>>How do y'all, and welcome to Dallas, where we're proud to be live from Supercomputing 2022. My name is Savannah Peterson, joined here by my cohost David on the Cube, and our first guest today is a very exciting visionary. He's a leader at Dell. Please welcome Travis Vhi. Travis, thank you so much for being here. >>Thank you so much for having me. >>How you feeling? >>Okay. I I'm feeling like an exciting visionary. You >>Are. That's, that's the ideas why we tee you up for that. Great. So, so tell us, Dell had some huge announcements Yes. Last night. And you get to break it to the cube audience. Give us the rundown. >>Yeah. It's a really big show for Dell. We announced a brand new suite of GPU enabled servers, eight ways, four ways, direct liquid cooling. Really the first time in the history of the portfolio that we've had this much coverage across Intel amd, Invidia getting great reviews from the show floor. I had the chance earlier to be in the whisper suite to actually look at the gear. Customers are buzzing over it. That's one thing I love about this show is the gear is here. >>Yes, it is. It is a haven for hardware nerds. Yes. Like, like well, I'll include you in this group, it sounds like, on >>That. Great. Yes. Oh >>Yeah, absolutely. And I know David is as well, sew up >>The street. Oh, big, big time. Big time hardware nerd. And just to be clear, for the kids that will be watching these videos Yes. We're not talking about alien wear gaming systems. >>No. Right. >>So they're >>Yay big yay tall, 200 pounds. >>Give us a price point on one of these things. Re retail, suggested retail price. >>Oh, I'm >>More than 10 grand. >>Oh, yeah. Yeah. Try another order of magnitude. Yeah. >>Yeah. So this is, this is the most exciting stuff from an infrastructure perspective. Absolutely. You can imagine. Absolutely. But what is it driving? So talk, talk to us about where you see the world of high performance computing with your customers. What are they, what are they doing with this? What do they expect to do with this stuff in the future? >>Yeah. You know, it's, it's a real interesting time and, and I know that the provenance of this show is HPC focused, but what we're seeing and what we're hearing from our customers is that AI workloads and traditional HPC workloads are becoming almost indistinguishable. You need the right mix of compute, you need GPU acceleration, and you need the ability to take the vast quantities of data that are being generated and actually gather insight from them. And so if you look at what customers are trying to do with, you know, enterprise level ai, it's really, you know, how do I classify and categorize my data, but more, more importantly, how do I make sense of it? How do I derive insights from it? Yeah. And so at the end of the day, you know, you look, you look at what customers are trying to do. It's, it's take all the various streams of data, whether it be structured data, whether it be unstructured data, bring it together and make decisions, make business decisions. >>And it's a really exciting time because customers are saying, you know, the same things that, that, that, you know, research scientists and universities have been trying to do forever with hpc. I want to do it on industrial scale, but I want to do it in a way that's more open, more flexible, you know, I call it AI for the rest of us. And, and, and customers are here and they want those systems, but they want the ecosystem to support ease of deployment, ease of use, ease of scale. And that's what we're providing in addition to the systems. We, we provide, you know, Dell's one of the only providers on the on in the industry that can provide not only the, the compute, but the networking and the storage, and more importantly, the solutions that bring it all together. Give you one example. We, we have what we call a validated design for, for ai. And that validated design, we put together all of the pieces, provided the recipe for customers so that they can take what used to be two months to build and run a model. We provide that capability 18 times faster. So we're talking about hours versus months. So >>That's a lot. 18 times faster. I just wanna emphasize that 18 times faster, and we're talking about orders of magnitude and whatnot up here, that makes a huge difference in what people are able to do. Absolutely. >>Absolutely. And so, I mean, we've, you know, you've been doing this for a while. We've been talking about the, the deluge of data forever, but it's gotten to the point and it's, you know, the, the disparity of the data, the fact that much of it remains siloed. Customers are demanding that we provide solutions that allow them to bring that data together, process it, make decisions with it. So >>Where, where are we in the adoption cycle early because we, we've been talking about AI and ML for a while. Yeah. You, you mentioned, you know, kind of the leading edge of academia and supercomputing and HPC and what that, what that conjures up in people's minds. Do you have any numbers or, you know, any, any thoughts about where we are in this cycle? How many, how many people are actually doing this in production versus, versus experimenting at this point? Yeah, >>I think it's a, it's a reason. There's so much interest in what we're doing and so much demand for not only the systems, but the solutions that bring the systems together. The ecosystem that brings the, the, the systems together. We did a study recently and ask customers where they felt they were at in terms of deploying best practices for ai, you know, mass deployment of ai. Only 31% of customers said that they felt that they self-reported. 31% said they felt that they were deploying best practices for their AI deployments. So almost 70% self reporting saying we're not doing it right yet. Yeah. And, and, and another good stat is, is three quarters of customers have fewer than five AI applications deployed at scale in their, in their IT environments today. So, you know, I think we're on the, you know, if, if I, you think about it as a traditional S curve, I think we're at the first inflection point and customers are asking, Can I do it end to end? >>Can I do it with the best of breed in terms of systems? But Dell, can you also use an ecosystem that I know and understand? And I think that's, you know, another great example of something that Dell is doing is, is we have focused on ethernet as connectivity for many of the solutions that we put together. Again, you know, provenance of hpc InfiniBand, it's InfiniBand is a great connectivity option, but you know, there's a lot of care and feeding that goes along with InfiniBand and the fact that you can do it both with InfiniBand for those, you know, government class CU scale, government scale clusters or university scale clusters and more of our enterprise customers can do it with, with ethernet on premises. It's a great option. >>Yeah. You've got so many things going on. I got to actually check out the million dollar hardware that you have just casually Yeah. Sitting in your booth. I feel like, I feel like an event like this is probably one of the only times you can let something like that out. Yeah, yeah. And, and people would actually know what it is you're working >>With. We actually unveiled it. There was a sheet on it and we actually unveiled it last night. >>Did you get a lot of uz and os >>You know, you said this was a show for hardware nerds. It's been a long time since I've been at a shoe, a show where people cheer and u and a when you take the sheet off the hardware and, and, and Yes, yes, >>Yes, it has and reveal you had your >>Moment. Exactly, exactly. Our three new systems, >>Speaking of u and os, I love that. And I love that everyone was excited as we all are about it. What I wanna, It's nice to be home with our nerds. Speaking of, of applications and excitement, you get to see a lot of different customers across verticals. Is there a sector or space that has you personally most excited? >>Oh, personally most excited, you know, for, for credibility at home when, when the sector is media and entertainment and the movie is one that your, your children have actually seen, that one gives me credibility. Exciting. It's, you can talk to your friends about it at, at at dinner parties and things like that. I'm like, >>Stuff >>Curing cancer. Marvel movie at home cred goes to the Marvel movie. Yeah. But, but, but you know, what really excites me is the variety of applications that AI is being used, used in healthcare. You know, on a serious note, healthcare, genomics, a huge and growing application area that excites me. You know, doing, doing good in the world is something that's very important to Dell. You know, know sustainability is something that's very important to Dell. Yeah. So any application related to that is exciting to me. And then, you know, just pragmatically speaking, anything that helps our customers make better business decisions excites me. >>So we are, we are just at the beginning of what I refer to as this rolling thunder of cpu. Yes. Next generation releases. We re recently from AMD in the near future it'll be, it'll be Intel joining the party Yeah. Going back and forth, back and forth along with that gen five PCI e at the motherboard level. Yep. It's very easy to look at it and say, Wow, previous gen, Wow, double, double, double. It >>Is, double >>It is. However, most of your customers, I would guess a fair number of them might be not just N minus one, but n minus two looking at an upgrade. So for a lot of people, the upgrade season that's ahead of us is going to be not a doubling, but a four x or eight x in a lot of, in a lot of cases. Yeah. So the quantity of compute from these new systems is going to be a, it's gonna be a massive increase from where we've been in, in, in the recent past, like as in last, last Tuesday. So is there, you know, this is sort of a philosophical question. We talked a little earlier about this idea of the quantitative versus qualitative difference in computing horsepower. Do we feel like we're at a point where there's gonna be an inflection in terms of what AI can actually deliver? Yeah. Based on current technology just doing it more, better, faster, cheaper? Yeah. Or do we, or do we need this leap to quantum computing to, to get there? >>Yeah. I look, >>I think we're, and I was having some really interesting conversations with, with, with customers that whose job it is to run very, very large, very, very complex clusters. And we're talking a little bit about quantum computing. Interesting thing about quantum computing is, you know, I think we're or we're a ways off still. And in order to make quantum computing work, you still need to have classical computing surrounding Right. Number one. Number two, with, with the advances that we're, we're seeing generation on generation with this, you know, what, what has moved from a kind of a three year, you know, call it a two to three year upgrade cycle to, to something that because of all of the technology that's being deployed into the industry is almost more continuous upgrade cycle. I, I'm personally optimistic that we are on the, the cusp of a new level of infrastructure modernization. >>And it's not just the, the computing power, it's not just the increases in GPUs. It's not, you know, those things are important, but it's things like power consumption, right? One of the, the, the ways that customers can do better in terms of power consumption and sustainability is by modernizing infrastructure. Looking to your point, a lot of people are, are running n minus one, N minus two. The stuff that's coming out now is, is much more energy efficient. And so I think there's a lot of, a lot of vectors that we're seeing in, in the market, whether it be technology innovation, whether it be be a drive for energy efficiency, whether it be the rise of AI and ml, whether it be all of the new silicon that's coming in into the portfolio where customers are gonna have a continuous reason to upgrade. I mean, that's, that's my thought. What do you think? >>Yeah, no, I think, I think that the, the, the objective numbers that are gonna be rolling out Yeah. That are starting to roll out now and in the near future. That's why it's really an exciting time. Yeah. I think those numbers are gonna support your point. Yeah. Because people will look and they'll say, Wait a minute, it used to be a dollar, but now it's $2. That's more expensive. Yeah. But you're getting 10 times as much Yeah. For half of the amount of power boom. And it's, and it's >>Done. Exactly. It's, it's a >>Tco It's, it's no brainer. It's Oh yeah. You, it gets to the point where it's, you look at this rack of amazing stuff that you have a personal relationship with and you say, I can't afford to keep you plugged in anymore. Yeah. >>And Right. >>The power is such a huge component of this. Yeah. It's huge, huge. >>Our customer, I mean, it's always a huge issue, but our customers, especially in Amia with what's going on over there are, are saying, I, you know, I need to upgrade because I need to be more energy efficient. >>Yeah. >>Yeah. I I, we were talking about 20 years from now, so you've been at Dell over 18 years. >>Yeah. It'll be 19 in in May. >>Congratulations. Yeah. What, what commitment, so 19 years from now in your, in your second Dell career. Yeah. What are we gonna be able to say then that perhaps we can't say now? >>Oh my gosh. Wow. 19 years from now. >>Yeah. I love this as an arbitrary number too. This is great. Yeah. >>38 year Dell career. Yeah. >>That might be a record. Yeah. >>And if you'd like to share the winners of Super Bowls and World Series in advance, like the world and the, the sports element act from back to the future. So we can play ball bets power and the >>Power ball, but, but any >>Point building Yeah. I mean this is what, what, what, what do you think ai, what's AI gonna deliver in the next decade? >>Yeah. I, I look, I mean, there are are, you know, global issues that advances in computing power will help us solve. And, you know, the, the models that are being built, the ability to generate a, a digital copy of the analog world and be able to run models and simulations on it is, is amazing. Truly. Yeah. You know, I, I was looking at some, you know, it's very, it's a very simple and pragmatic thing, but I think it's, it, it's an example of, of what could be, we were with one of our technology providers and they, they were, were showing us a digital simulation, you know, a digital twin of a factory for a car manufacturer. And they were saying that, you know, it used to be you had to build the factory, you had to put the people in the factory. You had to, you know, run cars through the factory to figure out sort of how you optimize and you know, where everything's placed. >>Yeah. They don't have to do that anymore. No. Right. They can do it all via simulation, all via digital, you know, copy of, of analog reality. And so, I mean, I think the, you know, the, the, the, the possibilities are endless. And, you know, 19 years ago, I had no idea I'd be sitting here so excited about hardware, you know, here we are baby. I think 19 years from now, hardware still matters. Yeah. You know, hardware still matters. I know software eats the world, the hardware still matters. Gotta run something. Yeah. And, and we'll be talking about, you know, that same type of, of example, but at a broader and more global scale. Well, I'm the knucklehead who >>Keeps waving his phone around going, There's one terabyte in here. Can you believe that one terabyte? Cause when you've been around long enough, it's like >>Insane. You know, like, like I've been to nasa, I live in Texas, I've been to NASA a couple times. They, you know, they talk about, they sent, you know, they sent people to the moon on, on way less, less on >>Too far less in our pocket computers. Yeah. It's, it's amazing. >>I am an optimist on, on where we're going clearly. >>And we're clearly an exciting visionary, like we said, said the gate. It's no surprise that people are using Dell's tech to realize their AI ecosystem dreams. Travis, thank you so much for being here with us David. Always a pleasure. And thank you for tuning in to the Cube Live from Dallas, Texas. My name is Savannah Peterson. We'll be back with more supercomputing soon.

>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome back to the Cube's day one coverage of HPE. Discover 22 live from Las Vegas. Lisa Martin, here with Dave Velante of a couple of guests from red hat. You may have seen some news yesterday. We're gonna be talking about that. Please. Welcome Ryan King, the senior director of hardware partner ecosystem, and Lori Fontine joins us as well. The senior director of global commercial partner ecosystem. Welcome to the program guys. >>Thanks for having us. Yeah, >>Thank you so great to be back in person and nobody word has summit was just last month or so. That's right. Ryan. Talk about hybrid cloud. It's all the buzz. We've been talking a lot about it in the last hour and a half alone. What are some of the trends that, that red hat is seen with respect to hybrid cloud? >>Well, I, I mean, hybrid cloud of red hat has been a trend for quite some time. In fact, we were very early in setting our course towards hybrid cloud with our products and platforms. And that's been a key part of our strategy in terms of the number of transformations have been happening in the enterprise. And with HPE, we're super excited about, you know, we're hitting our stride with OpenShift. I've been working with OpenShift for the better part of my 10 years here at 12 years at red hat, 10 years with OpenShift. And we're very excited about seeing the pattern of going where customers want to build their cloud. It's very important that where, where the market is going. So we're seeing trends from the public cloud now go into edge and telco and 5g and really exceed, see them expanding their infrastructure footprint out to those use cases. And again, we see REL everywhere. So re has continued to expand as well. And then Ansible automation platform has also been a great means of kind of bringing together community for that last mile of automating your entire infrastructure. >>Well, the Lin, the functionality of Linux continues to improve OpenShift is everywhere. I mean, I remember at the red hat summit, I mean, well, we, we, we coined this term super cloud, which is this layer that floats, you know, on-prem took across clouds out to the edge we had Verizon on. They were talking about, you know, 5g developers and how they're developing using, you know, a combination of, of, of OpenShift. So guys have been really crushing it with, with OpenShift. I remember, gosh, I mean, we've been covering, you know, red hat summits for a long time now. And just to see that evolution is actually quite amazing. >>Yeah. It's actually really neat to see our CEOs align too. Right. So the messaging that we've had around hybrid cloud from red hat, like you said, we were kind of the pioneers, honestly, this we've been talking about hybrid cloud from the very beginning. We always knew that it wasn't gonna be public cloud or private cloud. We had to have, you know, hybrid. And, and it's interesting to see that Antonio, you know, took that on and wanted to say, we're gonna do everything as a service right. A few years ago. And, and the whole theme was around hybrid cloud and giving customers that choice. Right? So it's exciting for us to see all of that come together. And I actually worked for HP for like 17 and a half years. So it's really fun for me to be on this side now with red hat and see the messaging come together, the vision come together and just really being able to align and move forward on >>This tremendous amount of transformation in the last few years >>Alone. Oh my gosh, we >>Talk about, you know, customers need choice. They want choice, but you also talked about, we have to meet customers where they are. That seems the last few years to have accelerated, there is no more option for companies. You've gotta meet the customers where they are. >>Exactly. Yeah. And it's all about choice, like you said, and it, everybody's got, you know, their own way to do everything as far as consumption goes and we have to be available and spot on with it, you know, and be able to move quickly with these trends that we're seeing. And so it's great to be aligned. And >>From a partnership standpoint, I mean, you, you mentioned H HP 17 years. I mean, it was, it was a hard to follow company. You had, you had PCs over here, you had services, the kind of the old EDS business. Now there's such a focus absolutely. On this mission, absolutely. Of as a service. And, you know, obviously a key part of that is having optionality and bringing open source tooling into that. I mean, we heard about this in, in spades, at, at red hat summit, which is really interesting this year. It was a smaller VIP event in Boston. And I, and I loved it, you know, cuz it was really manageable. We had all the execs on and customers and partners. It was awesome. What's new since red hat summit. >>Well, I mean, I would say that obviously GreenLake and what we've announced this week is a big new thing for us, but really like we're just continuing on our pattern. We are. Now, if you look at the Q1 report from IBM, you'll see that the growth of the customer base for OpenShift that they reported just continues to go up into the right. You'll see that now, like AMIA is saying that we're like 47.8% of the containers market for the enterprise. You'll see that like we're now in 65% of the fortune 500 with OpenShift, 90% with red hat in general. So we've established our footprint. And when you establish your footprint and customers start taking you out to the edge, we're going into these 5g use cases, we're, we've got an incredible amount happening in the AI space, all these emerging areas of where people are building their cloud, like we're now going to that next level of saying, how do they want to consume it? >>So what's really important to me about that is, is so Omni data around 50% of the market is, is open shift. A people may not realize a lot of people use, you know, do Kubernetes for free, you know, Hey, we're doing Kubernetes, but they don't have that application development framework and all the recovery and all the, the tooling around it. And the reason why I think that's so important, Laurie is ecosystems wanna monetize. So people are paying for things that becomes more interesting and it actually starts to attract people just naturally. >>Yeah, absolutely. And speaking of ecosystem, I mean, that's the beauty of what we're doing with GreenLake too. We're taking on a building block approach. So we're really, it's kind of ISV as a service if you will. And you know, personally, I, this was my baby for the past couple years, trying to make sure that we took into consideration every partner use case, every customer use case. So we created an agreement that would make sense to be able to scale, but also to meet all the demands of our customers. And so the, the what's really exciting about this is now we have a chance to take this building block approach, scale it out to all types of partner types, right throughout the entire ecosystem and build offerings together. That is really exciting for us. And that's where we see the real potential here with GreenLake and with red hat, >>What's actually available inside a GreenLake. >>So we are starting with OpenShift. So OpenShift will be available in Q3 that will follow in Q4 with re and then after that Ansible. So we're, we're moving very quickly to bring our platforms into it and it's really our strategic platforms, but it's all based on customer demand. We know we're seeing amazing transformation of customers moving to Kubernetes. You said, you know, OpenShift is Kubernetes with useful additions to it and an ecosystem around it, right? So that transformation is also happening at the bare metal layer. So we're seeing people move into Kubernetes bare metal, which is an amazing growth market for us. >>Explain those useful additions if you would. So why shouldn't I just go out and, and get the free version of Kubernete? Why should I engage red hat and, and OpenShift? What do I get? >>So you get all the day, two management stuff, you get, we have a whole set of additional stuff you can purchase around it, OpenShift platform. Plus you can get our ACM, our advanced cluster management. So you wanna manage multiple clusters, right? You get the ACS, the security side of it. You can also get ODF. So you get storage built into it as well. And we've done all these integrations. You can manage the whole thing as a cluster or as multiple clusters with the whole enterprise support and the long term support that we provide for these things up to 10 years. So >>When you look at the early days lease of, of Kubernetes, it was really, the focus was on simplicity. You had other platforms that were actually doing more sophisticated cluster management. And the, the committers that in Kubernetes said, you know, we're not gonna do that. We're gonna keep it simple. And so that leave some holes and gaps and you know, they're starting to fill those, but what if, if correct me if I'm wrong, but what red hat has done is said, okay, we're gonna accelerate, you know, the, the, the closing of those gaps and stay ahead and actually offer incremental value. And that's why you're winning in the marketplace. >>Well, we're an open company, so we're still doing everything upstream and open source as we do, of course, sticking with, you know, the APIs and APIs to make this all work, both, you know, in terms of what the community's trying to drive, what we're trying to drive for our customers on their behalf. And then just where things are going from a technology basis, make it a lot of investment, >>But you have to, you have to make a red hat, has to make a choice as to where it puts its commitments. You can't spread yourself too thin, so you gotta pick your spots. And you've, you've proven that you're pretty adept at doing that. >>That just comes back to customer centricity, right. And just knowing where our customers need to take the platform. That's, >>That's easy to say, but it's, it's an art form. And a little bit of science. >>Remember these customers have experts that are deep in this space. So it's like, you know, those experts trust us with where they needed to go. And they trust us to help shepherd that and deliver that as a platform to them. So it's not like anybody tell us what you want, right? Like it's really about like, knowing what's the best way to do it. And working with the people that can help you understand how to apply that to their use case >>And within the customer environment, who are you working with? Who is that key constituent or constituents that are guiding red hat in this direction? >>Well, it's certainly infrastructure folks. So it's your, it's your standard folks that are looking at the, how do we lay down our infrastructure? How do we manage it? How do we grow it? It goes out to the application developers. They're trying to deliver this in a cloud native way. And we have new personas, you know, coming in with the AI practitioners, right? So we've announced at before summit at Invidia's event, their new offering called Invidia AI enterprise. And so that's them bringing in enterprise support for GPU, for Kuda and for a software stack above that to start offering some more support there. So they're certifying OpenShift, we're both certifying the servers that run underneath it, and then they're offering support for their stuff on top of it. And that's a whole new use case for us. >>And, you know, I should also mention that even though this paper use with the GreenLake is new for us, and we just had this big announcement, we have done GreenLake deals though. We've done numerous GreenLake deals with our annual subs, right? So I, so even though this is new to us, as far as, you know, monthly utilization and being able to do this cloud consumption this isn't new to us as two companies coming together, we've been doing GreenLake deals for the past couple years. It's just, now we have this cloud consumption availability, which is really gonna make this thing launch. So, >>So what have been some of the customer benefits so far, you've been doing it for a couple years. The announcement was yesterday, but there's obviously feed on the street going on. What are some of the, the big outcomes that you're seeing customers actually bring to reality? >>I think speed and agility, right? That's the biggest thing with, with our products, being able to have it everything predictable and being able to have it consumed one way, instead of having this fragmented customer experience, which is, you know, what we've seen in the past. So I think that's the biggest thing is speed agility and just, you know, a really good customer experience at this point. >>Go get it, please. >>I would say the customer experience is critical. Yes. That's one of the things that we know that in terms of, of patients wearing thin the last couple of years, people expect to have a really strong consumer experience regardless of what you're doing, regardless of what industry and so attention and mind on that is a differentiator in my opinion. >>Absolutely. Yeah. And we've gotta constantly keep our eye on that. I mean, that's, that's our north star, if you will. Right. So, and Lori, >>I know you've saying you're, you've done GreenLake deals in the past, but what feels different to me now in that it's actually coalescing some of the things that Alma Russo announced this morning, the platform on which, you know, ISV is a service. I think you, you called it. Yeah. You, it, it now seems like, you know, look a couple years ago, HP said, okay, this is the direction that we're going. Yeah. They weren't there at that time. And they're still not there. There's a lot of work to be, to be done. But now it's starting to form. You're seeing, you know, the pieces come together, the puzzle pieces that sort of substrate being laid out. And now you're hoping that we see the steep part of the S-curve and that's what customers I think are expecting. >>Right. And it's bringing that operating model to move to a monthly model so they can do pay as you go. Right. And that pairs up nicely with like the cloud native capabilities we're bringing to OpenShift and hybrid cloud in general. So it's, it just shows like we're already getting demand from customers. It's saying like, this is part of our model. Like we know a certain amount of infrastructure we wanna own, and we just wanna own it outright, but there's a lot that they want to have flexibility on. And so being able to add that portion to it is just, you know, gonna help us both. >>And you think about the critical aspects of, of the cloud operating model. It's obviously pay as you go it's, you know, massive scale it's ecosystem enablement, and also automation. I mean, that is, that is a key, what's your point of view on that? You guys with Ansible, you, you, you know, you go back to a couple years ago and it was, you know, there was this, there were a lot of other tooling, but now, I mean, Ansible is really taken off. Yeah. >>It's just, you know, Cinderella story, right? Like it really an amazing community driven thing where we just knew, we all know this, right. You have, when you get to the very last mile of doing infrastructure management, there's a variety of devices, there's variety, a variety of vendors. And then you have like the variety of skills of the people that have to figure out how to do automate all of this. And what Ansible did is it provided a common language across all of that. And so what we do with automation, our, an ible automation platform is we make it. So now teams can manage all of this together and they can share their playbooks and they can host that privately for all their enterprise stuff that they need to do. So it's just, you know, it fits our DNA so well to have something so community driven now with a really nice enterprise message wrapped around it. And it's playing out very well for where, you know, hybrid cloud. Right. Cause there's some more additional variety. You need to be able to manage, you know, across all of your different footprints, because really it's like, it's not just about flexibility and scale up scale down it's where do you need it to run at what time? Right. And that, that last leg Ansible plays a key role in that. >>And we actually, Ansible will be coming further down the, you know, the patch. I know we're gonna talk a little bit about what's available today versus what's available down the road, but yeah, we have that on the radar. So right outta the gate, we're working on OpenShift, obviously bare metal. And we see that happening in Q3 and then behind that as well in Q4 and then Ansible is gonna be right behind that. So that's kind of the order that, and there's other pieces, right? So our whole portfolio is basically available to HP right now. It's just making sure that we can operationalize everything and have the best experience >>All inside of GreenLake, >>All inside a GreenLake. Yeah. Pretty neat. Lori >>Question for you. You've been, you were with HP for a very long time. This is obviously the first discover in three years in person. Exactly. You know, three years ago, Antonio near stood on stage and said, we are going to buy 20, 22. And here we are deliver everything as a service, as a partner and as a former HP, what are you seeing at this discover 22? >>It's it's so interesting. I it's such a sea change if you will. Right. And having come from HPE, I actually led the software as a service organization for a while on the software side of things. And we thought that was like state of the art and cutting edge that was 10, 11, 12 years ago. Right. So to actually see this come to life, because we were all thinking really, everything is a service. How are you gonna do that? Like your entire portfolio is gonna be available. Like that is lofty. Right. And having worked at HP, I thought, wow, I don't, you know, I know things take time. And, but actually just even being around the showcase here and watching everything come to life is amazing. Cause I, I, you know, I, I was very positive about it, but at the same time, it's like that, that was a big goal three years. Right. And it's, I'm seeing it happen >>A big goal in two of those years during a pandemic. Right. So right. Talk about lofty. Oh my gosh. Quite a bit of accomplishments guys. Thank you so much for joining David me on the program talking about actually guys, this is great. What red hat and HPE are doing your power partnership, power ship. Is that a word? It is now your power. >>I like >>That with GreenLake. We appreciate that. We'll look forward to having you guys back on. >>Thank you so much, guys. >>All right. For our guests. I'm Lisa Martin. He's Dave ante. We are at HPE discover 22 live from the show floor in Las Vegas. This is just day one of our cupboards stick around. We'll be right back with our next guest.

