>>Hello, everyone. Welcome to the Cube's live coverage here in Boston, Massachusetts for AWS reinforce 2022. I'm John fur, host of the cube with Dave. Valante my co-host for breaking analysis, famous podcast, Dave, great to see you. Um, Beck in Boston, 2010, we started >>The queue. It all started right here in this building. John, >>12 years ago, we started here, but here, you know, just 12 years, it just seems like a marathon with the queue. Over the years, we've seen many ways. You call yourself a historian, which you are. We are both now, historians security is doing over. And we said in 2013 is security to do where we asked pat GSK. Now the CEO of Intel prior to that, he was the CEO of VMware. This is the security show fors. It's called the reinforce. They have reinvent, which is their big show. Now they have these, what they call reshow, re Mars, machine learning, automation, um, robotics and space. And then they got reinforced, which is security. It's all about security in the cloud. So great show. Lot of talk about the keynotes were, um, pretty, I wouldn't say generic on one hand, but specific in the other clear AWS posture, we were both watching. What's your take? >>Well, John, actually looking back to may of 2010, when we started the cube at EMC world, and that was the beginning of this massive boom run, uh, which, you know, finally, we're starting to see some, some cracks of the armor. Of course, we're threats of recession. We're in a recession, most likely, uh, in inflationary pressures, interest rate hikes. And so, you know, finally the tech market has chilled out a little bit and you have this case before we get into the security piece of is the glass half full or half empty. So budgets coming into this year, it was expected. They would grow at a very robust eight point half percent CIOs have tuned that down, but it's still pretty strong at around 6%. And one of the areas that they really have no choice, but to focus on is security. They moved everything into the cloud or a lot of stuff into the cloud. >>They had to deal with remote work and that created a lot of security vulnerabilities. And they're still trying to figure that out and plug the holes with the lack of talent that they have. So it's interesting re the first reinforc that we did, which was also here in 2019, Steven Schmidt, who at the time was chief information security officer at Amazon web services said the state of cloud security is really strong. All this narrative, like the pat Gelsinger narrative securities, a do over, which you just mentioned, security is broken. It doesn't help the industry. The state of cloud security is very strong. If you follow the prescription. Well, see, now Steven Schmidt, as you know, is now chief security officer at Amazon. So we followed >>Jesse all Amazon, not just AWS. So >>He followed Jesse over and I asked him, well, why no, I, and they said, well, he's responsible now for physical security. Presumably the warehouses I'm like, well, wait a minute. What about the data centers? Who's responsible for that? So it's kind of funny, CJ. Moses is now the CSO at AWS and you know, these events are, are good. They're growing. And it's all about best practices, how to apply the practices. A lot of recommendations from, from AWS, a lot of tooling and really an ecosystem because let's face it. Amazon doesn't have the breadth and depth of tools to do it alone. >>And also the attendance is interesting, cuz we are just in New York city for the, uh, ado summit, 19,000 people, massive numbers, certainly in the pandemic. That's probably one of the top end shows and it was a summit. This is a different audience. It's security. It's really nerdy. You got OT, you got cloud. You've got on-prem. So now you have cloud operations. We're calling super cloud. Of course we're having our inaugural pilot event on August 9th, check it out. We're called super cloud, go to the cube.net to check it out. But this is the super cloud model evolving with security. And what you're hearing today, Dave, I wanna get your reaction to this is things like we've got billions of observational points. We're certainly there's no perimeter, right? So the perimeter's dead. The new perimeter, if you will, is every transaction at scale. So you have to have a new model. So security posture needs to be rethought. They actually said that directly on the keynote. So security, although numbers aren't as big as last week or two weeks ago in New York still relevant. So alright. There's sessions here. There's networking. Very interesting demographic, long hair. Lot of >>T-shirts >>No lot of, not a lot of nerds doing to build out things over there. So, so I gotta ask you, what's your reaction to this scale as the new advantage? Is that a tailwind or a headwind? What's your read? >>Well, it is amazing. I mean he actually, Steven Schmidt talked about quadrillions of events every month, quadrillions 15 zeros. What surprised me, John. So they, they, Amazon talks about five areas, but by the, by the way, at the event, they got five tracks in 125 sessions, data protection and privacy, GRC governance, risk and compliance, identity network security and threat detection. I was really surprised given the focus on developers, they didn't call out container security. I would've thought that would be sort of a separate area of focus, but to your point about scale, it's true. Amazon has a scale where they'll see events every day or every month that you might not see in a generation if you just kind of running your own data center. So I do think that's, that's, that's, that's a, a, a, a valid statement having said that Amazon's got a limited capability in terms of security. That's why they have to rely on the ecosystem. Now it's all about APIs connecting in and APIs are one of the biggest security vulnerability. So that's kind of, I, I I'm having trouble squaring that circle. >>Well, they did just to come up, bring back to the whole open source and software. They did say they did make a measurement was store, but at the beginning, Schmidt did say that, you know, besides scale being an advantage for Amazon with a quadri in 15 zeros, don't bolt on security. So that's a classic old school. We've heard that before, right. But he said specifically, weave in security in the dev cycles. And the C I C D pipeline that is, that basically means shift left. So sneak is here, uh, company we've covered. Um, and they, their whole thing is shift left. That implies Docker containers that implies Kubernetes. Um, but this is not a cloud native show per se. It's much more crypto crypto. You heard about, you know, the, uh, encrypt everything message on the keynote. You heard, um, about reasoning, quantum, quantum >>Skating to the puck. >>Yeah. So yeah, so, you know, although the middleman is logged for J heard that little little mention, I love the quote from Lewis Hamilton that they put up on stage CJ, Moses said, team behind the scenes make it happen. So a big emphasis on teamwork, big emphasis on don't bolt on security, have it in the beginning. We've heard that before a lot of threat modeling discussions, uh, and then really this, you know, the news around the cloud audit academy. So clearly skills gap, more threats, more use cases happening than ever before. >>Yeah. And you know, to your point about, you know, the teamwork, I think the problem that CISOs have is they just don't have the talent to that. AWS has. So they have a real difficulty applying that talent. And so but's saying, well, join us at these shows. We'll kind of show you how to do it, how we do it internally. And again, I think when you look out on this ecosystem, there's still like thousands and thousands of tools that practitioners have to apply every time. There's a tool, there's a separate set of skills to really understand that tool, even within AWS's portfolio. So this notion of a shared responsibility model, Amazon takes care of, you know, securing for instance, the physical nature of S3 you're responsible for secure, make sure you're the, the S3 bucket doesn't have public access. So that shared responsibility model is still very important. And I think practitioners still struggling with all this complexity in this matrix of tools. >>So they had the layered defense. So, so just a review opening keynote with Steve Schmidt, the new CSO, he talked about weaving insecurity in the dev cycles shift left, which is the, I don't bolt it on keep in the beginning. Uh, the lessons learned, he talked a lot about over permissive creates chaos, um, and that you gotta really look at who has access to what and why big learnings there. And he brought up the use cases. The more use cases are coming on than ever before. Um, layered defense strategy was his core theme, Dave. And that was interesting. And he also said specifically, no, don't rely on single security control, use multiple layers, stronger together. Be it it from the beginning, basically that was the whole ethos, the posture, he laid that down >>And he had a great quote on that. He said, I'm sorry to interrupt single controls. And binary states will fail guaranteed. >>Yeah, that's a guarantee that was basically like, that's his, that's not a best practice. That's a mandate. <laugh> um, and then CJ, Moses, who was his deputy in the past now takes over a CSO, um, ownership across teams, ransomware mitigation, air gaping, all that kind of in the weeds kind of security stuff. You want to check the boxes on. And I thought he did a good job. Right. And he did the news. He's the new CISO. Okay. Then you had lean is smart from Mongo DB. Come on. Yeah. Um, she was interesting. I liked her talk, obviously. Mongo is one of the ecosystem partners headlining game. How do you read into that? >>Well, I, I I'm, its really interesting. Right? You didn't see snowflake up there. Right? You see data breaks up there. You had Mongo up there and I'm curious is her and she's coming on the cube tomorrow is her primary role sort of securing Mongo internally? Is it, is it securing the Mongo that's running across clouds. She's obviously here talking about AWS. So what I make of it is, you know, that's, it's a really critical partner. That's driving a lot of business for AWS, but at the same time it's data, they talked about data security being one of the key areas that you have to worry about and that's, you know what Mongo does. So I'm really excited. I talked to her >>Tomorrow. I, I did like her mention a big idea, a cube alumni, yeah. Company. They were part of our, um, season one of our eight of us startup showcase, check out AWS startups.com. If you're watching this, we've been doing now, we're in season two, we're featuring the fastest growing hottest startups in the ecosystem. Not the big players, that's ISVs more of the startups. They were mentioned. They have a great product. So I like to mention a big ID. Um, security hub mentioned a config. They're clearly a big customer and they have user base, a lot of E C, two and storage going on. People are building on Mongo so I can see why they're in there. The question I want to ask you is, is Mongo's new stuff in line with all the upgrades in the Silicon. So you got graviton, which has got great stuff. Um, great performance. Do you see that, that being a key part of things >>Well, specifically graviton. So I I'll tell you this. I'll tell you what I know when you look at like snowflake, for instance, is optimizing for graviton. For certain workloads, they actually talked about it on their earnings call, how it's lowered the cost for customers and actually hurt their revenue. You know, they still had great revenue, but it hurt their revenue. My sources indicate to me that that, that Mongo is not getting as much outta graviton two, but they're waiting for graviton three. Now they don't want to make that widely known because they don't wanna dis AWS. But it's, it's probably because Mongo's