(upbeat music) >> We're here on theCube covering AWS Storage Day 2022. Kevin Miller joins us. He's the vice president and general manager of Amazon S3. Hello, Kevin, good to see you again. >> Hey Dave, it's great to see you as always. >> It seems like just yesterday we were celebrating the 15th anniversary of S3, and of course the launch of the modern public cloud, which started there. You know, when you think back Kevin, over the past year, what are some of the trends that you're seeing and hearing from customers? What do they want to see AWS focus more on? What's the direction that you're setting? >> Yeah, well Dave, really I think there's probably three trends that we're seeing really pop this year. I think one just given the kind of macroeconomic situation right now is cost optimization. That's not a surprise. Everyone's just taking a closer look at what they're using, and where they might be able to pair back. And you know, I think that's a place that obviously S3 has a long history of helping customers save money. Whether it's through our new storage classes, things like our Glacier Instant Retrieval, storage class that we launched to reinvent last year. Or things like our S3 storage lens capability to really dig in and help customers identify where their costs are are being spent. But so certainly every, you know, a lot of customers are focused on that right now, and for obvious reasons. I think the second thing that we're seeing is, just a real focus on simplicity. And it kind of goes hand in hand with cost optimization, because what a lot of customers are looking for is, how do I take the staff that I have, and do more this year. Right, continue to innovate, continue to bring new applications or top line generating revenue applications to the market, but not have to add a lot of extra headcount to do that. And so, what they're looking for is management and simplicity. How do I have all of this IT infrastructure, and not have to have people spending a lot of their time going into kind of routine maintenance and operations. And so that's an area that we're spending a lot of time. We think we have a lot of capability today, but looking at ways that we can continue to simplify, make it easier for customers to manage their infrastructure. Things like our S3 intelligent tiering storage class, which just automatically gives cost savings for data that's not routinely accessed. And so that's a big focus for us this year as well. And then I think the last and probably third thing I would highlight is an emerging theme or it's been a theme, but really continuing to increase in volume, is all around sustainability. And you know, our customers are looking for us to give them the data and the assurances for them, for their own reports and their own understanding of how sustainable is my infrastructure. And so within AWS, of course, you know we're on a path towards operating with 100% renewable energy by 2025. As well as helping the overall Amazon goal of achieving net zero carbon by 2040. So those are some big lofty goals. We've been giving customers greater insights with our carbon footprint tool. And we think that, you know the cloud continues to be just a great place to run and reduce customer's carbon footprint for the similar you know, storage capacity or similar compute capacity. But that's just going to continue to be a trend and a theme that we're looking at ways that we can continue to help customers do more to aggressively drive down their carbon footprint. >> I mean, it makes sense. It's like you're partnering up with the cloud, you know, you did same thing on security, you know, there's that shared responsibility model, same thing now with ESG. And on the macro it's interesting Kevin, this is the first time I can remember where, you know it used to be, if there's a downturn it's cost optimization, you go to simplicity. But at the same time with digital, you know, the rush to digital, people still are thinking about, okay how do I invest in the future? So but let's focus on cost for a moment then we'll come back to sort of the data value. Can you tell us how AWS helps customers save on storage, you know, beyond just the price per terabyte actions that you could take. I mean I love that, you guys should keep doing that. >> Absolutely. >> But what other knobs are you turning? >> Yeah, right and we've had obviously something like 15 cost reductions or price reductions over the years, and we're just going to continue to use that lever where we can, but it's things like the launch of our Glacier Instant Retrieval storage class that we did last year at Reinvent, where that's now you know, 4/10ths of a cent per gigabyte month. For data that customers access pretty infrequently maybe a few times a year, but they can now access that data immediately and just pay a small retrieval fee when they access that data. And so that's an example of a new capability that reduces customer's total cost of ownership, but is not just a straight up price reduction. I mentioned S3 Intelligent-Tiering, that's another case where, you know, when we launch Glacier Instant Retrieval, we integrated that with Intelligent-Tiering as well. So we have the archive instant access tier within Intelligent-Tiering. And so now data that's not accessed for 90 days is just automatically put into AIA and and then results in a reduced storage cost to customers. So again, leaning into this idea that customers are telling us, "Just do, you know what should be done "for my data to help me reduce cost, can you just do it, "and sort of give me the right defaults." And that's what we're trying to do with things like Intelligent-Tiering. We've also, you know, outside of the S3 part of our portfolio, we've been adding similar kinds of capabilities within some of our file services. So things like our, you know elastic file service launched a one zone storage class as well as an intelligent tiering capability to just automatically help customers save money. I think in some cases up to 92% on their their EFS storage costs with this automatic intelligent tiering capability. And then the last thing I would say is that we also are just continuing to help customers in other ways, like I said, our storage lens is a great way for customers to really dig in and figure out. 