>>Welcome back to the cubes coverage of women in data science, 2022. We've been live all day at Stanford at the Arriaga alumni center. Lisa Martin, John furrier joins me next, trying to, to cure your FOMO that you have. >>I love this events. My favorite events is 2015. We've been coming, growing community over 60 countries, 500 ambassadors and growing so many members. Widths has become a global phenomenon. And it's so exciting to be part of just being part of the ride. Judy and Karen, the team have been amazing partners and it's been fun to watch the progression and international women's day is tomorrow. And just the overall environment's changed a lot since then. It's gotten better. I'm still a lot more work to do, but we're getting the word out, but this year seems different. It seems more like a tipping point is happening and real-time cultural change. A lot of problems. COVID pulled forward. A lot of things, there's a war going on in Europe. It's just really weird time. And it's just seems like it's a tipping point. >>I think that's what we felt today was that it was a tipping point. There was a lot of our guests on the program that are first time with attendees. So in seven, just seven short years, this is the seventh annual width it's gone from this one day technical conference to this global movement, as you talked about. And I think that we definitely felt that women of all ages and men that are here as well understand we're at that tipping point and what needs to be done next to push it over the edge. >>Well, I'm super excited that you are able to do all the amazing interviews. I watched some of them online. I had to come by and, and join the team because I have FOMO. I love doing the interviews, but they're including me. I'm happy to be included, but I got to ask you, I mean, what was different this year? Because it was interesting. It's a hybrid event. It's in part, they didn't have it in person last year, right? So it's hybrid. I showed the streams where everywhere good interviews, what was some of the highlights? >>Just a very inspiring stories of women who really this morning's conversation that I got to hear before I came to set was about mentors and sponsors and how important it is for women of any age and anybody really to build their own personal board of directors with mentors and sponsors. And they were very clear in the difference between a mentor and a sponsor and John something. I didn't understand the difference between the two until a few years ago. I think it was at a VMware event and it really surprised me that I have mentors do ask sponsors. And so that was a discussion that everybody on this onset talked about. >>It was interesting. We're doing also the international women's day tomorrow, big 24 interviews, including the winds of content, as well as global women leaders around the world and to new J Randori, who runs all of AWS, Amy are your maps. And she told me the same thing. She's like, there's too many mentors, not enough sponsors. And she said that out loud. I felt, wow. That was a defining moment because he or she is so impressive. Worked at McKinsey, okay. Was an operator in, in running businesses. Now she heads up AWS saying out loud, we have too many mentors, this get down to business and get sponsors. And I asked her the same thing and she said, sponsors, create opportunities. Mentors, give feedback. And mentors go both ways. And she said, my S my teenage son is a mentor to me for some of the cool new stuff, but ventures can go both ways. Sponsors is specifically about opportunities, and I'm like, I felt like that comment hit home. >>It's so important, but it's also important to teach girls. And especially the there's younger girls here this year, there's high school and middle, I think even middle school girls here, how to have the confidence to, to find those mentors, those sponsors and cultivate those relationships. That's a whole, those are skills that are incredibly important, as important as it is to understand AI data science, machine learning. It's to be able to, to have the confidence in a capability to create that and find those sponsors to help you unlock those opportunities. >>You know, I feel lucky to do the interviews, certainly being included as a male, but you've been doing a lot of the interviews as females and females. I got to ask you what was the biggest, because every story is different. Some people will it's about taking charge of their career. Sometimes it's maybe doing something different. What some of the story themes did you see in your interviews out there? What were some of the, the coverings personal? Yeah. >>Yeah. A lot of, a lot of the guests had stem backgrounds and were interested in the stem studies from when they were quite young and had strong family backgrounds that helps to nurture that. I >>Also heard that role models. Yes, >>Exactly, exactly. A strong family backgrounds. I did talk to a few women who come from different backgrounds, like international business and, but loved data and wanted to be able to apply that and really learn data analytics and understand data science and understand the opportunities that, that it brings. And also some of the challenges there. Everybody had an inspiring story. >>Yeah. It's interesting. One of the senior women I interviewed, she was from Singapore and she fled India during a bombing war and then ended up getting her PhD. Now she's in space and weld and all that stuff. And she said, we're now living in nerd, native environment, me and the younger generation they're nerds. And I, you know, were at Stanford dirt nation. Of course we're Stanford, it's nerd nerd nation here. But her point is, is that everything's digital now. So the younger generation, they're not necessarily looking for programmers, certainly coding. Great. But if you're not into coding, you can still solve society problems. There's plenty of jobs that are open for the first time that weren't around years ago, which means there's problems that are new to that need new minds and new, fresh perspectives. So I thought that aperture of surface area of opportunities to contribute in women in tech is not just coding. No, and that was a huge, >>That was, and we also, this morning, I got to hear, and we've talked about, we talked with several of the women before the event about data science in healthcare, data science, in transportation equity. That was a new thing for me, John, that I didn't know, I didn't, I never thought about transient equity and transportation or lack thereof. And so w what this conference showed, I think this year is that the it's not just coding, but it's every industry. As we know, every company is a data company. Every company is a tech company. If they're not, they're not going to be here for a long. So the opportunities for women is the door is just blown. >>And I said, from my interviews, it's a data problem. That's our line. We always say in the cube, people who know our program programming, we say that, but it actually, when we get the data on the pipeline and the pipeline, it has data points where the ages of drop-off of girls and young women is 12 to 14 and 16 to 18, where the drop-off is significant. So attack the pipelining problem is one that I heard a lot of. And the other one that comes out a lot, it's kind of common sense, and it's talked about it, but it's nuanced, but it became very elevated this year in the breaking, the bias theme, which was role models are huge. So seeing powerful women in leadership positions is really a focus and that's inspires people and they can see themselves. And so I think when people see role models of women and, and folks on in positions, not just coded, but even at the executive suite huge focus. So I think that's going to be a next step function in my mind. That's that's, if I had to predict the trend, it would be you see a lot more role modeling, flexing that big time. >>Good that's definitely needed. You know, we, we often used to say she can't be what she can't see, but one of the interviews that I had said, she can be what she can see. And I loved the pivot on that because it put a positive light, but to your point, there needs to be more female role models that, that girls can look up to. So they can see, I can do this. Like she's doing leading, you know, YouTube, for example, or Sheryl Sandberg of Facebook. We need more of these role models to show the tremendous amount of opportunities that are there, and to help those, not just the younger girls, those even that are maybe more mature find that confidence to build. >>And I think that was another king that came out role models from family members, dad, or a relative, or someone that could see was a big one. The other common thread was, yeah. I tend to break stuff and like to put it together. So at a young age, they kind of realized that they were kind of nerdy and they like to do stuff very engineering, but mind is where math or science. And that was interesting. Sally eaves from in the UK brought this up, she's a professor and does cyber policy. She said, it's a stems gray, but put the arts in there, make it steam. So steam and stem are in two acronyms. Stem is, is obviously the technical, but adding arts because of the creativity needs, we need creativity and problem solving with technical. Yes. So it's not just stem it's theme. We've heard that before, but not as much this year, it's amplified big >>Time. Sally's great. I had the chance to interview her in the last couple of months. And you, you bring up creativity, which is an incredibly important point. You know, there are the, obviously the hard skills, the technical skills that are needed, but there's also creativity. Curiosity being curious to ask a question, there's probably many questions that we haven't even thought to ask yet. So encouraging that curiosity, that natural curiosity is as important as maybe someone say as the actual technical knowledge, >>What was the biggest thing you saw this year? If you zoom out and you look at the forest from the trees, what was the big observation for you this year? >>I think it's the growth of woods. We've decided seven years. It's now in 60 countries, 200 events, 500 ambassadors, probably 500 plus. And the number of people that I had on the program, John, that this is their first woods. So just the fact that it's growing, we, we we've seen it for years, but I think we really saw a lot of the fresh faces and heard from them today had stories of how they got involved and how they met Margo, how she found them. I had a younger Alon who'd just graduated from Harvard back in the spring. So maybe not even a year ago, working at Skydio, doing drone work and had a great perspective on why it's important to have women in the drone industry, the opportunities Jones for good. And it was just nice to hear that fresh perspective. And also to S to hear the women who are new to woods, get it immediately. You walk into the Arriaga alumni center in the morning and you feel the energy and the support and that it was just perpetuated year after year. >>Yeah, it's awesome. I think one of the things I think it was reflecting on this morning was how many women we've interviewed in our cube alumni database now. And we yet are massing quite the database of really amazing people and there's more coming in. So that was kind of on a personal kind of reflection on the cube and what we've been working on together. All of us, the other thing that jumped out at me was the international aspect this year. It just seems like there's a community of tribal vibe where it's not just the tech industry, you know, saying rod, rod, it's a complete call to arms around more stories, tell your story. Yes. More enthusiasm outside of the corporate kind of swim lanes into like more of, Hey, let's get the stories out there. And the catalyst from an interview turned into follow up on LinkedIn, just a lot more like viral network effect so much more this year than ever before. So, you know, we just got to get the stories. >>Absolutely. And I think people given what we've been through the last two years are just really hungry for that. In-person collaboration, the opportunity to see more leadership to get inspired and any level of their career. I think the women here this today have had that opportunity and it's been overwhelmingly positive as you can imagine as it is every year. But I agree. I think it's been more international and definitely much more focused on teaching some of the other skills, the confidence, the creativity, the curiosity. >>Well, Lisa, as of right now, it's March 8th in Japan. So today, officially is kicking off right now. It's kicking off international women's day, March 8th, and the cube has a four region portal that we're going to make open, thanks to the sponsors with widths and Stanford and AWS supporting our mission. We're going to have Latin America, AMIA Asia Pacific and north America content pumping on the cube all day today, tomorrow. >>Exactly. And we've had such great conversations. I really enjoyed talking to the women. I always, I love hearing the stories as you talked about, we need more stories to make it personal, to humanize it, to learn from these people who either had some of them had linear paths, but a lot of emergency zig-zaggy, as you would say. And I always find that so interesting to understand how they got to where they are. Was it zig-zaggy, was it zig-zaggy intentionally? Yes. Some of the women that I talked to had very intentional pivots in their career to get them where they are, but I still thought that story was a very, >>And I like how you're here at Stanford university with winds the day before international Wednesday, technically now in Asia, it's starting, this is going to be a yearly trend. This is season one episode, one of the cube covering international women's day, and then every day for the rest of the year, right? >>What were some of your takeaways from some of the international women's day conversations that you had? >>Number one thing was community. The number one vibe was besides the message of more roles or available role models are important. You don't have to be a coder, but community was inherently the fabric of every conversation. The people were high energy, highly knowledgeable about on being on point around the core issue. It wasn't really politicized was much more of about this is really goodness and real examples of force multipliers of diversity, inclusion and equity, when, what works together as a competitive advantage. And, you know, as a student of business, that is a real change. I think, you know, the people who do it are going to have a competitive advantage. So community competitive advantage and just, and just overall break that bias through the mentoring and the sponsorships. >>And we've had a lot of great conversations about, I loved the theme of international women's day, this year breaking the bias. I asked everybody that I spoke with for international women's day and for width. What does that mean to you? And where are we on that journey? And everyone had a really insightful stories to share about where we are with that in their opinions, in their fields industries. Why, and ultimately, I think the general theme was we have the awareness now that we need, we have the awareness from an equity perspective, that's absolutely needed. We have to start there, shine the light on it so that the bias can be broken and opportunities for everybody can just proliferate >>Global community is going to rise and it's going to tend to rise. The tide is rising. It's going to get better and better. It was a fun year this year. And I think it was relief that COVID kind of going out, people getting back into physical events has been, been really, really great. >>Yep, absolutely. So, John, I, I appreciate all the opportunities that you've given me as a female anchor on the show. International women's day coverage was fantastic. Widths 2022 coming to an end was fantastic. Look forward to next year. >>Well, Margo, Judy and Karen who put this together, had a vision and that vision was right and it was this working and when it gets going, it has escape, velocity unstoppable. >>It's a rocket ship. That's a rocket. I love that. I love to be part of John. Thanks for joining me on the wrap. We want to thank you for watching the cubes coverage of international women's day. The women's showcase as well as women in data science, 2022. We'll see you next time.

>>From London, England. It's the cube covering Coupa. Inspire 19 AMIA brought to you by Cooper. >>Hi. Welcome to the cube Lisa Martin on the ground in London a Coupa inspire 19 please to walk to the cube for the first time. Mads think Jensen partner advisory firm. KPMG. NADHs welcome to the cube. >>Thank you Liza. It's a pleasure to be here. >>Great to have you. So we have all this excitement around us. Lots of folks here in London for Coupa inspire. Talk to me about the state of procurement. Guba talks about P IPE procurement, invoicing, payments, expenses. The procurement has been changing a lot recently. You have a lot of experience in procurement. Talk to me about what the state of procurement is like today. What some of those waves of disruption are. >>Yeah, so you could say traditionally procurement has been very much about, you know, making agreements with suppliers. Uh, the business has have had an, uh, a need and asked or requested procurement to fulfill that need. Typically, it has taken a lot of time and a lot of effort from the procurement departments, uh, in many cases delaying projects. And, and things like that. Businesses are much more agile now. They expect, you know, from different back office functions including procurement, they expect a much more agile approach to delivering services. So if you are running a project, uh, in the business and you go to procurement asking for a specific surface service or product and procurement says, ah, this will take, you know, four to six months, that is absolutely not acceptable. So the businesses in general are now you could say transforming the way that they are requesting procurement services, which means procurement are now being disrupted quite a lot. >>Eh, they have to think very differently. They have to be more proactive instead of being a reactive business partner, you could say. So being proactive in the sense that they embrace the business and actually deliver the needs before they are asked by the business. So that's a way where procurement organizations, they need to be much more predictive and understand what's going on both in the business but also in the market. And then you could say on the other hand, procurement, traditionally they do a contract and then they finalize the contract. And then they kind of keep the hands off. Yeah. So the future is that procurement, they do a contract, of course that's a a key part of being a procurement department, but they also need to operate, operationalize the contracts. So in terms of making sure that the users in in the business that they can actually use the contract and buy onto that specific contract. So a lot of things are changing in procurement and which also means that you will see now different operating models. You will see different interactions with businesses and will see quite a lot of different expectations coming from the business to the procurement departments. >>I can imagine that will be, those are challenges for say an incumbent, a chief procurement officer or financial decision maker who's used to certain processes with certain boundaries. How in your advisory role do you work with clients to help them even just embrace the cultural change that's required of this function to be much more strategic and much more impactful to a business? >>Absolutely. I mean, you know, we use Kupa as a platform to, to help clients transforming the way that they are doing procurement. Eh, and, and actually we don't see a copayment implementation as an it implementation project. We see it as a business transformation project. And the thing is that one thing is that you start changing the way that you're doing things, but it's also a mindset change. And the challenge here for, for CPO so far, procurement officers is actually to make sure that the procurement organization have the necessary challenges to make that transformation. And you know, a lot of the stuff that we are doing when we are implementing solutions like Cooper is of course taking away all the transactional work that's automated. And we are also providing insight. So insight into spin, into to a transaction, to transaction processes, to turnaround times, to delivery, to, you know, all these kinds of things. And the, and the challenge for the CPO is to make sure that the part of the organization that are currently doing very transactional processes, how can they transform to becoming more strategic thinking and proactive people? >>And tell me how from KPMGs perspective, how is Kupa helping to drive that transformation for its customers? >>Yeah, it's a good question actually, because I mean Kubota's a technology, but it's also much more than a technology because as Cooper also emphasizes, it's also about a community. Yes. So the thing is that with a platform like Uber, you get technology support for your processes, but you also get a lot more insight. So you get a lot of possibilities to act in a very different way. So for instance, you can see eh spin patterns. So in that way you can predict how businesses actually on an annual basis, what their need will be. So in that way you can also prepare for some of the stuff that are happening in the business. And also you could see as a procurement person, as assaulting a manager or category innovators as Cooper's calling it, eh, you now have the insight to act. You think more strategic on your supplier, BS, on the marketing, on the market tendencies. You can see how other companies are procuring stuff. Are they going from one type of windows to another type of vendors and how is that going? So you could see Cuba is a tool not only to structure processes and to transformations, but it's also a platform and a technology that changes the way that you think and you act. >>You mentioned the word predictive, it's not going to go. And one of the things that that will, the P and Kupa stands for prescriptive. Rob talked about, I think the number was over 22,000 prescriptions that were delivered through the community just in the last, I think he said 12 months, very short period of time. A lot of innovation there going helping a business in whatever industry it's in. Go from being reactive to proactive, to predictive. Is that a game changer or is that something that you think every business has to become predictive to be relevant? >>Yeah, so you could say, of course it differs a little bit from industry to industry. There are many different ways of of looking at procurement, but a general thing across industries that, that that doesn't really change whether it's manufacturing or fast moving consumer goods or pharmaceutical or whatever is that that the procurement needs to understand the business that they are serving because uh, you know, traditionally procurement, they are a little bit isolated. Like it was, you know, 10, 15 years ago didn't really understand what's going on in the business. In many cases, in many cases it's not like that, but in many cases it is, you know, they are very transactional, they are establishing contracts and things like that. But the thing is that if you don't understand your business and if you don't understand the way your business operates, you know you can have annual cycles, you can have innovation cycles, you can have different demands in the market depending on the time of year and things like that. >>So in general, procurement organizations really need to change their mindset of getting out there, speaking with the business, understanding the business, understanding the strategies, aligning the procurement strategies into the general business strategy. And then embrace innovation. Because, I mean, even though coop as a platform is at a really, really nice place right now with a lot of transformational possibilities, I mean who knows what comes tomorrow. That will be a number of different things changing over the course of you know, two, six months, a year, two years, things like that. So I think in general, procurement organizations need to think in a much more agile way. Adapting, adapting, sorry. What the, what the company in general is adapting. >>So tell me a little bit, let's dig a little bit deeper into what KPMG and Coupa are doing together to drive the future of procurement. >>Absolutely. So KPMG have developed a framework we call power procurement, which F which is a framework that gives, you could say clients are very, very structured way of doing a transformation. And that framework is actually built on top of the Cooper platform. So we have developed a model, which is you could say technology agnostic, but we have specifically developed a model that a, that is placed on top of the Cooper platform where we utilize as a, you know, the possibilities that platform have. And one core thing is that the mantra of Cooper is is measurable business value and the transformation that we want to do together with our clients is exactly open their eyes in terms of how do you get that measurable business value because how do you measure it? What is it that you want to measure? Is it savings only? Not necessarily. It can be a lot of different things. And the Cooper platform you could say enable that transformation process in a really, really good way because you actually don't really think about technology. You think about business transformation and that's why I think you know, the way that we utilize this group as a platform is quite unique. >>So thinking back to your long history in procurement advisory, your background as a supplier and on the industry side, when you look at that compared to you know your, your day to day life where you're a consumer and you're buying things very easily through Amazon and different marketplaces, how is Coupa helping to bring in some of that consumerization and help meet the demands of people that want things to be? To your point, I don't want to be looking at a UI or a technology. I want this to be simpler like it is when I'm going to buy groceries online. Are they helping to really bridge that gap? >>Yeah, so it's a really good question actually because you could see in reality the value comes from a meaningful experience. And you could say traditionally when you have, you know, I was part of the mask organization, the Danish shipping company and eh, you know, we did a lot of stuff on behalf of the business to make sure that they could, you know, do the, execute the role and get the products and services they needed. It was typically a very cumbersome process where people had to think in very complex processes and you know, how do I actually get this thing I need now? And what's happening now with a platform like Kupa is that you actually adopt the way of thinking coming from your private life as well. So it's kind of merging a little bit the way that you think when you do procurement because it's not a complex process. Of course it takes longer in a business environment you can say because also because you need to do a different sourcing exercises. They are regulations in the public safety and so forth. But in, in, in the way that you are thinking of how you procure and get access to the goods and services that you need for, for, for, you know, executing your role. It's a very different mindset and that's where technologies like Cooper comes in as you could say, straightforward way of getting access to these things. >>So KPMG clearly has choice and who it chooses to partner with. Tell me a little bit more about what Kupa and the partnership means to KPMG and the competitive differentiation it might deliver.. >>Yeah, absolutely. I mean they are a number of different platforms in the market of course. And, and it's actually quite interesting these year because there's a lot of development. I actually started out a new company in 2001 where we developed an e-procurement platform. And uh, I can tell that both the suppliers and the market and the suppliers in general have changed quite a lot since then. And a lot of more actors are coming into the market. And the interesting thing is that you know, the, the traditional actors, they have quite some difficulty in following up with, with a company like Cooper. And you could see Cooper as a platform is really interesting because it, first of all, it adopts the cloud technology, which means that eh, companies doesn't have to think about, you know, maintenance operations, you know, all these things that typically come with on premise solutions. >>And, and it has this ability to create this community because the technology platform is developed and designed and architected in the way it is, which means you have a suite of components that all feeds into a common community. Yes. Which create, you could see a much, much better platform to innovate than what we see in the competitive compete competing landscape. So in H in essence, when Rob today talked about the community, that's where we see a huge differentiator, the way that Cooper works with the community and takes intelligence from the community. And based on that can actually come up with really, really impressive, innovative ideas. >>Last question for you. The Mads, the category of business spend management that Coupa is working hard to define. What does that mean from Cape KPMGs perspective? >>Yeah, so so you could see for me it's actually quite eh relieving that eh, that those an actor in the market that that starts to talk about business spend management. It's a, it's a new term that the Cooper have introduced. I mean there have been variations on the, on the, on that subject, but it's the first time that you have a very clear pronunciation of what this all, what this is all about. Because business spend management is much more, more than just the, you could say the narrow procurement bit. Procurement is a course as a huge part of it, but I mean they are expense management as an example. You have all the procurement staff, you have spinned in a lot of different areas, like a salary that's not kind of the part part of the platform yet, but which would make a lot of sense. >>You could say. So this is the first time where you actually have a suite that in all the different components and areas embrace business, spend management, and in in essence, you could see, I think Rob also mentioned it in a very good way. This is actually, it's the procurement department that managers, you know, a huge part of the value of the, in terms of managing the spend. So it's an extremely important task the procurement, uh, organizations have. And the good thing is that we see increasingly see that procurement gets closer and closer to the strategic area of businesses. >>Well, Matt, thank you so much for joining me on the cube and describing the procurement history that you have, what KPMG a Kupa are doing together. We appreciate your time. Thank you, Lisa. It was a pleasure to be here. Likewise for a Mads. I'm Lisa Martin. You're watching the cube from Kupa inspire London 19. Thanks for watching.

you live from Las Vegas it's the cube covering you I pat forward America's 2019 brought to you by uipath welcome back everyone to the cubes live coverage of UI path forward here at the Bellagio in Las Vegas Nevada I'm your host Rebecca night co-hosting alongside Dave Volante we are joined by Gavin Jackson he is the senior vice president and managing director amia at uipath thanks so much for coming you are brand spanking new to brands thanking you AWS for four years yeah joined UI paths in September yeah I want to start this conversation by having you talk a little bit about what what appealed to you about UI path and what more do you want to make the leap after four years at AWS yeah so I had the privilege to be west of really having a really close proximity to enterprise customers and getting the opportunity to listen to what they really wanted when they were talking about their digital transformation journeys and as it turns out the sort of cloud first in the automation first eras if you will are operating models at to two sides of the same coin if you think about what the that the cloud proposition has been over the last number of years it's really been about sort of reducing or eliminating the undifferentiated heavy lifting so that builders can build and then that turned into an operating model principle and it became sort of cloud first it's the same thing for the automation world you know we are reducing and eliminating the undifferentiated heavy lifting of Tata a product of business processes and tasks and everything else whether they're complex tasks or simple tasks removing that so that builders can build and business people can innovate and given them the freedom to do what they need to do as business owners think about AWS we obviously follow them very closely yeah anybody but it strikes you didn't thank you such are filters yeah what's the analog so what I think we again I would say that we are we are providing tools so the builders could build but at the same time our our products that works across the entire business stack whether that is sort of automation first as an operating principle across all businesses or whether it's across a business persona whether it's a CFO or somebody in accounts or a salesperson or whatever might be we're building tools that take the mundane tasks away from those users so that they have the freedom to go and serve their customers or or innovate within finance or do the do the job that they really love doing and that's really important for the business it turns out there's not a lot of value and a lot of the work that people do every day so if we can remove some of that then innovation will have an exponential curve of progress and that's what we're focused on today yes yeah again there are similarities there so if I understand the you're shifting one date asked allowing people freeing them up to do so that they can have a strategic impact in their business yes yeah yeah I think it is so if you look at even the technology paradigms and how cloud and AWS evolved and then also the layer on how uipath is evolving in the same way so you have computing and compute power started really with the mainframe and went to distributed servers and then to virtual machines and then from virtual machines it went to hosted virtual machines in the cloud and then from then it went to containers and now we're in this world of server lists we're in the cloud right so effectively the logic lives in server lists and the infrastructure sort of disappears and that provides massive scale in the automation world you started off with big monolithic processes you then had sort of network processes with software and data in the middle of all of that networked RPA really came in as an early sort of tool to help automate a lot of that a lot of processes and now in the realms of sort of automation as a function where in the end like the end game really is where automation is the application and the the applications themselves the data sources the processes really disappear so that the best done analogy I can come up with a metaphor acting um up with is I'm a Marvel fan I'm a geeky kind of Marvel fan of my favorite character is his Iron Man or Tony Stark and more specifically the Jarvis AI so what's happening all the time with with Tony Stark in the Jarvis a is he's interacting with his AI user interface all the time and what's happening in the background is that Java she's working with probably you know a hundred different applications and a hundred different data sources and everything else and rather than having you know a human go and do what the integration work that robots are doing that for him and it's just coming back as a as an outcome yeah I'm gonna keep pushing on this yeah similarities and differences because where it seems to break down is where our PA is focusing on the citizen developer the the end-user I'm afraid of AWS I won't go near it I see that console I call it my techies hey you know AWS is you know you got to be you know pretty technical to actually leverage it at the same time I'm thinking well maybe not maybe my builders are building things that I can touch but help us square that circle yeah so I think you the world is trending towards as much automation as possible so if it can be automated or if you can reduce the the burden to get to innovation I think you know technology is moving that way even in coding I think the transit we're seeing whether it's AWS or anyone else is low to no code and so we we occupy a world within the RPA space or the intelligent automation space where we're providing tools for people that don't need a requirement or or a skill set to code and they can still manufacture a few world their own automations and particularly with a release that we're just announcing today which is Studio X it really kind of reduces the friction from a business user where's zero understanding of how to code to build their own automations whether it's kind of recording a process or just dragging and dropping different components into a process even like even I could do that and that's saying something I can tell you yes exactly yeah this idea of democratizing the the automation the building that you said yeah very much so what will this mean I mean what what does what does that bode for the future of how work gets done because that is at the core of what you're doing is typically understanding how and where work gets done or the bottlenecks where the challenges and how can our PA fix this so I think ultimately like a lot of technologies it's really about the the exponential curve of productivity and whether you're looking at a national level a global level a company level a human level every level productivity has declined really over the last number of years and technology hasn't done a great job to improve that and you can say that some technologies have done a good job again I'd use a TBS is a good job in terms of the proliferation or the how prolific you can get more code out and more more progress there but overall productivity has declined so our sort of view of the world is if you can democratize automation if you can use or add a digital workforce to your to your to your teams then you'll have an exponential curve of productivity which a human level is important company level is important a national level is important and probably at global level is important you know you guys might be right place right time as well yeah because I remember you know all the spending in the 80s said receive growth everywhere except the Nobel prize-winning economist Robert Solow yeah [Laughter] [Music] you guys are hitting it right at the right time yeah you be able to take credit for a lot of it but yeah your thoughts on that in terms of productivity depending yeah I think it is pent up I think that is where where we're at right now and it's ready to be unleashed and I think that these technologies are are the technologies that will unleash it I think really what's happened over the last number of decades probably is that the six trillion dollar IT industry they exist today has largely kind of increased productivity or performance of other technologies it hasn't really increased output so whether it's sort of you know the core networking when Cisco started core networking there was a big increase I would imagine in connectivity and outputs then the technologies that were laid on top of that maybe less so and it was just really kind of putting bad band-aids on problems so it was really technology solving technology problems rather than technology solving human output problems and so I think that this is now the most tangible technology category that really is turning technology into value and productivity for technology really unlocking a lot of value one of the things that your former boss Jeff Bezos said was bet on dreamy businesses that have unlimited upside these these dreamy businesses customers love them they grow to very large sizes they have strong returns on capital and they can endure for decades I wonder if you could put you iPad in that context of a dreamy business what does he know right I mean nobody right I mean so and this is one of the reasons I was attracted by the way to DUI path because I think I think that the robots themselves if you can just kind of look