more focused on analytics. But so to me, graviton is the future. It's lower cost. >>Yeah. Nobody turns off the database. >>Nobody turns off the database. >><laugh>, it's always cranking C two cycles. You >>Know the other thing I wanted to bring, bring up, I thought we'd hear, hear more about ransomware. We heard a little bit of from Kirk Coel and he, and he talked about all these things you could do to mitigate ransomware. He didn't talk about air gaps and that's all you hear is how air gap. David Flo talks about this all the time. You must have air gaps. If you wanna, you know, cover yourself against ransomware. And they didn't even mention that. Now, maybe we'll hear that from the ecosystem. That was kind of surprising. Then I, I saw you made a note in our shared doc about encryption, cuz I think all the talk here is encryption at rest. What about data in motion? >>Well, this, this is the last guy that came on the keynote. He brought up encryption, Kurt, uh, Goel, which I love by the way he's VP of platform. I like his mojo. He's got the long hair >>And he's >>Geeking out swagger, but I, he hit on some really cool stuff. This idea of the reasoning, right? He automated reasoning is little pet project that is like killer AI. That's next generation. Next level >>Stuff. Explain that. >>So machine learning does all kinds of things, you know, goes to sit pattern, supervise, unsupervised automate stuff, but true reasoning. Like no one connecting the dots with software. That's like true AI, right? That's really hard. Like in word association, knowing how things are connected, looking at pattern and deducing things. So you predictive analytics, we all know comes from great machine learning. But when you start getting into deduction, when you say, Hey, that EC two cluster never should be on the same VPC, is this, this one? Why is this packet trying to go there? You can see patterns beyond normal observation space. So if you have a large observation space like AWS, you can really put some killer computer science technology on this. And that's where this reasoning is. It's next level stuff you don't hear about it because nobody does it. Yes. I mean, Google does it with metadata. There's meta meta reasoning. Um, we've been, I've been watching this for over two decades now. It's it's a part of AI that no one's tapped and if they get it right, this is gonna be a killer part of the automation. So >>He talked about this, basically it being advanced math that gets you to provable security, like you gave an example. Another example I gave is, is this S3 bucket open to the public is a, at that access UN restricted or unrestricted, can anyone access my KMS keys? So, and you can prove, yeah. The answer to that question using advanced math and automated reasoning. Yeah, exactly. That's a huge leap because you used to be use math, but you didn't have the data, the observation space and the compute power to be able to do it in near real time or real time. >>It's like, it's like when someone, if in the physical world real life in real life, you say, Hey, that person doesn't belong here. Or you, you can look at something saying that doesn't fit <laugh> >>Yeah. Yeah. >>So you go, okay, you observe it and you, you take measures on it or you query that person and say, why you here? Oh, okay. You're here. It doesn't fit. Right. Think about the way on the right clothes, the right look, whatever you kind of have that data. That's deducing that and getting that information. That's what reasoning is. It's it's really a killer level. And you know, there's encrypt, everything has to be data. Lin has to be data in at movement at rest is one thing, but you gotta get data in flight. Dave, this is a huge problem. And making that work is a key >>Issue. The other thing that Kirk Coel talked about was, was quantum, uh, quantum proof algorithms, because basically he put up a quote, you're a hockey guy, Wayne Greski. He said the greatest hockey player ever. Do you agree? I do agree. Okay, great. >>Bobby or, and Wayne Greski. >>Yeah, but okay, so we'll give the nada Greski, but I always skate to the where the puck is gonna be not to where it's been. And basically his point was where skating to where quantum is going, because quantum, it brings risks to basically blow away all the existing crypto cryptographic algorithms. I, I, my understanding is N just came up with new algorithms. I wasn't clear if those were supposed to be quantum proof, but I think they are, and AWS is testing them. And AWS is coming out with, you know, some test to see if quantum can break these new algos. So that's huge. The question is interoperability. Yeah. How is it gonna interact with all the existing algorithms and all the tools that are out there today? So I think we're a long way off from solving that problem. >>Well, that was one of Kurt's big point. You talking about quantum resistant cryptography and they introduce hybrid post quantum key agreements. That means KMS cert certification, cert manager and manager all can manage the keys. This was something that's gives more flexibility on, on, on that quantum resistance argument. I gotta dig into it. I really don't know how it works, what he meant by that in terms of what does that hybrid actually mean? I think what it means is multi mode and uh, key management, but we'll see. >>So I come back to the ho the macro for a second. We've got consumer spending under pressure. Walmart just announced, not great earning. Shouldn't be a surprise to anybody. We have Amazon meta and alphabet announcing this weekend. I think Microsoft. Yep. So everybody's on edge, you know, is this gonna ripple through now? The flip side of that is BEC because the economy yeah. Is, is maybe not in, not such great shape. People are saying maybe the fed is not gonna raise after September. Yeah. So that's, so that's why we come back to this half full half empty. How does that relate to cyber security? Well, people are prioritizing cybersecurity, but it's not an unlimited budget. So they may have to steal from other places. >>It's a double whammy. Dave, it's a double whammy on the spend side and also the macroeconomic. So, okay. We're gonna have a, a recession that's predicted the issue >>On, so that's bad on the one hand, but it's good from a standpoint of not raising interest rates, >>It's one of the double whammy. It was one, it's one of the double whammy and we're talking about here, but as we sit on the cube two weeks ago at <inaudible> summit in New York, and we did at re Mars, this is the first recession where the cloud computing hyperscale is, are pumping full cylinder, all cylinders. So there's a new economic engine called cloud computing that's in place. So unlike data center purchase in the past, that was CapEx. When, when spending was hit, they pause was a complete shutdown. Then a reboot cloud computer. You can pause spending for a little bit, make, might make the cycle longer in sales, but it's gonna be quickly fast turned on. So, so turning off spending with cloud is not that hard to do. You can hit pause and like check things out and then turn it back on again. So that's just general cloud economics with security though. I don't see the spending slowing down. Maybe the sales cycles might go longer, but there's no spending slow down in my mind that I see. And if there's any pause, it's more of refactoring, whether it's the crypto stuff or new things that Amazon has. >>So, so that's interesting. So a couple things there. I do think you're seeing a slight slow down in the, the, the ex the velocity of the spend. When you look at the leaders in spending velocity in ETR data, CrowdStrike, Okta, Zscaler, Palo Alto networks, they're all showing a slight deceleration in spending momentum, but still highly elevated. Yeah. Okay. So, so that's a, I think now to your other point, really interesting. What you're saying is cloud spending is discretionary. That's one of the advantages. I can dial it down, but track me if I'm wrong. But most of the cloud spending is with reserved instances. So ultimately you're buying those reserved instances and you have to spend over a period of time. So they're ultimately AWS is gonna see that revenue. They just might not see it for this one quarter. As people pull back a little bit, right. >>It might lag a little bit. So it might, you might not see it for a quarter or two, so it's impact, but it's not as severe. So the dialing up, that's a key indicator get, I think I'm gonna watch that because that's gonna be something that we've never seen before. So what's that reserve now the wild card and all this and the dark horse new services. So there's other services besides the classic AC two, but security and others. There's new things coming out. So to me, this is absolutely why we've been saying super cloud is a thing because what's going on right now in security and cloud native is there's net new functionality that needs to be in place to handle multiple clouds, multiple abstraction layers, and to do all these super cloudlike capabilities like Mike MongoDB, like these vendors, they need to up their gain. And that we're gonna see new cloud native services that haven't exist. Yeah. I'll use some hatchy Corp here. I'll use something over here. I got some VMware, I got this, but there's gaps. Dave, there'll be gaps that are gonna emerge. And I think that's gonna be a huge wild >>Cup. And now I wanna bring something up on the super cloud event. So you think about the layers I, as, uh, PAs and, and SAS, and we see super cloud permeating, all those somebody ask you, well, because we have Intuit coming on. Yep. If somebody asks, why Intuit in super cloud, here's why. So we talked about cloud being discretionary. You can dial it down. We saw that with snowflake sort of Mongo, you know, similarly you can, if you want dial it down, although transaction databases are to do, but SAS, the SAS model is you pay for it every month. Okay? So I've, I've contended that the SAS model is not customer friendly. It's not cloudlike and it's broken for customers. And I think it's in this decade, it's gonna get fixed. And people are gonna say, look, we're gonna move SAS into a consumption model. That's more customer friendly. And that's something that we're >>Gonna explore in the super cloud event. Yeah. And one more thing too, on the spend, the other wild card is okay. If we believe super cloud, which we just explained, um, if you don't come to the August 9th event, watch the debate happen. But as the spending gets paused, the only reason why spending will be paused in security is the replatforming of moving from tools to platforms. So one of the indicators that we're seeing with super cloud is a flight to best of breeds on platforms, meaning hyperscale. So on Amazon web services, there's a best of breed set of services from AWS and the ecosystem on Azure. They have a few goodies there and customers are making a choice to use Azure for certain things. If they, if they have teams or whatever or office, and they run all their dev on AWS. So that's kind of what's happened. So that's, multi-cloud by our definition is customers two clouds. That's not multi-cloud, as in things are moving around. Now, if you start getting data planes in there, these customers want platforms. If I'm a cybersecurity CSO, I'm moving to platforms, not just tools. So, so maybe CrowdStrike might have it dial down, but a little bit, but they're turning into a platform. Splunk trying to be a platform. Okta is platform. Everybody's scale is a platform. It's a platform war right now, Dave cyber, >>A right paying identity. They're all plat platform, beach products. We've talked about that a lot in the queue. >>Yeah. Well, great stuff, Dave, let's get going. We've got two days alive coverage. Here is a cubes at, in Boston for reinforc 22. I'm Shante. We're back with our guests coming on the queue at the short break.

