it because there are so many different flavors of agile. The one flavor, even with an organization of Spark size, it doesn't work. So the tribes and squads that are building out new products compared to the tribes that are doing things like upgrading systems, they will work in different ways. So I think the first thing is be pragmatic, take the goodness and the intent of agile, but implement it in how it works for you. And there's some other practical considerations, like prior to being agile we had quite a large number of our technology partners were based offshore in India, and you know it's quite difficult to run a 10 AM stand up in New Zealand setting the priorities for the day and the sprint plans, when, you know, four members of your team are asleep in India. You know, they're missing out on all of the goodness and the collocation and the sharing, so one of the things we had anticipated that, so luckily enough we had moved a lot of those people onshore in advance of agile, you know? But it is a big cultural change for everyone in the organization, not least the leadership teams as well. >> John: Well you got through it. >> We got through it, but there's no going back. >> Absolutely, no you're in the deep end now. Well, Niall, thanks for being with us, we appreciate the time joining us here on theCUBE, and I think that an Irishman is always welcomed in Boston. >> Thank you very much! We've been enjoying the hospitality. >> Yeah the door's always open. >> Thank you very much. >> Thank you very much. Niall Fitzgerald, joing us from Spark NZ. Back with more here on theCUBE, you're watching this live at the Red Hat Summit 2019.
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StrongyByScience Podcast | Bill Schmarzo Part Two
so two points max first off ideas aren't worth a damn ever he's got ideas all right I could give a holy hoot about about ideas I mean I I I got people throw ideas at me all the friggin time you know I don't give a shit I just truly told give a shit right I want actions show me how I'm gonna turn something into an action how am I gonna make something better right and I I want to know ahead of time what that something is am I trying to improve customer attention trying to improve recovery time for an athlete who's got back-to-back games right III I know what I'm trying to do and I want to focus on that where ideas become great and you said it really well max is ideas are something I want to test so but I know what I want to test these of the event what outcome I'm trying to drive so it isn't just it is an ideation for the I eat for the sake of ideation its ideation around the idea that I need to drive an outcome I need to have athletes that are better prepare for the next game who can recover faster who are stronger and can you know it can play through a longer point of the season here we are in March Madness and we know that by the way that the teams that tend to rise to the top are the teams that have gone through a more rigorous schedule played tougher teams right they're better prepared for this and it's really hard for a mid-major team to get better prepared because they're playing a bunch of lollipop teams in their own conference so it's it's ideas really don't excite me ideation does around an environment that allows me to test ideas quickly fail fast in order to find those you know variables or metrics those data sources it just might be better predictors of performance yeah I like the idea of acting quickly failing quickly and learning quickly right you have this loop and what happens is and then I think every strand coach in the world is probably guilty of this is we get an idea and we just apply it you go home you know I think eccentric trainings this great idea and we're going to do an eccentric training block and I just apply it to my athletes and you don't know what the hell happened because you don't have any contextual metrics that you base your test on to actually learn from so you at the day go I think it worked you know they jump high but you're not comparing that to anything right they jump they've been the weight room for three months my god I hope they jump higher I hope they're stronger like I can sit in the weight room probably get stronger for three months and my thought is but let's have context and it's um I call them anchor data points they were always reflecting back on so for example if I have a key performance metric where I want to jump high I'll always track jumping high but then I can apply different interventions eccentric training power training strength training and I can see the stress response of these KPIs so now I've set an environment that we have our charter still there my charter being I'm going to improve my athletic development and that's my goal I'm basing that charter on the KPI of jumping high so key performance indicator of jumping high now I can apply different blocks and interventions with that anchor point over and over again and the example I give is I don't come home and ask my girlfriend how she's doing once every month I ask her every day and that's my anchor point right and I might try different things I might try cookie and I might try making dinner I might do the dishes I might stop forgetting our dates I might actually buy groceries for once well maybe she gets happier then I'll continue to buy groceries maybe I'll remember it's her birthday March 30th I remember that that's my put it on there right and so but the idea is we have in life the way life works we have these modular points where we call anchor points where we were self-reflect and we reflect off of others and we understand our progress in our own life environment based on these anchor points and we progress and we apply different interventions I want this job maybe I'll try having this idea outside of here maybe I'll play in a softball league and we're always reflecting it's not making me happier is that making me feel fulfilled and I don't understand why we don't take what we do every day and like subconsciously and apply it into the sports science world but lava is because it happens unconsciously because that's how our body has learned to evolve we have anchor points I want to survive I want to have kids lots of kids strong kids and I and I die so my kids can have my food and that's what we want as a body right your bison care about anything else and so that's why you walk with a limp after you get hurt you don't want perfect again it's a waste of energy to walk perfect right you can still have kids with a limp I hate to break it to you right we're not running from animals anymore and so we have all these anchor points in life let's apply that same model now and like you said it's like design thinking and actually having that architecture to outline it whether it's in that hypothesis canvas to force us to now consciously do it because we're not just interacting with ourselves now we're interacting with other systems other nodes of information to now have to work together in use in to achieve our company's charter interesting max there's a lot of a lot of key points in there the one that strikes me is measurement John Smail at Procter & Gamble I was there you still I say you are what you measure and you measure what you reward that was his way of saying as an organization that the compensation systems are critical and the story just walked through about what Kelsey right and what you guys are doing and how you increase your your happiness level right now here's the damnest your work I mean that is that is how you're rewarded right if you are rewarded by happiness and so you you learn to measure if you're smart right that you don't miss birthdays that you do dishes you you you help up around the house you do things and when you do those things the happiness meter goes up and when you don't do those things happiness meter goes down and you know because you're you're you're probably pulling not just once a day but as you walk by her throughout the day are on a weekend you're you're constantly knowing right if if you're liking your mom you know when mom's not happy you don't need to be a day to sign this and know mom's not happy and so then you you know you re engineer about okay what did I do wrong that causes unhappiness right and so life is a lot of there's a lot of life lessons that we can learn that we can apply to either our business our operations or sports whatever it might be that your your profession is in about the importance of capturing the right metrics and understanding how those metrics really drive you towards a desired outcome and the rewards you're gonna receive from those outcomes yeah and with those it's the right metrics right that's what not metrics the right metrics if I want to know if someone was happy I wouldn't go look at the weather I wouldn't you know check gas prices especially if I'm curious they're happy with me well maybe they might reflect if they're happy in general if they're happy with me right now I'm contextualizing I'm actually trying to look at I know a little bit more about what I should look at I don't know everything and so you might have metrics that you say