at the subcategory of the robot I think it's on a similar curve to how Gordon Moore was talking about the Intel microprocessor in 1965 and the exponential curve of progress I think we were on that similar curve so when I sort of project five years from now I just think that the amount the robots will be able to do the cognitive kind of capabilities it will be able to do are just phenomenal so and customers customers give us feedback all the time about to two things they love and they value what we do the value is important because it's very empirical for the first time they can actually deploy a technology and see almost an immediate return on their technology whether it's a point technology solving one process or a group of processes they can see an immediate empirical return the other thing that I like to measure I quite like is that they value it so they think they love it they love and value it so they love it meaning it actually induces an emotion so when you when you watch the robots in action and they watch something that has been holding your team back or there's been stifling productivity or whatever it is people get giddy about it it's quite fascinating to see comment about Gordon Moore and Ty that's a digital transformation when I think of digital transformation I think of data yeah what's the difference in a business in a digital business it's how they use data yeah they put data at the core and four years we march to the cadence of Moore's law and that's changed its that that's not what the innovation the engine is today it's it's machine intelligence it's data and it's cloud for scale where do you guys fit I mean obviously AI is a piece of that but but maybe you could add some color to where our PA fits in that equation so I think that's an important point because there's a lot of miscommunication I think about really what it means when you talk about digital transformation and what it means to be digitally transformed and really to see transformed you're really talking about a category of customers which are large more institutional enterprises and governments because they have something to transform what they're transforming into is more of a digital native sort of set of attributes more insurgent mindsets and these companies are to your point they're very data hungry they harvest as much data as they can from from value from data they're very customer centric they focus on the customer experience they use other people's resources oh the cloud being one great example of that and the missing point from what you said is they automate everything they've to meet it so part of the digital transformation journey is if it can be automated it will be automated and anything that's new will be born automated so let me ask a follow-up on that is there a cultural difference in amia versus what you're seeing in North America in terms of the receptivity to automation I mean there are certain parts of of Europe which are you know more protective of jobs do you see a cultural difference or are they kind of I mean we do see even some resistance here but when you talk to customers they're like no it's it's wonderful I love it what are you seeing in Europe so I don't I don't see much of a cultural difference there and I see don't I don't see yet I haven't seen any feedback yes Peres I'm very new still but I haven't seen anybody talk about really that this technology is a technology to take jobs out I think most people see this technology as a way of getting better performance out of humans you know pivoting them towards more so I would say like in some markets in my in my in my prior life in in many prior lives I would say that there's some countries like France for example that would have been a little bit more stayed within their approach to new technologies and adoption not so with regards to automation they see this as a real and game productivity increase thank you I think that's true for people who have tasted it yeah but I do think there's still some reticence in the ranks until they actually experience it that's why we'll talk to some customers about it they'll have bought a Thon's and just a yeah to educate people and what's possible to let them try to build their own robots and then people then the light bulbs go off that it's taking away the aggravations the frustrations the mundi the drudgery and then you said people get giddy about those things you don't have to do that yeah but then the question is also so so what creative things are you doing now so how are you spending your time what are you doing differently that makes your job more interesting more compelling yeah and and and I think that's the real question - so what is the okay yes receiving some money and people aren't having to do those mundane tasks but then what are what is the value add that the employees are now bringing to the table yeah so in actually sit and it takes made the right point as well in terms of the mechanism for doing that is the the part of the battle here is to spark the imagination just like anything really just let you like it back in the Amazon wild it's all of our spark in the imagination if you can if you can imagine it you can build it it's the same thing really with within our world now is figuring out with customers what think what tasks do they do that they hate doing either a user level or a downstream level what are the things that they really want to do that they need our help to harvest and so we do the same sort the same sort of things that we would have done with AWS where we did lots of hackathons and you bought lots of technology partners in with us and we would sort of building all of this we do exactly the same thing with the RP a space it's exactly the same this is really important because creativity is going to become an increasingly important because if productivity goes up it means you can do the same amount of work with less people so it is going to impact jobs and people are gonna have to be comfortable to get out of their comfort zone and become creative and find ways to apply these technologies to really advance but you know drive value to their organizations and actually I look at this as well as a long term technology whereas a long term technology is something that's important for my children I've three and they're still very young so twelve ten and six but eventually they will go into the workplace with these skills embedded they will just know the how you get work done is you have your robot do a whole load of tasks for you here and your your job is to build and to be creative and to harvest data and to manipulate data and and serve customers and focus on the customer experience that's really what it's all about the real brain works I've been a pleasure having you on the show at uipath thank you so much appreciate it i'm rebecca night for j4 day Volante please stay tuned for more from the cubes live coverage of uipath coming up in just a little bit

>>From Miami beach, Florida. It's the cube covering a Cronus global cyber summit 2019. Brought to you by Acronis. >>So Ron, welcome back to the keeps coverage of kronas cyber global cyber summit 2019. I'm John furrier here in Miami beach. Our next guest is Pat Hurley, vice president, general manager of the Americas in sales and customer relationships. Get Debbie Juan. Hey, thanks for having me. Welcome to Miami beach. Lovely place to have an event. So I hear ya. You got a lot of competition going on between the U S America's in the AMIA teens and it's very competitive group. >> The European team is very confident. I think we'll show them tomorrow what we're made of. We've been recruited very hard for some players that are Latin American. I think we'll show them a finger too. You've got a big soccer story there. We do. Yeah. We've, uh, we've got a few sports partnerships that we have across the globe. Uh, some of the first partnerships we had were actually within formula one. >>And we really try to correlate the story of the importance of, uh, data protection and cyber protection in the sporting industry because a lot of people don't think about the amount of data that's actually being generated in the space. A formula one car generates between, you know, two and three terabyte through three gigabytes of data on every lap, tons of telemetry devices that are kicked, collecting information from the car, from the road service, from the, the general environment. They're taking that data and then sending it back to the headquarter, analyzing it and making very small improvements to the car to make sure that they can qualify faster, run a faster lap, make the right type of angle into a turn, uh, which can really differentiate them from being, you know, first, second, third, 10th in a qualifying session. On the soccer side. We do have some partnerships with uh, arsenal, Manchester city, inter Milan, and we just signed a partnership as well with Liverpool. >>So we are very popping in that space here in the U S we have some other sports that we're big fans of. I'm personally a big Boston red Sox fan, being a Boston native and we do have a sports partnership with the red Sox, which has been an unbelievable partnership with them. And learning more about the use cases that they solve and using our technology has been really cool. >> You know, Patty, you bring up the sports thing and we were kidding before we on camera around the trading, you know how people do sports deals and they trade, you know, merchandise for consumer benefit or customer benefits. But really what is happening is sports teams encapsulate really the digital transformation in a nutshell because most sports franchises are, have been traditionally behind. But now with the consumerization of it and digital can go back to 2007 since the mobile phone. >>Really, I mean it's iPhone. Yeah. Since that time, sports and capsulates every aspect of it, consumer business fan experience. And it really has every, every, almost every element of what we see now as a global IOT problem opportunity. So it really encapsulates the use case of an integrated and and needed solution. Oh yeah, absolutely. I mean, if you think about the amount of data that's, that's out there today and the fast way that it's growing, you know, the explosion of, uh, of data in the, in the world today, sports have different unique challenges. So obviously they have large fan bases that need to be able to access the data and understand what's going on with their favorite sports teams. Um, for us it's really, you know, these technology partnerships that we have with these guys, it runs through all these different areas of, you know, in many cases we didn't really understand that they were using it for. >>So, you know, the red Sox for example, they've got Fenway park and iconic stadium, you know, the Mecca of baseball. If you haven't been there yet, I suggest all your viewers that they go and check it out, give me a call, we'll try and get you set up there. But, um, you know, the, the, the experience that the fans have there is all around their data experienced there. Right? And it's not just baseball games. It could be hockey games that Fenway park, it could be a concert that they're having. A phone buys a lot of different events. These stadiums are open year round and the ability to move, share access, protect the data in that stadium is really important to how they're functioning as an organization. We talked to their I-Team quite regularly about how they're using our solutions. They're talking about uh, different aspects of artificial intelligence, different ways they can use our products and machine learning. >>Obviously with the new solutions that we have in the market today around cybersecurity or helping them to address other challenges that they face. Um, as an organization, these are realtime challenges in their physical locations, national security issues, terrorist attacks could happen. There are venues, there are public gathering places too. Absolutely. We announced our partnership with them back in may and I was shocked to hear them on the main stage announcing that they had this great partnership with the Kronos was talking about their unique cyber security needs. They started talking about drone technology and I'm thinking, all right, a drone flies in the stadium. Maybe at breaks and it falls on a player and we're paying $20 million for one of these pitchers to be out there on the Hill or an interest, a fan or maybe they're collecting some video data to then share it out. >>And that's red Sox IP. No, they're talking about cybersecurity threats in the sense that a drone, a remotely controlled device could come in and lightened incendiary device in the, in the stadium and that to them as a real security server. And that's frontline for the it guys. That's what keeps them up at night. Yeah. And that's really an attack take time. Oh yeah, absolutely. What are the use cases that are coming out of some of your customers, cause you guys have a unique integrated solution with a platform as an end to end component too. You have a holistic view on data, which is interesting and unique. People are kind of figuring this out, but you guys are ahead of the game. What are some of the use cases that you've seen in the field with customers that highlight the benefits of taking a holistic view of the data? >>Yeah, absolutely. So we look at it as kind of backups dead, right? We have, we've combined the old world of backup and disaster recovery with the new world of cybersecurity and we combine that to a term we're calling cyber protection because it really requires an end to end solution and a lot of different things need to be working properly to prevent these attacks from happening. Uh, you need to be very proactive in how you're going about that. We address it with what we call 'em, the Kronos cyber platform. And what this is, is a unique, multi-tiered multi-tenant offering that's designed specifically for service providers. We have just under 6,000 servers, providers actively selling our cyber protection solutions today and they use this for are for a multiple different aspects. And usually the beachhead has something like backup. Every company needs backup. It's more of a commodity type solutions, a lot of different players in the game out there, but they take it a step further, use that same backup technology to then do disaster recovery. >>They can do files, they can share, they can do monitoring. We have notary solutions based on blockchain technologies. Now, this whole suite of cybersecurity solutions, all of this is with a single pane of glass, one platform that of a service provider can go in and work with their customers and make sure that their data is protected, make sure that their physical machines are virtual machines, they're PCs, their Macs are all protected, that data's protected, it's secure, but it's also accessible, which is an important part of you can take your data wrapping a nice bow buried a hundred feet underground, but then you can't use it, right? So you want to be able to make sure that you can actually, uh, leverage the technology there. Um, we've seen explosive growth, especially in, in my market. I think the numbers are pretty crazy. It's something like 90% of the market today in the U S has served in some capacity by a service provider. >>And this could be a small to medium size business that's served by local service fire to those really big guys that are out there. Let's on with how large your target audience, you mentioned search probably multiple times when you're out selling your target persona, your target audience, and you're trying to reach into, so we touch, everybody know, you equate it to kind of what we do with the red Sox, right? You walk into that city and the 38,000 people that, well, some of those people are just, you know, regular Joe's, right? They, they go to work every day. They have a computer at home, they have a mobile device. They probably have multiple mobile devices. We protect that for them. We call them a consumer. Slash. Prosumers. We work at a lot of very large retail organizations. If you walk into some of those shops today, you'll be able to see our software on a shelf there. >>You work with one of those tech squads where they're starting to attach services to it and you get more of a complete offering there. We then scale up a little bit further to some OEM providers. You work with companies like Honeywell and Emerson that are manufacturing devices that embed our software on there. They white label it and deliver it out. These are connected devices. You think about the, you know the, the explosion of IOT devices in the market today. We're protecting that stuff as well. We work with very large enterprises, so some of the, the major players that you see in the manufacturing space are standing up standardizing on Acronis process control process automation vendors are using our Chronis and we can deliver the solution because of the way it's so flexible in a very consumable way for them. Those enterprises can actually act as a service provider for their employees so we can actually take our technology, deploy the layer in their infrastructure where they have complete control. >>They might not want to be in an Uber cloud, they might not want to work with Chrome OS data center. They want to have and hold that data. They want to make sure it's on site. We enable that type of functionality and then the fastest growing area for us is what I hit on earlier within the service provider community. We're recruiting hundreds of service providers every quarter. We've got some great partners here. Give you an example of a service provider. You mentioned the red size, I'm assuming is that a vendor that might be working within that organization, but still it sounds like that's a supplier to the red Sox. How, how broad is that definition? It gives us many points. Yeah, it's a really good point. So we work with hosting providers. Look, can be regional hosting providers to multinational hosting providers. Some of the very big names that you've, you're probably familiar with. >>We work with, uh, we work with, uh, telco providers who work with ISV providers or sorry, ISP providers, um, kind of regional telco providers that provide a myriad of different services all the way down to your kind of local mom and pop type service providers where you've got a small business, maybe they've got 30 to 50 employees, they're servicing probably 200 to 300 customers and they want to provide a very secure, safe, easy to use complete solution to their customers. Uh, those could be focused on certain verticals so they could be focused on healthcare, financial services, construction, et cetera. Um, we have some that are very niche within like dental services or chiropractice offices, small regional doctor's offices. Uh, and the, the beauty of that, and I was getting the partners earlier, is we have partnerships with companies like ConnectWise where those are tools that service providers are using on a very daily basis. >>So essentially the platform gives you that range and that's the typical typical platform. So you have that broad horizontally scalable capability and the domain expertise either be what solution from you guys or can ISV or someone within your ecosystem is that they get that. Right? Absolutely. And that's what really differentiates us is our ability to integrate into that plat, into our platform, into their platform and make those connections. So you don't need to learn 12, 14, 15 different technologies. You've got a small suite of offerings in a single pane of glass, very easy to use, very intuitive. Um, the integrations that we have with these partners like ConnectWise, like Ingram micro, really differentiate us because what they do is they provide open API capabilities. They provide software development kits where these partners can go ahead and build it the way they want to sell it. >>You know, it's interesting when the cloud came out and as on premise has changed to a much more agile dev ops kind of mindset that forced it to think like a service provider. I think like an operating system, it's an operating environment basically. So that service provides an interesting angle and I want to get your thoughts on this because I think this is where you guys have such a unique opportunity to just integrate solution because you could get into anything and you got ISV to back that up. So I guess the question I would have is for that enterprise that's out there that's looking to refactor and replatform their entire operation, or it could be a large enterprise, it has a huge IOT opportunity or challenge or a service provider is looking at having a solution. What's the pitch that you would give me if I'm the one of those customers? >>Say, Hey Pat, what's the pitch? So you need a, you need a trusted provider that's been in the business for a number of years that understands the data protection and security markets that Kronos has that brand. We've been doing this for about 16 years. We were founded in Singapore, we're headquartered out of Switzerland and we've got a lot of really smart guys in the back room. Was building good technologies that our partners were able to use. Um, we look at it a lot of different ways. I mentioned our go to market across a lot of different verticals and a lot of different um, kind of routes for those. The way we deliver our solution. It provides the flexibility for an enterprise to a classic reseller to um, you know, a VAR or a service, right? It's delivering services. It can be delivered to those guys how they want to consume it. >>So as an example, we may work with a smaller service provider that doesn't have any colo capabilities. We provide data centers so they could have a very quick turnkey solution, allows them to get up and running with their business, selling backup within minutes to their customers. We can also work with very large enterprises where we can deliver the complete platform to them and then they have complete control over it. We sprinkle in some professional services to make sure that we're giving them the support that they need and then they're running the service for themselves. What we've really seen in terms of a trend is that a lot of these VARs, we have about 4,500 of them in North America and they're starting to look at their businesses differently. Say, I gotta adapt or die here. I gotta figure out what my next business model is. >>How am I going to be the next one that's in the news flash that says, Hey, they've been acquired, or Hey Thoma Bravo made a big investment in me. Right? They need to convert to this services business or Kronos enables that transformation to happen. I mean, I can see you guys really making money for channel partners because they want solutions. They want to touch the customer, they want to maybe add something they could bring into it or have high service gross profits around services. Absolutely. So, yeah, our solution is unique in the sense that allows partners to sell multiple offerings to, you're getting an additional layer of stickiness providing multiple solutions to a customer. You're using the same technology, so your it team is very familiar with what they're using on a daily basis. Um, you're reducing the amount of churn for your customers because you're selling so much additional there that they're really stuck with you. >>That's a good thing. Uh, and beyond that, your increasing ARPU, average revenue per user is a key metric that all of our partners are looking at. And these guys are owner operators, right? They're business owners. They're looking at the bottom line. I mean, it's interesting the operating leverage around the consistent platform just lowers, it gives them software economic model. They can get more profit over time as they make that investment look at at the end of the day, channel partners care about a couple things, money, profit and customer happiness. Absolutely. And it helps to have them want to have a lot of one offs and a lot of, you know, training, you know, anything complicated, anything confusing, anything that requires a lot of resources, they're not going to like a, it's also great to have events like this where you're able to, to press the flesh with these guys and, and being face to face and understand their real world challenges that they're dealing with on a daily basis. >>How has the sport's a solution set that you've been involved in? How has that changed the culture of Acronis? Is that, has that, has that changed as, you know, sports is fun. People love sports, they have real problems. It's a really great use case as well. How's that change the culture? It's been amazing. I, so one from a branding perspective, we are a lot more recognized, right? Um, the most important thing about these partnerships for us is that they're actually using the technology. So, you know, we've got the red Sox here with us today. We've got arsenal represented, we've got Williams, we've got Roush racing, we've got a NASCAR car back here. Um, they use our technology on a daily basis and for each one of them we solve different types of use cases. Whether it's sending them large amount of video data from an essence studio over to Fenway park, or if it's a scout out in the field that needs to send information back and their laptop crashes, how do they recover? >>A lot of these different use cases, you can call them right back to a small business owner. You don't have to be a multibillion dollar sports organization with the same challenge. Well, I'm smiling because we've been called the ESPN of tech to they bring our set. We do let the game day thing. We certainly could love to come join you in all these marquee events that you have. We'd love to have it. Yeah, so if you follow us on social, we're out there and that, that's a big part of it. You mentioned one of ours looking for what our partners looking for. They want a personal relationship too. A lot of that goes away with technology nowadays and being able to really generate that type of a, of a personal relationship. These partnerships enable that to happen and they're very anything, I don't know anything about cars. >>We started partnering with formula one. All of a sudden I know everything about 41 I go to these races. I tell everybody I don't know anything about cars and I ended up being the, the subject matter export for him over over the weekend. So we'd love to have you guys join us. We'd love all of our partners. They get more engaged in the sports aspect of it because for us, it really is something that, um, again, they're using us in real life scenarios. We're not paying to put a sticker on a car that's going 300 miles. It's not traveling as a real partnership. Exactly. Pat, congratulations on your success and good luck on people owning away the numbers. Congratulations. Thank you very much. Just the cube coverage here at the Chronis global cyber summit 2019 I'm John furry. More coverage after this short break.

>> From the Silicon Angle Media Office in Boston, Massachusetts, it's The Cube. Now, here's your host Dave Vellante. >> Hi everybody. Welcome to this Cube Insights powered by ETR. In this breaking analysis we're going to look at recent spending data from the ETR Spending Intentions Survey. We believe tech spending is slowing down. Now, it's not falling off a cliff but it is reverting to pre-2018 spending levels. There's some concern in the bellwethers of specifically financial services and insurance accounts and large telcos. We're also seeing less redundancy. What we mean by that is in 2017 and 2018 you had a lot of experimentation going on. You had a lot of digital initiatives that were going into, not really production, but sort of proof of concept. And as a result you were seeing spending on both legacy infrastructure and emerging technologies. What we're seeing now is more replacements. In other words people saying, "Okay, we're now going into production. We've tried that. We're not going to go with A, we're going to double down on B." And we're seeing less experimentation with the emerging technology. So in other words people are pulling out, actually some of the legacy technologies. And they're not just spraying and praying across the entire emerging technology sector. So, as a result, spending is more focused. As they say, it's not a disaster, but it's definitely some cause for concern. So, what I'd like to do, Alex if you bring up the first slide. I want to give you some takeaways from the ETR, the Enterprise Technology Research Q4 Pulse Check Survey. ETR has a data platform of 4,500 practitioners that it surveys regularly. And the most recent spending intention survey will actually be made public on October 16th at the ETR Webcast. ETR is in its quiet period right now, but they've given me a little glimpse and allowed me to share with you, our Cube audience, some of the findings. So as I say, you know, overall tech spending is clearly slowing, but it's still healthy. There's a uniform slowdown, really, across the board. In virtually all sectors with very few exceptions, and I'll highlight some of the companies that are actually quite strong. Telco, large financial services, insurance. That's rippling through to AMIA, which is, as I've said, is over-weighted in banking. The Global 2000 is looking softer. And also the global public and private companies. GPP is what ETR calls it. They say this is one of the best indicators of spending intentions and is a harbinger for future growth or deceleration. So it's the largest public companies and the largest private companies. Think Mars, Deloitte, Cargo, Coke Industries. Big giant, private companies. We're also seeing a number of changes in responses from we're going to increase to more flat-ish. So, again, it's not a disaster. It's not falling off the cliff. And there are some clear winners and losers. So adoptions are really reverting back to 2018 levels. As I said, replacements are arising. You know, digital transformation is moving from test everything to okay, let's go, let's focus now and double-down on those technologies that we really think are winners. So this is hitting both legacy companies and the disrupters. One of the other key takeaways out of the ETR Survey is that Microsoft is getting very, very aggressive. It's extending and expanding its TAM further into cloud, into collaboration, into application performance management, into security. We saw the Surface announcement this past week. Microsoft is embracing Android. Windows is not the future of Microsoft. It's all these other markets that they're going after. They're essentially building out an API platform and focusing in on the user experience. And that's paying off because CIOs are clearly more comfortable with Microsoft. Okay, so now I'm going to take you through some themes. I'm going to make some specific vendor comments, particularly in Cloud, software, and infrastructure. And then we'll wrap. So here's some major themes that really we see going on. Investors still want growth. They're punishing misses on earnings and they're rewarding growth companies. And so you can see on this slide that it's really about growth metrics. What you're seeing is companies are focused on total revenue, total revenue growth, annual recurring revenue growth, billings growth. Companies that maybe aren't growing so fast, like Dell, are focused on share gains. Lately we've seen pullbacks in the software companies and their stock prices really due to higher valuations. So, there's some caution there. There's actually a somewhat surprising focus given the caution and all the discussion about, you know, slowing economy. There's some surprising lack of focus on key performance indicators like cash flow. A few years ago, Splunk actually stopped giving, for example, cash flow targets. You don't see as much focus on market capitalization or shareholders returns. You do see that from Oracle. You see that last week from the Dell Financial Analyst Meeting. I talked about that. But it's selective. You know these are the type of metrics that Oracle, Dell, VMware, IBM, HPE, you know generally HP Inc. as well will focus on. Another thing we see is the Global M&A across all industries is back to 2016 levels. It basically was down 16% in Q3. However, well and that's by the way due to trade wars and other uncertainties and other economic slowdowns and Brexit. But tech M&A has actually been pretty robust this year. I mean, you know take a look at some examples. I'll just name a few. Google with Looker, big acquisitions. Sales Force, huge acquisition. A $15 billion acquisition of Tableau. It also spent over a billion dollars on Click software. Facebook with CTRL-labs. NVIDIA, $7 billion acquisition of Mellanox. VMware just plunked down billion dollars for Carbon Black and its own, you know, sort of pivotal within the family. Splunk with a billion dollar plus acquisition of SignalFx. HP over a billion dollars with Cray. Amazon's been active. Uber's been active. Even nontraditional enterprise tech companies like McDonald's trying to automate some of the drive-through technology. Mastercard with Nets. And of course the stalwart M&A companies Apple, Intel, Microsoft have been pretty active as well as many others. You know but generally I think what's happening is valuations are high and companies are looking for exits. They've got some cool tech so they're putting it out there. That you know, hey now's the time to buy. They want to get out. That maybe IPO is not the best option. Maybe they don't feel like they've got, you know, a long-term, you know, plan that is going to really maximize shareholder value so they're, you know, putting forth themselves for M&A today. And so that's been pretty robust. And I would expect that's going to continue for a little bit here as there are, again, some good technology companies out there. Okay, now let's get into, Alex if you pull up the next slide of the Company Outlook. I want to start with Cloud. Cloud, as they say here, continues it's steady march. I'm going to focus on the Big 3. Microsoft, AWS, and Google. In the ETR Spending Surveys they're all very clearly strong. Microsoft is very strong. As I said it's expanding it's total available market. It's into collaboration now so it's going after Slack, Box, Dropbox, Atlassian. It's announced application performance management capabilities, so it's kind of going after new relic there. New SIM and security products. So IBM, Splunk, Elastic are some targets there. Microsoft is one of the companies that's gaining share overall. Let me talk about AWS. Microsoft is growing faster in Cloud than AWS, but AWS is much, much larger. And AWS's growth continues. So it's not as strong as 2018 but it's stronger, in fact, much stronger than its peers overall in the marketplace. AWS appears to be very well positioned according to the ETR Surveys in database and AI it continues to gain momentum there. The only sort of weak spot is the ECS, the container orchestration area. And that looks a little soft likely due to Kubernetes. Drop down to Google. Now Google, you know, there's some strength in Google's business but it's way behind in terms of market share, as you all know, Microsoft and AWS. You know, its AI and machine learning gains have stalled relative to Microsoft and AWS which continue to grow. Google's strength and strong suit has always been analytics. The ETR data shows that its holdings serve there. But there's deceleration in data warehousing, and even surprisingly in containers given, you know, its strength in contributing to the Kubernetes project. But the ETR 3 Year Outlook, when they do longer term outlook surveys, shows GCP, Google's Cloud platform, gaining. But there's really not a lot of evidence in the existing data, in the near-term data to show that. But the big three, you know, Cloud players, you know, continue to solidify their position. Particularly AWS and Microsoft. Now let's turn our attention to enterprise software. Just going to name a few. ETR will have an extensive at their webcast. We'll have an extensive review of these vendors, and I'll pick up on that. But I just want to pick out a few here. Some of the enterprise software winners. Workday continues to be very, very strong. Especially in healthcare and pharmaceutical. Salesforce, we're seeing a slight deceleration but it's pretty steady. Very strong in Fortune 100. And Einstein, its AI offering appears to be gaining as well. Some of the acquisitions Mulesoft and Tableu are also quite strong. Demandware is another acquisition that's also strong. The other one that's not so strong, ExactTarget is somewhat weakening. So Salesforce is a little bit mixed, but, you know, continues to be pretty steady. Splunk looks strong. Despite some anecdotal comments that point to pricing issues, and I know Splunk's been working on, you know, tweaking its pricing model. And maybe even some competition. There's no indication in the ETR data yet that Splunk's, you know, momentum is attenuating. Security as category generally is very, very strong. And it's lifting all ships. Splunk's analytics business is showing strength is particularly in healthcare and pharmaceuticals, as well as financial services. I like the healthcare and pharmaceuticals exposure because, you know, in a recession healthcare will, you know, continue to do pretty well. Financial services in general is down, so there's maybe some exposure there. UiPath, I did a segment on RPA a couple weeks ago. UiPath continues its rapid share expansion. The latest ETR Survey data shows that that momentum is continuing. And UiPath is distancing itself in the spending surveys from its broader competition as well. Another company we've been following and I did a segment on the analytics and enterprise data warehousing sector a couple weeks ago is Snowflake. Snowflake continues to expand its share. Its slightly slower than its previous highs, which were off the chart. We shared with you its Net Score. Snowflake and UiPath have some of the highest Net Scores in the ETR Survey data of 80+%. Net Score remembers. You take the we're adding the platform, we're spending more and you subtract we're leaving the platform or spending less and that gives you the Net Score. Snowflake and UiPath are two of the highest. So slightly slower than previous ties, but still very very strong. Especially in larger companies. So that's just some highlights in the software sector. The last sector I want to focus on is enterprise infrastructure. So Alex if you'd bring that up. I did a segment at the end of Q2, post Q2 looking at earning statements and also some ETR data on the storage spending segment. So I'll start with Pure Storage. They continue to have elevative spending intentions. Especially in that giant public and private, that leading indicator. There are some storage market headwinds. The storage market generally is still absorbing that all flash injection. I've talked about this before. There's still some competition from Cloud. When Pure came out with its earnings last quarter, the stock dropped. But then when everybody else announced, you know, negative growth or, in Dell's case, Dell's the leader, they were flat. Pure Storage bounced back because on a relative basis they're doing very well. The other indication is Pure storage is very strong in net app accounts. Net apps mix, they don't call them out here but we'll do some further analysis down the road of net apps. So I would expect Pure to continue to gain share and relative to the others in that space. But there are some headwinds overall in the market. VMware, let's talk about VMware. VMware's spending profile, according to ETR, looks like 2018. It's still very strong in Fortune 1000, or 100 rather, but weaker in Fortune 500 and the GPP, the global public and private companies. That's a bit of a concern because GPP is one of the leading indicators. VMware on Cloud on AWS looks very strong, so that continues. That's a strategic area for them. Pivotal looks weak. Carbon Black is not pacing with CrowdStrike. So clearly VMware has some work to do with some of its recent acquisitions. It hasn't completed them yet. But just like the AirWatch acquisition, where AirWatch wasn't the leader in that space, really Citrix was the leader. VMware brought that in, cleaned it up, really got focused. So that's what they're going to have to do with Carbon Black and Security, which is going to be a tougher road to hoe I would say than end user computing and Pivotal. So we'll see how that goes. Let's talk about Dell, Dell EMC, Dell Technologies. The client side of the business is holding strong. As I've said many times server and storage are decelerating. We're seeing market headwinds. People are spending less on server and storage relative to some of the overall initiatives. And so, that's got to bounce back at some point. People are going to still need compute, they're still going to need storage, as I say. Both are suffering from, you know, the Cloud overhang. As well, storage there was such a huge injection of flash it gave so much headroom in the marketplace that it somewhat tempered storage demand overall. Customers said, "Hey, I'm good for a while. Cause now I have performance headroom." Whereas before people would buy spinning discs, they buy the overprovision just to get more capacity. So, you know, that was kind of a funky value proposition. The other thing is VxRail is not as robust as previous years and that's something that Dell EMC talks about as, you know, one of the market share leaders. But it's showing a little bit of softness. So we'll keep an eye on that. Let's talk about Cisco. Networking spend is below a year ago. The overall networking market has been, you know, somewhat decelerating. Security is a bright spot for Cisco. Their security business has grown in double digits for the last couple of quarters. They've got work to do in multi-Cloud. Some bright spots Meraki and Duo are both showing strength. HP, talk about HPE it's mixed. Server and storage markets are soft, as I've said. But HPE remains strong in Fortune 500 and that critical GPP leading indicator. You know Nimble is growing, but maybe not as fast as it used to be and Simplivity is really not as strong as last year. So we'd like to see a little bit of an improvement there. On the bright side, Aruba is showing momentum. Particularly in Fortune 500. I'll make some comments about IBM, even though it's really, you know, this IBM enterprise infrastructure. It's really services, software, and yes some infrastructure. The Red Hat acquisition puts it firmly in infrastructure. But IBM is also mixed. It's bouncing back. IBM Classic, the core IBM is bouncing back in Fortune 100 and Fortune 500 and in that critical GPP indicator. It's showing strength, IBM, in Cloud and it's also showing strength in services. Which is over half of its business. So that's real positive. Its analytics and EDW software business are a little bit soft right now. So that's a bit of a concern that we're watching. The other concern we have is Red Hat has been significantly since the announcement of the merger and acquisition. Now what we don't know, is IBM able to inject Red Hat into its large service and outsourcing business? That might be hidden in some of the spending intention surveys. So we're going to have to look at income statement. And the public statements post earnings season to really dig into that. But we'll keep an eye on that. The last comment is Cloudera. Cloudera once was the high-flying darling. They are hitting all-time lows. They made the acquisition of Hortonworks, which created some consolidation. Our hope was that would allow them to focus and pick up. CEO left. Cloudera, again, hitting all-time lows. In particular, AWS and Snowflake are hurting Cloudera's business. They're particularly strong in Cloudera's shops. Okay, so let me wrap. Let's give some final thoughts. So buyers are planning for a slowdown in tech spending. That is clear, but the sky is not falling. Look we're in the tenth year of a major tech investment cycle, so slowdown, in my opinion, is healthy. Digital initiatives are really moving into higher gear. And that's causing some replacement on legacy technologies and some focus on bets. So we're not just going to bet on every new, emerging technology, were going to focus on those that we believe are going to drive business value. So we're moving from a try-everything mode to a more focused management style. At least for a period of time. We're going to absorb the spend, in my view, of the last two years and then double-down on the winners. So not withstanding the external factors, the trade wars, Brexit, other geopolitical concerns, I would expect that we're going to have a period of absorption. Obviously it's October, so the Stock Market is always nervous in October. You know, we'll see if we get Santa Claus rally going into the end of the year. But we'll keep an eye on that. This is Dave Vellante for Cube Insights powered by ETR. Thank you for watching this breaking analysis. We'll see you next time. (upbeat tech music)