(plane engine roars) (upbeat music) >> They call me Dr. Goh. I'm Senior Vice President and Chief Technology Officer of AI at Hewlett Packard Enterprise. And today I'm in Munich, Germany. Home to one and a half million people. Munich is famous for everything from BMW, to beer, to breathtaking architecture and festive markets. The Bavarian capital is the beating heart of Germany's automobile industry. Over 50,000 of its residents work in automotive engineering, and to date, Munich allocated around 30 million euros to boost electric vehicles and infrastructure for them. (upbeat music) >> Hello, everyone, my name is Dr. Jerome Baudry. I am a professor at the University of Alabama in Huntsville. Our mission is to use a computational resources to accelerate the discovery of drugs that will be useful and efficient against the COVID-19 virus. On the one hand, there is this terrible crisis. And on the other hand, there is this absolutely unique and rare global effort to fight it. And that I think is a is a very positive thing. I am working with the Cray HPE machine called Sentinel. This machine is so amazing that it can actually mimic the screening of hundreds of thousands, almost millions of chemicals a day. What we take weeks, if not months, or years, we can do in a matter of a few days. And it's really the key to accelerating the discovery of new drugs, new pharmaceuticals. We are all in this together, thank you. (upbeat music) >> Hello, everyone. I'm so pleased to be here to interview Dr. Jerome Baudry, of the University of Alabama in Huntsville. >> Hello, Dr. Goh, I'm very happy to be meeting with you here, today. I have a lot of questions for you as well. And I'm looking forward to this conversation between us. >> Yes, yes, and I've got lots of COVID-19 and computational science questions lined up for you too Jerome. Yeah, so let's interview each other, then. >> Absolutely, let's do that, let's interview each other. I've got many questions for you. And , we have a lot in common and yet a lot of things we are addressing from a different point of view. So I'm very much looking forward to your ideas and insights. >> Yeah, especially now, with COVID-19, many of us will have to pivot a lot of our research and development work, to address the most current issues. I watch your video and I've seen that you're very much focused on drug discovery using super computing. The central notebook you did, I'm very excited about that. Can you tell us a bit more about how that works, yeah? >> Yes, I'd be happy to in fact, I watch your video as well manufacturing, and it's actually quite surprisingly close, what we do with drugs, and with what other people do with planes or cars or assembly lanes. we are calculating forces, on molecules, on drug candidates, when they hit parts of the viruses. And we essentially try to identify what small molecules will hit the viruses or its components, the hardest to mess with its function in a way. And that's not very different from what you're doing. What you are describing people in the industry or in the transportation industry are doing. So that's our problem, so to speak, is to deal with a lot of small molecules. Guy creating a lot of forces. That's not a main problem, our main problem is to make intelligent choices about what calculates, what kind of data should we incorporate in our calculations? And what kind of data should we give to the people who are going to do the testing? And that's really something I would like you to do to help us understand better. How do you see artificial intelligence, helping us, putting our hands on the right data to start with, in order to produce the right data and accuracy. >> Yeah, that's that's a great question. And it is a question that we've been pondering in our strategy as a company a lot recently. Because more and more now we realize that the data is being generated at the far out edge. By edge. I mean, something that's outside of the cloud and data center, right? Like, for example, a more recent COVID-19 work, doing a lot of cryo electron microscope work, right? To try and get high resolution pictures of the virus and at different angles, so creating lots of movies under electron microscope to try and create a 3D model of the virus. And we realize that's the edge, right, because that's where the microscope is, away from the data center. And massive amounts of data is generated, terabytes and terabytes of data per day generated. And we had to develop means, a workflow means to get that data off the microscope and provide pre-processing and processing, so that they can achieve results without delay. So we learned quite a few lessons there, right, especially trying to get the edge to be more intelligent, to deal with the onslaught of data coming in, from these devices. >> That's fantastic that you're saying that and that you're using this very example of cryo-EM, because that's the kind of data that feeds our computations. And indeed, we have found that it is very, very difficult to get the right cryo-EM data to us. Now we've been working with HPE supercomputer Sentinel, as you may know, for our COVID-19 work. So we have a lot of computational power. But we will be even faster and better, frankly, if we knew what kind of cryo-EM data to focus on. In fact, most of our discussions are based on not so much how to compute the forces of the molecules, which we do quite well on an HP supercomputer. But again, what cryo-EM 3D dimensional space to look at. And it's becoming almost a bottleneck. >> Have access to that. >> And we spend a lot of time, do you envision a point where AI will be able to help us, to make this kind of code almost live or at least as close to live as possible, as that that comes from the edge? How to pack it and not triage it, but prioritize it for the best possible computations on supercomputers? >> What a visionary question and desire, right? Like exactly the vision we have, right? Of course, the ultimate vision, you aim for the best, and that will be a real time stream of processed data coming off the microscope straight, providing your need, right? We are not there. Before this, we are far from there, right? But that's the aim, the ability to push more and more intelligence forward, so that by the time the data reaches you, it is what you need, right, without any further processing. And a lot of AI is applied there, particularly in cryo-EM where they do particle picking, right, they do a lot of active pictures and movies of the virus. And then what they do is, they rotate the virus a little bit, right? And then to try and figure out in all the different images in the movies, to try and pick the particles in there. And this is very much image processing that AI is very good at. So many different stages, application is made. The key thing, is to deal with the data that is flowing at this at this speed, and to get the data to you in the right form, that in time. So yes, that's the desire, right? >> It will be a game changer, really. You'll be able to get things in a matter of weeks, instead of a matter of years to the colleague who will be doing the best day. If the AI can help me learn from a calculation that didn't exactly turn out the way we want it to be, that will be very, very helpful. I can see, I can envision AI being able to, live AI to be able to really revolutionize all the process, not only from the discovery, but all the way to the clinical, to the patient, to the hospital. >> Well, that's a great point. In fact, I caught on to your term live AI. That's actually what we are trying to achieve. Although I have not used that term before. Perhaps I'll borrow it for next time. >> Oh please, by all means. >> You see, yes, we have done, I've been doing also recent work on gene expression data. So a vaccine, clinical trial, they have the blood, they get the blood from the volunteers after the first day. And then to run very, very fast AI analytics on the gene expression data that the one, the transcription data, before translation to emit amino acid. The transcription data is enormous. We're talking 30,000, 60,000 different items, transcripts, and how to use that high dimensional data to predict on day one, whether this volunteer will get an adverse event or will have a good antibody outcome, right? For efficacy. So yes, how to do it so quickly, right? To get the blood, go through an SA, right, get the transcript, and then run the analytics and AI to produce an outcome. So that's exactly what we're trying to achieve, yeah. Yes, I always emphasize that, ultimately, the doctor makes that decision. Yeah, AI only suggests based on the data, this is the likely outcome based on all the previous data that the machine has learned from, yeah. >> Oh, I agree, we wouldn't want the machine to decide the fate of the patient, but to assist the doctor or nurse making the decision that will be invaluable? And are you aware of any kind of industry that already is using this kind of live AI? And then, is there anything in, I don't know in sport or crowd control? Or is there any kind of industry? I will be curious to see who is ahead of us in terms of making this kind of a minute based decisions using AI? Yes, in fact, this is very pertinent question. We as In fact, COVID-19, lots of effort working on it, right? But now, industries and different countries are starting to work on returning to work, right, returning to their offices, returning to the factories, returning to the manufacturing plants, but yet, the employers need to reassure the employees that things, appropriate measures are taken for safety, but yet maintain privacy, right? So our Aruba organization actually developed a solution called contact location tracing inside buildings, inside factories, right? Why they built this, and needed a lot of machine learning methods in there to do very, very well, as you say, live AI right? To offer a solution? Well, let me describe the problem. The problem is, in certain countries, and certain states, certain cities where regulations require that, if someone is ill, right, you actually have to go in and disinfect the area person has been to, is a requirement. But if you don't know precisely where the ill person has been to, you actually disinfect the whole factory. And if you have that, if you do that, it becomes impractical and cost prohibitive for the company to keep operating profitably. So what they are doing today with Aruba is, that they carry this Bluetooth Low Energy tag, which is a quarter size, right? The reason they do that is, so that they extract the tag from the person, and then the system tracks, everybody, all the employees. We have one company, there's 10,000 employees, right? Tracks everybody with the tag. And if there is a person ill, immediately a floor plan is brought up with hotspots. And then you just targeted the cleaning services there. The same thing, contact tracing is also produced automatically, you could say, anybody that is come in contact with this person within two meters, and more than 15 minutes, right? It comes up the list. And we, privacy is our focused here. There's a separation between the tech and the person, on only restricted people are allowed to see the association. And then things like washrooms and all that are not tracked here. So yes, live AI, trying to make very, very quick decisions, right, because this affects people. >> Another question I have for you, if you have a minute, actually has to be the same thing. Though, it's more a question about hardware, about computer hardware purify may. We're having, we're spending a lot of time computing on number crunching giant machines, like Sentinel, for instance, which is a dream to use, but it's very good at something but when we pulled it off, also spent a lot of time moving back and forth, so data from clouds from storage, from AI processing, to the computing cycles back and forth, back and forth, did you envision an architecture, that will kind of, combine the hardware needed for a massively parallel calculations, kind of we are doing. And also very large storage, fast IO to be more AI