you know I know science says this metric is good this metric is good maybe we want to explore of these couple of metrics over here because we think that either aid they're related to one of these metrics or they related to the main outcome itself and that gives you a way to then I have these key and core metrics that's not stacking the deck but it's no one you're gonna get insights out of it and then I have these exploratory metrics over here but you're gonna allow me then to dive and explore elsewhere and if you're a company those can be trade secrets they can be proprietary information if you're a trainer it can be ways to learn how different athletes adapt to make yourself better and again we're talking about a company and we're talking about trainer there's no difference when it comes to trade secrets right trainers keep their trade secrets and companies keep their trade secrets and as we talk about this it's really easy to see how these two environments where they're talking about company athletic development sports science personal training health and wellness are really universally governed by the same concepts because life itself is typically governed by these concepts and when we're playing those kind of home iterations to it you can really begin to quickly learn what's going on and whether or not those metrics that you we're good ARCA and whether or not you can learn new metrics and from that max you raise an interesting question or made a point here that's I might be very different in the sports world than it is in the business world and that is the ability to test and what I mean by that is you know the business world is full of concepts like a bee testing and see both custody and simulations and things like that when you're dealing with athletes individually I would imagine it's really hard to test athlete a with one technique and athlete B with another technique when both these athletes are trying to maximize their performance capabilities in order to maximize you know the money there can they can they can generate how do you deal with that so yes no one wants to get the shitty program yes that's correct yeah for the most part people don't and this I'll take people don't test like that and but here's my solution to us I think being a critic without solutions called being an asshole my solution to that is making it very agile and so we're not going to be able to you know test group a versus group B but what you can do if you're a coach and you have faith in because there are a lot of programs coaches use coaches probably use you know every offseason they might try a new program so there's no real difference in all honesty to try a new program on you know these seven athletes versus and then try a different one that you also trust on these seven athletes and part of that comes from the fact that we have science and evidence to show that both these programs are really good right but there's no one's actually broken down the minutiae of it and so yes you probably could do a and B testing because you have faith in both programs so it's not like either athletes getting the wrong program they're both getting programs that are going to probably elicit an outcome of performing better but who wants to perform the best the second asks the second aspect would be what kind of longitudinal data that you can collect very easily to understand typical progression of athletes for example if you coach and you coach for eight years you'll have you know eight different freshman classes theoretically and you'll begin to understand how a freshman typically progresses to a sophomore in what their key performance indicators typically trend ass and so you can now say okay last year we did this this year we do this I'm gonna see if my freshman class responds differently is this going to give us the perfect answer absolutely not no but without data you're just another person with an opinion that's not my quote I stole that quote but it's true because if we don't try and audit ourselves and try to understand the process of how is someone developing then we're just strictly relying on confirmation bias I mean my program was great you know Pat some guys in the back that jumped higher and we did awesome if we're truly into understanding what's best then we'll actually try and you know measure some of these progress some of this some of these KPIs over time in the example I give and it's unfortunate and fortunate I don't mean anything bad by this either we're on a salary right and so what happens when you're on a salary is no matter really what happens assuming you're doing your job you're gonna keep your job but if you look at a start-up a startup has one option and that's to make money or go out of business right they don't really have the luxury of oh we're just gonna you know hang out and not saying coaches hang up or not we're just gonna you know keep this path we're going on as a coach you know how do I apply a similar model well I start up the bank my startup is you can go from worth zero dollars to worth a hundred you know million two billion dollars in one year at the coach we don't have that same environment because we're not producing something tangible which doesn't always it doesn't have the same capitalistic Drive right the invisible hand pushing us the same way the free market does with you know devices and so we don't always follow the same path that these startups have done yet that same path and same model might provide better insights so max you've hit something I found very interesting confirmation bias if if you don't take the time before you execute a test understand the variables that you're gonna test what happens is if you after the test is over you go back and try to triage what the drivers were that impact and confirmation bias and revisionist history and all these other things that make humans really poor decision-makers get in the way and so but before as a coach I would imagine before as a coach what you'd want to do is is set up ahead of time we're gonna test the following things to see if they have impact by thoroughly like the hypothesis development canvas right they'll really understand against what you're really going to test and then when you've done that test you you will you would have much more confidence in the results of that test versus trying to say wow Jimmy Jimmy jumped two inches higher this year thank God what did he do let's figure out and revision it wasn't what he ate was it where he slept oh he played a lot of video games that must be it he is the video games made him jump higher right so it's I think a lot of sports in particular even more than the business for a lot of sports is based on on heuristics and gut feel it's run by a priesthood of former athletes who are were great because of their own skills and capabilities and it maybe had very little do with her development and I don't want to pick on Michael Jordan but no Michael Jordan was notoriously a poor coach and a poor judge of talent he made some of the most industries when the worst draft choices industry has ever seen and that's because he mistakenly thought that everybody was like him that he revision history about well what made me great were the following thing so I'm gonna look for people like that instead of reversing the course and saying okay let's figure out ahead of time what makes what will make you a better plant player and then trying these tests across a number of different players to figure out okay which of these things actually had impact so sports I think has gotten much better Moneyball sort of opened that people's eyes to it now we're seeing now more and more team who are realizing that that data science is as a discipline it's not something you apply after the fact but in order to really uncover what's the real drivers of performance you have to sit down before you do the test to really understand what it is you're testing because then you can learn from the tests and and let's be honest right learning is a process of exploring and failing and if you don't try and fail enough times if you don't have enough might moments you'll never have any break to a moment and I think what people don't understand is they hear the word fail and assumed oh we did a six-month program and failed nope failure can occur in one day and that's okay right you can use for example I'm going to use this piece of technology as motivation for biofeedback to increase my athletes and tint and the amount of effort they put into the weight room that's right hypothesis you can test that in one day you print out that piece of technology the athletes don't respond well you'd have learned something now okay that technology didn't bring about the motivation I thought why was that you can do reflect and that revision because you had the infrastructure beforehand on maybe notes that you may have taken and scribbled down on your pad or observations from the coaches I am I but you know what the athletes weren't very invested because the technology took too long to set up right it wasn't the technology's fault it was the process of given technology available to act and utilize