>> Narrator: Live, from Washington, D.C. It's theCube! Covering Boomi World 19. Brought to you by Boomi. >> Welcome back to the Cube's coverage of Boomi World 2019, from D.C. I'm Lisa Martin. John Furrier is my cohost, and we're pleased to be welcome a couple of guests from Accenture, Boomi partner. To my right, we've got Pete Yao, Global Managing Director of Integration, and Laetitia Cailleteau, Accenture's Global Lead for Conversational AI. Welcome, both of you. >> Thank you. It's great to be here. >> Thank you so much. So, big news. You can't go anywhere these days without talking about AI. I mean, there's even commercials on TV, that, you know, any generation knows something about AI. But, Laetitia, let's start with you. Some big news coming out this morning, with what Boomi and Accenture are doing for conversational AI. Give our audience, kind of an overview of what you guys announced this morning. >> So, thank you very much. So, conversational AI is booming in the market. It's at the top of the agenda for a number of our C-Suites. It's a new way to make system more human. So, instead of having to learn the system you can actually speak. Ask them direct question. Have a conversation. And actually, what we are doing, what we announced this morning, is Accenture and Boomi are going to partner together to deliver that kind of services for our client. Much faster. Cause we have the expertise and the know how, of designing those conversational experience, and Boomi, obviously, integrates really fast with Beacon system. And the two, together, can really be accelerating, you know, the value delivered to our client. >> And the technology piece, I just want to sure of something. Cause, you guys are providing a front end, so, real technology, with Boomi. So, it's a together story? >> Yeah, it's definitely a together story. And as you say, we are quite expert in designing those experience on the front end. And Boomi, obviously, kind of powers up the integration in the background. >> So, this is going to be enabler of, something you said a minute ago, is, instead of us humans having to learn the tech the tech's going to learn us. Is that fair to say? >> Very fair to say. That's exactly how we want to see it. And I think we call that trend, radically human systems. So, systems are going to become more radically human as we go on. And conversational AI is one enabler of that. >> Is it going to be empathetic? Like, when, you were saying this morning something I loved, on stage. We've all had these interactions with AI, with bots, whether we're on a dot com site, trying to fix something for our cable provider. Or we're calling into a call center. You're starting to get, your voice changes, your agent! And you want that. Is it going to be able to understand, oh, all right, this person, maybe we need to escalate this. There's anger coming through the voice. Is it going to be able to detect that? >> On voice, you can definitely start detecting tone much better than on text. Cause on texts it's very small snippets. And it's quite difficult to define somebody's mood by one small interaction. Typically, you need a number of interactions to kind of see the build up of the person's emotion. But, on voice, definitely. You know, your intonation definitely defines your state of communication. >> You can tell someone's happy, sad, and then use the text meta data to add to it. This is fascinating, cause we all see Apple with Siri front end. That's a different system. They have a back end to Apple. This is a similar thing. You guys have a solution at Accenture. Can you explain how people engage with Accenture? Cause, the Boomi story is a great announcement, congratulations on that. But still, you can deploy this technology to any back end. Is that right? >> Yeah, to any back end. We have a number of live deployment running at the moment. I think the key thing is, you know, especially in the call center. Call center is an area that has not been invested in for, like decades, yeah. And, very often, the scripts are very inward driven. So they would describe the company's processes rather than think about the end user. So, what we do in Accenture, is we try to reinvent the experience, be much more user driven. And then we have a low code, no code, kind of interface, to be able to craft some of those conversation on all the variation. But, more importantly, we actually store all those conversation and can learn. And so we have assisted learning module to make a natural language processor cleverer and cleverer. And as you were saying, before we started to be on air, the user is contributing training data. Yeah, I was just sharing one of recent stories, of an ISP that I was trying to interact with, and frustrated that I couldn't just solve this problem on my own. And then after I was doing some work for theCube, a few months ago I realized, oh, actually I have to be calm here. I have an opportunity, as does everybody, to help train the models. Because that's what they need, right? It takes a tremendous amount of training data before our voices can become like fingerprints. So, I think, if more of us just kind of flip that, maybe our tone will get better, and obviously the machines will detect that, right? >> Yeah, no definitely. I think they key with conversational AI is not to see it as just plain tech, but really an opportunity to be more human centered. And, you know, obviously knowing who peoples are and how they interact in different kind of problems and scenario is absolutely critical. >> Pete, I want to get your thoughts on digital transformation, because we've done, I've done thousands of interviews on theCube, and many, many shows. Digital transformation has been around for awhile It all stops in one area. Okay, process technology, great areas, we've got visibility on that. Automation's excellent for processes. Technology, a plethora of activity. The people equations always broken down. Culture, has stopped dev ops. Maybe not enough data scientists or linguistic engineers to do conversational AI. You guys fill that void. Great technology. The people equation changes when there's successes. It all comes down to integration. Because that's where, either I don't believe in it, I don't want to do it, the culture doesn't want it. Time to value. The integration piece is critical. Can you guys explain how the Boomi Accenture integration works? And what should enterprises take away from this? >> Well, yeah, one of the key things when we started our relationship with Boomi more than five years ago now, really, Boomi was the leader, kind of the ones who invented iPad, right, the integration platform as a service. So, in the small and medium business, a lot of those companies had already moved a lot of the critical apps to the cloud. But, in the enterprise we see that it's taken a lot longer, right, so, certain departments may move certain pieces, but it's still very much a hybrid, right, between a cloud and on-prem based. So, taking a platform like Boomi, and being able to use that with the atomsphere platform has really allowed us to move forward. We've done quite a bit of work in Europe. And, now, in the last year, we've been focusing on North America, along with Europe. So, really, the platform has allowed us to focus on the integration. >> It's interesting, you bring up, you guys have been at Accenture for a long time, you've seen the waves. Oh, big 18 month deployment, eight years. Sometimes years, going back to the 80s and 90s. But now, the large enterprise kind of looks like SMB's because the projects all look, they're different now. You could have a plethora of projects out there, hundreds of projects, not one monolith. So, this seems to be a trend. Do you guys see it that away? Do you agree? Could you, like, share some insight as to what's going on in these large companies. Is it still the same game of a lot of big projects? Or, are things being broken down into smaller chunks with cloud platform? Can you guys just share your insights on this? >> Do you want to take that one first? >> You can do first, yeah. >> Okay. So the days of the big bang, big transformation, multi year programs, we don't see very many of those. A lot of our clients have moved away, towards lean, agile delivery. So, it's really being able to deliver value in shorter periods of time. And in that sense, you do see these big companies acting more like SMBs. Cause you really have to deliver that value. And, with Boomi's platform it's not just the integration aspect, and though our relationship started there, it's with some of the other pieces of technology, like flow and low code or no code as well, which has allowed Boomi customers and our clients and our teams to be able to get those applications out to production much quicker. >> Lisa: A big enabler, sorry, of the citizen developer. >> Yeah, absolutely. >> John: Thoughts on this trend. >> Yeah, so I guess my thought I will come with the innovation angle. So, obviously, we are in a very turbulent time, where company, you know, like a number of the Fortune 500 of 20 years ago, they're not there any longer. And there's quite a heavy rotation on some of the big corporation. And, what's really important is to size the market, and innovate all the time. And I think that's one of the reason why we have much smaller project. Because if you want to innovate you need to go to market really fast, try things up, and pivot ideas really fast, to try to see if people like it and want it. And, I think, that's also one of the key driver of smaller, kind of projects, that would just go much faster to like... >> We had a guy on theCube say, data is the new software. Kind of provocative, bringing a provocative statement around data's now part of the programatic element. And integration speaks volumes. I want to get your reaction to the idea of glue layers. I mean, people kick that term around. That's a glue layer. Basically integration layer with data. Control plane. This isn't really a big part of the integration story for Boomi but for other customers. What's your guys thoughts on this data layer, glue layer, that software and data come together? You're showing it with the conversational AI. It's voice, in terms of software, connects to another system. There's glue. >> Yeah, so, that's a very interesting angle. Cause I think, you know, in the old integration world people would just build an interface, and then it would go live, and they wouldn't necessarily know exactly what's going on the bonnet. And I think, adding that insight, of what you flow, or how often they use, when they're kicked off, is something that becomes quite important when you have a lot of integration to manage. I would remember, I was working for a bank, a major bank in the UK, where we trying to make a mainframe system go real time. But we had all those batch schedule, kind of running, and nobody really knew when, what, and the dependency in between each other. So, I think it definitely helps a lot. You know, bubbling up that level of visibility you need to transform truly. >> Yeah, and you're seeing lot of companies now have Chief Data Officers. Right, but data really is important. And with big data data links, unstructured data, structured data, tradional RDMS databases, being able to access that information. Is it just read only? Is it read and write? You're really seeing, kind of, how all of it has to come together. >> So, if we look at the go-to-market for Boomi and Accenture. Pete, talk to us about how that go-to-market strategy has evolved during the partnership. And where you see it going with respect to emerging technologies like conversational AI. >> Oh, yeah, we've got great opportunities. So, we've started off, really just, hey, there was integration opportunity. Are we doing much work with Boomi and the enterprise. Five years ago, we hadn't. And we started doing more work, kind of in AsiaPac, and then in Europe. Three years ago we entered a formal relationship to accelerate the growth. It was accelerated growth platform which started at Amia. And this last year we formally signed one in North America as well. And in the last three years we've done four times the amount of work. The number of customers, we've got more than 40 joint customers together. The number of trained professionals within Accenture. We have more than 400 people certified, with more than 600 certifications. Some of them may be a developer as well as an architect. And so, a lot of that is really that awareness and the education, training and enablement, as well as some joint go-to-market activities. >> Any of those in a specific, I was reading some US cases in healthcare and utilities? >> Yeah, we're definitely, we've seen quite a bit in utilities and our energy practice. We've seen it in transportation. Because Accenture covers all the different industry groups we're really seeing it in all of them. >> You know, I'm fascinated by the announcement you guys had with Boomi. The big news. Conversational AI. Because it just makes so much sense. But I worry people will pigeon hole this into, you know, voice, like telephone call centers only. Cause the US cases you guys were showing on stage was essentially like, almost like a query engine, and using voices. Versus like an agent call center work flow, which is an actual work flow. Big market there, I have no doubt about it. But, there's other US cases. I mean, this is a big, wide topic. Can you just share the vision of conversational AI a little further? >> So, meaning, I think the capability we have is to kind of go on any channel. Voice is an interesting one, cause it's, I think, it's very common still, you know, to have a call center, when you dip into challenges. And this is kind of the most emerging and challenging from a technology perspective. So, that's the one that was showcased. But there's a number of chat channels that are also very important. On the web, or a synchronous channel, like Whatsapp and Facebook and all of that kind of thing. So, it's really kind of, really offering a broad choice to the end consumer. So they can pick and choose what they want at the moment they want. I think what we see in the market is a big shift from synchronous kind of interaction, like on the web. You go on the web, you chat with something, and you just need to be there to finish it. To actually text. Because you can just send a text, get a response, go to a meeting, and on the back of the meeting, when you have five minutes, you just kind of do the reply. And you actually solve your problem on your own terms. But really when you have the time. So, there is a lot coming there. And, you know, with Apple Business Chat, you know, there's a number of mechanisms that are coming up, and new channels. Before company tended to be, you know, we do digital, we do call center, and maybe we have chat, but actually all of that is broadening up. You know, people want multi channel experts. >> So, synchronous is key. Synchronous and synchronous communication. So, is there a tell sign for a client that says I'm ready for conversational AI? Would I have to have a certain data set? I mean, is it interface? What are some of the requirements, someone says, hey, I really want this. I want to do this. >> Yeah, so, the way we deal with all of that, very often, is if you have call center recording or chat recording, we have a set of routines that we pass through. So, we transcribe everything and we do what we'd call intend discovery. And from that we can know, you know, what are the most, kind of critical, kind of processes kicked off. And from that, we know if it's transactional, or if it's an interaction, or an attendant's emotionally loaded, like people not happy with their bill. And then we have different techniques to address all of those different, kind of processes, if you want, and transform them into new experiences. And we can very easily, kind of look at the potential value we can get out of it. So, for instance, with one of our client, we identify, you know, if you do that kind of transformation you can get 25 million off your call center. You know, like, which is very sizeable. And it's very precise cause it's data driven. So, it's based on kind of, real calls, recordings and data. >> Can't hide from data. I mean, it's either successful or not. You can't hide anymore. >> Yeah, and I think one of the extra value add is very often call center agent or chat agent, they're not really paid to classify properly, so they would just pick up the most easy one all time. So, they will misclassify some of those recordings. Choose what's easiest for them. But when you actually go into what was said it's a very different story. >> John: Well, great insight. >> So, AI becoming, not just IQ, but EQ, in the future? >> Yes, definitely. That's the whole idea. That why we need our users to emrace it. (laughing) >> Exactly. And turn those frustrating experiences into I have the opportunity to influence the model. >> Last question, Pete, for you. In terms of conversational AI, and the business opportunities that this partnership with Boomi is going to give to you guys, at Accenture. >> Oh, definitely looking forward to joint go-to-market, taking this globally. We were named, earlier this week, yesterday, the worldwide partner of the year. Second time that Accenture's been awarded that. Which we appreciate. And that we look forward to working with Boomi and taking conversational AI to our joint clients. >> Awesome. Laetitia, Pete, thank you so much for joining John and me. Really interesting conversation. Can't wait to see where it goes. >> Great. Thank you very much. >> Our pleasure. >> Great conversational. >> Very conversational. >> Got some AI here, come on. >> Next time we give you a bot to sit in our seat. (all laughing) >> Cube conversations. >> Exactly. For our guests, and for John Furrier, I'm Lisa Martin. You're watching theCube, from Boomi World 19. Thanks for watching. (upbeat music)

>> From the SiliconANGLE Media office in Boston, Massachusetts, it's theCUBE! (upbeat electronic music) Now, here's your host, Dave Vellante. >> Hi, everybody, this is Dave Vellante, and I want to share with you some recent survey data that talks to the IBM acquisition of Red Hat, which closed today. It's always really valuable to go out, talk to practitioners, see what they're doing, and it's a hard thing to do. It's very expensive to get this type of survey data. A lot of times, it's very much out of date. You might remember. Some of you might remember a company called the InfoPro. Its founder and CEO was Ken Male, and he raised some money from Gideon Gartner, and he had this awesome survey panel. Well, somehow it failed. Well, friends of mine at ETR, Enterprise Technology Research, have basically created a modern version of the InfoPro. It's the InfoPro on steroids with a modern interface and data science behind it. They've now been at this for 10 years. They built a panel of 4,500 users, practitioners that they can go to, a lot of C level folks, a lot of VP level and then some doers down at the engineering level, and they go out and periodically survey these folks, and one of the surveys they did back in October was what do you think of the IBM-Red Hat acquisition? And then they've periodically gone out and talked to customers of both Red Hat and IBM or both to get a sense of the sentiment. So given that the acquisition closed today, we wanted to share some of that data with you, and our friends at ETR shared with us some of their drill down data with us, and we're going to share it with you. So first of all, I want to summarize something that they said. Back in October, they said, "We view this acquisition as less of an attempt "by IBM to climb into the cloud game, cloud relevance, "but rather a strategic opportunity "to reboot IBM's early 1990s IT services business strategy." I couldn't agree with that more. I've said all along this is a services play connecting OpenShift from Red Hat into the what Ginni Rometty talks about as the 80% of the install base that is still on prem with the workloads at the backend of mission critical systems that need to be modernized. That's IBM's opportunity. That's why this is a front end loaded cashflow deal 'cause IBM can immediately start doing business through it services organization and generate cash. They went on to say, ETR said, "Here, IBM could position itself "as the de facto IT services partner "for Fortune 100 to Global 2000 organizations "and their digital transformations. "Therefore, in theory, this could reinvigorate "the global services business for IBM "and their overlapping customer bases "could alow IBM to recapture and accelerate a great deal "of service revenues that they have lost "over the past few years." Again, I couldn't agree more. It's less about a cloud play. It is definitely about a multi-cloud play, which is how IBM's positioning this, but services de-risks this entire acquisition in my opinion even though it's very large, 34 billion. Okay, I'm show you some data. So pull up this slide. So what ETR does is they'll go out. So this is a survey of right after the acquisition of about 132 Global 2000 practitioners across a bunch of different industries, energy, utilities, financial services, government, healthcare, IT, telco, retail consumers, so a nice cross section of industries and largely in North America but a healthy cross section of AMIA and APAC. And again, these are large enterprises. So what this slide shows is conditioned responses, which I love conditioned responses. It sort of forces people to answer which of the following best describes. But this says, "Given IBM's intent to acquire Red Hat, "do you believe your organization will be more likely "to use this new combination "or less likely in your digital transformation?" You can see here on the left hand side, the green, 23% positive, on the right hand side, 13% negative. So, the data doesn't necessarily support ETR's original conclusions and my belief that this all about services momentum because most IT people are going to wait and see. So you can see the fat middle there is 64%. Basically you're saying, "Yeah, we're going to wait and see. "This really doesn't change anything." But nonetheless, you see a meaningfully more positive sentiment than negative sentiment. The bottom half of this slide shows, the question is, "Do you believe that this acquisition "makes or will make IBM a legitimate competitor "in the cloud wars between AWS and Microsoft Azure?" You can see on the left hand side, it says 45% positive. Very few say, all the way on the left hand side, a very legitimate player in the cloud on par with AWS and Azure. I don't believe that's the case. But a majority said, "IBM is surely better off "with Red Hat than without Red Hat in the context of cloud." Again, I would agree with that. While I think this is largely a services play, it's also, as Stu Miniman pointed out in an earlier video with me, a cloud play. And you can see it's still 38% is negative on the right hand side. 15% absolutely not, IBM is far behind AWS and Azure in cloud. I would tend to agree with that, but IBM is different. They're trying to bring together its entire software portfolio so it has a competitive approach. It's not trying to take Azure and AWS head on. So you see 38% negative, 45% positive. Now, what the survey didn't do is really didn't talk to multi-cloud. This, to me, puts IBM at the forefront of multi-cloud, right in there with VMware. You got IBM-Red Hat, Google with Anthos, Cisco coming at it from a network perspective and, of course, Microsoft leveraging its large estate of software. So, maybe next time we can poke at the multi-cloud. Now, that survey was done of about over 150, about 157 in the Global 2000. Sorry, I apologize. That was was 137. The next chart that I'm going to show you is a sentiment chart that took a pulse periodically, which was 157 IT practitioners, C level executives, VPs and IT practitioners. And what this chart shows essentially is the spending intentions for Red Hat over time. Now, the green bars are really about the adoption rates, and you can see they fluctuate, and it's kind of the percentage on left hand side and time is on the horizontal axis. The red is the replacement. We're going to replace. We're not going to buy. We're going to replace. In the middle is that fat middle, we're going to stay flat. So the yellow line is essentially what ETR calls market share. It's really an indication of mind share in my opinion. And then the blue line is spending intentions net score. So what does that mean? What that means is they basically take the gray, which is staying the same, they subtract out the red, which is we're doing less, and they add in the we're going to do more. So what does this data show? Let's focus on the blue line. So you can see, you know, slightly declining, and then pretty significantly declining last summer, maybe that's 'cause people spend less in the summer, and then really dropping coming into the announcement of the acquisition in October of 2018, IBM announced the $34 billion acquisition of Red Hat. Look at the spike post announcement. The sentiment went way up. You have a meaningful jump. Now, you see a little dip in the April survey, and again, that might've been just an attenuation of the enthusiasm. Now, July is going on right now, so that's why it's phased out, but we'll come back and check that data later. So, and then you can see this sort of similar trend with what they call market share, which, to me, is, again, really mind share and kind of sentiment. You can see the significant uptick in momentum coming out of the announcement. So people are generally pretty enthusiastic. Again, remember, these are customers of IBM, customers of Red Hat and customer of both. Now, let's see what the practitioners said. Let's go to some of the open endeds. What I love about ETR is they actually don't just do the hardcore data, they actually ask people open ended questions. So let's put this slide up and share with you some of the drill down statements that I thought were quite relevant. The first one is right on. "Assuming IBM does not try to increase subscription costs "for RHEL," Red Hat Enterprise Linux, "then its organizational issues over sales "and support should go away. "This should fix an issue where enterprises "were moving away from RHEL to lower cost alternatives "with significant movement to other vendors. "This plus IBM's purchase of SoftLayer and deployment "of CloudFoundry will make it harder "for Fortune 1000 companies to move away from IBM." So a lot implied things in there. The first thing I want to mention is IBM has a nasty habit when it buys companies, particularly software companies, to raise prices. You certainly saw this with SPSS. You saw this with other smaller acquisitions like Ustream. Cognos customers complained about that. IBM buys software companies with large install bases. It's got a lock in spec. It'll raise prices. It works because financially it's clearly worked for IBM, but it sometimes ticks off customers. So IBM has said it's going to keep Red Hat separate. Let's see what it does from a pricing standpoint. The next comment here is kind of interesting. "IBM has been trying hard to "transition to cloud-service model. "However, its transition has not been successful "even in the private-cloud domain." So basically these guys are saying something that I've just said is that IBM's cloud strategy essentially failed to meet its expectations. That's why it has to go out and spend $34 billion with Red Hat. While it's certainly transformed IBM in some respects, IBM's still largely a services company, not as competitive as cloud as it would've liked. So this guys says, "let alone in this fiercely competitive "public cloud domain." They're not number one. "One of the reasons, probably the most important one, "is IBM itself does not have a cloudOS product. "So, acquiring Red Hat will give IBM "some competitive advantage going forward." Interesting comments. Let's take a look at some of the other ones here. I think this is right on, too. "I don't think IBM's goal is to challenge AWS "or Azure directly." 100% agree. That's why they got rid of the low end intel business because it's not trying to be in the commodity businesses. They cannot compete with AWS and Azure in terms of the cost structure of cloud infrastructure. No way. "It's more to go after hybrid multi-cloud." Ginni Rometty said today at the announcement, "We're the only hybrid multi-cloud, opensource vendor out there. Now, the third piece of that opensource I think is less important than competing in hybrid and multi-cloud. Clearly Red hat gives IMB a better position to do this with CoreOS, CentOS. And so is it worth 34 billion? This individual thinks it is. So it's a vice president of a financial insurance organization, again, IBM's strong house. So you can here some of the other comments here. "For customers doing significant business "with IBM Global Services teams." Again, outsourcing, it's a 10-plus billion dollar opportunity for IBM to monetize over the next five years, in my opinion. "This acquisition could help IBM "drive some of those customers "toward a multi-cloud strategy "that also includes IBM's cloud." Yes, it's a very much of a play that will integrate services, Red Hat, Linux, OpenShift, and of course, IBM's cloud, sprinkle in a little Watson, throw in some hardware that IBM has a captive channel so the storage guys and the server guys can sell their hardware in there if the customer doesn't care. So it's a big integrated services play. "Positioning Red Hat, and empowering them "across legacy IBM silos, will determine if this works." Again, couldn't agree more. These are very insightful comments. This is a largely a services and an integration play. Hybrid cloud, multi-cloud is complex. IBM loves complexity. IBM's services organization is number one in the industry. Red Hat gives it an ingredient that it didn't have before other than as a partner. IBM now owns that intellectual property and can really go hard and lean in to that services opportunity. Okay, so thanks to our friends at Enterprise Technology Research for sharing that data, and thank you for watching theCUBE. This is Dave Vellante signing off for now. Talk to you soon. (upbeat electronic music)