friendly, so to speak. You see on the horizon, some kind of, I would say you need some machine, maybe it's to be determined, to be ambitious at times but something that, when the AI ahead plan in terms of passing the vector to the massively parallel side, yeah, that makes sense? >> Makes a lot of sense. And you ask it I know, because it is a tough problem to solve, as we always say, computation, right, is growing capability enormously. But bandwidth, you have to pay for, latency you sweat for, right? >> That's a very good >> So moving data is ultimately going to be the problem. >> It is. >> Yeah, and we've move the data a lot of times, right, >> You move back and forth, so many times >> Back and forth, back and forth, from the edge that's where you try to pre-process it, before you put it in storage, yeah. But then once it arrives in storage, you move it to memory to do some work and bring it back and move it memory again, right, and then that's what HPC, and then you put it back into storage, and then the AI comes in you, you do the learning, the other way around also. So lots of back and forth, right. So tough problem to solve. But more and more, we are looking at a new architecture, right? Currently, this architecture was built for the AI side first, but we're now looking and see how we can expand that. And this is that's the reason why we announced HPE Ezmeral Data Fabric. What it does is that, it takes care of the data, all the way from the edge point of view, the minute it is ingested at the edge, it is incorporated in the global namespace. So that eventually where the data arrives, lands at geographically one, or lands at, temperature, hot data, warm data or cold data, regardless of eventually where it lands at, this Data Fabric checks everything, from in a global namespace, in a unified way. So that's the first step. So that data is not seen as in different places, different pieces, it is a unified view of all the data, the minute that it does, Just start from the edge. >> I think it's important that we communicate that AI is purposed for good, A lot of sci-fi movies, unfortunately, showcase some psychotic computers or teams of evil scientists who want to take over the world. But how can we communicate better that it's a tool for a change, a tool for good? >> So key differences are I always point out is that, at least we have still judgment relative to the machine. And part of the reason we still have judgment is because our brain, logical center is automatically connected to our emotional center. So whatever our logic say is tempered by emotion, and whatever our emotion wants to act, wants to do, right, is tempered by our logic, right? But then AI machine is, many call them, artificial specific intelligence. They are just focused on that decision making and are not connected to other more culturally sensitive or emotionally sensitive type networks. They are focus networks. Although there are people trying to build them, right. That's this power, reason why with judgment, I always use the phrase, right, what's correct, is not always the right thing to do. There is a difference, right? We need to be there to be the last Judge of what's right, right? >> Yeah. >> So that says one of the the big thing, the other one, I bring up is that humans are different from machines, generally, in a sense that, we are highly subtractive. We, filter, right? Well, machine is highly accumulative today. So an AI machine they accumulate to bring in lots of data and tune the network, but our brains a few people realize, we've been working with brain researchers in our work, right? Between three and 30 years old, our brain actually goes through a pruning process of our connections. So for those of us like me after 30 it's done right. (laughs) >> Wait till you reach my age. >> Keep the brain active, because it prunes away connections you don't use, to try and conserve energy, right? I always say, remind our engineers about this point, about prunings because of energy efficiency, right? A slice of pizza drives our brain for three hours. (laughs) That's why, sometimes when I get need to get my engineers to work longer, I just offer them pizza, three more hours, >> Pizza is universal solution to our problems, absolutely. Food Indeed, indeed. There is always a need for a human consciousness. It's not just a logic, it's not like Mr. Spock in "Star Trek," who always speaks about logic but forgets the humanity aspect of it. >> Yes, yes, The connection between the the logic centers and emotional centers, >> You said it very well. Yeah, yeah and the thing is, sleep researchers are saying that when you don't get enough REM sleep, this connection is weakened. Therefore, therefore your decision making gets affected if you don't get enough sleep. So I was thinking, people do alcohol test breathalyzer test before they are allowed to operate sensitive or make sensitive decisions. Perhaps in the future, you have to check whether you have enough REM sleep before, >> It is. This COVID-19 crisis obviously problematic, and I wish it never happened, but there is something that I never experienced before is, how people are talking to each other, people like you and me, we have a lot in common. But I hear more about the industry outside of my field. And I talk a lot to people, like cryo-EM people or gene expression people, I would have gotten the data before and process it. Now, we have a dialogue across the board in all aspects of industry, science, and society. And I think that could be something wonderful that we should keep after we finally fix this bug. >> Yes. yes, yes. >> Right? >> Yes, that's that's a great point. In fact, it's something I've been thinking about, right, for employees, things have changed, because of COVID-19. But very likely, the change will continue, yeah? >> Right. Yes, yes, because there are a few positive outcomes. COVID-19 is a tough outcome. But there positive side of things, like communicating in this way, effectively. So we were part of the consortium that developed a natural language processing system in AI system that would allow you scientists to do, I can say, with the link to that website, allows you to do a query. So say, tell me the latest on the binding energy between the Sasko B2 virus like protein and the AC receptor. And then you will, it will give you a list of 10 answers, yeah? And give you a link to the papers that say, they say those answers. If you key that in today to NLP, you see 315 points -13.7 kcal per mole, which is right, I think the general consensus answer, and see a few that are highly out of out of range, right? And then when you go further, you realize those are the earlier papers. So I think this NLP system will be useful. (both chattering) I'm sorry, I didn't mean to interrupt, but I mentioned yesterday about it, because I have used that, and it's a game changer indeed, it is amazing, indeed. Many times by using this kind of intelligent conceptual, analyzes a very direct use, that indeed you guys are developing, I have found connections between facts, between clinical or pharmaceutical aspects of COVID-19. That I wasn't really aware of. So a it's a tool for creativity as well, I find it, it builds something. It just doesn't analyze what has been done, but it creates the connections, it creates a network of knowledge and intelligence. >> That's why three to 30 years old, when it stops pruning. >> I know, I know. (laughs) But our children are amazing, in that respect, they see things that we don't see anymore. they make connections that we don't necessarily think of, because we're used to seeing a certain way. And the eyes of a child, are bringing always something new, which I think is what AI could potentially bring here. So look, this is fascinating, really. >> Yes, yes, difference between filtering subtractive and the machine being accumulative. That's why I believe, the two working together, can have a stronger outcome if used properly. >> Absolutely. And I think that's how AI will be a force for good indeed. Obviously see, seems that we would have missed that would end up being very important. Well, we are very interested in or in our quest for drug discovery against COVID-19, we have been quite successful so far. We have accelerated the process by an order of magnitude. So we're having molecules that are being tested against the virus, otherwise, it would have taken maybe three or four years to get to that point. So first thing, we have been very fast. But we are very interested in natural products, that chemicals that come from plants, essentially. We found a way to mine, I don't want to say explore it, but leverage, that knowledge of hundreds of years of people documenting in a very historical way of what plants do against what diseases in different parts of the world. So that really has been a, not only very useful in our work, but a fantastic bridge to our common human history, basically. And second, yes, plants have chemicals. And of course we love chemicals. Every living cell has chemicals. The chemicals that are in plants, have been fine tuned by evolution to actually have some biological function. They are not there just to look good. They have a role in the cell. And if we're trying to come up with a new growth from scratch, which is also something we want to do, of course, then we have to engineer a function that evolution hasn't already found a solution to, for in plants, so in a way, it's also artificial intelligence. We have natural solutions to our problems, why don't we try to find them and see their work in ourselves, we're going to, and this is certainly have to reinvent the wheel each time. >> Hundreds of millions of years of evolution, >> Hundreds of millions of years. >> Many iterations, >> Yes, ending millions of different plants with all kinds of chemical diversity. So we have a lot of that, at our disposal here. If only we find the right way to analyze them, and bring them to our supercomputers, then we will, we will really leverage this humongus amount of knowledge. Instead of having to reinvent the wheel each time we want to take a car, we'll find that there are cars whose wheels already that we should be borrowing instead of, building one each time. Most of the keys are out there, if we can find them, They' re at our disposal. >> Yeah, nature has done the work after hundreds of millions of years. >> Yes. (chattering) Is to figure out, which is it, yeah? Exactly, exactly hence the importance of biodiversity. >> Yeah, I think this is related to the Knowledge Graph, right? Where, yes, to objects and the linking parameter, right? And then you have hundreds of millions of these right? A chemical to an outcome and the link to it, right? >> Yes, that's exactly what it is, absolutely the kind of things we're pursuing very much, so absolutely. >> Not only only building the graph, but building the dynamics of the graph, In the future, if you eat too much Creme Brulee, or if you don't run enough, or if you sleep, well, then your cells, will have different connections on this graph of the ages, will interact with that molecule in a different way than if you had more sleep or didn't eat that much Creme Brulee or exercise a bit more, >> So insightful, Dr. Baudry. Your, span of knowledge, right, impressed me. And it's such fascinating talking to you. (chattering) Hopefully next time, when we get together, we'll have a bit of Creme Brulee together. >> Yes, let's find out scientifically what it does, we have to do double blind and try three times to make sure we get the right statistics. >> Three phases, three clinical trial phases, right? >> It's been a pleasure talking to you. I like we agreed, you knows this, for all that COVID-19 problems, the way that people talk to each other is, I think the things that I want to keep in this in our post COVID-19 world. I appreciate very much your insight and it's very encouraging the way you see things. So let's make it happen. >> We will work together Dr.Baudry, hope to see you soon, in person. >> Indeed in person, yes. Thank you. >> Thank you, good talking to you.