'Cause you know, often customers will find that they may have, you know, certain data sets that someone's forgotten about or, they're capturing more data than they expected perhaps in a logging application or something that ends up generating a lot more data than they expected. And so storage lens helps them really zoom in very quickly on, you know this is the data, here's how frequently it's being accessed and then they can make decisions about use that data I keep, how long do I keep it? Maybe that's good candidates to move down into one of our very cold storage classes like Glacier Deep Archive, where they they still have the data, but they don't expect to need to actively retrieve it on a regular basis. >> SDL bromide, if you can measure it, you can manage it. So if I can see it, visualize it, that I can take actions. When you think about S3- >> That's right. it's always been great for archival workloads but you made some updates to Glacier that changed the way that we maybe think about archive data. Can you talk about those changes specifically, what it means for how customers should leverage AWS services going forward? >> Yeah, and actually, you know, Glacier's coming up on its 10 year anniversary in August, so we're pretty excited about that. And you know, but there's just been a real increase in the pace of innovation, I think over the last three or four years there. So we launched the Glacier Deep Archive capability in 2019, 2018, I guess it was. And then we launched Glacier Instant Retrieval of course last year. So really what we're seeing is we now have three storage classes that cover are part of the Glacier family. So everything from millisecond retrieval for that data, that needs to be accessed quickly when it is accessed, but isn't being accessed, you know, regularly. So maybe a few times a year. And there's a lot of use cases that we're seeing really quickly emerge for that. Everything from, you know, user generated content like photos and videos, to big broadcaster archives and particularly in media and entertainment segment. Seeing a lot of interest in Glaciers Instant Retrieval because that data is pretty cold on a regular basis. But when they want to access it, they want a huge amount of data, petabytes of data potentially back within seconds, and that's the capability we can provide with Glacier Instant Retrieval. And then on the other end of the spectrum, with Glacier Deep Archive, again we have customers that have huge archives of data that they be looking to have that 3-AZ durability that we provide with Glacier, and make sure that data is protected. But really, you know expect to access it once a year if ever. Now it could be a backup copy of data or secondary or tertiary copy of data, could be data that they just don't have an active use for it. And I think that's one of the things we're starting to see grow a lot, is customers that have shared data sets where they may not need that data right now but they do want to keep it because as they think about, again these like new applications that can drive top line growth, they're finding that they may go back to that data six months or nine months from now and start to really actively use it. So if they want that option value to keep that data so they can use it down the road, Glacier Deep Archive, or Glacier Flexible Retrieval, which is kind of our storage class right in the middle of the road. Those are great options for customers to keep the data, keep it safe and secure, but then have it, you know pretty accessible when they're ready to get it back. >> Got it, thank you for that. So, okay, so customers have choices. I want to get into some of the competitive differentiators. And of course we were talking earlier about cost optimization, which is obviously an important topic given the macro environment you know, but there's more. And so help us understand what's different about AWS in terms of helping customers get value from their data, cost reduction as a component of value, part of the TCO, for sure. But just beyond being a cloud bit bucket, you know just a storage container in the cloud, what are some of the differentiators that you can talk to? >> Yeah, well Dave, I mean, I think that when it comes to value, I think there's tremendous benefits in AWS, well beyond just cost reduction. I think, you know, part of it is S3 now has built, I think, an earned reputation for being resilient, for storing, you know, at massive scale giving customers that confidence that they will be able to scale up. You know, we store more than 200 trillion objects. We regularly peak at over 100 million requests per second. So customers can build on S3 and Glacier with the confidence that we're going to be there to help their applications grow and scale over time. And then I think that in all of the applications both first party and third party, the customers can use, and services that they can use to build modern applications is an incredible benefit. So whether it's all of our serverless offerings, things like Lambda or containers and everything we have to manage that. Or whether it's the deep analytics and machine learning capabilities we have to help really extract, you know value and insight from data in near real time. You know, we're just seeing an incredible number of customers build those kinds of applications where they're processing data and feeding their results right back into their business right away. So I'm just going to briefly mention a couple, like, you know one example is ADP that really helps their customers measure, compare and sort of analyze their workforce. They have a couple petabytes of data, something like 25 billion individual data points and they're just processing that data continuously through their analytics and machine learning applications to then again, give those insights back to their customers. Another good example is AstraZeneca. You know, they are processing petabytes and petabytes of genomic sequencing data. And they have a goal to analyze 2 million genomes over the next four years. And so they're just really scaling up on AWS, both from a pure storage point of view, but more importantly, from all of the compute and