>> Live from Las Vegas, it's theCUBE. Covering Dell Technologies World 2019, brought to you by Dell Technologies and it's ecosystem partners. >> Welcome back everyone. So CUBE's live coverage here in Vegas, day three as we wind down three days of deep coverage, two sets, a lot of content flowing on siliconangle.com and theCUBE.net. I'm John Furrier, Dave Vellante. Day Three's still got a lot of action to it. Rick, Rich Steeves, Senior Director, Worldwide Partner Programs welcome to theCUBE. We just talked about people calling you Rick. >> It's going to happen. >> Rich, welcome to theCUBE. >> It's been an, I'm really honored to be on with you guys. >> Worldwide Partner Programs. Obviously, VMware is hot. Revenue's up, Pat Gelsing was on yesterday. >> That's right. >> Everything's going up and to the right. Lot of things that the bets that VMware made paying off. Still great customer base growing. Cloudified, multiple partnerships. So you guys are in a good market position. >> Clearly. >> Now with the Dell Technologies integration you got touchpoints with Azure. VCF, the VMware Cloud Foundation. >> That's right. >> You have a foundational bedrock now to integrate into multiple environments. Really puts the software-defined data centers in play for everybody. >> That's correct. >> Now you're bringing it out to the partners for money-making opportunities where they can deliver value. >> Exactly. >> And get paid for it. Make a lot of profit. >> Win, win, win. >> This is the equation of partnering. >> Correct. >> Where are you guys at right now? Again, a lot of now, partnering, you do joint programs. It seems complex to me. Break if down for us. >> Yeah, well clearly we're at a great moment right now. Where the portfolios coming together. The market opportunities coming together. And we're really looking to help drive a change in the vision in the way that we partner together in the marketplace. To win together with our customers. You know, we feel like our responsibility is if we're going to have the opportunity to win the business with our partners for the foreseeable future and to become that essential, ubiquitous digital platform to help drive innovation together with our partners for our customers during their digital transformation. We fundamentally have to change the way that we look at the business and the way that we engage in the marketplace. We have to make it radically simple. Simple to engage, drive profitability and drive growth. And spend less time focused on, maybe, some of the traditional motions that have been aligned in the channel programs of the past. Around traditional routes to market or silos of complexity within the program. >> Rick, what's an example of old versus new? Give us a couple of them. >> You know, I've had the opportunity to lead and drive some of the changes and transformations. Some of the larger vendor programs in the marketplace. I think there are some pitfalls and traps we've all fell into in the past. And a lot of that has come into really siloing our partners based on traditional routes to market. Here's the bar program. Here's the distributor program. Here's the OEM program. But what we're seeing in this cloud, hybrid cloud, mobile first world, is that our partners are delivering value across the spectrum. And yet, many vendors are continuing to look at their partners as individual segments and silos. We've got to do better, right? And that's really the business proposition and some of the exciting announcements we've had recently. >> Well, I would just add just some complexity standpoint. Because of data and AI and, now, scalable infrastructure, you now have every vertical industry with specialty capabilities apps. >> Quite right. >> So, in a way, your service area for partnering is increased. So not only do you have to simplify the programs, you've got a bigger landscape to take territory on. >> Clearly. As we look at building on the foundation that we've built. Through the compute layer and b-sphere, and the ecosystem of incredibly valuable partnerships that we've built. As we take that across and hyperfocus on accelerating the cloud journey, but also transforming networking and security, or also empowering digital workspace. We've got to look at that broad base of partners and how they're delivering value to their customers. >> So what is the segmentation if it's not by the old traditional buckets? What are the new buckets or seams, really? >> It's a great question. I think we're coming to the market with a simpler proposition that says we want to offer our partners greater flexibility and choice to choose the business model that makes sense for how they want to go to market to solve their customers most pressing IT needs and priorities. Whether I'm a reseller or a cloud-service provider or an OEM. I want to have one engagement model. A consistent experience as I engage with VMware. And I want you to recognize the total value I'm bringing to the customer relationship, rather than the individual piece parts. So, one agreement, any business model, one single program. >> So, let's take some friction out of the complexity, make it simpler. What about specific programs? What are you guys launching? What are some of the news that you're rolling out to get these guys up and running quickly? >> We're really excited. We've had the opportunity over the last few weeks to change what has been in the past the tradition of over a decade the VMware Partner Network evolving to become the VMware Partner Connect Program. So we announced three weeks ago to our most strategic partners the introduction of that one-program framework, offering simplicity and choice. To focus on their customers rather than how we've asked them to engage based on how we're aligned often internally by business unit or route to market. And the reception's really just been incredible. >> The other thing that partners want, and I hear this a lot from my friends that are in the business, own a bunch of firms. Hey, what's in it for me? I need to make some cash. I would need simplicity. I don't need a lot of high cost of sales. And I want to have high margins on what we're doing. But also want to wrap services around it. >> Clearly. >> How are you guys helping that scenario? >> Really in multiple ways. I think for VMware, as we look at the opportunity, and I know you guys had a chance to catch up with Pat. We've got some really bold statements of where we want to grow the business in the coming years, together with our partners. I mean, it's a pretty powerful position to say, we want to double the business together with you in the next three-to-five years. We want to go from 5% of revenue, delivered through SAS and subscription to 20% together with our partners. And that's going to come through a vibrant and committed partner ecosystem. And that vibrancy as we go forward is really going to be in the way that partners differentiate, based on their skill sets and capabilities. Rather than program tiers, names and brands. I'll give you an example. We've had the opportunity in this last year to introduce our Master Services Competencies. Really industry best-of-breed recognition of where partners are unlocking value for their customers. So whether they're driving data-center virtualization, network virtualization or desktop and mobility. We now have the ability to say to our fields, to our services organization, and most importantly, to customers, here is the partner that is going to drive and deliver on the transformation. Through, for the partner, margin-rich services opportunities. And, again, in a lot of these conversations with our partners, as they're making that change and transition many of them from traditional resale business models to cloud. A lot of the services opportunity is really delivering most of the profitability. >> So part of that transition, you just mentioned it, is quadrupling the subscription component. How are you dealing with the obvious challenge of how you compensate for that? What a lot of SAS companies will do is say, "Yeah, SAS, pay by the drink. "But you got to sign up for three years." (laughter) So, it's really not cloud. So how are you dealing with that challenge and how is the channel absorbing it? >> It's a great question. If we look at the economics of the relationship in the past, it's been really focused on the initial transaction. But that transaction in the cloud world, it is an important milestone along the customer journey, but it's only the initial step, right? In this try, buy, proof-of-concept life cycle, we've got to do a better job of taking our investment envelope and wallet and spreading that across the customer journey. Looking at monthly recurring revenue. Looking at the ways that our partners are unlocking value and driving consumption. So, moving it from the initial transaction to deployment, consumption and expand opportunities with our customers. It's going to add tremendous value to the equation. >> So you've got a new playbook, things are changing. >> That's right. >> How you got here is not how you're going to move forward. Whole new ball game. What kinds of mechanisms you guys going to put in place? 'Cause you guys had, Tranel has tried and trued programs. Soft dollars, training. You got to get the word out. >> That's right. >> You got to watch the journey, so you got to instrument that. >> That's right. >> What are some of the things you guys doing to be new and be fast and be relevant? >> It's a great question. I mean, a lot of it comes down to the evangelism, and I'd say frankly, doing a better job of listening to our partners. We've had the advantage through VMware Partner Connect, through our partner advisory boards and councils. Doing the listening along the way to say that this is a program that not only is VMware building, but this is the co-investment and co-building together with our partners. So, from inception to design and concept and, ultimately, to the announcement and rollout. We've had our partners hip-to-hip with us in this rollout. We'll certainly look to leverage opportunities, like VMworld, hopefully we'll see you guys there. >> We'll definitely be there. >> We'll see you guys there. To amplify that message. But the key piece, and this is what our partners tell us, is help me leverage the investments I've made in my VMware relationship today, but position me for the opportunities ahead. Give me a sense of, where do I need to invest. Sometimes ahead of the curve to make sure I'm taking advantage of the program. >> And are you guys funded for that right now? Is Pat getting behind this with actual cash to prime the pump here? What's the update there? >> This is from Pat and e-staff on down. A commitment for the organization. Brandon Sweeney, Maurizio Carli, everyone's really rallied around us. It's one of our top priorities. Pat wants to ensure that we've got that vibrant, committed partner ecosystem that is bringing incremental value to our customer relationships and we're putting the money behind the commitment. >> You got to get the community action going, got to get some content. Doing a great job right here. Question on the customer piece, I want to just shift gears, because end of the day you're, it's an indirect channel ultimately for VMware, but you've got to get deep in it and enable your partners to be successful. They, then, have to think about your customer, too. Their customer, the joint customer. How has that world changed? 'Cause we were talking before we came on camera that with the VMware Cloud Foundation and all the, now, bundling that going on and all the integration. You've got a tight relationship with Dell Technologies, as well as other partners. There's a lot of cross-wired programs. Who gets credit for what, there's some complexity there. But, ultimately, it's an opportunity for the partner, your customers and then their customer, to actually be a cloud-service provider. >> That's right. >> A whole new generation. Take away the system integration challenges that customers want to get rid of. >> That's right. For us, it really comes down to being disruptive by being radically simple, right? Really boiling it down. And you talk about the relationship. There's some great announcements this week around the Dell Technologies Partner Program, change and evolution. And one of our partners, as well as our customers, frankly, have been asking us is, make it easier for us to do business across the full Dell Technologies family, right? All of the strategically-aligned businesses. Whether you look at our VMware cloud, on Dell EMC, VXrail, any number of the engineered solutions that we're bringing to market. It's about adding value to the customer, simplifying the engagement and, really again, driving the profitability for our partners. >> I think being agile, Rich, is going to be key for success for you. And making sure that it's funded, and that the money's going into the partners, >> That's right. >> In the gas tank to get then go faster >> Clearly. And we feel like we have one of the richest programs in the industry that's really driving incremental value for our partners. And I think what you'll see us do is, again, a better job of differentiating of partners that are, certainly, co-investing in VMware. But most importantly, and this is what we hear from our customers, is invest in the partners that have demonstrated the ability to unlock value in this engagement. >> Well, thanks for sharing the insight. We love this topic. I know it's kind of like a channel thing, but it's becoming a very key part for creating value, and also delivering a simple solution for customers. Give a quick plug for what's going on at VMworld, you mentioned VMworld. How do you guys run your partner programs, events? What's on the schedule? Take a quick minute to give a quick plug. >> We've got a few opportunities ahead of us. We're really excited to continue the success around our VMware Empower events. Where we bring both sales and technical enablement conversations to our partners. Certainly, VMworld to be able to-- >> What is that event? The one... >> Empower coming up in Lisbon. We're really excited towards the end of May. VMworld in the U.S., as well as in Amia, >> Do you co-locate an event within VMworld? >> Yes. We also do our Distribution Advisory Board, our Partner Advisory Board. Trying to add as much value, but also, again, do a good job of listening to our partners. >> Great. Rich, thanks for coming on, appreciate it. We'll be following all, we'll be following the money. That's at the end of the day, success is where people exchange of value. You guys doing a great job. We're bringing you all theCUBE content here. Day three, wall-to-wall coverage. I'm John with Dave Vellante. Stay with us for more after this short break. (synth music)

>> Live from Las Vegas, it's theCUBE. Covering Dell Technologies World 2019. Brought to you by Dell Technologies and its ecosystem partners. >> Welcome back everyone to theCUBE's live coverage of Dell World Technologies here in Las Vegas. I'm your host, Rebecca Knight along with my cohost, Stu Miniman. We have two guests for this segment. We have Honore LaBourdette. She is the VP, Global Market Development, Telco Business Group. Welcome, VMware, thank you, sorry. >> Thank you, yes. >> Welcome. And we have Kevin Shatzkamer, Senior VP, Networking and Solutions, Dell EMC. Thank you both so much for coming on the show. >> Our pleasure. >> Thank you. >> So Kevin I want to start with you. There was a big announcement this morning, signing with Orange of France. Tell our viewers a little bit more about this. >> Yeah, sure. So, I think as overall Dell Technologies continues to focus on helping our service providers through what is a very complex transition, both in their business, in their operations, in their technology investments, in the operational skill set gaps, in the business models, the architecture's use cases kind of comes across the board of how their businesses are evolving. What we continue to do is focus on a core set of telecommunication service providers that we can partner with very deeply to help in that transformation and use the knowledge gained through that collaboration as a means to expand the Dell Technologies capabilities globally. So, I think that the belief is that when we help solve problems, it not only benefits the service provider we're working with, it benefits the industry as a whole with the lessons learned, so that we can then contribute back. >> And so far, there's been some enthusiasm about this? >> There certainly has. I think it's been a big day for us. Obviously, the first two days at Dell Technologies World, we're extremely focused on new product introductions across the Dell portfolio, and today, with the opportunity to expand the messaging and announce some of the great things we're doing with partners, we're doing with out customers, and we're doing within the ecosystem, I think we continue to drive a very positive message. >> Honore, the networking component is something that we know service providers have a need and is ever-changing. We've watched that expand greatly in the VMware portfolio over the years. I've done plenty of interviews with telcos talking about things like NFV, network functions virtualization, but the big thing everybody's been talking about, the last couple of years it feels like, is 5G. So, maybe we could start there, but talk a little bit about what you're hearing from service providers and how VMware and VMware plus Dell are helping to meet some of those requirements. >> Sure, well, needless to say, 5G is the topic of every conversation we have with our telecommunication customers, and I think that there's a number of areas around 5G that are most prevalent in those conversations. One is really how does the service provider get a return on investment for the huge amounts of monies that they're investing in this infrastructure, right? So, 5G is a new infrastructure, a new technology, that's going to require a refresh of the entire infrastructure. And so, while they're making all of those investments, and they are doing so very aggressively to have a first-mover advantage, in terms of the first to deliver on a 5G technology, they want to work with vendors who can, in fact, accelerate their time to a return on the investment for that infrastructure. So, many of our conversations are really focused around how can we help these service providers actually accomplish that, right? Not just build out, or take advantage of a software-defined infrastructure and all of the technologies that both Dell and WMware offer to them under the umbrella of the Dell Technology Companies, but also, how can we help them accelerate services that they want to to put on top of the 5G technology? I think one of the key differentiators of 5G over its predecessors is that the industry has recognized that it's going to require partnerships in order for the service providers to really get their return on investment. And that's where the partnership with VMware and with Dell and the work that Kevin and I are doing together to focus on service providing is really anchored, right? It's bringing together those partnerships, so that these telecommunication customers can take advantage of our technology and do it very quickly. >> So, there's a real acknowledgement of the need for partnerships? >> Yes. >> So then, how do you show customers that the VMware-Dell partnership is the right direction? >> Well, needless to say, it's anchored in our technology. Kevin and I have been working together for a number of years now, and our partnership really started out focusing on just making sure that the components of the stack worked as promised, right? That we could deliver a high degree of confidence to our customers that when they software-defined the infrastructure on Dell Technology hardware, and then layered on top of that, their virtual network functions, that it would perform our outperform their legacy, bare-metal, vertical-stack equipment. Over time, however, our partnership has progressed to where we're actually collaborating to bring new technology to market together. And one example of that is the City of Las Vegas. We recently announced a Smart City IoT use case, and that technology, that solution, was co-developed with NTT, Dell EMC, and VMware using VMware software, Dell hardware, as well as Dell Storage, Dell Data Analytics and Intelligence, and NTT's infrastructure and points of presence. >> Yeah, I think there's both a technical reality and an operational reality to the technologies that we speak of, right? The technical reality is that the transformation that the telcos are going through around NFV and the direction toward network edge, edge computing, cloud environments, is really just software-defined data center similar to what we've done on the IT side for a long time. So, the technologies that the telecommunications industry is adopting are the technologies that both Dell EMC and VMware have been working on for a very long time. The operational reality is that just taking what you've done in IT and applying it into a telco network is not sufficient. Understanding of the workloads, how those workloads layer on top of infrastructure, understanding that those workloads are in a transformation of their own, and that virtual network functions were not designed to natively consume and compute. They were designed for network appliances, and that there are still requirements that they drive down to the infrastructure was, I think, where Honore and I have been investing for the last several years, right? How do we complement the broad capabilities of both Dell EMC and VMware in IT virtualization software-defined data center, and bring in telco service provider networking expertise and domain knowledge that we can use to be able to really ramp up and accelerate the partnerships we have in the service provider industry? >> That's great stuff. We actually got to do an interview on the smarter cities earlier this week, and a fascinating discussion to see how there's, Kevin, I like what you laid out there. When I look at this space, scale gets talked about a lot, but you talk to telcos, they have a little bit of a different scale, and the management for these kind of environments is also quite a bit different than if you were talking to the enterprise. Are those some of the key items? Where would you say your focus? >> I also think that even further. That the challenges of scale that have been solved in the public cloud are a different set of challenges than the telco industry is really trying to wrestle with, right? In the public cloud, we're taking about a very small number of facilities, and we can build a homogenous architecture within there. We define a standard server. We replicate that server across a rack, replicate that rack across rows, replicate those rows across a data center. The reality is, as we get further and further towards the edge of the telco network, it looks more heterogeneous, right? I need GPUs for particular instances. I have cloud-native applications. I have virtualized applications that sit inside of VMs. I have native Linux environments. I need to handle dense networking topologies. I have east-west traffic, north-south traffic that I need to take into account. And I think that what we've figured out and what we've learned in automating and orchestrating the public cloud is how to handle hundreds of thousands of things at single-digit number of locations. And what we're talking about here is hundreds of thousands of locations with single-digit number of things. >> And that's another key area of the collaboration between the two groups, in terms of how we deliver value to our telco customers. So, rather than us working in silos and delivering yet another disparate technology for managing the edge, cloud, or all these different locations, we're working together so we can bring a cohesive technology to market for them. >> That's right, I think the infrastructure demands and openness and a willingness to be a productive member of a complex and consistently changing ecosystem, and I think that, obviously, Dell EMC does that in our way. VMware does it in their way, but there's clear recognition that the better capabilities are when we work together to really drive the platform and bring the true capabilities of the broader Dell technologies together. >> So, telcoms is a hugely competitive industry, and as you've talked about, there's a lot of challenges, and it's a real transformative moment for this sector. Can you lay out some of sort of what you're thinking about for after 5G, which as you've said, is a hugely expensive investment for these companies? But sort of post-5G, what are we looking at? What's on their minds of your customers? >> So, I don't know that there's going to be distinct, post-5G event, right? I think that 5G, in and of itself, is going to take some time to roll out and proliferate, to the extent that its predecessors is now deployed across all locations all over the world. I do think that 5G, in addition to the infrastructure technology, or the refresh of that technology, a lot of what is going to happen around 5G is, in fact, the applications and use cases that's going to take advantage of 5G. If we about what 5G is capable of enabling, it doesn't just address consumer applications. 5G also will address enterprise applications. And that opens up a whole world of innovation, and again, applications, partnerships, and vendors coming together, who can really help the service providers put those pieces together and deliver on those applications. There's already talk about 6G, although it's very limited. So, it's easy for me to say what's coming next after 5G will be 6G, but I think that there's still a lot of activity and a lot of innovation that will happen around 5G for some time to come. >> Yeah, we know that standards and the consortiums always have to be working. I was looking at terabit ethernet on the networking side. So, I wanted to help kind of bring this conversation together. If you have maybe a customer example, love if you could share who it is, but if not, give us a little bit of anonymity around what it is to help highlight this partnership. >> Sure, I think Honore shared the City of Las Vegas as a great example of where we're enabling the Smart Cities use case. We can speak to MetTel, in terms of the capabilities of Dell Technologies to be able to transform their NFV offerings and really help them bring NFV to market at scale. We can speak to at least one tier-one service provider in AMIA that is delivering a full-stack offering, in which we extended the capabilities of our Ericsson partnership that both Dell EMC, as well as VMware have, to build a complete stack offering of Ericsson, VMware, as well as Dell EMC. >> Yeah, and to Ericsson, there's some of the edge computing in there. I've talked to them quite a bit about what they're doing on their edge offering. >> Yeah, so I think we have a number of examples that we also can't share as publicly. But we continue to collaborate. I think we're driving fantastic innovation. The industry is responding extremely favorably across the board, and I think that the strategy that we have jointly to not just develop technology, but really change the way we engage with telecommunications organizations and service providers to work with them well before they're ready to deploy technology, and also, help them scale their own operations and understand this transformation is really key to the success here. Because just having the best technology at this inflection point in the industry is not enough. We really have to partner to help them understand how to operationalize and monetize that infrastructure. >> And we do have a number of innovation projects, with regards to the edge and far edge with some of the top-tier service providers, in particular, in the Americas, where we're working together for edge solutions. I've got to hear what this far-edge is in a future conversation, because I thought I was getting my arms around it, but -- >> I know, it was edge, and now it's edge and far-edge. >> That's for Dell Technologies World 2020. >> That's right. >> Honore, Kevin, thank you both so much for coming on theCUBE. >> My pleasure. >> Thank you. >> Thank you. >> It's a great time. >> You are watching theCUBE's live coverage of Dell Technologies World. There's more to come after this. (upbeat music)

>> Live from Las Vegas, it's theCUBE covering Dell Technology's World 2019. Brought to you by Dell Technologies and it's ecosystem partners. >> Hi, welcome to theCUBE Lisa Martin with Stu Miniman and we are live at Dell Technologies World 2019 in Las Vegas with about 15,000 or so other people. There's about 4,000 of the Dell Technologies community of partners here as well. Day one as I mentioned, we're very pleased to welcome back one of our cube alumni, Karen Quintos, EVP and Chief Customer Officer from Dell Technologies, Karen, welcome back to theCUBE. >> Thank you, thank you. Always great to be with you all. >> So one of the things you walk down on stage this morning with Michael Dell and and the whole gang and you started to share a story that I'd love for you to share with our audience about this darling little girl, Phoebe from Manchester, England that has to do with this Dell Technologies partnership with Deloitte Detroit and 3D prosthetics. Can you share this story and what it meant about this partnership. >> Well we wanted to tell this story about Phoebe because we really wanted the audience to understand the innovation and all of what's done it with social good is really about the individual, You know, technology plays a key role but the face behind the technology and the innovation are people and you know, as you mention Phoebe is from Manchester, U.K. Her father wrote this blog about Phoebe's experience. Phoebe's aunt, Claire works for Deloitte. She had access to a lot of what they could do in terms of 3D printing and basically came to Dell and we were able to take it and scale it and accelerate it and speed it up with a engineer by the name of Seamus who saw what the precision workstation could do. So it was this small idea to help an amazing little girl like this that has now turned into this movement around how do we more rapidly, quickly scale 3D prosthetics so these children and adults can have a chance at a normal life so. >> What kind of prosthetics did you guys build for her? >> It's an arm, so the very first arm that we built for her when she was about five years old had the frozen Disney theme painted on it. I asked her father Keith what is the one that she's wearing now because she's now this like really super cool seven-year-old that goes to school and all of her classmates and friends around her see her as this rock star and the one that she has today is printed with unicorns and rainbows. So if you know anything about seven-year-old girls, it's all about unicorns and rainbows and she's done an amazing thing and she's inspired so many other people around the world, individuals, customers, partners like Deloitte and others that we're working with to really take this to a whole new level. >> Karen, I think back to Dell you know, if you think back a couple of decades ago you know, drove a lot of the some of the waves of technology change you know, think back to the PC, but in the early days it was you know supply chain and simple ordering in all these environments and when I've watched Dell move into the enterprise, a lot of that is, I need to be listening to my customer, I need to be much closer to them because it's not just ordering your SKU and having it faster and at a reasonable price but there's a lot more customization. Can you talk about how you're kind of putting that center, that customer in the center of the discussion and that feedback loops that you have with them, how that's changed in Dell. >> Yeah sure, so all of the basic fundamentals around you got to order, deliver, make the supply chain work to deliver for our customers still matters but it's gone beyond that to your point and probably the best way to talk about it is these six customer award winners that we recognized last night. I've gotten to know all six of those over the last year and while they are doing amazing things from a digital transformation using technology in the travel business, the automotive business, banking, financial services, insurance, kind of across the board, the thing that they say consistently is look, we didn't always have the answer in terms of what we needed but you came in, you listened, you rolled up your sleeves to try to figure out how you could design a solution that would meet the needs that we have and they said, that's why you're one of the most strategic partners that we have. Now you can do all those other things, right? You can supply chain ride and build and produce and all that but it's the design of a solution that helps us do the things that will allow us to be differentiated and you look at that list of six customers and brands that they represent, right, Carnival Cruise Lines, USAA, Bradesco, McLaren I mean, the list kind of goes on, they are the differentiators out there and we're really honored to be able to be working with them. >> So we're only a day one and it's only just after lunchtime but one of the things I think somatically that I heard this morning in the keynote with Michael and Pat and Jeff and Satya and yourself is, it's all about people. A couple interviews I did earlier today, same sort of thing, it's like we had the city of Las Vegas on. This is all driven by the people in for the people so that sense of community is really strong. I also noticed this year's theme of real transformation, parlays off last year's theme of make it real, it being digital transformation, IT, security, workforce transformation, what are some of the things that were like at Dell Technologies. Cloud this morning for example, VMware Cloud on Dell EMC that you guys specifically heard say from last year's attendees that are manifesting in some of the announcements today and some of the great things the 15 or so thousand people here are going to get to see and feel and touch at this year's event? >> Well, Lisa you nailed it. What you heard on stage today is what customers have been telling us over the last year. We unveiled about a month ago with a very small group of CIOs in Amia, our cloud strategy, our portfolio, the things that we're going to be able to do and one customer in particular immediately chimed in and said, we need you in the cloud and we need you in there now because you offer choice, you offer open, you offer simplicity, you offer integration and they're like, there's just too many choices and a lot of them are expensive. So what you heard on stage is absolutely a manifestation of what they told us. The other pieces, look, I think I think the industry and CIOs are very quickly realizing their workforce matters, making them happy and productive matters having them enabled that they can work flexibly wherever they want to really, really matters and you know, our Unified Workspace ONE solution is all about how we help them simplify, automate, streamline that experience with their workforce so their employees stick around. I mean, there's a war on talent and everybody's dealing with it and that experience is really, really important in particular to the gensies and the millennials. >> Karen, I love that point. Actually, I was really impressed this morning. In the press and analyst session this morning, there was a discussion of diversity and inclusion and the thing that I heard is, it's a business imperative, it's not, okay it's nice to do it or we should do it but no, this is actually critical to the business. Can you talk about what that means and what you hear from your customers and partners. >> Yes, yes, well, we're seeing it in spades and all of these technology jobs that are open, right. So look, all the research has shown that if you build a diverse team, you'll get to a more innovative solution and people generally get that but what they really get today is here in the U.S. alone, there's 1.1 million open technology jobs by the year 2024, half of them, half of them are going to be filled by the existing workforce. So there is this war in talent that is going to get bigger and bigger and bigger and I think that's what really has given a wake-up call to corporations around why this matters. I think the other piece that we're starting to see, not just around diversity but in our other social impact priorities around the environment as well as how we use our technology for good, look, customers want to do business with a corporation that has a soul and they stand for something and they're doing something, not just a bunch of talking heads but where it's really turning into action and they're being transparent about the journeys and where they're at with it. So it matters now to the current generation, the next generation, it matters to business leaders, matters to the financial services community, which you start to see you know, some of the momentum around you know, the black stones and state street. So it's really exciting that we're part of it and we're leading the way in a lot of number of areas. >> And it's something to that we talked about a lot on theCUBE, diversity and inclusion from many different levels, one of them being the business imperative that you talked about, the workforce needing to compete for this talent, but also how much different products and technologies and apps and APS and things can be with just thought diversity in and of itself and I think it's refreshing to what Stu was saying, hey, we're hearing this is a business imperative but you're also seeing proof in the pudding. This isn't just, we've got an imperative and we're going to do things nominally, you're seeing the efforts manifest. One of the, Draper Labs who was one of the customer award winners. That video that was shown this morning struck probably everyone's heart with the campfire in Paradise California. >> Tragic. >> I grew up close to there and that was something that only maybe, I get goosebumps, six months ago, so massively devastating and we think you know, that was 2018 but seeing how Dell Technologies is enabling this laboratory to investigate the potential toxins coming from all of this chart debris and how they're working to understand the social impact to all of us as they rebuild, I just thought it was a really nice manifestation of a social impact but also the technology breadth and differentiation that Dell has enabling. >> That was also why this story today was so great about Phoebe, right because it's where you can connect the human spirit with technology and scale and have an even bigger impact and there's so much that technology can help with today. You know, that that story about Phoebe. From the time that her aunt from Deloitte identified, you know, what we could do, all the way to the time that Phoebe got her first arm was less than seven months, seven months and you think about you know, some of the other prototypes that were out there, times would take years to be able to do it. So I love that you know, connection of human need with the human spirit and connecting and inspiring and motivating so many children and adults around the world. >> And what what are some of the next, speaking of Phoebe and the Deloitte digital 3D prosthetics partnership, what are some of the other areas we're going to see this technology that this little five-year-old from Manchester spurned. >> Well, I'll give you another example. So we, there was an individual in India, actually an employee of ours that designed an application to help figure out how to deploy healthcare monitoring in some of the remote villages in India where they don't have access to basic things that we take for granted. Monitoring your blood pressure, right, checking your cholesterol level and he created this application that a year later now, we have given kind of the full range of the Dell portfolio technology suite. So it is you know our application plus Pivotal plus VMware plus Dell EMC combined with the partnering that we've done with Tata Trust and the State of India, we've now deployed this healthcare solution called Life Care Solution to nearly 37 million rural residents, citizens in India. >> Wow 37 million. >> 37 million, so a small idea, you take from a really passionate individual, a person, a human being and figure out how you can really leverage that across the full gamut of what Dell can do, I think the results are incredible. >> Awesome, you guys also have a Women in Technology Executive Summit that you're hosting later this week. Let's talk about that in conjunction of what we talked a minute ago about, it's a business imperative as Stu pointed out, there are tangible, measurable results, tell us about this. >> Well, I'm kind of done honestly with a lot of the negativity around, oh, we're not making any progress, oh, we need to be moving fast and if you look at the amount of effort, energy and focus that is going into this space by so many companies and the public sector, it's remarkable and I've met a number of these CIOs over the last year or two, so we basically said let's invite 20 of them, let's share our passion, have made progress, care about solving this across their organization. A lot of us are working on the same things so if we simply got in a room and figured out, are their power in numbers and if we worked collectively together, could we accelerate progress. So that's what it's all about. So we have about 15 or 20 CEOs, both men and women and we'll be spending you know, six or seven hours together and we want to walk away with one or two recommendations on some things that we could collaborate on and have a faster, bigger impact. >> And I heard that, you mentioned collaboration, that's one of the vibes I also got from the keynote this morning when you saw Michael up there with Pat and Jeff and Satya, the collaboration within Dell Technologies, I think even talking with Stu and some of the things that have come out and that I've read, it seems to be more symbiosis with VMware but even some the, like I said, we're only in, I wouldn't even say halfway through day one and that is the spirit around here. We talk about people influence, but this spirit of collaboration is very authentic here. You are the first chief customer officer for Dell, if you look back at your tenure in this role, could you have envisioned where you are now? >> No, because it was like the first ever chief customer officer at Dell and you know, it really gave me a unique opportunity to build something from scratch and you know, there's been a number of other competitors as well as other companies that have announced in the last year or so the need to have a chief customer officer, the need to figure out how, which is a big remit of mine across Dell Technologies, how do we how do we eliminate the silos and connect the seams because that's where the value is going to be unlocked for our customers. That's what you saw on stage today. You saw the value of that with Jeff, with Pat, with Satya, some you know, one of our most important partners out there. Our customers don't want point solutions, they want them to be integrated, they want it to be streamlined, they don't be automated, they want us to speed time to value, they want us to streamline a lot of the back-office kind of mundane things that they're like, I don't want my people spending their time anymore and doing that and that's where we see Dell Technologies being so much more differentiated from other choices in the market. >> Yep, I agree with you. Well Karen, thank you so much for joining Stu and me on theCUBE this afternoon, sharing some of the stories, look forward to hearing next year what comes out of this year's as Women in Tech Exec Summit. Thank you so much for your time. >> Thank you very much, thank you. >> with Stu Miniman, I'm Lisa Martin, you're watching theCUBE, live day one of Dell Technology World from Las Vegas, thanks for watching. (light electronic music)