>> Announcer: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. >> Hi everybody, this is Dave Vellante, and back in 2013, when it was becoming pretty obvious that the cloud was going to have a major impact on our industry, the IT industry, I wrote at the time that the way incumbents were going to have to compete was to really go into vertical markets and build ecosystems for their own clouds, and that's exactly what IBM did late last year, when it announced a major partnership with Bank of America in the financial services cloud, and guess what, Hillery Hunter is back in the house, she's the vice president and CTO of the IBM cloud, and an IBM fellow, Hillery, great to see you again, thanks for coming back on. >> Thanks so much for having me again, always a pleasure to be here. >> So we had an awesome conversation, I think we got into the FS cloud a little bit, but as I was saying, you guys announced last year, Bank of America, but let me start here. Why does the industry need a financial services cloud? >> Yeah, you know, it's key that we ground ourselves in that question of why a financial services cloud, and I think it really goes back to the sensitivity of the workloads and the data that that industry stewards. The financial services industry stewards the data of millions and millions of customers, and they are heavily regulated because of that, and they handle very high value transactions, and being able to take that context and translate that into what does it mean to do high value transactions, sensitive data, consumer data computing, also with all those benefits of elasticity and the value proposition of different deployment locations, is really what financial cloud is about. And those needs of that industry are a little bit different, the regulations are higher, the bar and data protection is higher, and the need to interlock across workload characteristics and the cloud deployment is a bit different. And so, we are bringing what we know about that industry to bear in the context also of cloud computing. >> Okay, so you're making some new announcements, there's some hard news here, but I want to know, if you're an executive, or business leader in the financial services industry, what's in it for me in these announcements? >> Yeah, what's in it for you is that we are moving into the next phase of financial services cloud in making the policy framework that has been developed through an enormous amount of work available to additional industry participants, and we're also moving into a phase of global expansion, and so being able to take this value proposition of an end to end considered secure and confine environment for financial services, out to more players in the industry, out to additional geographies and deployment locations, it's an exciting moment because everyone's really not looking just for a cloud, but they're looking for a choice of deployment locations, they're looking to move more workload to the cloud, and this is really about providing a cloud solution that more workload can move to, not just the first couple phases of analytics and things like that, but also moving into more transformation of the core of banking and the core of banking business, so it is about getting more workload to the cloud, getting that done faster, and getting it done at a net improved security and compliance posture. >> Got it, so I want to ask you about some learnings, now you're the double whammy of learnings here. When you announced the collaboration with B of A, obviously one of the top banks of the world, you've obviously made some progress since then, but the other part of that whammy was COVID. So what did you learn from the collaboration with B of A, and have you guys, how have you expanded your thinking BC, from before COVID, versus AC, after COVID? >> Yeah, you know, the initial motivation for this program was about having trust and transparency in public cloud, and having a public cloud suited also to sensitive and even core banking workloads. We have seen this conversation and the need for it and the urgency for it only pick up since COVID. A lot of things in the world kind of took a pause, but cloud computing really accelerated. We're seeing that businesses need to digitally transform their banking, so core banking transformation is a very hot topic. They need to deal with elasticity, we worked with banks during COVID that were having to suddenly stand up their national equivalent of the Payroll Protection Program. Banks that had to suddenly have three times the elasticity, because all of a sudden consumers were interacting with them purely digitally. And cloud can enable all of those kind of things, and so COVID has really accelerated the motivation toward banking in the cloud, and also toward core banking transformation, which is at the heart of setting a very high security bar in public cloud, to be able to also enable those kind of workloads. >> Yeah, so many changes as a result of COVID, I mean the volume of loans, like you said, everything was digital. I know a lot of older people that always still like to go into the bank, that like to see people, and they knew people and people knew them, well they had no choice but to go digital, so that's huge, if you didn't have a digital solution, and cloud is fundamental in that equation. But let's get into it a little bit more. We talked a little about this at IBM Think, but what are the key attributes that make the IBM financial services cloud suitable for financial services, is it the certifications, I wonder if you could add some color there. >> Yeah, so the key elements of the financial services cloud program are number one, a policy framework, which is a set of controls that are customized to the financial services industry, so this isn't about some existing standard, this is a customization of controls and security for the financial services industry, and that's a major element of what we're announcing right now. In addition to the policy framework is also the way that the different elements of the industry and of regulatory expertise are coming together, so this cloud, and these public cloud offerings, were co-developed and co-designed with IBM Promontory, with IBM Security Services that work with banks, with our anchor partner, and moving forward, we'll be advised by an advisory council of CSOs who have that day to day experience with security and with regulations. And so that is also a very unique context for not this being just a point in time with a policy framework, but being an ongoing initiative that will stay up to date, as security concerns and as regulatory concerns change. And the third aspect is a really unique set of technologies that make all of that possible, so you have to define how the cloud is going to be secure, and then you have to actually do it, and the unique capabilities that we have in IBM public cloud that have enabled this program include a number of things, but amongst them, the industry's highest standard for data protection, with our FIPS-140-2 Level 4 based key protect service, it includes capabilities that we'll be releasing through our acquisition of Spanugo around cloud security and compliance posture management, mapped back to that context of financial services. And so it's really three things, it's a policy framework custom and optimized for the financial services industry, the forward evolution of that through industry expertise, and participation of multi parties in that, and then core technologies that enable folks to accomplish that security posture through data protection, through cloud security posture management, et cetera. >> I forgot about the Promontory, you guys made that acquisition several years ago, that's a nice little feature of the FS cloud. But I want to ask, how hard is it to get these certifications? I mean it's obviously not a layup. Lot of work, lot of time, my reason of my question, is this a moat for you, as you guys start to scale? How difficult is it? >> Yeah, so we have been putting in the time and effort, and so that's why this is an exciting moment for us with the initial work product of this effort. And so our intention really is not for that to be a moat, but for us having traversed the moat, to now have a bridge there through the methodology that we built, through the control framework that we built, for others to now get across that moat. And so this is really about taking what is an extensive amount of work, and an extensive amount of expertise, IBM Promontory, you just mentioned, but they monitor over 70 regulatory obligations in over 20 jurisdictions globally, right? I mean this is a tremendous depth of expertise, and so having crossed the moat, and having built the bridge across it, this is where we can then help others to save time in this process of adopting public cloud for further workloads. >> You've mentioned workloads, you've talked about core financial workloads, but maybe give us a little insight on what type of workloads are the most suitable for the financial services cloud, because let's face it, most of the hardcore mission-critical workloads haven't moved, actually probably none of 'em have moved to the cloud, you kind of referenced that before. Ginni Rometty talks about that all the time. But what are the right workload strategic fits for your cloud? >> Yeah, you know you mentioned Ginni Rometty, and so I'll take a quick note there from some of the language that you'll hear her use, she talks about, there was chapter one of the cloud journey, and stuff that was on less sensitive data, analytics, some things on public information, were certainly done, also in finance and also in regulated industries in the cloud. And she talks about chapter two, chapter two being mission-critical workloads. And this program really is the definition of chapter two for the financial services industry. It is the enabling expertise, the enabling control set, the enabling security technologies, the enabling cloud services, for that chapter two, right, for that next layer of adoption of things that had been kept behind the firewall, had been kept in a private cloud context, can now be considered also for public cloud. And so easing that adoption, streamlining that process, et cetera, is really what we're looking to accomplish. >> I mean obviously IBM, huge presence in the banking community, is this really for just big banks? What about the ecosystem, what do you got in there for ISVs and SaaS providers? >> Yeah, you know, you asked me a question at the beginning here about COVID and what's happened, and I think, the transformation of ISV providers to become SaaS providers, the expansion of their capabilities being needed in payments and digital client experiences and such, also for regionals and second and third tier banking institutions and such, is as much of what is happening right now as anything else, amongst the first tiers, because there's just as much pressure for transformation and digital consumer experience, and other things like that, also in the regionals and second and third tiers. So part of our announcement is around the ecosystem of partners that we have now for the financial services cloud program. And that includes ISVs and SaaS providers that are servicing many different types of needs of institutions large and small, so we're seeing those that are servicing core banking, and payments, those that are servicing analytics use cases for this industry, and even HR function, just because of that concern about stewarding data well for these industries and those first tier banks, and so that transition to digital, that drive to infuse AI capabilities, the need to transform core banking, is something that's very much also happening within the ISV and SaaS providers, and we're thrilled with the wide variety of partner base that we're seeing develop there within our ecosystem for this program. >> I was talking to a CIO friend of mine several years ago, and he said to me, "You know, this idea of lifting and shifting, "it's fine, you get little cost savings, maybe, "but unless you change your operating model "and you drive an innovation agenda, "you really aren't going to get the type "of telephone number returns from cloud "that you would want or expect." So my question is around innovation, and we've said many times in theCUBE that the new innovation cocktail, it's not Moore's law anymore, it's the combination of data applying machine