analytics capability on top that is really critical to achieving that goal. And then, you know, beyond the first party services we have as I mentioned, it's really our third party, right? The AWS partner network provides customers an incredible range of choice in off the shelf applications that they can quickly provision and make use of the data to drive those business insights. And I think today the APN has something like 100,000 partners over in 150 countries. And we specifically have a storage competency partner where customers can go to get those applications that directly work, you know, on top of their data. And really, like I said, drive some of that insight. So, you know, I think it's that overall benefit of being able to really do a lot more with their data than just have it sit idle. You know, that's where I think we see a lot of customers interested in driving additional value. >> I'm glad you mentioned the ecosystem, and I'm glad you mentioned the storage competency as well. So there are other storage partners that you have, even though you're a head of a big storage division. And then I think there's some other under the cover things too. I've recently wrote, actually have written about this a lot. Things like nitro and rethinking virtualization and how to do, you know offloads. The security that comes, you know fundamentally as part of the platform is, I think architecturally is something that leads the way in the industry for sure. So there's a lot we could unpack, but you've fundamentally changed the storage market over the last 16 years. And again, I've written about this extensively. We used to think about storage in blocks or you got, you know, somebody who's really good in files, there were companies that dominated each space with legacy on-prem storage. You know, when you think about object storage Kevin, it was a niche, right? It was something used for archival, it was known for its simple, get put syntax, great for cheap and deep storage, and S3 changed that. Why do you think that's happened and S3 has evolved, the object has evolved the way it has, and what's the future hold for S3? >> Yeah I mean, you know, Dave, I think that probably the biggest overall trend there is that customers are looking to build cloud native applications. Where as much of that application is managed as they can have. They don't want to have to spend time managing the underlying infrastructure, the compute and storage and everything that goes around it. And so a fully managed service like S3, where there's no provisioning storage capacity, there's, you know we provide the resiliency and the durability that just really resonates with customers. And I think that increasingly, customers are seeing that they want to innovate across the entire range of business. So it's not about a central IT team anymore, it's about engineers that are embedded within lines of business, innovating around what is critical to achieve their business results. So, you know, if they're in a manufacturing segment, how can we pull data from sensors and other instrumentation off of our equipment and then make better decisions about when we need to do predictive maintenance, how quickly we can run our manufacturing line, looking for inefficiencies. And so we've developed around our managed offerings like S3, we've just developed, you know, customers who are investing and executing on plans and you know transformations. That really give them, you know put digital technology directly into the line of business that they're looking for. And I think that trend is just going to continue. People sometimes ask me, well "I mean, 16 years, you know, isn't S3 done?" And I would say, "By no stretcher are we done." We have plenty of feedback from customers on ways that we can continue to simplify, reduce the kinds of things they need to do, when they're looking for example and rolling out new security policies and parameters across their entire organization. So raising the bar there, finding, you know, raising the bar on how they can efficiently manage their storage and reduce costs. So I think we have plenty of innovation ahead of us to continue to help customers provide that fully managed capability. >> Yeah I often say Kevin, the next 10 years ain't going to be like the last in cloud. So I really thank you for coming on theCube and sharing your insights, really appreciate it. >> Absolutely Dave, thanks for having me. >> You're welcome. Okay keep it right there for more coverage of AWS Storage Day 2022 in theCube. (calm bright music)

>> From Bahrain, it's theCUBE covering AWS' Public Sector Bahrain, brought to you by Amazon Web Services. >> Welcome back everyone, it's theCUBE coverage. We are here for the Amazon Web Services Summit in Bahrain in the Middle East where cloud computing is changing the game for start-ups, businesses, and the government, and society Amazon announcing their new read, it's up and running. We've got two great guests to talk about all the integration and opportunities. We have Hassaini who is the CEO of ACME and we have Cherian Abraham, who is the general manager of Computer World. Gentlemen, thank you for joining me. >> Thank you, John. I'm so excited to be here. (laughter) >> Thank you John. It's a pleasure to be here. >> It's a great day, it's a bigger venue than last year. It's our second time here, but what's striking from this event is the explosion of innovation, not just start-ups. You're seeing the businesses, large, global ISV's are here. Seeing new ISV's, new software environments, and the demand for cloud computing is off the charts. So, there's a real need, thirst, for cloud computing. >> Absolutely. >> What's your assessment? >> I believe that most customers have started to look into digital transformation and customers have started buying into a new experience, of moving from Imperium into Cloud. And I think that's a great story because customers are looking to move from CapEx to OpEx and driving innovation and driving more for their businesses. >> And the cloud's first message here in Bahrain has been mandated from the top. >> Absolutely. >> And that's been forcing all the ministries to do it, that's changing the citizen relationship to society, which includes