(upbeat inspirational music) >> Hello everyone, I'm John Furrier in the Palo Alto Studios for Cube Conversation. I'm here with David Link who's the CEO of ScienceLogic. David, thanks for coming in. Good to see you. >> Great to be here, John. >> So, thanks for coming in. You came in from D.C., that's where your headquarters and ScienceLogic, you guys are having good business run right now. You're self-funded early on, now you get to venture back. Take a minute to explain how you guys got started, what does the company do? >> So, this is the classic story of entrepreneurship. We started in the garage. Myself and a couple of co-founders believed that IT management operations was broken and it was broken because a lot of the industry had really focused on having silos of data, the silos of data, the network, the application, the security, the storage, now cloud, containers and every technology had its own data silo of manageability. We believe that that was intrinsically wrong to understand how the service that combined all these different applications and technologies was behaving. We wanted a service view, so we brought it all together, kicked off, really the first seven years we boot strapped the company, the first year and a half we coded, got the product to market, it grew very quickly, got to the Inc. 500 a couple times, and then we attracted a lot of financing options. We had about 250 companies approach us. We never made one outbound call and fortunately, we had some really great and strong investors in EA, then Intel Capital, and three and a half years ago, our last round of financing was with Goldman Sachs and they've really been a great catalyst to help us continue our growth over the last five years. I think we've grown about 540% on the revenue side, so it's been an exciting time. >> Well congratulations. It's always a good success story to be a hot deal when you don't have to make any calls, they come to you. >> Yes. >> And that's good, that's part of growth, but I got to ask you what year did you start the company up? >> 2003. >> So, it's not obvious then, it's obvious to you as a visionary, but now people now know IT operations is broken. Cloud highlights it in a big way. The lights get turned on, the cockroaches are running around, but web services were still booming at that time. You start to see the beginning of the whole web services movement, you guys saw this early. Now, it's well recognized that IT operations can be automated away and Cloud certainly has an automations vibe to it. AI has been a big part of the AI operations. Is this kind of where you guys started with that vision? Was the original vision kind of where it is today? Take us through kind of what you saw and what's happening today. >> So, thematically we have this next wave of the computer architecture, Cloud computer architecture, edge computing where the way you manage that kind of infrastructure is different than the classic client server. There are different needs, different requirements, and that thematically has led with the change of infrastructure. Applications are changing and applications are now more infrastructure-aware. When we started the company, usually applications sat on one system or a cluster of systems and they weren't widely distributed. So now that the applications profile is changing, the architects are changing to microservices, that really puts huge strain on our industry. The industry, the total adjustable market, is about 25 billion dollars a year annual spent on tools. John, if you can imagine that. 25 billion a year is spent. It's going through an amazing, I would say, tectonic shift because why? Infrastructure's shifting and as more people move workloads to the Cloud into what I would call ephemeral workloads where they're moving around, that causes all kinds of pressure on the systems and record to manage that so that you understand what is happening at this moment in time. Where is it? What Cloud is it running on? How's the application performing? And you really need to tie the application to the infrastructure real-time. >> I want to get your thoughts on this. I interviewed a CIO this past week for a big company. I won't say the name 'cause we haven't published the video yet, but he told me candidly, he said that, look it, we outsourced everything and we outsourced our way into oblivion and what he meant by that was is that the core competency of IT, and he reference the book, Nick Carr, IT Doesn't Matter, which kind of was true, but wasn't true. Now, IT has a competitive advantage and essentially, they had this anemic IT department that was outsourced and they lost their competitive advantage, so he's like the reinvestment in IT is more than ever now because of Cloud, because of these new environments. So, I kind of believe that to be true. I'm sure you do too, but the reaction really is is you've got a lot of Legacy vendors that were dictating how to do things. >> Yes. >> I'm IBM, I'm Oracle, you got to do it this way and you were kind of constrained, IT was constrained by that. Now, you got to be much more agile, you have workloads that are dynamic, provisioning, orchestration, this is a whole new dynamic. What's the impact to the IT buyer, the IT environment with this new model, this new modern dynamic, new modern era? >> When you think about CIOs and CEOs, the pressure that they have to be Cloud first. Cloud first is such a strong... At the Board level, there's pressure. The adoption of Cloud now is happening faster and more rapidly than the adoption of virtualization, maybe it's doubling in the speed in the time warp, but what that means is that most CIOs are dealing with as many as nine to 11 Clouds, not one. You have a federation of Clouds: Private Clouds, public Clouds, software as a service Clouds, and that's your IT landscape, so it's changing so quickly that you have to think of it in a more federated approach. That means that the way you used to manage your private systems, and now your public systems, are really different and you've got to look at them more holistically because often they're communicating with one another in hybrid architectures. So, that's really the heart at our mission, to provide the context of how all the services you're trying to deliver as a CIO are behaving. What's their availability? What's the risk of the service having a problem? And knowing that real-time is ultimately what you want to do with your Cloud first strategy, but you need the right tooling operationally to affect that kind of outcome for your team. >> So, what's the core problem that you guys are solving? 'Cause obviously, there's a lot of complexity now, it's a new environment, so I still got the baggage of some Legacy environments. Is it monitoring you're solving? I guess, what's the core problem is my question that you guys are solving? If you had to kind of finish that, the core problem is blank. >> The core problem is visibility. The Holy Grail is application to infrastructure and the problem is that's becoming so complicated because everything is moving around. The more abstraction layers where it's a container, which is abstracted on top of a virtual machine, which is on top of bare-metal server. SD-WAN is an abstraction on top of an MPLS network. So, you have all of these layers that get from a software-defined perspective, they get abstracted away from the actual equipment that it's running on. Well, when that happens, where is the problem? Because it's moving around. The problem isn't in one place. So, that application to infrastructure awareness, it's almost like one of the things that we've looked at in the world of Facebook. You've got a lot of relationships, you've got videos, you've got friends, you've got all these different connections that are constantly moving around with data streams. What we do as a company is pull all these different data streams from the technologies themselves, from the Cloud providers, from the application layer, pull it together in a data hub that we can then understand how they all relate to one another so you can really, truly understand service impact and that is the crux of the problem most companies are dealing with now. You've got to fight with your Legacy, 'cause you still have that and it's not going away tomorrow, so you've got to make sure you're good at that, you've also got Cloud, the Cloud first initiative, and then you've got in between systems that are using both. That's really where we play. We're really good at the Legacy, we're good at Cloud, and connecting the two together and that is a really tough space because most Legacy providers really didn't get good with managing hyperactive ephemeral Cloud estates. The guys who started over the last five years building tools to manage the Cloud are really good at Cloud, but they don't cover Legacy. They're not going to cover a net app or hyper-converge, typically. So, we combine the both, Legacy and Cloud together in one management system, monitoring management paradigm, and then there's an automation engine where we actually proactively remediate problems real-time. So, the three together is where algorithmic operations, AI Ops, comes together. >> David, I want to dig into the offering, but before we get there, I want to get your thoughts on two trends: one is multi-Cloud. Recently, we've seen a lot of hybrid Cloud discussion, but now the big hubbub is multi-Cloud and the other one is AI Operations. So, I've been saying on The Cube, everyone who's in IT Operations is screwed, going to get automated away by AI. It's kind of tongue in cheek, but it's kind of a reality is that those old business models that were based upon certain service levels are going to be done in software. Now, you've got multi-Cloud. So, first question is what is multi-Cloud definition that you have for that? What does it mean? What is multi-Cloud? >> In our world, multi-Cloud is... Most large organizations use more than one Cloud and half of that is driven by what Cloud is best to operate a particular application profile? Amazon's really good at a lot of application profiles, but Azure might be better at certain Microsoft profiles, and then Google has profiles, and IBM Watson has profiles. Depending upon what you're trying to do with the application, where it was born, how it's living, how it's been re-factored, you're going to use one Cloud or the other, but most customers that we see have many Clouds. There really isn't one Cloud management scape when you're using... Vendors are still reasonably proprietary in the public hyper-scales. >> Some are better than others. >> And some are better. It depends on the use case. So, we try to bring all that together so that you're not looking at four panels, you're looking at one. >> So, you make it easy with one dash port. Okay, AI Operations. This is a hot trend, a lot of venture capitals are funding companies that have AI Ops in it, machine-learning obviously booming, no doubt software automation is coming. I'm seeing it everywhere. What does that mean? What is the definition of AI Operations? I mean, I'm bombastic at saying the industry sectors is going to crumble. I kind of think it will, but it will shift, but what is the impact to IT Operations with AI and what is AI Ops? >> We like to think of it as a life cycle. So, when you look at the life cycle of operations you have at the beginning of the life cycle, provisioning, so when we think about algorithmic, there's many different layers of automation: machine learning, cognitive learning, and you're going to use different parts of algorithmic operations for different parts of the life cycle. So at the very beginning, you're going to connect generally to a provisioning system so you know what's been provisioned or de-provisioned so we can automatically align a manageability template because nobody can be on a keyboard now, John. This has to be all machine to machine. So, once then it gets provisioned, then there's the run operate part and how do you learn from the normal operating conditions that you're looking for? The anomalies that you would look for to detect things aren't behaving appropriately? And then, once you understand those anomalies and the patterns, you can remediate them proactively, adding resources, decreasing resources, changing configurations, those are the things that kind of that last tier, and then that final tier, when there is a problem, if there is a problem, you've got to then raise a ticket, you've got to then work through the incident management of that ticket so there's another multi-step layers of automation to the incident management orchestration layer of solving problems, closing out a ticket. So, we have so many different layers across that life cycle that we plug into, most of which are native to our core platform. >> And your secret sauce is managing all the workloads that are moving around really fast, so to complicate that even further, you've got a lot of stuff moving around to track it all. I love what you said about not typing on the keyboard anymore, but essentially I'll translate that from what I heard was command line interface of CLIs has been the primary mechanism for dealing with either network and or storage, which is moving packets from here to there and moving storage from now to then, storing stuff. So, CLI is moving to a programmable model? This is the big takeaway. So, I totally think this is the mega trend. The command line interface mode of operation is moving to programmable, which hits your run and operate. >> Correct. >> This is the mega trend. Your thoughts? >> It is and that's one of the layers of complication because instead of a CLI, it's an API, and it's usually a restful API or a graph API. Those APIs are very different in construct and instead of talking to one device, that one device is virtualized into a hundred or a thousand and so with one API call, you actually create a thousand devices versus one device and understanding how one system is behaving, like a CLI would be to one system, right? So, that is a layer of complication where when we make an API call, we break it up into hundreds of things that then we track and understand the tenancy of what is a multi-tenant nature of that? What is the organization? What is the service view for all these little components that are part of one API call? And that abstraction layer makes it really difficult for the enterprise because the one thing about our API economy right now, there is no standard. Every vendor chooses their own formats for their products and in some cases, many formats for products in a product family. So, that layer of complexity, John, is what we're really solving for. The customer doesn't have to worry about that. We take care of that for them, but you're right, the API has become the CLI and it's just a level of complexity beyond what most enterprises are wanting to deal with themselves. That's why they bring us in to help. >> That is so important too that the data's in the API. >> That's right. >> That's key and Cloud's got orchestration challenges, state and state-less applications. All right, let's get into ScienceLogic's offering. So, what do you guys provide to customers? Talk about the product. How do you guys deliver it? Is it software, is it Cloud, is it service, is it appliance? Take us through the offering. What's the key secret sauce? How do people buy and use your product? >> So, our product's delivered as a service. You can use it in the Cloud. We deliver it as a service in our Cloud, but we also provide it if customers are using Amazon or IBM or Google or Microsoft. They can put our product, same code-base, same product, they subscribe to it, it's a subscription license model, so it's a pay-as-you-go and you pay for the number of devices that are under management. Typically, there are some customers, whether it's in the government, financial services, or international locations where they might want to deploy our product on premise, so we offer the same mode, either in the Cloud or on premise, but most customers now are choosing to deploy the product in the Cloud and that is a really easy... It's easy to get >> That's good for you guys. >> It's great for us because there's consistency of operations, we can keep everything up to date, and most customers want technology delivered as a service. They just want it to work. They want it to solve the business problem and do it easily, efficiently, even better, solve complex problems in an easy format. >> Give some customer examples or benefits or anecdotal stories around customers that have used your service that extracted benefits and value out of it, and second part of that question is when does someone know they need your product? What are the smoke signals? Is something breaking or is it just pain? When do they know to call you guys? So first one is customer examples or stories and then how does someone know who's watching this, hey I might need these guys? >> There are four segments that we cover. We have customers all over the world. There's enterprise customers. This is really a product for large enterprise, Fortune 1000 companies, so Clorox would be a customer, Hughes Satellite would be a customer, Cisco Systems out here in the valley is a customer, Dell, EMC, so it depends on what problem we're trying to solve for the customer. >> So large IT deployments basically? >> Very large, multinational, big networks, hundreds of thousands of devices, tens of thousands of devices is where those companies have immense complexity, lots of heterogeneous technology that comes together to deliver a service. They need a really robust solution to manage that proactively. So, enterprise customers, service providers, so a lot of managed service providers, infrastructure service providers, Telcos, they all use it, so I think we have about 60% of the infrastructure as a service providers use our product to deliver managed services to their customers and then the federal government all over the world, we have government customers around the world. I think right now about 70,000 organizations use our product every day and it's fairly evenly split, AMIA and AsiaPac, and then the US is our biggest market. >> You know, it's interesting you mention heterogeneous. I always kind of smile because you mentioned client server earlier. Every wave has their reflection point and I think what's going on with Cloud and I'd love to get your reaction is that Cloud, where it's winning, is it's a scale out, large scale, pool of resources. We look at what's going on with Amazon, all this, is that you don't need to know what service they have, just get more servers, so you're scaling out. >> Yes. >> But now, you need to have heterogeneous components. It's not just X-86. You could have a GPU, you have other stuff, AI going on, so heterogeneous is different now, but it's still the same came, it's still complex, it needs to be abstracted away. Is this kind of the key area that you're riding on? Is that right? What's your thoughts about that concept? >> Well to a large degree, John, the Cloud providers have really provided a layer for you to not have to worry about that, but we've seen customers actually with hyper-converged environments that they build in-house and or systems that they built because of geo-fencing in different countries that need the data kept in the country. There are requirements that drive people to build their own system, so the real thing that we're seeing a tremendous struggle with right now is that context, understanding what connects to what. All the different technologies that come together, all the heterogeneity that comes together to deliver a service, and whether you buy best in class technologies to solve one part of the stack, the landscape of whether it's your load balancer or a caching server or the database or the server, the network, all those different components, the security layer, those components that come together, often people have chosen specific technologies to solve those problems. The Cloud kind of abstracts that away with they hyper-scalers, but often you're putting infrastructure that you have on prem combined with infrastructure in the Cloud to deliver an aggregate solution so that multi-tiered architecture, just like back in the day, a three-tiered architecture, we're seeing those emerging again with public Cloud because you might want the data that actually generates the information on the web client's side to be in your data center, but you still have to understand how the service is behaving. So, we really look at all layers of the stack to solve the problem and that's really hard to do. >> Well David, great to have this conversation. Before we end, I want you to get a quick plug in for the company. How many employees, offices? What's the revenue like? What's your goals? You don't have to share the revenue if you don't want to, but if you want to, you can. Give a plug for the company. What's happening? >> Well, I'm really proud of what the team's done. We've got a great team of employees, about 370 employees today, full-time, they're spread all over the world, probably 80% are here in the Americas and the vision for the company, we think that this is a big opportunity. We are far from done. We really started the company to disrupt the industry 'cause the industry, as I said, was a silo industry and it really is, 20 years later, it's still that way. It's not really converged into a unified solution. We have great aspirations. Every year we've been growing the business 40, 50% a year for the last several years, and this year, we'll round over 100 million within the next 12 months of our run rate, so it's an exciting time for the company. >> Well, you've got a great model, SAS, in a massively growing and changing market, complex market, heterogeneous networks, apps are all being abstracted away and automation's driving this, so I think it's a perfect storm of innovation. Congratulations and thanks for chatting on The Cube here in Palo Alto. >> Love to be here, John. Thanks for having me. >> John Ferrier here, Cube Conversation, and we're here with David Link, CEO of ScienceLogic, and also the founder. Self-funded, big venture rounds, growing like a weed, based in D.C. This is the Cube Conversation. I'm John Furrier. Thanks for watching. (dramatic inspirational music)

(electronic dance music) (Intel Jingle) (ethereal electronic dance music) ♪ Okay ♪ (upbeat techno dance music) ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Yeah everybody get loose yeah ♪ ♪ Yeah ♪ ♪ Ye-yeah yeah ♪ ♪ Yeah yeah ♪ ♪ Everybody everybody yeah ♪ ♪ Whoo whoo ♪ ♪ Whoo whoo ♪ ♪ Whoo yeah ♪ ♪ Everybody get loose whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ >> As a courtesy to the presenters and those around you, please silence all mobile devices, thank you. (electronic dance music) ♪ Everybody get loose ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ (upbeat salsa music) ♪ Ha ha ha ♪ ♪ Ah ♪ ♪ Ha ha ha ♪ ♪ So happy ♪ ♪ Whoo whoo ♪ (female singer scatting) >> Ladies and gentlemen, please take your seats. Our program will begin momentarily. ♪ Hey ♪ (female singer scatting) (male singer scatting) ♪ Hey ♪ ♪ Whoo ♪ (female singer scatting) (electronic dance music) ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ Red don't go ♪ ♪ All hands are in don't go ♪ ♪ In don't go ♪ ♪ Oh red go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are red don't go ♪ ♪ All hands are in red red red red ♪ ♪ All hands are in don't go ♪ ♪ All hands are in red go ♪ >> Ladies and gentlemen, there are available seats. Towards house left, house left there are available seats. If you are please standing, we ask that you please take an available seat. We will begin momentarily, thank you. ♪ Let go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ (upbeat electronic dance music) ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ I live ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Hey ♪ ♪ Yeah ♪ ♪ Oh ♪ ♪ Ah ♪ ♪ Ah ah ah ah ah ah ♪ ♪ Just make me ♪ ♪ Just make me ♪ (bouncy techno music) >> Ladies and gentlemen, once again we ask that you please take the available seats to your left, house left, there are many available seats. If you are standing, please make your way there. The program will begin momentarily, thank you. Good morning! This is Lenovo Transform 2.0! (keyboard clicks) >> Progress. Why do we always talk about it in the future? When will it finally get here? We don't progress when it's ready for us. We need it when we're ready, and we're ready now. Our hospitals and their patients need it now, our businesses and their customers need it now, our cities and their citizens need it now. To deliver intelligent transformation, we need to build it into the products and solutions we make every day. At Lenovo, we're designing the systems to fight disease, power businesses, and help you reach more customers, end-to-end security solutions to protect your data and your companies reputation. We're making IT departments more agile and cost efficient. We're revolutionizing how kids learn with VR. We're designing smart devices and software that transform the way you collaborate, because technology shouldn't just power industries, it should power people. While everybody else is talking about tomorrow, we'll keep building today, because the progress we need can't wait for the future. >> Please welcome to the stage Lenovo's Rod Lappen! (electronic dance music) (audience applauding) >> Alright. Good morning everyone! >> Good morning. >> Ooh, that was pretty good actually, I'll give it one more shot. Good morning everyone! >> Good morning! >> Oh, that's much better! Hope everyone's had a great morning. Welcome very much to the second Lenovo Transform event here in New York. I think when I got up just now on the steps I realized there's probably one thing in common all of us have in this room including myself which is, absolutely no one has a clue what I'm going to say today. So, I'm hoping very much that we get through this thing very quickly and crisply. I love this town, love New York, and you're going to hear us talk a little bit about New York as we get through here, but just before we get started I'm going to ask anyone who's standing up the back, there are plenty of seats down here, and down here on the right hand side, I think he called it house left is the professional way of calling it, but these steps to my right, your left, get up here, let's get you all seated down so that you can actually sit down during the keynote session for us. Last year we had our very first Lenovo Transform. We had about 400 people. It was here in New York, fantastic event, today, over 1,000 people. We have over 62 different technology demonstrations and about 15 breakout sessions, which I'll talk you through a little bit later on as well, so it's a much bigger event. Next year we're definitely going to be shooting for over 2,000 people as Lenovo really transforms and starts to address a lot of the technology that our commercial customers are really looking for. We were however hampered last year by a storm, I don't know if those of you who were with us last year will remember, we had a storm on the evening before Transform last year in New York, and obviously the day that it actually occurred, and we had lots of logistics. Our media people from AMIA were coming in. They took the, the plane was circling around New York for a long time, and Kamran Amini, our General Manager of our Data Center Infrastructure Group, probably one of our largest groups in the Lenovo DCG business, took 17 hours to get from Raleigh, North Carolina to New York, 17 hours, I think it takes seven or eight hours to drive. Took him 17 hours by plane to get here. And then of course this year, we have Florence. And so, obviously the hurricane Florence down there in the Carolinas right now, we tried to help, but still Kamran has made it today. Unfortunately, very tragically, we were hoping he wouldn't, but he's here today to do a big presentation a little bit later on as well. However, I do want to say, obviously, Florence is a very serious tragedy and we have to take it very serious. We got, our headquarters is in Raleigh, North Carolina. While it looks like the hurricane is just missing it's heading a little bit southeast, all of our thoughts and prayers and well wishes are obviously with everyone in the Carolinas on behalf of Lenovo, everyone at our headquarters, everyone throughout the Carolinas, we want to make sure everyone stays safe and out of harm's way. We have a great mixture today in the crowd of all customers, partners, industry analysts, media, as well as our financial analysts from all around the world. There's over 30 countries represented here and people who are here to listen to both YY, Kirk, and Christian Teismann speak today. And so, it's going to be a really really exciting day, and I really appreciate everyone coming in from all around the world. So, a big round of applause for everyone whose come in. (audience applauding) We have a great agenda for you today, and it starts obviously a very consistent format which worked very successful for us last year, and that's obviously our keynote. You'll hear from YY, our CEO, talk a little bit about the vision he has in the industry and how he sees Lenovo's turned the corner and really driving some great strategy to address our customer's needs. Kirk Skaugen, our Executive Vice President of DCG, will be up talking about how we've transformed the DCG business and once again are hitting record growth ratios for our DCG business. And then you'll hear from Christian Teismann, our SVP and General Manager for our commercial business, get up and talk about everything that's going on in our IDG business. There's really exciting stuff going on there and obviously ThinkPad being the cornerstone of that I'm sure he's going to talk to us about a couple surprises in that space as well. Then we've got some great breakout sessions, I mentioned before, 15 breakout sessions, so while this keynote section goes until about 11:30, once we get through that, please go over and explore, and have a look at all of the breakout sessions. We have all of our subject matter experts from both our PC, NBG, and our DCG businesses out to showcase what we're doing as an organization to better address your needs. And then obviously we have the technology pieces that I've also spoken about, 62 different technology displays there arranged from everything IoT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up there, and I really encourage all of you to get up there. So, I'm going to have a quick video to show you from some of the setup yesterday on a couple of the 62 technology displays we've got on up on stage. Okay let's go, so we've got a demonstrations to show you today, one of the greats one here is the one we've done with NC State, a high-performance computing artificial intelligence demonstration of fresh produce. It's about modeling the population growth of the planet, and how we're going to supply water and food as we go forward. Whoo. Oh, that is not an apple. Okay. (woman laughs) Second one over here is really, hey Jonas, how are you? Is really around virtual reality, and how we look at one of the most amazing sites we've got, as an install on our high-performance computing practice here globally. And you can see, obviously, that this is the Barcelona supercomputer, and, where else in New York can you get access to being able to see something like that so easily? Only here at Lenovo Transform. Whoo, okay. (audience applauding) So there's two examples of some of the technology. We're really encouraging everyone in the room after the keynote to flow into that space and really get engaged, and interact with a lot of the technology we've got up there. It seems I need to also do something about my fashion, I've just realized I've worn a vest two days in a row, so I've got to work on that as well. Alright so listen, the last thing on the agenda, we've gone through the breakout sessions and the demo, tonight at four o'clock, there's about 400 of you registered to be on the cruise boat with us, the doors will open behind me. the boat is literally at the pier right behind us. You need to make sure you're on the boat for 4:00 p.m. this evening. Outside of that, I want everyone to have a great time today, really enjoy the experience, make it as experiential as you possibly can, get out there and really get in and touch the technology. There's some really cool AI displays up there for us all to get involved in as well. So ladies and gentlemen, without further adieu, it gives me great pleasure to introduce to you a lover of tennis, as some of you would've heard last year at Lenovo Transform, as well as a lover of technology, Lenovo, and of course, New York City. I am obviously very pleasured to introduce to you Yang Yuanqing, our CEO, as we like to call him, YY. (audience applauding) (upbeat funky music) >> Good morning, everyone. >> Good morning. >> Thank you Rod for that introduction. Welcome to New York City. So, this is the second year in a row we host our Transform event here, because New York is indeed one of the most transformative cities in the world. Last year on this stage, I spoke about the Fourth Industrial Revolution, and our vision around the intelligent transformation, how it would fundamentally change the nature of business and the customer relationships. And why preparing for this transformation is the key for the future of our company. And in the last year I can assure you, we were being very busy doing just that, from searching and bringing global talents around the world to the way we think about every product and every investment we make. I was here in New York just a month ago to announce our fiscal year Q1 earnings, which was a good day for us. I think now the world believes it when we say Lenovo has truly turned the corner to a new phase of growth and a new phase of acceleration in executing the transformation strategy. That's clear to me is that the last few years of a purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often asked me, what is the intelligent transformation? I was saying this way. This is the unlimited potential of the Fourth Industrial Revolution driven by artificial intelligence being realized, ordering a pizza through our speaker, and locking the door with a look, letting your car drive itself back to your home. This indeed reflect the power of AI, but it just the surface of it. The true impact of AI will not only make our homes smarter and offices more efficient, but we are also completely transformed every value chip in every industry. However, to realize these amazing possibilities, we will need a structure built around the key components, and one that touches every part of all our lives. First of all, explosions in new technology always lead to new structures. This has happened many times before. In the early 20th century, thousands of companies provided a telephone service. City streets across the US looked like this, and now bundles of a microscopic fiber running from city to city bring the world closer together. Here's what a driving was like in the US, up until 1950s. Good luck finding your way. (audience laughs) And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital, from fiber cables and the interstate highways, to our cells bounded together to create humans. Thankfully the structure for intelligent transformation has emerged, and it is just as revolutionary. What does this new structure look like? We believe there are three key building blocks, data, computing power, and algorithms. Ever wondered what is it behind intelligent transformation? What is fueling this miracle of human possibility? Data. As the Internet becomes ubiquitous, not only PCs, mobile phones, have come online and been generating data. Today it is the cameras in this room, the climate controls in our offices, or the smart displays in our kitchens at home. The number of smart devices worldwide will reach over 20 billion in 2020, more than double the number in 2017. These devices and the sensors are connected and generating massive amount of data. By 2020, the amount of data generated will be 57 times more than all the grains of sand on Earth. This data will not only make devices smarter, but will also fuel the intelligence of our homes, offices, and entire industries. Then we need engines to turn the fuel into power, and the engine is actually the computing power. Last but not least the advanced algorithms combined with Big Data technology and industry know how will form vertical industrial intelligence and produce valuable insights for every value chain in every industry. When these three building blocks all come together, it will change the world. At Lenovo, we have each of these elements of intelligent transformations in a single place. We have built our business around the new structure of intelligent transformation, especially with mobile and the data center now firmly part of our business. I'm often asked why did you acquire these businesses? Why has a Lenovo gone into so many fields? People ask the same questions of the companies that become the leaders of the information technology revolution, or the third industrial transformation. They were the companies that saw the future and what the future required, and I believe Lenovo is the company today. From largest portfolio of devices in the world, leadership in the data center field, to the algorithm-powered intelligent vertical solutions, and not to mention the strong partnership Lenovo has built over decades. We are the only company that can unify all these essential assets and deliver end to end solutions. Let's look at each part. We now understand the important importance data plays as fuel in intelligent transformation. Hundreds of billions of devices and smart IoTs in the world are generating better and powering the intelligence. Who makes these devices in large volume and variety? Who puts these devices into people's home, offices, manufacturing lines, and in their hands? Lenovo definitely has the front row seats here. We are number one in PCs and tablets. We also produces smart phones, smart speakers, smart displays. AR/VR headsets, as well as commercial IoTs. All of these smart devices, or smart IoTs are linked to each other and to the cloud. In fact, we have more than 20 manufacturing facilities in China, US, Brazil, Japan, India, Mexico, Germany, and more, producing various devices around the clock. We actually make four devices every second, and 37 motherboards every minute. So, this factory located in my hometown, Hu-fi, China, is actually the largest laptop factory in the world, with more than three million square feet. So, this is as big as 42 soccer fields. Our scale and the larger portfolio of devices gives us access to massive amount of data, which very few companies can say. So, why is the ability to scale so critical? Let's look again at our example from before. The early days of telephone, dozens of service providers but only a few companies could survive consolidation and become the leader. The same was true for the third Industrial Revolution. Only a few companies could scale, only a few could survive to lead. Now the building blocks of the next revolution are locking into place. The (mumbles) will go to those who can operate at the scale. So, who could foresee the total integration of cloud, network, and the device, need to deliver intelligent transformation. Lenovo is that company. We are ready to scale. Next, our computing power. Computing power is provided in two ways. On one hand, the modern supercomputers are providing the brute force to quickly analyze the massive data like never before. On the other hand the cloud computing data centers with the server storage networking capabilities, and any computing IoT's, gateways, and miniservers are making computing available everywhere. Did you know, Lenovo is number one provider of super computers worldwide? 