on so maybe you retest again with it set up beforehand or a piece of technology that's much easier to use and the intent increases so now you say okay it's not the technology's fault it's the application of how we're using the technology at the same time we hear a lot of things like I'm gonna take a little bit of pivot not too far though is in the baseball world you see technology being more used more and more as a tool and it's helping guide immediate actions on the field whether it's not it's a you know spin rates its arm velocities with accelerometers or some sort of measurement they decide to use but that's not necessarily collecting data that's using technology as a performance tool and I think there's a distinction between the two the two are not mutually exclusive you can still use it as a performance tool but that performance data if the infrastructure is not there to store a file and reflect and analyze it's only being used one-sided and so people think oh we're doing sports science we're doing data science because we're collecting data well that's not I can go count ants that's collecting data but that's not you know I don't unless I count ants every day and say oh my game populations decreasing right and kind of a here's a really easy way to think of it in my opinion you have cookies in the fridge right and every day I go and every week will say my mom makes cookies this doesn't happen I wish it did be very cool but I love your mom and we didn't eat cookies every week but in the fridge I go when I count how many cookies there were right and using data I'd say oh twelve cookies if there's any cookies at all I can eat right that's using technology and that moment but doing data Sciences well you know what she's gonna make you know twelve and a couple of days and I have two days left and there's six cookies I can eat three today and three tomorrow because now you're doing prescriptive analytics right because you are prescribing an action based on the information you collected it's based on historical data because you know that every seventh day the cookies are coming no I just take it as I'm using technology as a tool I might only eat one cookie and forever be leaving six cookies on the table right and so there's hid don't want to do that no we don't but we trick ourselves I think we see that not saying baseball does is but I'm saying we've see that in all domains where we use technology we say oh technology good we had someone use technology that's data science no that's not data science that's using technology to help Tripp augment training using data Sciences understand the information that happened during the training process looking at it contextually to them prescribed saying I'm going to do this exercise or this exercise based on the collection and maturation of the information so instead of cookies here I eat one cookie it's a historic Lee I know there's going to be twelve cookies every seven days I have two days left I can eat three cookies now I can hide two and tell my sister Amelia oh there's only one left very weird I don't know who ate data - well let max let me let me let me wrap up with a very interesting challenge that I think all all data scientists face wellmaybe all citizens of data science face and I say did as citizens of data science I mean people who understand how to use the results of data science not necessarily people who are creating the data science and here's here's the challenge that if you if you make your decisions just based on the numbers alone you're likely to end up with suboptimal results and the reason why that happens is because there's lots of outside variables that have huge influence especially when it comes to humans and even machines to a certain extent let me give you an example know baseball is is infatuated with cyber metrics and numbers right everybody is making decisions we're seeing this now in the current offseason you know who was signing contracts and who has given given money and they're using they're using the numbers to show you know how much is that person really worth and and organizations are getting really surgical and their ability to figure out that that person is not worth a you know a six year contract for you know 84 million dollars they're worth a two-year contract for 36 and that's the best way I'm gonna you know pay but minimize my risks and so then the numbers are really drive and allow that but it isn't just the big data that helps to make decisions and in fact I would argue the insights carried from the small data is equally important especially in sports and I think this is a challenge in other parts of the business is the numbers itself the data itself doesn't tell the full story and in particular think about how does an organization leverage the small data the observed data to really help make a better decision so right now in baseball for example in this offseason the teams became infatuated with using numbers to figure out who were they going to offer contracts to how much they were going to pay him for how long and we saw really the contracts in most cases really shrinking and value in size cuz people are using the numbers and comparing that to say always so and so it only got this you're only going to get this and numbers are great but they miss some of the smaller aspects that really differentiate good athletes from great athletes and those are things like fortitude part you know effort resilience these these kind of things that aren't you can't find that in the number so somebody's ability to a closer write who goes out there in the eighth-inning and and just has a shit performance gets beat up all over the place comes back in it still has to lead and and does that person have the guts the fortitude to go back out there after us bad eighth-inning and go do it again who can fight through when they're tired it's late in the game now you've been playing it's a you know 48 minute game you've been playing forty minutes already you've hardly had a break and you're down by two the balls in your hand a three-pointer is gonna win it what are you gonna do my numbers don't measure that it's theirs these these these other metrics out there like fortitude at heart and such that you actually can start to measure they don't show up a numbers where they come from the inside some subject matter experts to say yeah that person has fight and in fact there's one pro team that actually what they do in the minor leagues they actually put their players into situations that are almost no win because they want to see what they're gonna do do they give up or do they fight back and and you know what you again you can't batting average then tell you that if somebody's gonna get up and that you're gonna give up it's a ninth in and you think you've lost you know what I don't want that person out there and so think about in sports how do you complement the data that you can see coming off of devices with the data that experience coach can say that that person's got something extra there they got the fight they have the fortitude they have the resilience when they're down they keep battling they don't give up and you know from experience from from playing and coaching I know from playing and coaching the guy is going to give up you know who they are I don't want them on the court right it made me the best player from a numbers perspective hell if that was the case Carmelo Anthony would be an all-star every time his numbers are always great the guide lacks heart but he doesn't know how to win so think about how as an organization a sporting organization you use the metrics to help give you a baseline but don't forget about the the soft metrics the servable things that you got to tell you that somebody has something special that is an awesome way to bring this together because subject matter experts those are people who have been in the trenches who see it firsthand date is here to augment you in your decisions it's not here to override you it's not here to take your place and so in coaches fear data it's the silliest thing ever because it's giving more ammo to a gunslinger that's all it does right it's not going to win the battle right it's just the bullets you got to still aim it in fire and so when we look at it in regards to performance and athletic development all these numbers they'll never be right ever they'll never be 100% perfect but neither will you and so what we're trying to do is help your decisions with more information that you can process into your brain that you might otherwise not be able to quantify so it's giving that paintbrush not just the color red but given all the colors to you and so now you can make whatever painting you want and you're not constrained by things you can't measure yourself I could add one point max to bill on that data won't make a shitty coach good but it will make a good coach great yeah yeah I couldn't agree more well dad thank you for being on here I really appreciate and for everyone who's listening this is going on prime March Madness time and so to pull away the dean of big data from March Madness who for people listening he made his bracket on the Google cloud using AI and so it only he so I was thanking him to come here and only he would be the one to I guess take I don't say take the fun out of it but try and grid the family bracket for used it all augmented decision-making he possibly can like it the data will make won't make somebody shitty good and I'm still not good Google Cloud couldn't help me I still at the bottom of the family pool it's great to have you in I guess every minute here is worth double being that's March Madness time thanks max for the opportunity it's a fun conversation alright thank you guys for listening really appreciate it and [Music] [Applause] [Music] you