entrepreneurs and business, and now they got to integrate it in the banking systems behind it, so good business for you guys. What's the business impact? >> The new diplomacy in business, I think we are on the right track with the cloud business, with interviews in particular. Just to add to all Abraham's mentioned, you know, I think it's an entire eco system which is working well for the whole cloud objective. I was just speaking to one of, a gentleman who was from one of the news cities, he was teaching there, and what he mentioned to me, you know, that we have been giving students, good students, who were like on the verge of getting certified, now we are going to make them certified and hand them over to you. So we'll have limited people available to us. I think the policies right from the cloud-first policy, you know the banking policies, you know. As the last awareness that AWS has got to the market, it's been a game-changer all of a sudden. >> And it's causing a pipe-lining for talent, that's going to allow people to participate. >> Yup. >> Yes. >> Has there been a business driver behind all this? What's been the big business benefit, besides the mandates? Have you seen from customers, is it software development? What's the business driver? >> The key driver has been, you know, every entity would like to have an edge in the business, you know. It's no more of the old days, where you have the set in a competitors. You all of a sudden see new faces, new companies, who become big challengers. I think the very need to face this challenge as well as the desire to grow more and do more, which is driving the whole cloud momentum. >> You know, one of the things as Agility, we've heard that message here, and we go to all the other cloud events. Agility, agility, agility. Data, data, data. Compute, storage networking. Less about storage networking, because that's become elastic, that's available. That's what Amazon brings to the table. >> True. >> Data and agility now drive a lot of the business conversation because now they got to go hire software developers, who need to build on top of something, that's going to be Amazon or something else. This is a big part of the business architecture. >> Mmhmm, true. >> What are some of the things that you guys have done? Can you talk in generalities about some of the projects? >> We have looked at the elasticity of the platform. We looked at the scalability of the platform. What it brings to our customers? And how do we build innovation, bringing in new technology that helps customers' insight from their existing data, and build onto it. >> What are some of the challenges that you guys have seen that are now available to be overcome, that weren't maybe a few years ago. >> I think that the overall resistance to adapting to Cloud. I think that was one of the major challenges that we've seen a couple of years back, because people felt that going to Cloud is going to hinder the way they do the job, the work. In addition to that, the Cloud brought in a lot of security-related issues where people were not aware. But today, people are embracing it. Customers have started to embrace technology because they see value in cloud data >> The culture fear of change- >> Yes. >> And then the security are being addressed. The banks are going cloud. That's a good tell-sign. >> Absolutely. And there are a lot of ISB's that brings in resilient solutions that addresses customer requirements. >> What's the number one conversation you have with customers? >> Thank you. How do we build further on the cloud? How do we take good applications into cloud and take it into modernizing them? How do we take our digital transformation strategy, moving forward? >> Your conversations? >> I think we talk about longevity in terms of how the business can move forward and stay in the game for a longer time. That's so the discussion starts okay, then we start talking about you know, what it means to modernize the applications, so that you know you have the agility to address newer opportunities, you know, to have the growth that you always wanted to have. And, of course you know, the awareness and education that has happened in this country in particular, in the recent times, that has helped us a lot. Okay, we are no more talking about, you know, the challenges of security, whether it's going to be secure in Cloud or not. We are talking about how the business is going to behave once they make the move. >> I got to put you guys both on the spot with a question, I'd like you both to answer it because I think, any conference you go to that's always the hallway conversations that are interesting, because what happens in the hallways, you see someone you know. You mentioned before we came on camera you see people here. Everyone knows each other, it's growing. What are some of the hallway conversations that you guys have had here that you could share with folks watching. >> We need to adopt the Cloud. We need to build a strategy on Cloud. We need to look at innovations. >> If it is a comment, it is about, you know more services that they can offer. It's an ongoing sector, the new revenue streams that they can generate, these are the conversations that I have most of the time . >> It gets business deals done. Come on, come on. You've got some deals happening. >> Yes. We're getting a lot of good traction with people showing a lot of interest in new areas of business. >> I've found there's three types of companies in digital transformation. One's that know they got to do it, people that are doing it and they get stuck a little bit, and folks that are done it and are like "Wow, maybe I can do it over again" or are successful. So, three kind of phases. How would you categorize the market here in terms of progress, more phase one, two or three? What do you guys see the distribution? >> I think it's phase one and two. We haven't reached phase three yet. There are some customers who have started looking at phase three, but it's all centered around phase one, phase two. >> Understand the playbook? >> Yes. >> Yup. >> What systems to start with, those kinds of things? >> Absolutely. >> Fixing the culture, making more buy into it. >> Absolutely. >> Okay, other question I wanted to get your