intelligence and then the cloud, and the reason why the cloud is important is scale, okay, there's maybe a little bit of cost as well, but it's also innovation. It's the ability to attract people into an ecosystem, and that resonates with line of business. If your cloud is just about making IT's life better, well that's nice, but what's in this announcement and in this initiative for the line of business? >> Yeah, it is all about the workloads. I always say that to me the cloud journey is about, number one your platform, which is the thing onto which you modernize. It is what are you going to get out of moving to containers, what are you going to get out of moving to microservices, how does that help all of those cloud metrics that you mentioned? But number two, it's about the workload, right, which workloads are we talking about, how will they deliver, how will those workloads be able to because of cloud deliver not just TCO but improvement in customer experience, how will those workloads be able to meet elasticity, resiliency, cybersecurity concerns, changes in the way the workforce is working these days, et cetera. And from the line of business perspective, there is a tremendous need to consume, for example, fintech-based innovation. But a lot of folks have struggled to move past POCs because of concerns about security and compliance, for those deployment scenarios, and so being able to bring the ISVs and SaaS providers, and then also fintechs into an ecosystem with a prescriptive and proactive security and compliance context is really what we're all about here. And that will enable a flourishing of adoption of innovation. >> You know, I always love to talk about the competition on these episodes. But I want to ask differentiation, how different is this, can I just go to any cloud supplier and get this, will I eventually be able to, what's IBM's differentiation, Hillery? >> Yeah, so you want to think of it that, in financial services, you are concerned, and you have to be concerned about everything. You have to be concerned about things into the details of the cloud itself, you have to be concerned about things that are related to the behavior and the permissions of your developers in that environment. Financial services cloud really has to be an end to end, soup to nuts conversation, and so this is a program of our public cloud, where end to end, we can stand behind and provide trust and resiliency and this policy framework, end to end within an environment that can be trusted for mission-critical workload. And so when we look at differentiation, our investments are in bringing together IBM's expertise all the way going back to regulations and security consulting that we've been doing for decades in this industry, applying that to that cloud context, taking capabilities that are developed all the way down into the transistors, investments we've made even into the silicon around how cryptography is done, bringing that into the cloud context. And so having brought those things together into our public cloud context, that's how we're able to solution this in a different way, because it really is end to end about the expertise, from all of that regulatory advising, that security context, all the way down into the silicon and the transistors, and I think that's a very unique value proposition, as a cloud provider, it's a tremendous opportunity for us to bring together those pieces. And to continue to be a trusted partner to these companies that we have long been a trusted partner of. >> Now of course you guys have a relationship with VMware, you were the first, actually, to announce a VMware cloud relationship. And so let's say, okay, I got some VMware workloads, I move 'em into your FS cloud. Make sure that I've got the security and compliance checked. Six months down the road, so I've done that sort of first step, what's next for me, is that the end, or are there other things on my journey? >> Yeah, so absolutely, I mean VMware is part of what we are solution financial services clients to, but also cloud-native, and OpenShift, containerization, that modernization journey, is an ongoing journey for everyone, and so to your point of what's next, we're seeing a continual conversation of balancing lift and shift and modernization across workloads, and there are different reasons at different points in time, for people to consider that. I think the key is that they trust where they are taking that data, and whatever the form is that the workload goes, it needs to be in the context of that trust around the data in a security context, and so we're absolutely seeing everything, honestly, from financial services institutions looking to engage with us, also in our new research innovation lab, where we're engaging directly with financial services clients that are trying to work through this differentiation, is it virtualization, is it containerization, is it even serverless? What is the right and most effective balance of how workloads are programmed and run for the next generation of banking. >> You know, Hillery, I've been doing a lot of interviews in the last decade, and it's been interesting to see the ascendancy of cloud, of course, but also the change in perception, particularly in financial services, in the early days of cloud, cloud was an evil word. The C that should not be named. And so I want to understand if I'm, and of course COVID has also changed the perception, because if you weren't digital and you didn't have cloud, you couldn't really transact businesses as well, you didn't have that business resiliency. So, what if I'm a financial services person now, okay, I'm through the knothole, I want to get started, where do I start? >> Yeah, well call us first, but past that, I think that the conversations, the first conversations that we're having with our clients are, number one, do you have an architecture? So is cloud not just a place, like I like to say, but is cloud a plan, is there an architectural plan to enable you to have consistency, for example, in your developer experience between your private cloud environment and your public cloud environment? Architecturally are there those foundational choices around common services about being able to deploy capabilities in one location, and develop them in another, et cetera. All those value propositions of what we have been creating around OpenShift and Cloud Paks in our public cloud, and consistency across different environments and such, I think that's the first thing to start with is architecting a cloud, not accidental usage of multiple environments, but architecting use of multiple environments. And then I think the second conversation is to make a security and compliance plan that is going to be robust enough to withstand even the intense scrutiny of a regulated industry CCO and risk team, and so that's the other foundational conversation that we're having with our clients, and helping them with, so we can provide services and reference architectures, and all that other kind of thing, to enable them to stabilize planning on both fronts, both architecturally for what cloud means in its entirety, not just a cloud, but in its entirety, all clouds, multicloud, hybrid cloud, et cetera. And then secondly, then, a comprehensive security plan for that public cloud choice, and that's what we're really locking down with this policy framework, is bringing standardization on that for public cloud. >> Well, lot of innovation for the financial services community, which is again your wheelhouse. I wrote a piece right around Think that IBM's future rests on its innovation agenda, and I'm glad you brought up the notion of private, public, and then the whole hybrid thing, because I see OpenShift as a key, and RedHat as a key enabler of that across whether it's cloud, on-prem, edge, across multiple clouds. That's an ambitious agenda, as somebody who's responsible for cloud. That is something that is real innovation, and really differentiable I think, in the marketplace, and probably pretty expensive to build out across all those different platforms. >> Yeah, it is, but I think on the word innovation, my mind, as an IBMer, goes to the IBM research division. Thousands of researchers globally, and they've very much been a part of this journey with us. The journey with us on containerization, the journey on workload modernization from monolith to microservices, the journey of our public cloud, and now also very much a part of our work in financial services, so our research division is this incredible gift and asset that we have, that is working with us also on our cloud security and compliance posture management, that security and compliance control center that we're talking about in this announcement, et cetera, and so them being a part of this innovation stream for us is a really exciting part, again, of bringing together all these different pieces that IBM has to offer in this space to make it all stack up, to be a cloud for financial services. >> I got a couple of little housekeeping items before we close here. This is announced for the US first, right? What about other regions, first of all, is that correct, and what about other regions? >> That's correct, and we are also announcing additional participation of global banking partners as well in this announcement. And so this is also again our initial public statement of our expansion past the US. >> Last question, so just give us a glimpse of the future, where do you want to be in a few years, thinking about let's say three years down the road, what's that outcome look like? >> Yeah, you know I think that three years from now, we would love to see that people are able to make a decision, going back to your question about the line of business owners, make a decision about what they're trying to accomplish with a workload, and not be held back by security and compliance concerns in terms of putting that workload where it needs to be, where it will be most efficient, and where it can be embraced by a set of cloud capabilities that enable it to move in a competitive pace forward, infusing AI into everything that is done. Leveraging the latest in technologies, and serverless computing and all these other kind of things that can facilitate a line of business delivering more value so that cloud really continues, but also realizes its promises in that chapter two version of the story, also for regulated industries and also for their mission-critical workloads. >> Well Hillery, good luck with this, I mean congratulations on the progress that you've made, really since you guys announced this late last year, and really excited to see this start to take off, and you're a great guest, love having you on, thank you so much. >> Thanks so much for having me, pleasure talking to you as always. >> All right, cheers. And thank you everybody for watching, this is Dave Vellante for theCUBE, and we'll see you next time. (calm music)