170 of the top 500 supercomputers, run on Lenovo. We hold 89 World Records in key workloads. We are number one in x86 server reliability for five years running, according to ITIC. a respected provider of industry research. We are also the fastest growing provider of hyperscale public cloud, hyper-converged and aggressively growing in edge computing. cur-ges target, we are expand on this point soon. And finally to run these individual nodes into our symphony, we must transform the data and utilize the computing power with advanced algorithms. Manufactured, industry maintenance, healthcare, education, retail, and more, so many industries are on the edge of intelligent transformation to improve efficiency and provide the better products and services. We are creating advanced algorithms and the big data tools combined with industry know-how to provide intelligent vertical solutions for several industries. In fact, we studied at Lenovo first. Our IT and research teams partnered with our global supply chain to develop an AI that improved our demand forecasting accuracy. Beyond managing our own supply chain we have offered our deep learning supply focused solution to other manufacturing companies to improve their efficiency. In the best case, we have improved the demand, focused the accuracy by 30 points to nearly 90 percent, for Baosteel, the largest of steel manufacturer in China, covering the world as well. Led by Lenovo research, we launched the industry-leading commercial ready AR headset, DaystAR, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility, and even our jet engines. Using our workstations, servers, and award-winning imaging processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. So, this enable the doctors to more successfully detect the tumors, and it increases the success rate of cancer diagnosis all around the world. We are also piloting our smart IoT driven warehouse solution with one of the world's largest retail companies to greatly improve the efficiency. So, the opportunities are endless. This is where Lenovo will truly shine. When we combine the industry know-how of our customers with our end-to-end technology offerings, our intelligent vertical solutions like this are growing, which Kirk and Christian will share more. Now, what will drive this transformation even faster? The speed at which our networks operate, specifically 5G. You may know that Lenovo just launched the first-ever 5G smartphone, our Moto Z3, with the new 5G Moto model. We are partnering with multiple major network providers like Verizon, China Mobile. With the 5G model scheduled to ship early next year, we will be the first company to provide a 5G mobile experience to any users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip on. What can I say, except wow. (audience laughs) 5G is 10 times the fast faster than 4G. Its download speed will transform how people engage with the world, driverless car, new types of smart wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with partners, as ready as we are at Lenovo, we need partners to unlock our full potential, partners here to create with us the edge of the intelligent transformation. The opportunities of intelligent transformation are too profound, the scale is too vast. No company can drive it alone fully. We are eager to collaborate with all partners that can help bring our vision to life. We are dedicated to open partnerships, dedicated to cross-border collaboration, unify the standards, share the advantage, and market the synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Qualcomm, Google, Amazon, and Disney. We also find and partner with the smaller innovators as well. We're building the ultimate partner experience, open, shared, collaborative, diverse. So, everything is in place for intelligent transformation on a global scale. Smart devices are everywhere, the infrastructure is in place, networks are accelerating, and the industries demand to be more intelligent, and Lenovo is at the center of it all. We are helping to drive change with the hundreds of companies, companies just like yours, every day. We are your partner for intelligent transformation. Transformation never stops. This is what you will hear from Kirk, including details about Lenovo NetApp global partnership we just announced this morning. We've made the investments in every single aspect of the technology. We have the end-to-end resources to meet your end-to-end needs. As you attend the breakout session this afternoon, I hope you see for yourself how much Lenovo has transformed as a company this past year, and how we truly are delivering a future of intelligent transformation. Now, let me invite to the stage Kirk Skaugen, our president of Data Center growth to tell you about the exciting transformation happening in the global Data C enter market. Thank you. (audience applauding) (upbeat music) >> Well, good morning. >> Good morning. >> Good morning! >> Good morning! >> Excellent, well, I'm pleased to be here this morning to talk about how we're transforming the Data Center and taking you as our customers through your own intelligent transformation journey. Last year I stood up here at Transform 1.0, and we were proud to announce the largest Data Center portfolio in Lenovo's history, so I thought I'd start today and talk about the portfolio and the progress that we've made over the last year, and the strategies that we have going forward in phase 2.0 of Lenovo's transformation to be one of the largest data center companies in the world. We had an audacious vision that we talked about last year, and that is to be the most trusted data center provider in the world, empowering customers through the new IT, intelligent transformation. And now as the world's largest supercomputer provider, giving something back to humanity, is very important this week with the hurricanes now hitting North Carolina's coast, but we take this most trusted aspect very seriously, whether it's delivering the highest quality products on time to you as customers with the highest levels of security, or whether it's how we partner with our channel partners and our suppliers each and every day. You know we're in a unique world where we're going from hundreds of millions of PCs, and then over the next 25 years to hundred billions of connected devices, so each and every one of you is going through this intelligent transformation journey, and in many aspects were very early in that cycle. And we're going to talk today about our role as the largest supercomputer provider, and how we're solving humanity's greatest challenges. Last year we talked about two special milestones, the 25th anniversary of ThinkPad, but also the 25th anniversary of Lenovo with our IBM heritage in x86 computing. I joined the workforce in 1992 out of college, and the IBM first personal server was launching at the same time with an OS2 operating system and a free mouse when you bought the server as a marketing campaign. (audience laughing) But what I want to be very clear today, is that the innovation engine is alive and well at Lenovo, and it's really built on the culture that we're building as a company. All of these awards at the bottom are things that we earned over the last year at Lenovo. As a Fortune now 240 company, larger than companies like Nike, or AMEX, or Coca-Cola. The one I'm probably most proud of is Forbes first list of the top 2,000 globally regarded companies. This was something where 15,000 respondents in 60 countries voted based on ethics, trustworthiness, social conduct, company as an employer, and the overall company performance, and Lenovo was ranked number 27 of 2000 companies by our peer group, but we also now one of-- (audience applauding) But we also got a perfect score in the LGBTQ Equality Index, exemplifying the diversity internally. We're number 82 in the top working companies for mothers, top working companies for fathers, top 100 companies for sustainability. If you saw that factory, it's filled with solar panels on the top of that. And now again, one of the top global brands in the world. So, innovation is built on a customer foundation of trust. We also said last year that we'd be crossing an amazing milestone. So we did, over the last 12 months ship our 20 millionth x86 server. So, thank you very much to our customers for this milestone. (audience applauding) So, let me recap some of the transformation elements that have happened over the last year. Last year I talked about a lot of brand confusion, because we had the ThinkServer brand from the legacy Lenovo, the System x, from IBM, we had acquired a number of networking companies, like BLADE Network Technologies, et cetera, et cetera. Over the last year we've been ramping based on two brand structures, ThinkAgile for next generation IT, and all of our software-defined infrastructure products and ThinkSystem as the world's highest performance, highest reliable x86 server brand, but for servers, for storage, and for networking. We have transformed every single aspect of the customer experience. A year and a half ago, we had four different global channel programs around the world. Typically we're about twice the mix to our channel partners of any of our competitors, so this was really important to fix. We now have a single global Channel program, and have technically certified over 11,000 partners to be technical experts on our product line to deliver better solutions to our customer base. Gardner recently recognized Lenovo as the 26th ranked supply chain in the world. And, that's a pretty big honor, when you're up there with Amazon and Walmart and others, but in tech, we now are in the top five supply chains. You saw the factory network from YY, and today we'll be talking about product shipping in more than 160 countries, and I know there's people here that I've met already this morning, from India, from South Africa, from Brazil and China. We announced new Premier Support services, enabling you to go directly to local language support in nine languages in 49 countries in the world, going directly to a native speaker level three support engineer. And today we have more than 10,000 support specialists supporting our products in over 160 countries. We've delivered three times the number of engineered solutions to deliver a solutions orientation, whether it's on HANA, or SQL Server, or Oracle, et cetera, and we've completely reengaged our system integrator channel. Last year we had the CIO of DXE on stage, and here we're talking about more than 175 percent growth through our system integrator channel in the last year alone as we've brought that back and really built strong relationships there. So, thank you very much for amazing work here on the customer experience. (audience applauding) We also transformed our leadership. We thought it was extremely important with a focus on diversity, to have diverse talent from the legacy IBM, the legacy Lenovo, but also outside the industry. We made about 19 executive changes in the DCG group. This is the most senior leadership team within DCG, all which are newly on board, either from our outside competitors mainly over the last year. About 50 percent of our executives were now hired internally, 50 percent externally, and 31 percent of those new executives are diverse, representing the diversity of our global customer base and gender. So welcome, and most of them you're going to be able to meet over here in the breakout sessions later today. (audience applauding) But some things haven't changed, they're just keeping getting better within Lenovo. So, last year I got up and said we were committed with the new ThinkSystem brand to be a world performance leader. You're going to see that we're sponsoring Ducati for MotoGP. You saw the Ferrari out there with Formula One. That's not a surprise. We want the Lenovo ThinkSystem and ThinkAgile brands to be synonymous with world record performance. So in the last year we've gone from 39 to 89 world records, and partners like Intel would tell you, we now have four times the number of world record workloads on Lenovo hardware than any other server company on the planet today, with more than 89 world records across HPC, Java, database, transaction processing, et cetera. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10-17,000 people on any given year working for him in workload optimizations across all of our software. It's just another testament to the leadership team we're bringing in to keep focusing on world-class performance software and solutions. We also per ITIC, are the number one now in x86 server reliability five years running. So, this is a survey where CIOs are in a blind survey asked to submit their reliability of their uptime on their x86 server equipment over the last 365 days. And you can see from 2016 to 2017 the downtime, there was over four hours as noted by the 750 CXOs in more than 20 countries is about one percent for the Lenovo products, and is getting worse generation from generation as we went from Broadwell to Pearlie. So we're taking our reliability, which was really paramount in the IBM System X heritage, and ensuring that we don't just recognize high performance but we recognize the highest level of reliability for mission-critical workloads. And what that translates into is that we at once again have been ranked number one in customer satisfaction from you our customers in 19 of 22 attributes, in North America in 18 of 22. This is a survey by TVR across hundreds of customers of us and our top competitors. This is the ninth consecutive study that we've been ranked number one in customer satisfaction, so we're taking this extremely seriously, and in fact YY now has increased the compensation of every single Lenovo employee. Up to 40 percent of their compensation bonus this year is going to be based on customer metrics like quality, order to ship, and things of this nature. So, we're really putting every employee focused on customer centricity this year. So, the summary on Transform 1.0 is that every aspect of what you knew about Lenovo's data center group has transformed, from the culture to the branding to dedicated sales and marketing, supply chain and quality groups, to a worldwide channel program and certifications, to new system integrator relationships, and to the new leadership team. So, rather than me just talk about it, I thought I'd share a quick video about what we've done over the last year, if you could run the video please. Turn around for a second. (epic music) (audience applauds) Okay. So, thank you to all our customers that allowed us to publicly display their logos in that video. So, what that means for you as investors, and for the investor community out there is, that our customers have responded, that this year Gardner just published that we are the fastest growing server company in the top 10, with 39 percent growth quarter-on-quarter, and 49 percent growth year-on-year. If you look at the progress we've made since the transformation the last three quarters publicly, we've grown 17 percent, then 44 percent, then 68 percent year on year in revenue, and I can tell you this quarter I'm as confident as ever in the financials around the DCG group, and it hasn't been in one area. You're going to see breakout sessions from hyperscale, software-defined, and flash, which are all growing more than a 100 percent year-on-year, supercomputing which we'll talk about shortly, now number one, and then ultimately from profitability, delivering five consecutive quarters of pre-tax profit increase, so I think, thank you very much to the customer base who's been working with us through this transformation journey. So, you're here to really hear what's next on 2.0, and that's what I'm excited to talk about today. Last year I came up with an audacious goal that we would become the largest supercomputer company on the planet by 2020, and this graph represents since the acquisition of the IBM System x business how far we were behind being the number one supercomputer. When we started we were 182 positions behind, even with the acquisition for example of SGI from HP, we've now accomplished our goal actually two years ahead of time. We're now the largest supercomputer company in the world. About one in every four supercomputers, 117 on the list, are now Lenovo computers, and you saw in the video where the universities are said, but I think what I'm most proud of is when your customers rank you as the best. So the awards at the bottom here, are actually Readers Choice from the last International Supercomputing Show where the scientific researchers on these computers ranked their vendors, and we were actually rated the number one server technology in supercomputing with our ThinkSystem SD530, and the number one storage technology with our ThinkSystem DSS-G, but more importantly what we're doing with the technology. You're going to see we won best in life sciences, best in data analytics, and best in collaboration as well, so you're going to see all of that in our breakout sessions. As you saw in the video now, 17 of the top 25 research institutions in the world are now running Lenovo supercomputers. And again coming from Raleigh and watching that hurricane come across the Atlantic, there are eight supercomputers crunching all of those models you see from Germany to Malaysia to Canada, and we're happy to have a SciNet from University of Toronto here with us in our breakout session to talk about what they're doing on climate modeling as well. But we're not stopping there. We just announced our new Neptune warm water cooling technology, which won the International Supercomputing Vendor Showdown, the first time we've won that best of show in 25 years, and we've now installed this. We're building out LRZ in Germany, the first ever warm water cooling in Peking University, at the India Space Propulsion Laboratory, at the Malaysian Weather and Meteorological Society, at Uninett, at the largest supercomputer in Norway, T-Systems, University of Birmingham. This is truly amazing technology where we're actually using water to cool the machine to deliver a significantly more energy-efficient computer. Super important, when we're looking at global warming and some of the electric bills can be millions of dollars just for one computer, and could actually power a small city just with the technology from the computer. We've built AI centers now in Morrisville, Stuttgart, Taipei, and Beijing, where customers can bring their AI workloads in with experts from Intel, from Nvidia, from our FPGA partners, to work on their workloads, and how they can best implement artificial intelligence. And we also this year launched LICO which is Lenovo Intelligent Compute Orchestrator software, and it's a software solution that simplifies the management and use of distributed clusters in both HPC and AI model development. So, what it enables you to do is take a single cluster, and run both HPC and AI workloads on it simultaneously, delivering better TCO for your environment, so check out LICO as well. A lot of the customers here and Wall Street are very excited and using it already. And we talked about solving humanity's greatest challenges. In the breakout session, you're going to have a virtual reality experience where you're going to be able to walk through what as was just ranked the world's most beautiful data center, the Barcelona Supercomputer. So, you can actually walk through one of the largest supercomputers in the world from Barcelona. You can see the work we're doing with NC State where we're going to have to grow the food supply of the world by 50 percent, and there's not enough fresh water in the world in the right places to actually make all those crops grow between now and 2055, so you're going to see the progression of how they're mapping the entire globe and the water around the world, how to build out the crop population over time using AI. You're going to see our work with Vestas is this largest supercomputer provider in the wind turbine areas, how they're working on wind energy, and then with University College London, how they're working on some of the toughest particle physics calculations in the world. So again, lots of opportunity here. Take advantage of it in the breakout sessions. Okay, let me transition to hyperscale. So in hyperscale now, we have completely transformed our business model. We are now powering six of the top 10 hyperscalers in the world, which is a significant difference from where we were two years ago. And the reason we're doing that, is we've coined a term called ODM+. We believe that hyperscalers want more procurement power than an ODM, and Lenovo is doing about $18 billion of procurement a year. They want a broader global supply chain that they can get from a local system integrator. We're more than 160 countries around the world, but they want the same world-class quality and reliability like they get from an MNC. So, what we're doing now is instead of just taking off the shelf motherboards from somewhere, we're starting with a blank sheet of paper, we're working with the customer base on customized SKUs and you can see we already are developing 33 custom solutions for the largest hyperscalers in the world. And then we're not just running notebooks through this factory where YY said, we're running 37 notebook boards a minute, we're now putting in tens and tens and tens of thousands of server board capacity per month into this same factory, so absolutely we can compete with the most aggressive ODM's in the world, but it's not just putting these things in in the motherboard side, we're also building out these systems all around the world, India, Brazil, Hungary, Mexico, China. This is an example of a new hyperscale customer we've had this last year, 34,000 servers we delivered in the first six months. The next 34,000 servers we delivered in 68 days. The next 34,000 servers we delivered in 35 days, with more than 99 percent on-time delivery to 35 data centers in 14 countries as diverse as South Africa, India, China, Brazil, et cetera. And I'm really ashamed to say it was 99.3, because we did have a forklift driver who rammed their forklift right through the middle of the one of the server racks. (audience laughing) At JFK Airport that we had to respond to, but I think this gives you a perspective of what it is to be a top five global supply chain and technology. So last year, I said we would invest significantly in IP, in joint ventures, and M and A to compete in software defined, in networking, and in storage, so I wanted to give you an update on that as well. Our newest software-defined partnership is with Cloudistics, enabling a fully composable cloud infrastructure. It's an exclusive agreement, you can see them here. I think Nag, our founder, is going to be here today, with a significant Lenovo investment in the company. So, this new ThinkAgile CP series delivers the simplicity of the public cloud, on-premise with exceptional support and a marketplace of essential enterprise applications all with a single click deployment. So simply put, we're delivering a private cloud with a premium experience. It's simple in that you need no specialists to deploy it. An IT generalist can set it up and manage it. It's agile in that you can provision dozens of workloads in minutes, and it's transformative in that you get all of the goodness of public cloud on-prem in a private cloud to unlock opportunity for use. So, we're extremely excited about the ThinkAgile CP series that's now shipping into the marketplace. Beyond that we're aggressively ramping, and we're either doubling, tripling, or quadrupling our market share as customers move from traditional server technology to software-defined technology. With Nutanix we've been public, growing about more than 150 percent year-on-year, with Nutanix as their fastest growing Nutanix partner, but today I want to set another audacious goal. I believe we cannot just be Nutanix's fastest growing partner but we can become their largest partner within two years. On Microsoft, we are already four times our market share on Azure stack of our traditional business. We were the first to launch our ThinkAgile on Broadwell and on Skylake with the Azure Stack Infrastructure. And on VMware we're about twice our market segment share. We were the first to deliver an Intel-optimized Optane-certified VSAN node. And with Optane technology, we're delivering 50 percent more VM density than any competitive SSD system in the marketplace, about 10 times lower latency, four times the performance of any SSD system out there, and Lenovo's first to market on that. And at VMworld you saw CEO Pat Gelsinger of VMware talked about project dimension, which is Edge as a service, and we're the only OEM beyond the Dell family that is participating today in project dimension. Beyond that you're going to see a number of other partnerships we have. I'm excited that we have the city of Bogota Columbia here, an eight million person city, where we announced a 3,000 camera video surveillance solution last month. With pivot three you're going to see city of Bogota in our breakout sessions. You're going to see a new partnership with Veeam around backup that's launching today. You're going to see partnerships with scale computing in IoT and hyper-converged infrastructure working on some of the largest retailers in the world. So again, everything out in the breakout session. Transitioning to storage and data management, it's been a great year for Lenovo, more than a 100 percent growth year-on-year, 2X market growth in flash arrays. IDC just reported 30 percent growth in storage, number one in price performance in the world and the best HPC storage product in the top 500 with our ThinkSystem DSS G, so strong coverage, but I'm excited today to announce for Transform 2.0 that Lenovo is launching the largest data management and storage portfolio in our 25-year data center history. (audience applauding) So a year ago, the largest server portfolio, becoming the largest fastest growing server OEM, today the largest storage portfolio, but as you saw this morning we're not doing it alone. Today Lenovo and NetApp, two global powerhouses are joining forces to deliver a multi-billion dollar global alliance in data management and storage to help customers through their intelligent transformation. As the fastest growing worldwide server leader and one of the fastest growing flash array and data management companies in the world, we're going to deliver more choice to customers than ever before, global scale that's never been seen, supply chain efficiencies, and rapidly accelerating innovation and solutions. So, let me unwrap this a little bit for you and talk about what we're announcing today. First, it's the largest portfolio in our history. You're going to see not just storage solutions launching today but a set of solution recipes from NetApp that are going to make Lenovo server and NetApp or Lenovo storage work better together. The announcement enables Lenovo to go from covering 15 percent of the global storage market to more than 90 percent of the global storage market and distribute these products in more than 160 countries around the world. So we're launching today, 10 new storage platforms, the ThinkSystem DE and ThinkSystem DM platforms. They're going to be centrally managed, so the same XClarity management that you've been using for server, you can now use across all of your storage platforms as well, and it'll be supported by the same 10,000 plus service personnel that are giving outstanding customer support to you today on the server side. And we didn't come up with this in the last month or the last quarter. We're announcing availability in ordering today and shipments tomorrow of the first products in this portfolio, so we're excited today that it's not just a future announcement but something you as customers can take advantage of immediately. (audience applauding) The second part of the announcement is we are announcing a joint venture in China. Not only will this be a multi-billion dollar global partnership, but Lenovo will be a 51 percent owner, NetApp a 49 percent owner of a new joint venture in China with the goal of becoming in the top three storage companies in the largest data and storage market in the world. We will deliver our R and D in China for China, pooling our IP and resources together, and delivering a single route to market through a complementary channel, not just in China but worldwide. And in the future I just want to tell everyone this is phase one. There is so much exciting stuff. We're going to be on the stage over the next year talking to you about around integrated solutions, next-generation technologies, and further synergies and collaborations. So, rather than just have me talk about it, I'd like to welcome to the stage our new partner NetApp and Brad Anderson who's the senior vice president and general manager of NetApp Cloud Infrastructure. (upbeat music) (audience applauding) >> Thank You Kirk. >> So Brad, we've known each other a long time. It's an exciting day. I'm going to give you the stage and allow you to say NetApp's perspective on this announcement. >> Very good, thank you very much, Kirk. Kirk and I go back to I think 1994, so hey good morning and welcome. My name is Brad Anderson. I manage the Cloud Infrastructure Group at NetApp, and I am honored and privileged to be here at Lenovo Transform, particularly today on today's announcement. Now, you've heard a lot about digital transformation about how companies have to transform their IT to compete in today's global environment. And today's announcement with the partnership between NetApp and Lenovo is what that's all about. This is the joining of two global leaders bringing innovative technology in a simplified solution to help customers modernize their IT and accelerate their global digital transformations. Drawing on the strengths of both companies, Lenovo's high performance compute world-class supply chain, and NetApp's hybrid cloud data management, hybrid flash and all flash storage solutions and products. And both companies providing our customers with the global scale for them to be able to meet their transformation goals. At NetApp, we're very excited. This is a quote from George Kurian our CEO. George spent all day yesterday with YY and Kirk, and would have been here today if it hadn't been also our shareholders meeting in California, but I want to just convey how excited we are for all across NetApp with this partnership. This is a partnership between two companies with tremendous market momentum. Kirk took you through all the amazing results that Lenovo has accomplished, number one in supercomputing, number one in performance, number one in x86 reliability, number one in x86 customers sat, number five in supply chain, really impressive and congratulations. Like Lenovo, NetApp is also on a transformation journey, from a storage company to the data authority in hybrid cloud, and we've seen some pretty impressive momentum as well. Just last week we became number one in all flash arrays worldwide, catching EMC and Dell, and we plan to keep on going by them, as we help customers modernize their their data centers with cloud connected flash. We have strategic partnerships with the largest hyperscalers to provide cloud native data services around the globe and we are having success helping our customers build their own private clouds with just, with a new disruptive hyper-converged technology that allows them to operate just like hyperscalers. These three initiatives has fueled NetApp's transformation, and has enabled our customers to change the world with data. And oh by the way, it has also fueled us to have meet or have beaten Wall Street's expectations for nine quarters in a row. These are two companies with tremendous market momentum. We are also building this partnership for long term success. We think about this as phase one and there are two important components to phase one. Kirk took you through them but let me just review them. Part one, the establishment of a multi-year commitment and a collaboration agreement to offer Lenovo branded flash products globally, and as Kurt said in 160 countries. Part two, the formation of a joint venture in PRC, People's Republic of China, that will provide long term commitment, joint product development, and increase go-to-market investment to meet the unique needs to China. Both companies will put in storage technologies and storage expertise to form an independent JV that establishes a data management company in China for China. And while we can dream about what phase two looks like, our entire focus is on making phase one incredibly successful and I'm pleased to repeat what Kirk, is that the first products are orderable and shippable this week in 160 different countries, and you will see our two companies focusing on the here and now. On our joint go to market strategy, you'll see us working together to drive strategic alignment, focused execution, strong governance, and realistic expectations and milestones. And it starts with the success of our customers and our channel partners is job one. Enabling customers to modernize their legacy IT with complete data center solutions, ensuring that our customers get the best from both companies, new offerings the fuel business success, efficiencies to reinvest in game-changing initiatives, and new solutions for new mission-critical applications like data analytics, IoT, artificial intelligence, and machine learning. Channel partners are also top of mind for both our two companies. We are committed to the success of our existing and our future channel partners. For NetApp channel partners, it is new pathways to new segments and to new customers. For Lenovo's channel partners, it is the competitive weapons that now allows you to compete and more importantly win against Dell, EMC, and HP. And the good news for both companies is that our channel partner ecosystem is highly complementary with minimal overlap. Today is the first day of a very exciting partnership, of a partnership that will better serve our customers today and will provide new opportunities to both our companies and to our partners, new products to our customers globally and in China. I am personally very excited. I will be on the board of the JV. And so, I look forward to working with you, partnering with you and serving you as we go forward, and with that, I'd like to invite Kirk back up. (audience applauding) >> Thank you. >> Thank you. >> Well, thank you, Brad. I think it's an exciting overview, and these products will be manufactured in China, in Mexico, in Hungary, and around the world, enabling this amazing supply chain we talked about to deliver in over 160 countries. So thank you Brad, thank you George, for the amazing partnership. So again, that's not all. In Transform 2.0, last year, we talked about the joint ventures that were coming. I want to give you a sneak peek at what you should expect at future Lenovo events around the world. We have this Transform in Beijing in a couple weeks. We'll then be repeating this in 20 different locations roughly around the world over the next year, and I'm excited probably more than ever about what else is coming. Let's talk about Telco 5G and network function virtualization. Today, Motorola phones are certified on 46 global networks. We launched the world's first 5G upgradable phone here in the United States with Verizon. Lenovo DCG sells to 58 telecommunication providers around the world. At Mobile World Congress in Barcelona and Shanghai, you saw China Telecom and China Mobile in the Lenovo booth, China Telecom showing a video broadband remote access server, a VBRAS, with video streaming demonstrations with 2x less jitter than they had seen before. You saw China Mobile with a virtual remote access network, a VRAN, with greater than 10 times the throughput and 10x lower latency running on Lenovo. And this year, we'll be launching a new NFV company, a software company in China for China to drive the entire NFV stack, delivering not just hardware solutions, but software solutions, and we've recently hired a new CEO. You're going to hear more about that over the next several quarters. Very exciting as we try to drive new economics into the networks to deliver these 20 billion devices. We're going to need new economics that I think Lenovo can uniquely deliver. The second on IoT and edge, we've integrated on the device side into our intelligent devices group. With everything that's going to consume electricity computes and communicates, Lenovo is in a unique position on the device side to take advantage of the communications from Motorola and being one of the largest device companies in the world. But this year, we're also going to roll out a comprehensive set of edge gateways and ruggedized industrial servers and edge servers and ISP appliances for the edge and for IoT. So look for that as well. And then lastly, as a service, you're going to see Lenovo delivering hardware as a service, device as a service, infrastructure as a service, software as a service, and hardware as a service, not just as a glorified leasing contract, but with IP, we've developed true flexible metering capability that enables you to scale up and scale down freely and paying strictly based on usage, and we'll be having those announcements within this fiscal year. So Transform 2.0, lots to talk about, NetApp the big news of the day, but a lot more to come over the next year from the Data Center group. So in summary, I'm excited that we have a lot of customers that are going to be on stage with us that you saw in the video. Lots of testimonials so that you can talk to colleagues of yourself. Alamos Gold from Canada, a Canadian gold producer, Caligo for data optimization and privacy, SciNet, the largest supercomputer we've ever put into North America, and the largest in Canada at the University of Toronto will be here talking about climate change. City of Bogota again with our hyper-converged solutions around smart city putting in 3,000 cameras for criminal detection, license plate detection, et cetera, and then more from a channel mid market perspective, Jerry's Foods, which is from my home state of Wisconsin, and Minnesota which has about 57 stores in the specialty foods market, and how they're leveraging our IoT solutions as well. So again, about five times the number of demos that we had last year. So in summary, first and foremost to the customers, thank you for your business. It's been a great journey and I think we're on a tremendous role. You saw from last year, we're trying to build credibility with you. After the largest server portfolio, we're now the fastest-growing server OEM per Gardner, number one in performance, number one in reliability, number one in customer satisfaction, number one in supercomputing. Today, the largest storage portfolio in our history, with the goal of becoming the fastest growing storage company in the world, top three in China, multibillion-dollar collaboration with NetApp. And the transformation is going to continue with new edge gateways, edge servers, NFV solutions, telecommunications infrastructure, and hardware as a service with dynamic metering. So thank you for your time. I've looked forward to meeting many of you over the next day. We appreciate your business, and with that, I'd like to bring up Rod Lappen to introduce our next speaker. Rod? (audience applauding) >> Thanks, boss, well done. Alright ladies and gentlemen. No real secret there. I think we've heard why I might talk about the fourth Industrial Revolution in data and exactly what's going on with that. You've heard Kirk with some amazing announcements, obviously now with our NetApp partnership, talk about 5G, NFV, cloud, artificial intelligence, I think we've hit just about all the key hot topics. It's with great pleasure that I now bring up on stage Mr. Christian Teismann, our senior vice president and general manager of commercial business for both our PCs and our IoT business, so Christian Teismann. (techno music) Here, take that. >> Thank you. I think I'll need that. >> Okay, Christian, so obviously just before we get down, you and I last year, we had a bit of a chat about being in New York. >> Exports. >> You were an expat in New York for a long time. >> That's true. >> And now, you've moved from New York. You're in Munich? >> Yep. >> How does that feel? >> Well Munich is a wonderful city, and it's a great place to live and raise kids, but you know there's no place in the world like New York. >> Right. >> And I miss it a lot, quite frankly. >> So what exactly do you miss in New York? >> Well there's a lot of things in New York that are unique, but I know you spent some time in Japan, but I still believe the best sushi in the world is still in New York City. (all laughing) >> I will beg to differ. I will beg to differ. I think Mr. Guchi-san from Softbank is here somewhere. He will get up an argue very quickly that Japan definitely has better sushi than New York. But obviously you know, it's a very very special place, and I have had sushi here, it's been fantastic. What about Munich? Anything else that you like in Munich? >> Well I mean in Munich, we have pork knuckles. >> Pork knuckles. (Christian laughing) Very similar sushi. >> What is also very fantastic, but we have the real, the real Oktoberfest in Munich, and it starts next week, mid-September, and I think it's unique in the world. So it's very special as well. >> Oktoberfest. >> Yes. >> Unfortunately, I'm not going this year, 'cause you didn't invite me, but-- (audience chuckling) How about, I think you've got a bit of a secret in relation to Oktoberfest, probably not in Munich, however. >> It's a secret, yes, but-- >> Are you going to share? >> Well I mean-- >> See how I'm putting you on the spot? >> In the 10 years, while living here in New York, I was a regular visitor of the Oktoberfest at the Lower East Side in Avenue C at Zum Schneider, where I actually met my wife, and she's German. >> Very good. So, how about a big round of applause? (audience applauding) Not so much for Christian, but more I think, obviously for his wife, who obviously had been drinking and consequently ended up with you. (all laughing) See you later, mate. >> That's the beauty about Oktoberfest, but yes. So first of all, good morning to everybody, and great to be back here in New York for a second Transform event. New York clearly is the melting pot of the world in terms of culture, nations, but also business professionals from all kind of different industries, and having this event here in New York City I believe is manifesting what we are trying to do here at Lenovo, is transform every aspect of our business and helping our customers on the journey of intelligent transformation. Last year, in our transformation on the device business, I talked about how the PC is transforming to personalized computing, and we've made a lot of progress in that journey over the last 12 months. One major change that we have made is we combined all our device business under one roof. So basically PCs, smart devices, and smart phones are now under the roof and under the intelligent device group. But from my perspective makes a lot of sense, because at the end of the day, all devices connect in the modern world into the cloud and are operating in a seamless way. But we are also moving from a device business what is mainly a hardware focus historically, more and more also into a solutions business, and I will give you during my speech a little bit of a sense of what we are trying to do, as we are trying to bring all these components closer together, and specifically also with our strengths on the data center side really build end-to-end customer solution. Ultimately, what we want to do is make our business, our customer's businesses faster, safer, and ultimately smarter as well. So I want to