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Paul Martino, Bullpen Capital | CUBEConversation, February 2019
(upbeat music) >> Welcome to this special Cube Conversation. We're here in Palo Alto, California with a special guest. Dialing in remotely Paul Martino, the founder of Bullpen Capital and also the producer of an upcoming film called The Inside Game. It's a story about a true story about an NBA betting scandal. It's really, it's got everything you want to know. It's got sports, it's got gambling, it's got fixing of games. Paul Martino, known for being a serial entrepreneur and then an investor, investing in some great growth companies, and now running his own firm called Bullpen Capital, which bets on high-growth companies and takes them to the next level. Paul, great to see you. Thanks for spending the time. Good to see you again. >> John, always good to see you. Thanks for having me on the show. >> So, you're a unique individual. You're a computer science whiz, investor, entrepreneur, now film producer. This story kind of crosses over your interests. Obviously in Philly, you're kind of like me, kind of a blue collar kind of guy. You know hot starters when you see it. You also were an investor in a lot of the sports, gambling, betting, kind of online games, we've talked about in the past. But now you're crossing over into filming movies. Which is, seems like very cool and obviously we're living in a date of digital media where code is software, code is content, obviously we believe that. What's this movie all about? All the buzz is out there, Inside Game. You get it on sports radio all the time. Give us the scoop. Why Inside Game? What's it about? Give us the 411. >> Yeah, so John, I mean, this is a story that picked me. My producing partner in this is a guy named Michael Pierce who made a bunch of great movies, including The Cooler, one of the best gambling movies, with William H Macy. And he says sometimes the movie picks you and sometimes you pick the movie. And I wasn't sitting around one day going wow I want to be a movie producer, it was just much more that my cousin is the principal in the story. My cousin was the go-between between the gambler and the referee. The three of them were friends ever since they were kids. And when they all got out of jail Tommy called me, Tommy Martino. He said hey Paulie, you're about the only legitimate business guy I know. Could you help me with my life rights? And that's how this started almost six years ago. >> And what progressed next? You sat down, had a couple cocktails, beers, said okay here's how we're going to structure it. Was it more brainstorming and then it kind of went from there? Take us through that progression. >> It was a pure intellectual property exercise, and this is where being a startup guy was helpful. I was like, Tommy, I'll buy your life rights. Maybe we'll get a script written, we'll put it on the shelf, so that if anybody ever wants to make this story they have to go through us. Almost like a blocking patent or a copyright. And he's like okay cool. And so I said I have no delusions of ever making this movie. I actually don't know that, I don't know anybody to make a movie. This is not my skill set. But if anybody ever wants to make the movie, they're going to have to come deal with us. And then the lucky break happens, like anything in a startup. I have this random meeting with a guy named Michael Pierce, who was at a firm called WPS Challenger out of London. And we're down in Hillstone in Santa Monica, and I say to him, I say I've got this script written about this NBA betting scandal, would you do me a favor? He literally laughs in my face. He goes a venture guy from Silicon Valley is going to hand me a script. What a bad, anyway, I was like look dude, I'm a good guy to have owe you a favor so just read this dang thing. About 8 hours later my phone rings, he says who the hell is Andy Callahan? This is the best script I've ever read in my entire life. Let's go make a movie. Andy Callahan was a friend of a friend from high school who wrote the script. He actually once beat Kobe Bryant when he was a center at Haverford when Kobe Bryant played at Lower Merion here in the Philly suburbs. So, it's kind of this local Philly story. I'm a local Philly blue collar guy, we put the pieces together, and I'll be danged and now six years later the film is in the can and you're probably going to see it during the NBA finals this year in June. >> All right, so there's some news out there it's on the cover on ESPN Magazine, the site is now launched. I've been hearing buzz all morning on this in the sports radio world. A lot of buzz, a lot of organic virality around it. Reminds of the Crazy, Rich Asians, which kind of started organically, similar kind of community behind it. This has really got some legs to it. Give us some taste of what's some of the latest organic growth here around the buzz. >> Yeah so, think about this. This happened in, primarily '06 and '07. They were sentenced in 2010 and were in jail in 2011. It is 2019 and the front page story on ESPN is What Tim, Tommy, and Jimmy Battista Did. Those were the three guys, the gambler, the ref, and the go-between. And this is a front page story on ESPN all these years later. So we know this story has tremendous legs. We know this movie has a tremendous built-in audience. And so now it's just our job to leverage all those marketing channels, places we pioneered, like Zynga and FanDuel to get people who care about the story into the theaters. And we're hoping we can really show people how to do a modern way to market a film using those channels we've pioneered at places like FanDuel and Zynga. >> You and I have had many conversations privately and here on the Cube in the past around startups disruption, and it's the same pattern right? No one thinks it's a great idea, you get the rights to it, and you kind of got to find that inflection point, that magical moment which comes through networking and just hard work and hustle. And then you've got everything comes together. And then it comes together. And then it grows. As the world changes, you're seeing digital completely change the game on Hollywood. For instance, Netflix, you've got Prime, you've got Hulu. This is, essentially, a democratization, I'm not saying, well first of all you've made some money so you had some dough to put into it, but here's a script from a friend. You guys put it together. This is now the new startup model going to Hollywood. Talk about that dynamic, what's your vision there? Because this, I think, is an important signal in how digital content, whether it's guys in the Cube doing stuff or Cube Studios, which we'll, we have a vision for. This is something that's real. Talk about the dynamic. How do you see the entrepeneurial vision around how movies are made, how content's made, and then, ultimately, how they're merchandised in the future. >> Right, there's a whole, there's a whole bunch of buckets. There's the intellectual property bucket of the story, the script, etc. Then there's the bucket of getting the movie made. You know, that's the on the set and that's the director and that's post-production, and then there's the marketing. And what was really interesting is even though I'd never made a movie, two of those three buckets I knew a tremendous amount about from my experience as a startup investor. The marketing and the IP side I understood almost completely, even though I'd never made a film. And so all of the disruptive technologies that we learn for doing disruptive things like marketing a new thing called Daily Fantasy Sports, we were able to bring to bear to this film. Now, I had fun on the set and meeting all the actors, etc. But I had no delusion that I knew about the making of the movie part. So I plead ignorance there, but of the three buckets that you need to go make something in the media space 66% of what I knew as a startup guy overlapped and I think this is what the future of the media is. Because guys like me and you, John, we actually know a lot about this because we're startup people as opposed to we have to learn about it in terms of how to market and how to get an audience. I mean, my last company Aggregate Knowledge designs custom audiences for ad targeting. So we know how to find gamblers to go see this movie. That's literally the company I started. And so that's a thing that I'm very, very comfortable with and it's exciting to then work with the producer who did the creative and