thoughts on, I think it's important that we're reporting here, is that cultural shift, this new generation of workers, we alluded to it about the young people coming to the university, there's a generational shift happening. >> Absolutely. >> It's almost pride. You see the sparkle in the entrepreneurs eyes that like, there's a whole 'nother thinking out there. >> (Husseini) Sure. >> How do you guys relate to that? What's your observations, being that we're the older, mature generation, kind of looking back at the young guns coming up. >> I think it works very well for us, innovating the event for a combined strategy, you know. We come from a strong lineal system integration and application delivery, and we have a lot of people who are very much tuned to offering turnkey solutions. So, I work first on them okay, because I wanted to have those mindsets with huge amount of experience, ready you know, in the new era of big business. At the same time, we started getting the new team from whom we started learning and know many things in Cloud, many things in DownSoft, you know, acclimation via learning more from them. So this way I think, you know, we had the initial success. I think that you continue that strategy. >> You bring in, combine them on teams... >> Yep. >> They can learn from each other. The key is learning two ways. >> I think the younger generation does not carry baggages, unlike the older generation. >> (chuckling) Yeah. >> They are more open, they are more agile to learning new technology and they want to be entrepreneurs. They've lived new applications that create opportunity for the community, for businesses, and for themselves. >> Yeah, I mean, we had a start-up on here, a thirteen year old company, doing API's >> True >> Billions of transactions, API calls... >> Yeah >> That wasn't even possible in the old days. Remember, you had security perimeter, firewalls, everything's locked down. Not anymore, it's all open. The surface area is completely- >> Entirely new dimension. >> Yeah, security's huge. Thanks so much guys for coming on theCUBE. Take a quick minute, each of you, to give a plug for your companies, what you guys are working on, key initiatives you'd like to share. We'll start over here. >> Thank you, John. My company, Computer World, focuses on digital transformation. We help businesses thrive on new areas by building innovations. >> My company, Almoayyed Computers Middle East, we are a four decade old company and we have taken a reboot recently in Cloud data, focusing more on Cloud now, whatever we do it's all focused on Cloud and we are on to many services. We are on to the emerging technologies, RTA, AIA, machine loading... >> Yeah, the bots are coming. This is going to help humans. >> True. >> The big debate about automating jobs away kind of, I always laugh at that, because there's so many job openings. It's like (chuckling) some go away but more are born. This is the dynamic. >> Yep, yep. >> Guys, thanks so much for coming on and sharing your insights, appreciate it. CUBE coverage here in Bahrain for AWS Summit. I'm John Furrier. We'll be back with more CUBE coverage, after this short break.

>> Announcer: Live from Las Vegas, it's The Cube, covering Oracle Modern Customer Experience 2017, brought to you by Oracle. (dynamic music) >> John: Hey, welcome back everyone, we're here live. Day two coverage of Oracle's Modern CX Modern Customer Experience #ModernCX. Also check out all the great coverage here on The Cube, but also on the web, a lot of great stories and one of the people behind all that is Des Cahill, who's joining Peter Burris and myself. Kicking off day two, Des, great to see you, Head of Customer Experience Evangelist, involved in a lot of the formation and really the simplification of the messaging across Cloud, so it's really one story. >> Yeah, absolutely, so John, Peter, great to be here. You know, I think the real story is about our customers and businesses that are going through transformation. So everything that we're doing at Oracle, in our CX organizations, helping these organizations make their digital business transformation and the reason they're going through this transformative process is to meet the demands of their customers. I'd say it's the era of the empowered customer. They're empowered by social, mobile, Cloud technologies and all of us in our daily lives can relate to the fact that over the last five, 10 years, the way that we buy, our journey as we buy products, as we do research, is completely different, than it used to be, right. >> Talk about the evolution, talk about the evolution of what's happening this week, because I think this is kind of a mark in time, at least from our observation, covering Oracle, this is our eighth year and certainly second year with the modern marketing experience now, >> Des: Yeah. >> the modern customer experience, where the feedback in the floor, and this is noteworthy, is that the quality is great, people at the booth are highly qualified, but it's simple. It's one fabric of messaging, one fabric of product. It feels like a platform, >> Yeah. >> and is that by design (laughs) or is that kind of the next step in the evolution of, >> Des: Yeah, John. >> Marketing Cloud meets Real Cloud and? >> Yeah, yeah, so absolutely John. I mean that, that is by design and again, to support our customers and their needs on this digital business transformation journey, it starts obviously with fantastic marketing, we've just got fantastic capabilities within our Marketing Cloud, but then that extends to Sales Cloud. If you generate leads in marketing and you're not handing them over to sales effectively or of a good sales automation engine and that goes on to commerce, CPQ, social, and service. And all of this, if we bring this back down to again, this notion of the empowered customer, if you're not providing those customers with connected experiences across marketing, sales, service, commerce, you're not... you're going to, you might lose those customers. I mean, we expect connected experiences across our whole journey. If I'm calling my cell phone provider, 'cause I got a problem, I don't, and I don't want to call one person, get transferred to another person and then go to the website