>> Narrator: From the cube studios in Palo Alto in Boston, connecting with thought leaders all around the world. This is a cube conversation. >> Hi, I am Stu Miniman and welcome to this special cube conversations. We're here with Dell Technology to share the news of an update to one of their product lines. We've watched for a number of years, Dell has taken their portfolio like I said they powered them up. So, of course the servers are known for a long time PowerEdge and we've seen many of the storage products and like going through their power up and here we have is the PowerFlex. So people that are familiar with what's happening in the software defined storage and hyper-converged space will remember the VX flex, so it's powered up. Joining me to discuss this important announcement, we have Matthew Paul, who's the Senior Director of Product Management and Anthony Cinelli, who's the Senior Director of Business Development, both with Dell Technologies. Matt, let's jump right into it. PowerFlex, powering up this segment of the market, give us the importance and what the announcement is. >> Great, thank you Stu thanks for having us. Yeah, I'm really excited to announce that we're powering up our product and we're moving our VxFlex product through the new power brand and the power name, really responding to customers and our customers taking this product on and aligning it and using it to be able to... Inline with our bigger portfolio that we have at Dell EMC, delivering outcomes for our customers. So it's an exciting timeframe and it really reflects this idea of customers' adoption, in the technology and our investment as Dell Technologies in this software defined storage, to kind of signify to the market that we're here to stay and this is an exciting thing we're working through. The second part around this on top of kind of the rebrand is a new launch of PowerFlex three five So this new software and this software information is delivering some key additions to our portfolio, including a replication, including a new HDMI 5 GUI and including some really cool additions to our software management stack that customers are really been asking for. >> Excellent. So AC, in normal times you're out meeting with a lot of customers, I'm sure you're still talking to a lot of customers, even if you're in work from home mode during the pandemic, but help us understand one of the things we know that Dell has done is it is spring line the portfolio, but when you talk about storage software-defined storage, converged, hyper-converged, there's still a few different options inside the Dell family. So tell us where PowerFlex fits and how it differentiates in position, compared to some of the other pieces. >> Yeah, great question. So, I have a pretty nice role here for Dell, which is, I am responsible for our entire portfolio of converged, hyperconverged, and software defined offerings. And really what that affords me is one particular luxury when I engage with customers. And that luxury is that I can start every single customer engagement with a question. Which is, what problem are you trying to solve? And that's really important because having a portfolio at my disposal allows me to lead with that question and really focus the conversation and solution on what their business problem is and how best to solve it. Now, the things we typically listen for when it comes to Flex are things like flexibility, things like performance, things like I'm trying to solve a platform where I want to re-platform my architecture to a software-defined outcome. But I need to run a wide variety of workloads. I need to run virtual workload, I need to run physical workload, I need to run container workload, I want to consolidate all of that onto a single modern software-defined infrastructure. Or we hear workload specific things. Things like I have an incredibly high performance Oracle Database, or I have a workload. One great example of a customer was cause of COVID they had to go from 60,000 to 160,000 remote users over a weekend. They did that on Flex with zero incremental infrastructure required for the storage. All the performance, all of the horsepower was fully capable of handling that increased capacity. Another customer, curbside pickup was a great application for their business, saw a hundred X performance requirement increase essentially over the course of a weekend because of COVID. Running on flex, they were able to swallow that performance increase with no problem. So a lot of what we see when it comes to Flex and the problems we're hearing are I need a platform that has a lot of inherent flexibility, or I have a very acute workload problem, then I need something very scalable and very performant to solve. But again, my luxury is I can always ask the customer the question first and then leverage the power of our portfolio to provide the best solution to solve for their business problem. >> All right, so AC, appreciate you talked about scale and performance, two of the really big things, if you talk about what's happening in this space. Matt, maybe you can help us sequin through a little bit, as to how this differentiates compared to other solutions in the market place we saw software-defined storage, hyper-converged infrastructure run through its wave in the last few years, you've got some very large customers, big brand names globally, as well as service providers that have used Flex in the past. So explain how this is different from others out there. >> Yeah, I think when we talk about how we manage and we work through this, it's our concepts, so I'm trying to really democratize this software to the masses, right? And be able to make it easy to use and simple to use. If you think about old or traditional software-defined storage, all the knobs and all the tweaks, sometimes it make it difficult to implement. And so you get these really high end extreme customers that leave all these knobs to tweak. We do that very, very well, but what we've been focused on the last couple of years is ensuring we can get that to multiple places through robust kind of investment in our flex manager space. So be able to automate and make things a lot easier and simpler for customers to use that way we can go down and provide this technology to more people. And then the other thing is kind of meeting customers where they need to be. And so a couple of key mechanism, which people consume our products is through our appliances and our racks or integrated racks. So when a customer comes after a kind of a full end to end white glove solution, whether I want to roll a big rack into their environment, plug it in, get it up and going, we have a full integrated rack that we deliver to the customers that really drive that outcome. And then if you think about the difference between that and the appliance the appliance has given us a little more flexibility. So if you want to plug that into an existing network or an existing environment, well, both of these things give you that extreme scale and performance that AC was just talking about, while that rich management experience. so I think you kind of aligned the consumption models and the new management, which also brings a big differentiated value to the product. >> Excellent, so, Matt when I hear you talking about these solutions, wonder if you can help connect this with how your customers are talking about cloud in general, you talked about consumption model, you talked about how to manager, so where does this fit? whether it's the Dell Tech Cloud or just your customers overall discussion of cloud. >> Yeah, so a couple of things come to mind here. Typically what we see with PowerFlex is customer saying, I'm trying to achieve what we call this common platform, which is, I want to build an on premises cloud, that gives me the flexibility to run all the workloads in my data center. And when we say all the workloads, that's everything from obviously your virtualization stack through things like your physical bare metal workloads typically your high performance databases all the way through this emerging world of containers. And those containers could be virtual, could be physical. And giving customers the value of running all of that on a single underlying software-defined infrastructure, with all of the automation life cycle management to go along with it, there's really just nothing like that in the market. So really where we're seeing this adoption is customers who are saying, I want to build my own cloud within my data center, that gives me the ability to run my workloads and because I'm building them on a common infrastructure, I can build automation that allows my end users to consume that infrastructure in a very cloud-like manner. So that's one big thing that we are seeing customers really bite off on. Another approach is within that Dell Technologies cloud platform. Which is, how do we leverage the best of all of the assets under the Dell Technologies umbrella, namely assets from VMware, VMware cloud foundations and everything they offer in their multicloud story, and providing a wide variety of options within the Dell Technologies portfolio to solve that. Obviously we have our VxRail platform, which is the most integrated solution vertically within that VMware stack. We also have other offerings within our storage portfolio that have the ability to plug into that, PowerFlex being one of those as an option for customers to leverage within that Dell Tech Cloud platform strategy. >> Excellent. Matt, you mentioned the new updates with three dot five maybe give us a little bit more on that If whether it's an existing customer, what things they've been asking for that are in this release, or maybe first some new people that might not have looked at the Flex family for awhile that three dot five might be bringing to the table. >> Yeah, I think the great thing about this product, it's an end to end solution. So we bring all these things together that add that value. A couple of the key things is that we've been hearing and driving towards our customers is around replication or a synchronous replication. So the ability for us to be able to align that and give that to customers is probably the most important piece of this release. We also did some really cool stuff in the management stack. So if you think about other competition or other products, being able to align firmware updates for example, or software updates for example, because of the scale of our product, we've had to align real unique things in our managements like stack like the ability to do rack level updates. So really innovative, really differentiated. So customers can take racks at a time down to do updates 'cause they don't have time when there's thousands of servers in their environment, they don't have time to do one note at a time in a round robin fashion. >> And a point to add onto that, right? What's really unique and Matt touched on it, this concept of democratization. We've always done large really well with this technology, right? In a way that really no other technology platform in this space can. What the team has built on the management stack is now allowing us to also do small and medium incredibly well, where we can bring this incredibly disruptive technology to the masses, to your general enterprise, to your general mid market type customer, who's not solving for hundreds or thousands of notes, but maybe solving for 10, 20 or 50 notes and delivering this very disruptive outcome that helps them much more adapt or much more quickly adapt to changing demands they have, harnessing all this flexibility, but doing it with point click operations that are incredibly simple across the full stack. >> Excellent, well, we've heard from Jeff Clark when you get the power brand on there, that's a message to the customers that this is a platform that's going to be with us for quite a number of years. Give us a look forward as to both of you as to what would you expect to see from PowerFlex. >> Yeah, I mean, we're really excited about the future, right? To your point, aligning with the winning roadmap, the investment level in this technology is really high within the organization, how we work well within the broader Dell Technologies portfolio is really exciting. So we'll continue to innovate and drive this democratization story that Anthony was talking about. Innovate in new data services, innovate in new management paradigms and stacks. Like the thing I just talked about in terms of doing rack level updates. And I think just giving customers, listening to our customers and providing that on a reoccurring basis is the critical thing. So we're really embracing this idea of providing updates on a regular basis to be able to respond to customers' needs on a daily day basis. >> Yeah, I think one thing to add to that, that I'm excited to see the team continue executing on is delivering actual workload solution-based outcomes, right? Very often customers will come to us and say, here's my workload problem, right? It's an Oracle, it's a Slung, it's an elastic stack or name your workload. The team's really done a great job of leveraging this platform and building full stack validated solutions, oftentimes in tandem with the application vendor. So customers can consume this technology with complete confidence to run oftentimes their most important or critical workloads, knowing that they have the full backing of the vendor, they have the full backing of the infrastructure provider and the application provider working together to deliver this technology as an outcome. And because of its extreme flexibility, we can adapt it to so many different workload scenarios and customers have responded to that incredibly well. So for me, I'm excited to see the team continuing to build that solutions portfolio because customers are really seeing a ton of value in that. >> Great. I guess final question I have for you Matt, probably up your alley there, availability of the product, is it available now at the launch and if I was a VxFlex customer before what does the move to PowerFlex move, how do I get from where I was to the future If there are any hardware changes or is it all software? >> Yeah, good point. So it's available now, there on the 25th, so, really excited for the customers and we do support customers going from the existing version to the new version. And so the upgrades are pretty straight forward, pretty easy to bring in that updated management stack and then bring in the updated FlexOS. I'm sorry, PowerFlex version. (giggles) >> It's all right, I'm sure customers will be going back and forth on the terms. All right, Matt and AC thank you so much for the update. Congratulations on the progress. (mumbles) All right, I'm Stu Miniman and thank you for watching the cube. (soft music)