the director and I say hey guys, I've got this marketing thing under control, I know how to do it, oh by the way, the old Head of Marketing from FanDuel, he's a consultant to the project. Right, so, we got that. >> You got that, and the movie's being made. That's also again, back to entrepreneurship, risk. You got to take risks, right? This is all about risk management at the end of the day and you know, navigating as the lead entrepreneur, getting it done, there's heavy lifting and costs involved in making the movie, >> Right >> How did you, that's like production, right? You got to build a product. That is ultimately the product when it has to get to market. How did that go, what's your thoughts on your first time running a movie like this, from a production standpoint, learnings, observations? >> I learned a tremendous amount. I must admit, I was along for the ride on that piece of the puddle, puzzle. The product development piece of this was all new to me. But then again, I mean think about it, John, I started four companies, a social network, an ad targeting company, a game company, and a security company. I didn't know anything about those four companies when I started them either in terms of what the product needed to do. So learning a new product called make a movie was kind of par for the course, even though I didn't really know anything about it. You know, if you're going to be a startup person you got to have no fear. That's the real attribute you need to have in these kinds of situations. >> So I got to >> And so, witnessed that first-hand and, you know what, now, if I ever make a movie again I kind of know how to make that product. >> Yeah, well looking forward. You've got great instincts as an entrepreneur. I love hanging out with you. I got to ask you a question. I talk to a lot of young people, my son and his friends and I see people coming out of business school, all this stuff. You know, every college has an entrepreneurial program. Music, film, you know, whatever, they all have kind of bolted on entrepreneurship. You're essentially breaking down that kind of dogma of that you have to have a discipline. Anyone can do this, right? So talk about the folks that are out there, trying to be entrepreneurial, whether you're a musician. This is direct to consumer. If you have skills as an entrepreneur it translates. Talk about what it takes to be an entrepreneur, if you're a musician or someone who has, say, content rights or has content story. What do they do? What's your advice? >> We have lived through, perhaps the most awesome period of the last five to 10 years, where it got cheap to do a startup. You know, when we're doing our first startups 20 years ago, it cost 5 million bucks to go get a license from Oracle and go hire a DBA and do all that stuff. You know what, for 5 grand you can get your website up, you can build, you can use your iPhone, you can film your movie. That's all happened in the last five to 10 years. And what it's done is exactly the word you used. It's democratized who can become an entrepreneur. Now people who never thought entrepreneurship was for them, are able to do it. One of our great examples of this is Ipsy, our cosmetics company. You know, Michelle Phan was a cocktail waitress working in Florida, but she had this YouTube following around watching her videos of her putting her makeup on. And you know when we met her, we're like you know what? You're the next generation of what entrepreneurs look like. Because no, she didn't go to Stanford. She didn't have a PhD in computer science, but she knew what this next generation of content marketing was going to look like. She knew what it was to be a celebrity influencer. You know, that company Ipsy makes hundreds of millions of dollars every year now, and I don't think most people on Sand Hill would've necessarily given Michelle the chance because she didn't look like what the traditional entrepreneur looked like. So it's so cool we live in a time where you don't need to look like what you think an entrepreneur needs to look like or went to the school you had to think you'd go to to become an entrepreneur. It's open to everybody now. >> And the key to success, you know, again, we've talked about those privately all the time when we meet, but I want to get your comment on the record here. But I mean, there's some basic blocking and tackling that's independent of where you went to school that's being creative, networking, networking, networking, you know, and being, good hustle. And being, obviously good judgment and being smart. Do your thoughts on the keys to success for as those folks saying hey you know I didn't have to go to these big, fancy schools. I want to go out there. I want to test my idea. I want to go push the envelope. I want to go for it. What's the tried and true formula from your perspective? >> So when you're in the early stage of hustling and you want to figure out if you're good at being an entrepreneur, I tell entrepreneurs this all the time. Every meeting is a job interview. Now, you might not think it's a job interview, but you want to think about every meeting, this might be the next person I start my company with. This might be the person I end up hiring to go run something at my company. This might be the person I end up getting money for, from to start my company. And so show up, have some skills, have some passion, have a vision, and impress the person on the other side of the table. Every once in a while I get invited to a college and they're like well Paul, life's easy for you, you started a company with Mark Pinkus and you're friend with Reid Hoffman and this... Well how the hell do you think I met those people? I did the same thing I'm telling you to do. When I was nobody coming out of school, I went and did stuff for these guys. I helped them with a business plan. I wrote the code of Tribe, and then now all of the sudden we've got a whole network of people you can go to. Well, that didn't happen by accident. You had to show up and have some skills, talent, and passion and then impress the person on the other side of the table. >> Yeah >> And guess what? If you do that enough times in a row, you're going to end up having your own network. And then you're going to have kids come in and say, wow, how can I impress you? >> Be authentic, be genuine, hustle, do networking, do the job interview, great stuff. All right, back to final point I want to get your thoughts on because I think this is your success and getting this movie out of the gate. Everyone, first, everyone should go see Inside Game. Insidegamemovie.com is the URL. The site just went up. This should be a great movie. I'm looking forward to it, and knowing the work that went in, I followed your journey on this. It should be great. I'm looking forward to seeing it. Uh, digital media, um, your thoughts because we're seeing a direct to consumer model. You've got the big companies, YouTube, Amazon, others. There's kind of a, a huge distribution of those guys. The classic Web 2.0 search kind of paradigm and portal. But now you've got a whole 'nother set of distribution or network effects. Your thoughts, because you were involved in, again, social networking before it became the monster that it is now. How is digital media changing? What's your vision of how that's happening and how does someone jump on that wave and be successful? >> Yeah, we're in the midst of disruption. I mean, I'm in the discussions and final negotiations right now on how we're going to end up ultimately doing the film distribution. And I am very disappointed with the quality of the thinking of the people on the other side of the table. Because they come from very traditional backgrounds. And I'm talking to them about, I want to do a site takeover across Zynga. I want to do a digital download on FanDuel of a 20 minute clip of the film. And they're like what's FanDuel? Who's Zynga? And I'm sitting there, I'm like guys, this is the new media. Oh, by the way, there's a sports app called Wave and Wave is where the local influencers in the markets who want to write the stories are, and we want to do a deal with those guys. And oh, by the way, the CEO of that company is a buddy of mine I met years ago, right? One of those kids I gave advice to, and now I'm going to ask him for a favor from, right, that's how it works. But, it's amazing when you have these conversations with traditional old line media companies. They don't understand any of the words coming out of your mouth. They're like Paul, here's how much I'll give you for your film. Thank you, we'll go market it. I'm like, really? Seriously? I got the former CMO of FanDuel going to help out on this. You don't want to talk to him? >> Yeah >> And so this is where the industry is really ripe for disruption. Because the people from the startup world have already disrupted the apple cart and now we've just got to demonstrate that this model is going to continue to work for the future and be ready when the next new kind of digital transmedia thing comes along and embrace that, as opposed to be scared to death of it or not even know how to talk the language of the people on it. >> Well, you're doing some amazing venturing in your, kind of, unique venture capital model on Bullpen Capital. Certainly isn't your classic venture capital thing, so I'm sure people are going to be talking to you about oh, Paul, are all VCs going to be doing movies? I'm sure that's a narrative that's out there. But you're not just a normal venture capital. You certainly invest. So, venture capitals have reputation issues right now. People talk about, well, you know, they're group think. You know, they only invest in who they see themselves. You mentioned that comment there. The world's changing in venture. Your thoughts on that, how you guys started your firm, and your evolution of venture capital. And is this a sign that you'll see venture capitalists go into movies? >> Well, I don't know about that part. There have been a couple venture people who have done movies. But the part I will talk about is the you got to know somebody, it's an inside game, ha ha, we'll play double entendre on Inside Game here. You know, 20% of the deal we've done at Bullpen, we've done over 100. 