to chat with someone, have a disconnected experience. I want them to, when I call, I want them to understand my history, my status as a customer, I'm spending 500 dollars a month on them, the problems I've had before. I want them to have context and to know me in that moment and as Mark Hertz says, it's like a moment of truth with my cell phone provider. Are they going to delight me and turn me into a customer advocate, or am I going to leave and go to another cell phone provider? >> Well let's talk just for a second, and I want to get your comments on this and how it relates specifically to what we're saying here. Digital has two enormous impacts. One, as you said, that a customer can take their research activities with them, on their cell phone. >> Yeah. They have learned, because of commerce and electronic commerce, they've learn to expect and demand a certain style of engagement >> Des: Right. >> and that's not going to change, so if you are not doing those things-- >> We like to say Amazon is the new benchmark, either B to C or B to B, it doesn't matter, right. >> It is a benchmark, at least on the commerce side, so it's, so that's one change, is that customers are empowered. The second big change though, is that increasingly, digital allows people to render products more as services and that's in many respects, what the Cloud's all about. >> Des: Right. >> How do you take an asset, that is a machine and render it as a service to someone? Well now we can actually use digital technologies to render things more as services. The combination of those two things are incredibly powerful, because customers, who now have the power to evaluate and change decisions all the time are now constantly making decisions, because it's a pay-as-you-go service world now. >> Des: Right. >> So how do those two things come together and inform the role, that marketing is going to play inside a business, 'cause increasingly, it seems to us that marketing is going to have to own that continuous, ongoing engagement and deliver that consistent value, so a customer does not leave, 'cause you have more opportunities to leave now. >> Well, I, so I think that's a good observation, Peter. I do think that marketers can play, and do play, a leading role in being the advocate for the customer within the brand, within the company and as a marketer myself, I think about not just the marketing function, but I think about, well, what is the experience, that that lead or that prospect going to have when I hand over to sales? And what is the experience that they are going to have, when I hand them over to service? And in my past roles as a CMO, the challenge I always faced was that I couldn't get information out of the sales automation system or out of the service automation system, so as a marketer, I couldn't optimize my marketing mix and I didn't have visibility on which opportunities I passed, which leads I passed over turned into the best opportunities, turned into the best deals, turned into the customers, that were most loyal, that got cross-sold and up-sold and were the happiest. So I think, going back to Oracle's strategy in all of this, it's about having a connected, end-to-end suite of Cloud applications, so that there's a consistent set of data, that is enabling these consistent, personalized, and immediate experiences. >> I think that's interesting and I want to just validate that, because I think, that is to me, the big sign that I think you guys are on the right track and executing and by the way, some of the things you're talking about used to be the holy grail, they're actually real now. >> Des: Right. >> The dynamic is the silos are a symptom of a digital-analog relationship. >> Des: Right. >> So when you have all digital, the moment of truth starts here, it's all digital. So in that paradigm, end-to-end wins. And at Mobile World Congress this year, one of the main themes when they talk about 5G, and all these things, that were going on, was you know, autonomous vehicles, (laughs) media entertainment, smart cities, a smart home, you know, talk to things. To your point, that's an end-to-end, so the entire world wants-- >> Des: Throw IoT in there. >> Throw IoT, >> Right. >> So again, these digital connections are all connected, so therefore, it is essentially an end-to-end opportunity. So whoever can optimize that end-to-end, while being open, while having access to the data, >> Des: Right. >> will be the winning formula. >> Des: Right. >> And that is something that we see and you obviously have that. >> And then the other piece is how do you actualize that data? Right, and I know you spoke with Jack Berkowitz about adaptive intelligent apps, it's, we're taking approach to artificial intelligence of saying, how can we bring to bear the power of machine learning, dynamic decision science, so that all this data, that's being collected and enabled by all these digital touch points, these digital signals, how do you take that data and how do you actualize that, 'cause the reality is, 80% of data that's collected today is dark, it's untouched, it's just collected, right. >> Well, here is the hard question for you, you know I am going to ask this, so I am going to ask it, here's the hard question. >> Des: Yeah. >> It really comes down to the data, and if you don't, you, connected networks and all that good stuff is great fabric, end-to-end. >> Des: Absolutely, yeah. >> This is certainly the future, it's the new normal, it's coming fast. >> Right. >> But at the end of the day, the conversation we've been having here is about the data. >> Des: Yes. >> What is your position with Oracle on connecting that data, 'cause that ultimately is what needs to flow. >> Des: Right. >> How does that work? Can you just take a minute to >> Sure, sure. >> to address that, how the data flows? >> Yeah, I think it starts with our end-to-end connected applications, that are able, that are connected with each other natively and are sharing that same data set. We obviously recognize that customers have mixed environments, so in those cases, we can certainly use our technologies to connect to their existing data stores, to synchronize with their existing systems, so it all starts with the cleanliness and quality of