>>Live from Las Vegas, Nevada. Extracting the signal from the noise. It's the queue covering IBM edge 2015 brought to you by IBM. >>Hello everyone. Welcome to the cube. I'm John furrier. We are here in Las Vegas for a special presentation inside the cube. A special announcement. We have mayor AC Borden, mayor of Memphis and Jen Crozer who's the vice president at IBM alliances and Alliance. Welcome to the cube. So mayor Memphis, I'll see renounced city, great culture. Um, smarter cities is a big thing right now. So talk about why Memphis, why IBM, why are you here? What's the big announcement? What's happening in Memphis? >>Well, it's a great day for Memphis in addition to the Grizzlies had slipped that in there, but uh, one, uh, of, of, of just the handful of cities that are receiving what are known as IBM smart cities challenge grants, we pick a challenge. We have, uh, they help us come up with a solution to it. And it's not some abstract idea. In our case, it's how do we weed out the non-emergency calls from the true emergency calls and our EMS service? 120,000, over 120,000 calls a year, about 25,000 of them are not truly emergency calls. So what that does is it takes valuable time and resources away from those true emergency, a true emergency calls. It should be attended to on a priority basis. >>So I know that you have a Twitter handle and you've got a lot of followers. Is the tech culture in Memphis emerging describes the folks that they, what's it like in Memphis from a tech perspective? Are there people who have moved over or there's rabbit. I know there's a lot of folks in town really talk about the tech community. >>Even in my generation, I'm on there just to do a little quality checking. Also on a double analysis. I'm still in this from Zinn. Uh, we're one of the three cities that will received the, uh, Twitter grants, which will allow us to access us and get that data there and use it as we make decisions. So that's really going to be unique for Memphis. So yes, Memphis is a up to date. >>Jen, I gotta ask you because one of the things that's near and dear to our heart in the cube is technology for the advancement of better signal, not noise, whether that's society, education, the Twitter data, and we've talked to in heat you saw about this is that it's the signal of the humans. Um, and this notion of smarter cities is bringing technology to impact the human lives, not just making people get an iWatch or what are, there's some real benefits. Talk about the grants, talk about what IBM is doing because this is real important stuff. I mean, smarter planets to marketing slogan, but the end of the day technology can help people and talk about how that's part of the grant and, and why Memphis and what are these guys doing that's unique. That could be a great case study for others. We started building a smarter planet at one of the things we had to think about was what was the acupressure >>points that would have the biggest ripple effects. And it's cities, right? More than half of the world's population lives in cities. And that's growing by a multiplier every day. And so that's where we wanted to start and we've been really gratified when we started smarter cities challenge, which is a pro bono program. Give us your toughest problem. We will send you a team of six IBM executives for three weeks to help you solve it for free. We've had over 600 mayors apply and we've delivered more than 115 teens >>and in Memphis. I got to ask the question about how you look at the, the governing process now with mobile computing, you can hear everything. They're talking back in real time and it might not be as organized. Certainly tweeting all over the place and kind of getting that data is really key. What's your vision >>that that's the key. We know Memphis, we know what information we have with that. We have what in the world do you do with it? So what better partner than IBM? We know Memphis, but IBM knows the world. We're not the only one who's faced this challenge. So with this team of experts, the IBM professionals who will be owned the ground there, they will then say, here's what you have. Here's the best way to use it. Here's what they did in Rome. Here's what they did in Berlin, London, New York or wherever. So the key is not how much information do you have but what in the world can you do with it in real day to day solutions to those everyday problems. And let me point this out. This is much more than just technology with the process we're going to employ in Memphis using nurses perhaps as dispatchers so that they can ask a few more questions when the call comes in are perhaps helping us set up a system in which nurses will go to the homes of the individuals who we call frequent flyers who often call when, it's not true any emergency but this is because life is on the line here and you really have to have the ability to analyze in real time and apply the right solution. >>And this is why IBM's expertise on a worldwide basis is so critical. >>We always talk about, we always talk about two aspects of real time near real time, which is people get today it's close enough, but when you're in a self driving car maybe or an emergency situation, you want real time. So that's really the key here. Yeah, >>that's the gay real time information being employed in a real real life situation. And that's what any emergency call that's. >>So I've got to get under the hood a little bit cause we like to go a little bit into the engine of, of the, of the local environment. I mean it, people who know life today, they got their cell phones, they think it's easy to call nine one one. It's not that easy. You have these old systems and the cell towers are connected to the municipal networks and you've got a lot of volume of calls coming in. That's a challenge for the local, the technology team and with this new system that's going to clear it up. So, so talk how you guys go from this clogged, you know, traffic calls to really segmenting the emergencies from the nonverbal. >>Again, that's another critical point. We're confident this is going to work and it will somewhat declaw if that's a word unclog because I experienced just without the grant shows us that we could weed out so many of the other calls. They will not be coming in to your nine one one. So that's, that's a big, big help right there is to make sure if we could weed out 25,000 calls, which is what we had last year. We're not truly emergency calls, you wouldn't speak in terms of a Claude nine one one system. >>I was talking to a friend, they're like, give me an example of some of this clog networks that I go, well imagine your phone going off a million times a night. The notifications, cause we're in a notification economy that you have to kind of weed through that. So how are you guys using the data? What's the technology? Can you give some specifics to what's being implemented, the team and how the local resources inter interact with IBM? >>Well I think, you know, the mayor's called out this one source of data that he's getting and mayors we know are getting multiple strings. So we have our intelligent operations center that IBM uses to create dashboards for mayors to see real time data about several different industries or sources or areas that are important to them. But I think that your point about the humans talking is a really critical one. And I want to come back to that because it's easy for us to fixate on the technology. And I think one of the things we've seen in this program is the technology enabling city leaders to hear their constituents in new ways, what they're saying and what they're not saying. And also for them to communicate back with them and close the loop on feedback as policies and programs are inactive. And the thing about the presence of IBM is kind of like a good housekeeping. It will open up Memphis to resources from other national groups. As a matter of fact, we're already using funds from another entity to set up our dashboards for performance in all areas, including of the nine one one calls. So IBM is like this huge magnet. But once folks see, Hey, IBM is in there, others who come in and say, we're going to help Memphis as it develops this system. So >>may I have to ask you a question. If as automation and technology helps abstract away a lot of the manual clogged data and understanding the signal from the noise, what's relevant, what's real time, you have a lot more contextual visibility into your environment and the people. How would you envision the future organization of the government and education and, and uh, police, fire, et cetera, working together? What's the preferred future in your mind's eye? As technology rolls out? The preferred future will be >>the, that when we come up with an innovation like this will be a non event. It would just be, it ought to be the order of the day. Uh, government sometimes kind of lags behind. No, we want to get to the point where we're leading. Uh, quite frankly, my vision is that this soon will become a non event. It will become the order of the day. Uh, humans are citizens will not be afraid of, Oh, I bet not call. I'm going to get a computer on the end of the line or they got a gadget down. They're just going to try to innovate me and see if I'm going to say it would be the order of the day. That's, that's what we're working forward and what we are emphasizing here is not what we are taking away but what we are bringing in. Additionally for this technology, we will actually be able to have a good diagnosis, a good case record built on what we call the frequent flyers. We know the people who call every two weeks, but they will feel so much better when two days before they usually call. A nurse will show up and say, came to check on you and that's what's coming out of this will be customers. This will be the new norm >>because is work. This is already that they're happy people, happy customers, happy voters. Hey, you nailed it. Barack Obama had put in for the first time a data scientist on the white house, DJ Patel, a former entrepreneur, former venture capitalist. Data science is a big deal. Now. Um, are you guys seeing that role coming into the local presence as well? Yes, >>and it's so critical to government and the private sector. If you come up with an item that's not reducing the profit margin, you just shut it down. We can't do that in government that week. Every service we provide, we're locked into that. I cannot say, well the police department where we are, we're not breaking even on that. Let's just shut that down. We won't run three shifts. We'll cut out that third shift. So we have a mandate. It's an imperative. What we're doing here is not an option. This is an absolutely essential. >>So you're excited for the grant. What's next after the announcement? What do you guys be doing together? We've got 16 cities around the world who will be getting these teams. So it's time to schedule them and get started and have the grant now, how many mayors applied and what was the numbers again? Over the life of the program, over 600 mayors have applied for this. This year it was just over a hundred and we are sending teams to 16 cities this year. Well, you guys can get that technology go and get some more music pumping through the world. That's a great place and I'll see the technology, help them. This is a citizen. Thanks for, for sharing the great story. Congratulations, mr mayor. Thanks for joining us on the cube. We right back here in Las Vegas. You watching the cube? I'm John. We'll be right back.