20% of them were cold emails on something like LinkedIn or business plans at bullpen.com. 20%, now there's this old trope in venture if you don't get a warm intro I won't even talk to you. Well 20% of our deals came in and we had no idea who the person on the other side was. That's how we run the firm. And so if you're out there going I'm one of those entrepreneurs in the Midwest and no one, I don't know anyone. I'm not in a network, send me a plan. I'm someone who's going to look at it. It doesn't mean I'm going to be an investor, but you know what I'm going to do? I'm going to give you a shot. And I don't care where you're from or what school you went to or what social clique you're in or what your political persuasion is. Matter of fact, I literally don't care. I'm going to give you a shot. Come into my office and that, I think, is what was missing in a lot of firms, where it's a we only do security and we only look at companies that spun out of Berkeley and Stanford. And yeah, there can be an old boys network in that. But you know what, we like to talk to everybody. And the more blue collar the CEO is, the more we love them at Bullpen. >> That's awesome. Talk about the movie real quick on terms of how Hollywood's handling it. Um, expectations, in terms of reaction, was it positive, is it positive, what's the vibe going on in Hollywood, is this going to be a grassroots kind of thing around the FanDuels and your channels? What's your plan for that and what's the reaction of Hollywood? >> So it's going to be a lot of all of the above. But PR is going to be a huge component, I mean, part of the reason we're on today is there's a huge front page story on ESPN about Tim Donaghy and the NBA betting scandal of 2007. And so the earned media is going to be a huge component of this. And I think this is where the Hollywood people do understand the language we're speaking. We're like, look, we have a huge built-in audience that we know how to market to. We have a story. Actually, in the early days, you asked about risk? Back when I was thinking about if I would do this project I would do the following little market research. I'd walk into a sports bar, it didn't matter what town I was in. I could be in Dallas, I could be in Houston, I could be in Boston. I would literally walk up to the bar and say, hey, uh, six of you at the bar, ever hear of Tim Donaghy? It'd be amazing. About seven out of 10 people would go yeah he was the referee, crooked referee in the NBA. I'm like, this is amazing. Seven out of 10 people I meet in a bar know about the story I want to go tell. That sounds like a good chance to make a movie, as opposed to a movie that has no built-in audience. And so, a built-in audience with PR channels that we know work, I think we can really show Hollywood how to do this in a different way if this all works. >> And this comes back to my point around built-in audiences. You know, YouTube has got a million subscribers. That's kind of an old metric. That means they, like an RSS feed kind of model. That's a million people that are, could be, amplifying their network connections. It is a massive built-in audience. The iteration, the DevOps kind of mindset, we talk about cloud computing, can be applied to movies. It's agile movie making. That's what you're talking about. >> Yeah, and by the way, so we have a social network of all the actors and people in the film. So when it's ready, let's go activate our network of all the actors that are in the film. Each of them have a couple million followers. So let's go be smart. Let's, two weeks before the movie, let's send some screenshots. A week before the movie let's show some exclusive videos. Two days before the film, go see it, it's now out in the theaters. You know what, that's pretty, that's 101. We've got actors. We've got producers. Like, let's go use the influencer network we built that actually got the movie made. Let's go on Sports Talk, talk about the movie. Let's go on places like this and talk about how a venture guy made a movie. This is the confluence of all of the pieces all coming together at once. And I just don't think enough people in the film business or in the media business think big enough about going after these audiences. It's oh, we're going to take ads out on TV and I'm going to see my trailer and we're going to do this and that's how we do it. There's so many better ways to get your audience now. >> And this is going to change, just while I've got you here, it's just awesome, awesome conversation. Bringing it back to kind of the CMO in big companies, whether it's consumer or B to B or whatever, movies, the old model of here's our channels. There's certainly this earned media kind of formula and it's not your classic we've got a website, we're going to do all this instrumentation, it's a whole 'nother mechanism. So talk about, in your opinion, the importance of earned media, vis a vis the old other buckets. Owned media, paid media, well-defined Web 1.0, Web 2.0 tactics, earned media is not just how good is our PR? It's actually infrastructure channels, it's networks, a new kind of way to do things. How relevant and how important will this be going forward? Because there's no more website. It's a, you're basically building a media company for this movie. >> That is exactly right. We're building an ad hoc media business. I think this is what the next generation of digital agencies are going to look like. And there are some agencies that we've talked to that really understand all of what you've just said. They are few and far between, unfortunately. >> Yeah, well, Paul, this was theCube. We love talking to people, making it happen. Again, our model's the same as yours. We're open to anyone who's got signal, and you certainly are doing a great job and great to know you and follow your entrepreneur journey, your investment journey, and now your film making journey. Paul Martino, General Pen on Bullpen Capital, with the hot film Inside Game. I'm definitely going to see it. It should be really strong and it's going to be one of those movies like Crazy, Rich Asians, where not looking, not really well produced, I mean not predicted to be great and then goes game buster so I think this is going to be one of those examples. Paul, thanks for coming on. >> Love it, thank you! >> This Cube Conversation, I'm John Furrier here in Palo Alto, California, bringing ya all the action. Venture capitalist turned film maker Paul Martino with the movie Inside Game. I'm John Furrier, thanks for watching. (triumphant music)
SUMMARY :
and also the producer of an upcoming film Thanks for having me on the show. in a lot of the sports, And he says sometimes the movie picks you going to structure it. I'm a good guy to have owe you a favor Reminds of the Crazy, Rich Asians, It is 2019 and the and here on the Cube in the past but of the three buckets that you need and costs involved in making the movie, You got to build a product. That's the real attribute you need to have I kind of know how to make that product. I got to ask you a question. period of the last five to 10 years, And the key to success, you know, Well how the hell do you And then you're going to and knowing the work that went in, of the people on the of the people on it. to be talking to you about You know, 20% of the deal is this going to be a And so the earned media is going to be And this comes back to my point of all the actors and people in the film. And this is going to change, I think this is what the next generation and great to know you and follow your here in Palo Alto, California,
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Carl Krupitzer, ThingLogix | AWS Marketplace 2018