that baseline customer data. The second piece I'd say, is that we've made a lot of investments over the last five years in Oracle Data Cloud and Oracle Data Cloud is a set of anonymized, third party data. We've got 5 billion consumer IDs, we've got a billion business IDs. We've got a tremendous amount of data sources. We just announced a recent acquisition of a company called Moat, last week at our Oracle Data Cloud Summit in New York City. So we've made a tremendous investment in third party data, that can augment anonymized third party data, that can augment first party data, to allow people to have not just a connected view of the customer, but more of a comprehensive view and understanding of their customers, so that they can better talk to them and get them better experiences. >> That's the key there, that we're hearing with this intelligent, adaptive intelligent app kind of environment, >> Yeah, yeah. >> where machine learning. The third party data integrating within the first party data, that seems to be the key. Is that right, >> Absolutely. >> did I get that right? >> Yeah, well I would say there's a number of points, so I would say that, that, you know, you can think of the Oracle Data Cloud combining with the BlueKai DMP and being a great ad-tech business for us and a great solution for digital marketers in and of itself. What we've done with adaptive intelligent apps is that we've combined that third party data with decision science machine learning AI and we've coupled that with the Oracle Cloud infrastructure and the scale and power of that. So we're able to deliver real-time, adaptive learning and dynamic offers and content at 130 millisecond clips. So this is real-time interaction, so we are getting signals every time someone clicks, it's not a batch mode, one-off kind of thing. The third piece is that we have designed these, designed these apps to just embed natively, to plug into our existing CX applications. So if you're a marketer, you're a service professional, you're a sales professional, you can get value out of this day one. You've got a tremendous data set. You've got real-time, adaptive artificial intelligence and it plugs right into your existing apps. It's a win-win. Take your first party data, take your third party data, combine it together, put some decision science on there, some high bandwidth, incredible scale infrastructure and you're getting, you're starting to get to one-to-one marketing. You're freeing your marketing teams from being data analysts and segmenting and trying to get insight and you're letting the machine do that work and you're freeing up, you're freeing up your human capital to be thinking about higher-level tasks, about offers and merchandising and creative and campaigns and channels. >> Well, the way we think about it, Des, and I'll test you on this, is we think ultimately the machines are going to offer options. So they're going to do triage on a lot of this data >> Des: Right, right. >> and offer options to human decision-makers. Some of the discretions, we see three levels of interaction, >> Des: Yeah. >> Automated interaction, which, quite frankly, we're doing a lot of that today in finance systems. >> Des: Yes. >> But then we get to autonomous vehicles, highly deterministic networks, highly deterministic behaviors, >> Des: Right. >> that's what's going to be required in autonomy. No uncertainty. Where we have environmental uncertainty, i.e. that temperature's going to change or I, some IoT things are going to change, that's where we see the idea of turning the data and actuating it in the context of that environmental uncertainty. >> Des: Right. >> We think that this is all going to have an impact on the human side, what we call systems of augmentation, >> Des: Right. >> where the system's going to provide options to a human decision-maker, the discretion stays with the human decision-maker, culpability stays with the human decision-maker, >> Des: Right. >> but the quality of the options determine the value of the systems. >> So the augmentation is-- >> The augmentation's great. >> So let me give you a great example of that with AIA. So, take for example, you're a pro photographer and you got a big shoot the next day and your camera, your main camera you bought three months ago, it breaks. And you buy all your stuff at photog.com and you call 'em up and what could happen today? "Hi, what's your account number? "Who are you? "Wait, let me look you up, OK. "I'm sorry, I'm not authorized to get you a return." You know, boom, and the person's like, "I'm never going to buy from them again." Right, it's that moment of truth. Contrast that with a, 'cause the person making that decision, if it was the CEO getting that call, the CEO would be like, "We're going to get you a camera immediately." But that person that they're talking to is five levels down in a call center, Bismarck, North Dakota. If that person had AI, adaptive intelligent apps helping them out, then the AI would do the work in the background of analyzing the customer's lifetime value, their social reach, so their indirect lifetime value. It would look at their customer health, how many other services issues, that they have. It would look at, are there any warranty issues or known service failure issues on that camera and then it would look at a list of stores, that were within a five mile radius of that customer, that had those cameras in stock. And it would authorize an immediate pickup and you're on your way. It would just inform that person and enable them to make that decision. >> Even more than that, and this is a crucially important point, that we think people don't get when they talk about a lot of this stuff. These systems have to deliver not only data, but also authority. >> Exactly. The authority has to flow with the data. >> Des: Right. >> That's one of the advantages-- >> On both sides, by the way, on the identity and-- >> On both sides. >> And I think that employee wants that empowerment. >> Absolutely. >> No one wants to take a call and not make the customer happy, right. >> Peter: Absolutely, >> Yeah. >> because that's a challenge with some of the bolt-on approaches to some of these big applications, is that, yeah, >> Exactly. >> you