>> From the ARIA Resort in Las Vegas, it's theCube. Covering AWS Marketplace. Brought to you by Amazon Web Services. >> Hey, welcome back everybody. Jeff Frick here with theCube. We are at AWS Reinvent 2018. We got to get a number, I don't know how many people are here, but Vegas is packed. I think it's in six different venues tonight. We're at the ARIA at the hub with the AWS Marketplace & Service Catalog Experience, kicking everything off. We're excited to be joined by cube alumni. Last we saw him, I think it was in San Francisco Summit 2017. Carl Krupitzer, the CEO of ThingLogix. Carl, great to see you. >> Thank you it's great to be here. >> So I think you were saying before we turned the cameras on, you came early days. This whole piece here was not even as big a the room we're in. >> Right well we were part of the service launch for IoT, and that was just a few years ago, and it's exponentially bigger. Yeah. Just the expo, this is not even the expo floor right? And this is bigger than what we had originally. So excited to see it grow. >> So IoT keeps growing, growing, growing. That's all we hear about. In Industrial IoT, we did the Industrial IoT launch with GE back in better days. For them, huge opportunity. Really seeing a lot of momentum. What are some of the observations you're seeing actually out in marketplace? >> You know it's interesting. When we first started with the IoT service offering for AWS, there was a lot of proof of concepts going on, a lot of people kind of hacking their way through understanding what IoT is and how it could impact their business. And I think we've gotten to the point now where we're seeing more production roll-outs with very considerate business drivers behind it. >> Right. I think it's funny you're talking about doing some research for this, and you guys are really specific. I love it. It's not Greenfield projects you know? Have specific design objectives, have specific KPIs, have specific kind of ideas about what the functionality you want before you just kind of jump into IoT space with two feet. >> Right. Yeah we strongly discourage companies from just jumping in with both feet just because right? It's an expensive undertaking IoT, and it has the potential to really change your business for the better if you do it well. >> So where are you seeing the most uptake? Or maybe that surprises you the most in these early days? Kind of industry wise? >> We see a lot of creative use cases starting to come up. Kind of that secondary use of data, and one of the things that we've-- we kind of describe our customers having a life cycle of IoT right? They come in to solve a specific problem with us, which is usually a scalability, or a go to market issue. And then very quickly, they kind of get to the art of the possible. What can we do next? And we see a lot of companies really getting creative with the way they do things. From charging with-- using our FID tags in sub-Saharan Africa for water to solar power and things like that. It's interesting to see companies that didn't exist a few years ago, and couldn't have existed a few years ago, really kind of getting a lot of traction now. >> Right. It's funny we did an interview with Zebra Sports a few years ago actually now. And they're the one that's old RFID technology that put the pads in the shoulder pads for all the NFL players. They're on the refs, they're in the balls. It is such a cool way to apply on old technology to a new application and then really open up this completely different kind of consumer experience in watching sports. When you've got all this additional data about how fast are they running and what's their acceleration. And I think they had one example where they showed a guy in an interception. They had the little line tracker. Before he'd gotten all the way back in, it was a pick six. It's unbelievable now with this data. >> Our Middle Eastern group is actually doing a pilot right now for camel racing. So we're doing telemetry attached to the camels that are running around the tracks. We're getting speed and heart rate and those sorts of things. So it's everywhere right? >> I love it. Camel racing. So we're here at the AWS Marketplace Experience. So tell us a little bit about how's it working with AWS. How's the the marketplace fit within your entire kind of go to market strategy? >> Well so for us, the marketplace is really key to our go to market strategy right? I mean we're a small company and we-- our sales team is really kind of focused on helping customers solve problems and the marketplace really offers us the ability to not have to deal with a lot of the infrastructure things of servicing a customer right? They can go there, they can self sign up, they can implement the platform, our technology platform on their own and then billing is taken off of our plate. So it's not something that we have to have a bunch of resources dedicated to. >> Is there still a big services component though, that you still have to come in to help them as you say kind of define nice projects and good KPI's and kind of good places to start? Or do they often times on the marketplace purchase just go off to the races on their own? >> So it's a combination. If companies are looking to solve a specific problem with an IoT platform like Foundry, it's definitely a self implementable thing and it's becoming more and more self implementable. Foundry really deploys into a customers account using Cloud formation, and Cloud formation templates allow us to kind of create these customized solutions that can then be deployed. So it's-- we're getting a combination of both. >> Yeah, and I would imagine it's taken you into all kinds of markets that you just don't-- you just don't have the manpower to cover when you have a distribution partner at EWS. >> Yeah it's made things a lot faster for us to be able to spin up vertical solutions or specific offerings for a particular large customer. Marketplace can take care of all of the infrastructure on that. >> Alright so what are you looking for here at Reinvent 2018? You've been coming to these things for awhile. I know Andy's tweeting out, his keynote is ready to have the chicken wing contest I think, last night at midnight. Too late for me, I didn't make it. (laughs) >> For us I mean, some of the more exciting things that are out there are the emergence of server-less right? You see server-less, all of those AWS services really taking off. >> Right. >> But there's also the Sumarian, the ARVR's really kind of exploding. So for us it's really about, this is a great place for us to see the direction that AWS is heading and then make sure that our offering, and our technology is layered on top of that appropriately. >> And what are you hearing from your customers about Edge? All the talk about Edge and there's some fudd I think going about how does Edge work with Cloud and to me it's like two completely separate technology applications, but then you know what you're trying to accomplish. As kind of the buzzwords, Edge gets beyond the buzz and actually starts to be implemented, what do you kind of seeing and how's that working together with some of the services that Amazon's got? >> I mean Edge architecture's are an important component to a solution. Especially solutions that require real time data processing and decision making at the shop floor or whatever you have. AWS has taken very big strides toward creating service offerings and products down at the Edge that interface well with the Cloud. So for us, our perspective on it is that the Edge is really a reflection of the business logic and the processes and things that we define and build for a customer. Because ultimately those Edge processes have to feed the enterprise processes, which is what we really focus on right? How do we get machine data into enterprise systems? So Edge technology for us is definitely a consideration and when we build our select technology solutions, we look at Edge as a component in that architecture and we try to meet the needs of the customers specific use case when it comes to Edge. >> Right. Yeah it's not killing the Cloud. Who said that? - Right. >> So silly. >> Yeah it can't kill it. >> It's not slowing down this thing. >> Right. Alright Carl well thanks for taking a few minutes and have great Reinvent. >> Yeah thank you. - [Jeff] Hydrate. >> Thanks for your time. Definitely. - They say hydrate. Alright he's Carl, I'm Jeff. You're watching theCube. We're at AWS Marketplace inservice catalog experience. We're at the Aria in the quads. Stop on by. Thanks for watching we'll see you next time.
SUMMARY :
Brought to you by Amazon Web Services. We're at the ARIA at the hub with the So I think you were saying and that was just a few years ago, What are some of the observations you're seeing When we first started with the IoT service and you guys are really specific. and it has the potential to really change your business and one of the things that we've-- that put the pads in the shoulder pads that are running around the tracks. How's the the marketplace fit the ability to not have to deal with a lot and it's becoming more and more self implementable. all kinds of markets that you just don't-- all of the infrastructure on that. the chicken wing contest I think, some of the more exciting things that are out there the ARVR's really kind of exploding. and actually starts to be implemented, and the processes and things that we define Yeah it's not killing the Cloud. and have great Reinvent. Yeah thank you. We're at the Aria in the quads.