can deliver a result, but then how is the result >> How is it manifested? >> integrated into the process >> Right. >> that defines and affords authority to actually make the decision? >> OK, so let's see, where are we on the progress bar then. because we had a great interview yesterday with the CMO from Time Warner. >> Yeah. >> OK, Kristen O'Hara, she was amazing. But basically, there was no old way of doing data, they were Time Warner, (laughs) they're old school media and they set up a project, you guys came in, Oracle came in, and essentially got them up and running, and it's changed their business practice overnight. >> Des: Right, right. >> So, and the other thing we heard yesterday was a lot of the stuff that was holy grail-like capabilities is actually being delivered. So give us a slice-and-dice what's shipping today, that's, that's hot and where's the work area that's road-mapped for Oracle? >> Sure, well-- >> And were you guys helping customers? >> Sure, I'll talk about a couple of examples, where we're helping customers. So, Denon and Marantz, high end audio company, brand's been around 100 years. The way music is delivered, is consumed, has changed radically in the last 20 years, changed radically in the last 10 years, changed even more radically in the last five years, so they've had to change their business model to keep up with that. They are embedding Oracle IoT Cloud into every product they sell, except their headphones, so all their speakers, all their AV receivers and they are using IoT data and Oracle Service Cloud to inform, not only service issues, like for example, they are, they're detecting failures pro-actively and they're shipping out new speakers, before they fail or they're pushing firmware to fix the problem, before it happens. They're not only using it to inform their service, they're using it to inform their R&D and their sales and marketing. Great example, they ship wireless speakers, HEOS wireless speakers, highly recommend 'em, I bought 'em for my kids for Christmas, they're the bomb. But customers were starting to... They were getting a lot of failures in these wireless speakers. They looked up the customer data, then they looked up the IoT data. They found that 80% of the speaker failures, the products were labeled Bathroom as location in the configuration of their home network setup and what they realized was that customers were listening to music in the bathroom, which is a use case they never thought of and the speakers weren't made to be water or humidity-proof, so they went to the R&D department, 14 months later, they ship a line of waterproof HEOS speakers. The second thing is they found people, who were labeling their speakers, Patio, they were using it on the patio, they didn't even have a rechargeable battery on it, so they came out with a line with a rechargeable battery on it. So they're not only using IoT data, for a machine maintenance function, >> John: 'cause they were behaving-- >> they're using IoT data to inform, inform R&D and they're also doing incredible marketing and sales activities. We had Don Freeman, the CMO of Denon on the main stage yesterday, talking about this great, great stuff they're doing. >> And what's the coolest thing this week, that you're looking at, you're proud of or excited about? >> I'm excited about a lot of stuff, John. This week is realized, you alluded to this week has been really, really fun, really great, a lot of buzz, obviously a lot of buzz around adaptive, intelligent apps and we've talked about that. But I would say also beyond a doubt, that intelligent apps for CX, we've introduced some great things in our Service Cloud, the capability to have a video chat, so Pella Windows was also on one of our panels today and they were talking about the ability for, to solve a service issue, the ability to show a video of what's going on, just increases the speed with which something can be diagnosed so much faster. We're integrating on the Service Cloud, we're integrating with WeChat and we're integrating with Facebook Messenger. Now, why would you do that? Well again, it comes back to this era of the empowered consumer. It's not enough that a company just has a website or an 0800 number that you can go to for support. Consumers are spending more time in social messaging apps, than they are on social messaging sites, so if the consumer wants to be served on Facebook Messenger, 'cause they spend their time on it, the brand has to meet them there. >> John: Yeah. >> The third thing would be the ability for the Marketing Cloud and Service and Sales Cloud, we've got chat bots, voice-driven, text-driven, AI-driven, so mobile assistant for the sales professionals, so you can input data on the road, "Hey, open an account, here's the data "for the transaction here what's going on." >> John: Yeah. >> Incredible, incredible stuff going on all over the stack. >> I think the thing, that excites me, is I look at the videos from last year and the theme was, "Man, you guys have "all these awesome acquisitions," >> Des: Right. >> "But you have this opportunity with the data," and you guys knew that and you guys tightened that together and doubled down on the data >> Des: Yeah, with banking, yeah-- >> and so I thought that was a great job and I like the messenging's clean, I think but more importantly is that in any sea change, you know, we joke about this, as we're kind of like historians and we've seen a lot of waves, >> Des: Right, for sure. >> and all these major waves, when the user's expectations shift, that's the opportunity. I think what you guys nailed here is that, and Peter alluded to it as well, is that the users are expecting things differently, completely differently. >> Let me share a stat with you. 50% of the companies that were in the Fortune 500 in the year 2000, are either out of business, acquired, gone, 50% and those companies, >> Dab or die. >> Blockbuster, Borders, did they stay relevant? >> John: Yeah. I think changing business practice based on data is what's happening, it's awesome. Des Cahill, here on The Cube. More live coverage, day two of Modern CX, Modern Customer Experience, #ModernCX. This is The Cube, I'm John Furrier with Peter Burris, we'll be right back. (dynamic music)