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Doug Merritt Keynote Analysis | Splunk .conf18
(upbeat music) >> Live from Orlando, Florida, it's theCUBE covering .conf18. Brought to you by Splunk. >> Hello everybody, welcome to Orlando. This is theCUBE, the leader in live tech coverage, and we're here at Splunk conf .conf 2018. The hashtag is #splunkconf18. My name is Dave Vellante, I'm here with my co-host Stu Miniman. Stu it's great to be in Orlando again. Last year we were in D.C. This is our seventh year covering Splunk.conf and we've seen the company really move from essentially analyzing log files on PRAM in a perpetual license model, to now a company that is permeating all of IT into the lines of business. Security, IT performance, application performance, moving into IOT. Really becoming a mature company. It's a company with $1.7 billion in revenue forecasted for this year. They were talking about a $17 billion market cap, they're growing at 36%, and they're a company Stu, that is in the process of successfully going from a perpetual license model to a renewable model. Splunk set the goal of being 75% renewable by 2020. Sounds like renewable energy, but repeatable renewable from a subscription standpoint, they're already there. So you're seeing that in the execution. This is your first .conf, or conf as they like to say. We were at the ESPN Wide World of Sports Center, you saw what, what's the number, 8,000 people? >> Yeah I think 8,000 at the show this year, it's strong growth, and Dave I've been hearing from the team for years the excitement of the show, the passion of the show, saw like, right over near where we were sitting there's the whole group of that was the Splunk trust. They've got the fezzes on, a lot of them have superhero capes on, and it's what you'd expect from a passionate, technical maybe even geeky audience. Things like, we're announcing the S3 API-compatible storage. Everybody's like, yay we're so excited for this. It's hardcore techies. >> What was the other big clap? Screen? >> Yeah, that's right dark mode. We're going to go to dark mode, I don't have to play with the CSS. Anybody that's played with a website, changing these things is not trivial. I click a little button and the joke was this was the bright one for the executives, but when I'm down in the gamer center I don't want this glaring screen here, so I can switch it over to dark mode. And people were pretty excited about that. >> So again the roots of Splunk, they took log data and analyzed it. Doug Merritt the CEO, talked today talked about, making things happen with data. I thought he did a really good job of laying out the past, putting the past behind us in terms of he said, "I've been to I can't tell you "how many Master Data management classes "trying to optimize the database, "trying to codify business processes "and harden those business processes." The problem is data is messy. Data is growing so fast, business processes are changing so fast, the competition is moving so fast, customers are changing. So you have to be able to organize your data in the moment. So, the whole idea that, even go back to the early big data days and Hadoop, the whole idea was to bring five megabytes of compute to a petabyte of data. And no schema on write, or what some call schema on read. Splunk was really a part of that. Put the data, get the data organized in a way that you can look at in in a moment, but then let the data flow. So that has definite implications in terms of how you think about data. It's not trying to get the data all perfect so you can use it, it's trying to get the data into your data ocean, as we like to say, and then have the tooling to be able to analyze it very, very quickly. They announced Splunk 7.2 today which is a big deal. Some things, we'll talk about a few of the features, obviously focused on performance, but one of the things they talked about was basically being able to split storage and compute. So previously you had to add essentially a brick of storage and compute simultaneously. We've heard about these complaints for years in the conversion infrastructure space, it's obviously a problem in the software space as well. Now customers are able to add storage or compute in a granular fashion, and they're cozying up to Amazon doing S3 compatible store. >> Dave, I love that message that he put out there you said, "life is messy. "You can't try to control the chaos, "you want to be able to ride those waves of data "take advantage of them and not overly "make things rigid with structure." Because once you put things in place you're going to get new data or something else that's going to come along and your structure is going to be blown away. So when you need to search things you want to be able to look at them in that point in time but be able to ride those waves, flow with the data, live the way your data lives. That's definitely something that resonates in this community. Dave, something I've watching this space, as an infrastructure guy and watching the Cloud movement, there were a lot of reasons why traditional big data failed. I kind of never looked at Splunk like most of those other big data companies. Yes they had data, yes they're part of the movement of taking advantage of data, but they weren't, oh well we have this one tool that we're going to create to do it all, like some of the new players. They're playing with all the latest things. You want tentraflow, you want to do the A.I, the ML. Splunk is ready to take advantage of all of these new waves of technologies, and they've done a couple of acquisitions like VictorOps in the space that they keep growing and the goal is, you mentioned the revenue, but Splunk today has I think it's 16,000 customers. They have a short term goal of getting to 20,000 but with what they started talking about in the keynote today, Splunk Next, they really want to be able to do an order of magnitude of more customers and when you get great customer examples like Carnival Cruises. The CEO I thought, talked about the sea of data. Lots of good puns in the keynote there but mobile cities floating around and lots of data that they want to be able to get the customer experience and make sure the customer gets what they need and make sure that Carnival knows what they have to make sure that they're running better and optimizing their business too, so great example. Looking forward to talking to them on theCUBE. >> Well and they have many dozens, I think it's in last quarter, it was like 60 plus deals over a million dollars. They have many $10 million plus deals. That's an outcome of happy customers, it's not like they're trying to engineer those deals. I'm sure some of the sales guys would love to do that. But that's a metric that I think was popularized by the likes of Aneel Bhusri at Workday, certainly Frank Slootman at ServiceNow. It's one that Wall Street watches and Splunk it's an indicator. Splunk is doing some very very large deals that underscores the commitment that many customers are making to Splunk. Having said that, there are many more that are still smaller users of Splunk. There's a lot of upside here. And they're going into a serious TAM expansion that's something we're going to talk to Doug Merritt about. Making acquisitions of a company, VictorOps was their most recent acquisition sort of security orchestration and management. They're doing, the ecosystem is growing, they're doing bigger deals or partnerships with the likes of Accenture, Deloitte is here, EY. Accenture actually has a huge space at this event, and those are indicators. I want to go back to something you said earlier about the failure of big data. Certainly big data failed to live up to the hype in many ways. You didn't see a lot of wholesale replacement of traditional databases and EDWs. You did see a reduction in cost, that was the big deal. But clearly enterprise data warehouses and ETL, they're still a fundamental part of people's data strategies despite what Doug Merritt saying, hey, the data is messy and you've just got to let it flow, essentially what he's saying. There is still a need for structured data and mixing, sort of, interacting of structured and unstructured data. Bringing transaction data and systems of intelligence together, analytic data. But the one thing that big data did do and the Hadoop movement, it did a couple things: one is, architecturally it pushed data out and back in the day you had to get a big Unix box and stuff everything in there. It was your god box of data. And you had Oracle licenses and Sun Microsystems boxes and it was very expensive. And you had a couple of people who knew how to get the data out. So the goal of democratizing data, what it did is, it is messy. Data went out to the distributed nodes and now the edge. But it brought attention to the importance of data and the whole bromide of data driven companies. And so now we're in a position to make a new promise and that promise is A.I, machine learning, machine intelligence, which seems to be substantive. We talk a lot on theCUBE is this old wine, new bottle? And we had an event in New York last month and the consensus from a lot of practitioners and others in the room was: no there's something substantive, the data substrate is now in place. Now it's all about taking advantage of it. Tooling is still complex but emerging or evolving. And I think the cloud, to your point, is a huge part of that. By integrating data pipelines in the cloud it dramatically simplifies the deployment model and the complexity of managing big data. >> Yeah, Dave, as you said, there used to be these giant boxes and some of these initiatives I needed 18 months, you know, millions of dollars and a large time you either need to be a country or a multi-national company to be able to put this thing together. I remember one of the earliest case studies that David Floyer did when we were looking at big data it was how do I take that 18 month deployment and drive it down to more like a six week deployment, and when you talk about A.I, ML, and deep learning, the promise is that a business user should be able to get answers in a much much shorter window. So actionable on that data, being able to do things with it not just looking backwards but hear the team. So I want to be able to be proactive, I want to be able to be responsive. I want to even predict what my client is going to need and be ready for it. >> So as Doug Merritt said that digital and physical worlds they're coming together. They don't stop evolving. They're organic. Your data model has to be flexible. It's a sea of data. It's an ocean of data. It's not a confined data lake, as John Furrier and others like to say. And so I was happy to hear Doug Merritt talking about a sea. We use the term oceans because that's really what it is. And oceans are unpredictable, they're sometimes really harsh, they can sometimes be messy. But they're constantly evolving and so I think that kind of metaphor works in this world of Splunk. We've got two days here of coverage. A lot of customers coming on today, in fact, Splunk is one of those companies that puts many customers on theCUBE, which we love. We love to dig in to the case studies. We've got some ecosystem partners. Some of the big SIs are coming on and of course, we're going to hear from some of the product people at Splunk that go to market people. Doug Merritt will be on tomorrow. And a number of folks. I'm Dave Vellante, @DVellante on Twitter. He's @Stu. Stu Miniman. Keep it right there, buddy. We'll be back with our next guest right after this short break. You're watching day one from Splunk conf18 in Orlando. Be right back. (soft bouncy music)
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