look a little bit back, because I really believe it's important to understand what's going on today on the device side. Many of us have still grown up with phones with terminals, ultimately getting their first desktop, their first laptop, their first mobile phone, and ultimately smartphone. Emails and internet improved our speed, how we could operate together, but still we were defined by linear technology advances. Today, the world has changed completely. Technology itself is not a limiting factor anymore. It is how we use technology going forward. The Internet is pervasive, and we are not yet there that we are always connected, but we are nearly always connected, and we are moving to the stage, that everything is getting connected all the time. Sharing experiences is the most driving force in our behavior. In our private life, sharing pictures, videos constantly, real-time around the world, with our friends and with our family, and you see the same behavior actually happening in the business life as well. Collaboration is the number-one topic if it comes down to workplace, and video and instant messaging, things that are coming from the consumer side are dominating the way we are operating in the commercial business as well. Most important beside technology, that a new generation of workforce has completely changed the way we are working. As the famous workforce the first generation of Millennials that have now fully entered in the global workforce, and the next generation, it's called Generation Z, is already starting to enter the global workforce. By 2025, 75 percent of the world's workforce will be composed out of two of these generations. Why is this so important? These two generations have been growing up using state-of-the-art IT technology during their private life, during their education, school and study, and are taking these learnings and taking these behaviors in the commercial workspace. And this is the number one force of change that we are seeing in the moment. Diverse workforces are driving this change in the IT spectrum, and for years in many of our customers' focus was their customer focus. Customer experience also in Lenovo is the most important thing, but we've realized that our own human capital is equally valuable in our customer relationships, and employee experience is becoming a very important thing for many of our customers, and equally for Lenovo as well. As you have heard YY, as we heard from YY, Lenovo is focused on intelligent transformation. What that means for us in the intelligent device business is ultimately starting with putting intelligence in all of our devices, smartify every single one of our devices, adding value to our customers, traditionally IT departments, but also focusing on their end users and building products that make their end users more productive. And as a world leader in commercial devices with more than 33 percent market share, we can solve problems been even better than any other company in the world. So, let's talk about transformation of productivity first. We are in a device-led world. Everything we do is connected. There's more interaction with devices than ever, but also with spaces who are increasingly becoming smart and intelligent. YY said it, by 2020 we have more than 20 billion connected devices in the world, and it will grow exponentially from there on. And users have unique personal choices for technology, and that's very important to recognize, and we call this concept a digital wardrobe. And it means that every single end-user in the commercial business is composing his personal wardrobe on an ongoing basis and is reconfiguring it based on the work he's doing and based where he's going and based what task he is doing. I would ask all of you to put out all the devices you're carrying in your pockets and in your bags. You will see a lot of you are using phones, tablets, laptops, but also cameras and even smartwatches. They're all different, but they have one underlying technology that is bringing it all together. Recognizing digital wardrobe dynamics is a core factor for us to put all the devices under one roof in IDG, one business group that is dedicated to end-user solutions across mobile, PC, but also software services and imaging, to emerging technologies like AR, VR, IoT, and ultimately a AI as well. A couple of years back there was a big debate around bring-your-own-device, what was called consumerization. Today consumerization does not exist anymore, because consumerization has happened into every single device we build in our commercial business. End users and commercial customers today do expect superior display performance, superior audio, microphone, voice, and touch quality, and have it all connected and working seamlessly together in an ease of use space. We are already deep in the journey of personalized computing today. But the center point of it has been for the last 25 years, the mobile PC, that we have perfected over the last 25 years, and has been the undisputed leader in mobility computing. We believe in the commercial business, the ThinkPad is still the core device of a digital wardrobe, and we continue to drive the success of the ThinkPad in the marketplace. We've sold more than 140 million over the last 26 years, and even last year we exceeded nearly 11 million units. That is about 21 ThinkPads per minute, or one Thinkpad every three seconds that we are shipping out in the market. It's the number one commercial PC in the world. It has gotten countless awards but we felt last year after Transform we need to build a step further, in really tailoring the ThinkPad towards the need of the future. So, we announced a new line of X1 Carbon and Yoga at CES the Consumer Electronics Show. And the reason is not we want to sell to consumer, but that we do recognize that a lot of CIOs and IT decision makers need to understand what consumers are really doing in terms of technology to make them successful. So, let's take a look at the video. (suspenseful music) >> When you're the number one business laptop of all time, your only competition is yourself. (wall shattering) And, that's different. Different, like resisting heat, ice, dust, and spills. Different, like sharper, brighter OLA display. The trackpoint that reinvented controls, and a carbon fiber roll cage to protect what's inside, built by an engineering and design team, doing the impossible for the last 25 years. This is the number one business laptop of all time, but it's not a laptop. It's a ThinkPad. (audience applauding) >> Thank you very much. And we are very proud that Lenovo ThinkPad has been selected as the best laptop in the world in the second year in a row. I think it's a wonderful tribute to what our engineers have been done on this one. And users do want awesome displays. They want the best possible audio, voice, and touch control, but some users they want more. What they want is super power, and I'm really proud to announce our newest member of the X1 family, and that's the X1 extreme. It's exceptionally featured. It has six core I9 intel chipset, the highest performance you get in the commercial space. It has Nvidia XTX graphic, it is a 4K UHD display with HDR with Dolby vision and Dolby Atmos Audio, two terabyte in SSD, so it is really the absolute Ferrari in terms of building high performance commercial computer. Of course it has touch and voice, but it is one thing. It has so much performance that it serves also a purpose that is not typical for commercial, and I know there's a lot of secret gamers also here in this room. So you see, by really bringing technology together in the commercial space, you're creating productivity solutions of one of a kind. But there's another category of products from a productivity perspective that is incredibly important in our commercial business, and that is the workstation business . Clearly workstations are very specifically designed computers for very advanced high-performance workloads, serving designers, architects, researchers, developers, or data analysts. And power and performance is not just about the performance itself. It has to be tailored towards the specific use case, and traditionally these products have a similar size, like a server. They are running on Intel Xeon technology, and they are equally complex to manufacture. We have now created a new category as the ultra mobile workstation, and I'm very proud that we can announce here the lightest mobile workstation in the industry. It is so powerful that it really can run AI and big data analysis. And with this performance you can go really close where you need this power, to the sensors, into the cars, or into the manufacturing places where you not only wannna read the sensors but get real-time analytics out of these sensors. To build a machine like this one you need customers who are really challenging you to the limit. and we're very happy that we had a customer who went on this journey with us, and ultimately jointly with us created this product. So, let's take a look at the video. (suspenseful music) >> My world involves pathfinding both the hardware needs to the various work sites throughout the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions when I first seen the ThinkPad P1 was I didn't actually believe that we could get everything that I was asked for inside something as small and light in comparison to other mobile workstations. That was one of the I can't believe this is real sort of moments for me. (engine roars) >> Well, it's better than general when you're going around in the wind tunnel, which isn't alway easy, and going on a track is not necessarily the best bet, so having a lightweight very powerful laptop is extremely useful. It can take a Xeon processor, which can support ECC from when we try to load a full car, and when we're analyzing live simulation results. through and RCFT post processor or example. It needs a pretty powerful machine. >> It's come a long way to be able to deliver this. I hate to use the word game changer, but it is that for us. >> Aston Martin has got a lot of different projects going. There's some pretty exciting projects and a pretty versatile range coming out. Having Lenovo as a partner is certainly going to ensure that future. (engine roars) (audience applauds) >> So, don't you think the Aston Martin design and the ThinkPad design fit very well together? (audience laughs) So if Q, would get a new laptop, I think you would get a ThinkPad X P1. So, I want to switch gears a little bit, and go into something in terms of productivity that is not necessarily on top of the mind or every end user but I believe it's on top of the mind of every C-level executive and of every CEO. Security is the number one threat in terms of potential risk in your business and the cost of cybersecurity is estimated by 2020 around six trillion dollars. That's more than the GDP of Japan and we've seen a significant amount of data breach incidents already this years. Now, they're threatening to take companies out of business and that are threatening companies to lose a huge amount of sensitive customer data or internal data. At Lenovo, we are taking security very, very seriously, and we run a very deep analysis, around our own security capabilities in the products that we are building. And we are announcing today a new brand under the Think umbrella that is called ThinkShield. Our goal is to build the world's most secure PC, and ultimately the most secure devices in the industry. And when we looked at this end-to-end, there is no silver bullet around security. You have to go through every aspect where security breaches can potentially happen. That is why we have changed the whole organization, how we look at security in our device business, and really have it grouped under one complete ecosystem of solutions, Security is always something where you constantly are getting challenged with the next potential breach the next potential technology flaw. As we keep innovating and as we keep integrating, a lot of our partners' software and hardware components into our products. So for us, it's really very important that we partner with companies like Intel, Microsoft, Coronet, Absolute, and many others to really as an example to drive full encryption on all the data seamlessly, to have multi-factor authentication to protect your users' identity, to protect you in unsecured Wi-Fi locations, or even simple things like innovation on the device itself, to and an example protect the camera, against usage with a little thing like a thinkShutter that you can shut off the camera. SO what I want to show you here, is this is the full portfolio of ThinkShield that we are announcing today. This is clearly not something I can even read to you today, but I believe it shows you the breadth of security management that we are announcing today. There are four key pillars in managing security end-to-end. The first one is your data, and this has a lot of aspects around the hardware and the software itself. The second is identity. The third is the security around online, and ultimately the device itself. So, there is a breakout on security and ThinkShield today, available in the afternoon, and encourage you to really take a deeper look at this one. The first pillar around productivity was the device, and around the device. The second major pillar that we are seeing in terms of intelligent transformation is the workspace itself. Employees of a new generation have a very different habit how they work. They split their time between travel, working remotely but if they do come in the office, they expect a very different office environment than what they've seen in the past in cubicles or small offices. They come into the office to collaborate, and they want to create ideas, and they really work in cross-functional teams, and they want to do it instantly. And what we've seen is there is a huge amount of investment that companies are doing today in reconfiguring real estate reconfiguring offices. And most of these kind of things are moving to a digital platform. And what we are doing, is we want to build an entire set of solutions that are just focused on making the workspace more productive for remote workforce, and to create technology that allow people to work anywhere and connect instantly. And the core of this is that we need to be, the productivity of the employee as high as possible, and make it for him as easy as possible to use these kind of technologies. Last year in Transform, I announced that we will enter the smart office space. By the end of last year, we brought the first product into the market. It's called the Hub 500. It's already deployed in thousands of our customers, and it's uniquely focused on Microsoft Skype for Business, and making meeting instantly happen. And the product is very successful in the market. What we are announcing today is the next generation of this product, what is the Hub 700, what has a fantastic audio quality. It has far few microphones, and it is usable in small office environment, as well as in major conference rooms, but the most important part of this new announcement is that we are also announcing a software platform, and this software platform allows you to run multiple video conferencing software solutions on the same platform. Many of you may have standardized for one software solution or for another one, but as you are moving in a world of collaborating instantly with partners, customers, suppliers, you always will face multiple software standards in your company, and Lenovo is uniquely positioned but providing a middleware platform for the device to really enable multiple of these UX interfaces. And there's more to come and we will add additional UX interfaces on an ongoing base, based on our customer requirements. But this software does not only help to create a better experience and a higher productivity in the conference room or the huddle room itself. It really will allow you ultimately to manage all your conference rooms in the company in one instance. And you can run AI technologies around how to increase productivity utilization of your entire conference room ecosystem in your company. You will see a lot more devices coming from the node in this space, around intelligent screens, cameras, and so on, and so on. The idea is really that Lenovo will become a core provider in the whole movement into the smart office space. But it's great if you have hardware and software that is really supporting the approach of modern IT, but one component that Kirk also mentioned is absolutely critical, that we are providing this to you in an as a service approach. Get it what you want, when you need it, and pay it in the amount that you're really using it. And within UIT there is also I think a new philosophy around IT management, where you're much more focused on the value that you are consuming instead of investing into technology. We are launched as a service two years back and we already have a significant number of customers running PC as a service, but we believe as a service will stretch far more than just the PC device. It will go into categories like smart office. It might go even into categories like phone, and it will definitely go also in categories like storage and server in terms of capacity management. I want to highlight three offerings that we are also displaying today that are sort of building blocks in terms of how we really run as a service. The first one is that we collaborated intensively over the last year with Microsoft to be the launch pilot for their Autopilot offering, basically deploying images easily in the same approach like you would deploy a new phone on the network. The purpose really is to make new imaging and enabling new PC as seamless as it's used to be in the phone industry, and we have a complete set of offerings, and already a significant number customers have deployed Autopilot with Lenovo. The second major offering is Premier Support, like in the in the server business, where Premier Support is absolutely critical to run critical infrastructure, we see a lot of our customers do want to have Premier Support for their end users, so they can be back into work basically instantly, and that you have the highest possible instant repair on every single device. And then finally we have a significant amount of time invested into understanding how the software as a service really can get into one philosophy. And many of you already are consuming software as a service in many different contracts from many different vendors, but what we've created is one platform that really can manage this all together. All these things are the foundation for a device as a service offering that really can manage this end-to-end. So, implementing an intelligent workplace can be really a daunting prospect depending on where you're starting from, and how big your company ultimately is. But how do you manage the transformation of technology workspace if you're present in 50 or more countries and you run an infrastructure for more than 100,000 people? Michelin, famous for their tires, infamous for their Michelin star restaurant rating, especially in New York, and instantly recognizable by the Michelin Man, has just doing that. Please welcome with me Damon McIntyre from Michelin to talk to us about the challenges and transforming collaboration and productivity. (audience applauding) (electronic dance music) Thank you, David. >> Thank you, thank you very much. >> We on? >> So, how do you feel here? >> Well good, I want to thank you first of all for your partnership and the devices you create that helped us design, manufacture, and distribute the best tire in the world, okay? I just had to say it and put out there, alright. And I was wondering, were those Michelin tires on that Aston Martin? >> I'm pretty sure there is no other tire that would fit to that. >> Yeah, no, thank you, thank you again, and thank you for the introduction. >> So, when we talk about the transformation happening really in the workplace, the most tangible transformation that you actually see is the drastic change that companies are doing physically. They're breaking down walls. They're removing cubes, and they're moving to flexible layouts, new desks, new huddle rooms, open spaces, but the underlying technology for that is clearly not so visible very often. So, tell us about Michelin's strategy, and the technology you are deploying to really enable this corporation. >> So we, so let me give a little bit a history about the company to understand the daunting tasks that we had before us. So we have over 114,000 people in the company under 170 nationalities, okay? If you go to the corporate office in France, it's Clermont. It's about 3,000 executives and directors, and what have you in the marketing, sales, all the way up to the chain of the global CIO, right? Inside of the Americas, we merged in Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas, so it's really, it's really hard in a lot of cases. You start looking at the different areas that you lose time, and you lose you know, your productivity and what have you, so there, it's when we looked at different aspects of how we were going to manage the meeting rooms, right? because we have opened up our areas of workspace, our CIO, CEOs in our zones will no longer have an office. They'll sit out in front of everybody else and mingle with the crowd. So, how do you take those spaces that were originally used by an individual but now turn them into like meeting rooms? So, we went through a large process, and looked at the Hub 500, and that really met our needs, because at the end of the day what we noticed was, it was it was just it just worked, okay? We've just added it to the catalog, so we're going to be deploying it very soon, and I just want to again point that I know everybody struggles with this, and if you look at all the minutes that you lose in starting up a meeting, and we know you know what I'm talking about when I say this, it equates to many many many dollars, okay? And so at the end the day, this product helps us to be more efficient in starting up the meeting, and more productive during the meeting. >> Okay, it's very good to hear. Another major trend we are seeing in IT departments is taking a more hands-off approach to hardware. We're seeing new technologies enable IT to create a more efficient model, how IT gets hardware in the hands of end-users, and how they are ultimately supporting themselves. So what's your strategy around the lifecycle management of the devices? >> So yeah you mentioned, again, we'll go back to the 114,000 employees in the company, right? You imagine looking at all the devices we use. I'm not going to get into the number of devices we have, but we have a set number that we use, and we have to go through a process of deploying these devices, which we right now service our own image. We build our images, we service them through our help desk and all that process, and we go through it. If you imagine deploying 25,000 PCs in a year, okay? The time and the daunting task that's behind all that, you can probably add up to 20 or 30 people just full-time doing that, okay? So, with partnering with Lenovo and their excellent technology, their technical teams, and putting together the whole process of how we do imaging, it now lifts that burden off of our folks, and it shifts it into a more automated process through the cloud, okay? And, it's with the Autopilot on the end of the project, we'll have Autopilot fully engaged, but what I really appreciate is how Lenovo really, really kind of got with us, and partnered with us for the whole process. I mean it wasn't just a partner between Michelin and Lenovo. Microsoft was also partnered during that whole process, and it really was a good project that we put together, and we hope to have something in a full production mode next year for sure. >> So, David thank you very, very much to be here with us on stage. What I really want to say, customers like you, who are always challenging us on every single aspect of our capabilities really do make the big difference for us to get better every single day and we really appreciate the partnership. >> Yeah, and I would like to say this is that I am, I'm doing what he's exactly said he just said. I am challenging Lenovo to show us how we can innovate in our work space with your devices, right? That's a challenge, and it's going to be starting up next year for sure. We've done some in the past, but I'm really going to challenge you, and my whole aspect about how to do that is bring you into our workspace. Show you how we make how we go through the process of making tires and all that process, and how we distribute those tires, so you can brainstorm, come back to the table and say, here's a device that can do exactly what you're doing right now, better, more efficient, and save money, so thank you. >> Thank you very much, David. (audience applauding) Well it's sometimes really refreshing to get a very challenging customers feedback. And you know, we will continue to grow this business together, and I'm very confident that your challenge will ultimately help to make our products even more seamless together. So, as we now covered productivity and how we are really improving our devices itself, and the transformation around the workplace, there is one pillar left I want to talk about, and that's really, how do we make businesses smarter than ever? What that really means is, that we are on a journey on trying to understand our customer's business, deeper than ever, understanding our customer's processes even better than ever, and trying to understand how we can help our customers to become more competitive by injecting state-of-the-art technology in this intelligent transformation process, into core processes. But this cannot be done without talking about a fundamental and that is the journey towards 5G. I really believe that 5G is changing everything the way we are operating devices today, because they will be connected in a way like it has never done before. YY talked about you know, 20 times 10 times the amount of performance. There are other studies that talk about even 200 times the performance, how you can use these devices. What it will lead to ultimately is that we will build devices that will be always connected to the cloud. And, we are preparing for this, and Kirk already talked about, and how many operators in the world we already present with our Moto phones, with how many Telcos we are working already on the backend, and we are working on the device side on integrating 5G basically into every single one of our product in the future. One of the areas that will benefit hugely from always connected is the world of virtual reality and augmented reality. And I'm going to pick here one example, and that is that we have created a commercial VR solution for classrooms and education, and basically using consumer type of product like our Mirage Solo with Daydream and put a solution around this one that enables teachers and schools to use these products in the classroom experience. So, students now can have immersive learning. They can studying sciences. They can look at environmental issues. They can exploring their careers, or they can even taking a tour in the next college they're going to go after this one. And no matter what grade level, this is how people will continue to learn in the future. It's quite a departure from the old world of textbooks. In our area that we are looking is IoT, And as YY already elaborated, we are clearly learning from our own processes around how we improve our supply chain and manufacturing and how we improve also retail experience and warehousing, and we are working with some of the largest companies in the world on pilots, on deploying IoT solutions to make their businesses, their processes, and their businesses, you know, more competitive, and some of them you can see in the demo environment. Lenovo itself already is managing 55 million devices in an IoT fashion connecting to our own cloud, and constantly improving the experience by learning from the behavior of these devices in an IoT way, and we are collecting significant amount of data to really improve the performance of these systems and our future generations of products on a ongoing base. We have a very strong partnership with a company called ADLINK from Taiwan that is one of the leading manufacturers of manufacturing PC and hardened devices to create solutions on the IoT platform. The next area that we are very actively investing in is commercial augmented reality. I believe augmented reality has by far more opportunity in commercial than virtual reality, because it has the potential to ultimately improve every single business process of commercial customers. Imagine in the future how complex surgeries can be simplified by basically having real-time augmented reality information about the surgery, by having people connecting into a virtual surgery, and supporting the surgery around the world. Visit a furniture store in the future and see how this furniture looks in your home instantly. Doing some maintenance on some devices yourself by just calling the company and getting an online manual into an augmented reality device. Lenovo is exploring all kinds of possibilities, and you will see a solution very soon from Lenovo. Early when we talked about smart office, I talked about the importance of creating a software platform that really run all these use cases for a smart office. We are creating a similar platform for augmented reality where companies can develop and run all their argumented reality use cases. So you will see that early in 2019 we will announce an augmented reality device, as well as an augmented reality platform. So, I know you're very interested on what exactly we are rolling out, so we will have a first prototype view available there. It's still a codename project on the horizon, and we will announce it ultimately in 2019, but I think it's good for you to take a look what we are doing here. So, I just wanted to give you a peek on what we are working beyond smart office and the device productivity in terms of really how we make businesses smarter. It's really about increasing productivity, providing you the most secure solutions, increase workplace collaboration, increase IT efficiency, using new computing devices and software and services to make business smarter in the future. There's no other company that will enable to offer what we do in commercial. No company has the breadth of commercial devices, software solutions, and the same data center capabilities, and no other company can do more for your intelligent transformation than Lenovo. Thank you very much. (audience applauding) >> Thanks mate, give me that. I need that. Alright, ladies and gentlemen, we are done. So firstly, I've got a couple of little housekeeping pieces at the end of this and then we can go straight into going and experiencing some of the technology we've got on the left-hand side of the room here. So, I want to thank Christian obviously. Christian, awesome as always, some great announcements there. I love the P1. I actually like the Aston Martin a little bit better, but I'll take either if you want to give me one for free. I'll take it. We heard from YY obviously about the industry and how the the fourth Industrial Revolution is impacting us all from a digital transformation perspective, and obviously Kirk on DCG, the great NetApp announcement, which is going to be really exciting, actually that Twitter and some of the social media panels are absolutely going crazy, so it's good to see that the industry is really taking some impact. Some of the publications are really great, so thank you for the media who are obviously in the room publishing right no. But now, I really want to say it's all of your turn. So, all of you up the back there who are having coffee, it's your turn now. I want everyone who's sitting down here after this event move into there, and really take advantage of the 15 breakouts that we've got set there. There are four breakout sessions from a time perspective. I want to try and get you all out there at least to use up three of them and use your fourth one to get out and actually experience some of the technology. So, you've got four breakout sessions. A lot of the breakout sessions are actually done twice. If you have not downloaded the app, please download the app so you can actually see what time things are going on and make sure you're registering correctly. There's a lot of great experience of stuff out there for you to go do. I've got one quick video to show you on some of the technology we've got and then we're about to close. Alright, here we are acting crazy. Now, you can see obviously, artificial intelligence machine learning in the browser. God, I hate that dance, I'm not a Millenial at all. It's effectively going to be implemented by healthcare. I want you to come around and test that out. Look at these two guys. This looks like a Lenovo management meeting to be honest with you. These two guys are actually concentrating, using their brain power to race each others in cars. You got to come past and give that a try. Give that a try obviously. Fantastic event here, lots of technology for you to experience, and great partners that have been involved as well. And so, from a Lenovo perspective, we've had some great alliance partners contribute, including obviously our number one partner, Intel, who's been a really big loyal contributor to us, and been a real part of our success here at Transform. Excellent, so please, you've just seen a little bit of tech out there that you can go and play with. I really want you, I mean go put on those black things, like Scott Hawkins our chief marketing officer from Lenovo's DCG business was doing and racing around this little car with his concentration not using his hands. He said it's really good actually, but as soon as someone comes up to speak to him, his car stops, so you got to try and do better. You got to try and prove if you can multitask or not. Get up there and concentrate and talk at the same time. 62 different breakouts up there. I'm not going to go into too much detai, but you can see we've got a very, very unusual numbering system, 18 to 18.8. I think over here we've got a 4849. There's a 4114. And then up here we've got a 46.1 and a 46.2. So, you need the decoder ring to be able to understand it. Get over there have a lot of fun. Remember the boat leaves today at 4:00 o'clock, right behind us at the pier right behind us here. There's 400 of us registered. Go onto the app and let us know if there's more people coming. It's going to be a great event out there on the Hudson River. Ladies and gentlemen that is the end of your keynote. I want to thank you all for being patient and thank all of our speakers today. Have a great have a great day, thank you very much. (audience applauding) (upbeat music) ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ba do ♪

>> From Union Square in downtown San Francisco, it's theCUBE covering PagerDuty Summit '18. Now here's Jeff Frick. >> Hey welcome back everybody. Jeff Frick here with theCUBe. We're at PagerDuty Summit at the Westin St. Francis in Union Square, historic venue. Our second time to this show, there's about 900 people here talking about kind of the future of dev ops, but going a lot further than dev ops. And we're excited to have a couple of CUBE alumni here at the conference from SignalFX. We've got Arjit Mukarji. >> Mukarji, yeah. >> Thank you. And Karthik Rao, co-founder and CEO of Signal FX. Gentlemen, welcome. >> Thank you very much. >> So what do you do at PagerDuty Summit? >> Well we've been partners with PagerDuty for a long time now, we've known them since the very early days, we share a common investor. But we both operate very squarely in the same space, which is companies moving towards dev ops development and deployment methodologies, leveraging cloud and native architectures. We solve a different part of the problem around monitoring and observation and we partner with them very closely around incident management Once a problem is detected, we typically integrate in with PagerDuty and trigger whatever incident management paths that our customers are orchestrating by PagerDuty. So, it's been really an integral part of our entire work flow since we started the company. So we're very close partners with them. >> Yeah, it's interesting 'cause Jen announced they have 300 integrations or 300+ integrations, whatever the number is, and to the outside looking in, it might look like a lot of those are competitive, like there's a lot of work flow and notification types of partners in that ecosystem, but in fact, lots of different people with lots of different slices of the pie. >> That is good. >> Yeah, absolutely. It's a really big problem space that everyone is trying to solve in this day and age. Some of our competitors are in that list, but you know we partner very closely with PagerDuty. As I mentioned earlier, our focus really is around problem detection and leveraging the most intelligent algorithms, statistical models in real time to detect patterns that are occurring in a production environment and triggering an alert, and typically we're integrating in with PagerDuty and PagerDuty deals with the human elements of once something has been detected, how do you manage that incident? How do you router to the appropriate people? One of the things that's really interesting as this world is changing towards these dev ops models is the number of people that have to get involved is substantially greater than it was before. In the old days, you would have an alert go into a knock and you have a specialist group of people with very specific runbooks because your software wasn't changing very often. In today's world, your software is changing sometimes on a daily basis, and it could be changing across dozens of teams, hundreds of teams in larger organizations. And so, there's a problem on the detection side because companies like SignalFX have to do a really great job of detecting problems as they emerge across these disparate teams, across a much, much, much, larger environment with much larger volumes of data and then companies like PagerDuty really have to deal with a far more complex set of requirements around making sure the right people get notified at the right time. And so they're two very different problems and we're very happy to- and have been partnering with them for a number of years now. >> And again, the complexity around the APIs where the app is running, there's so many levels now of new complexity compared to when it was just one app, running on one system, probably in your own data center, probably that you wrote, compared to this kind of API centric multi-cloud world that we live in today. >> That is exactly right because what's happening is our application architectures are changing 'cause we used to have these monoliths, we used to have three tiers and whatnot, and we're replacing that with the micro-services, loosely cabled systems, and whatnot. At the same time, the substrate on which we are running those services, those are also changing. Right, so instead of servers, now we have virtual machines, we have cloud distances and containers and pods and what-have-you. So in a way, we are sort of growing below too in some sense and so that's why sort of monitoring this kind of complex, more numerous environment is becoming a harder challenge. We're doing this for a good cause, because we want to move faster, we want to innovate faster, but at the same time, it's also making the established problems harder, which is sort of what requires newer tools, which sort of brings companies like us into the picture. >> Right, yep. And then just the shear scale, volume, number of data that's flowing through the pipes now on all these different applications is growing exponentially, right? We see time and time again, so it really begs for a smarter approach. >> Absolutely, I mean on two levels right? The number of minutes of software consumption is up exponentially, right? Since the smartphone came out in 2007, you've got billions of people connected to software now, connected all the time, so the load is up order sum magnitude which is driving, even if you didn't change the architectures, you would have to build out substantially more back-end systems, but now the architectures are changing as well, where every physical server is now parceled up into VMs which are parceled up into containers. And so the number of systems are also up by order sum magnitude. And so there's no possible way for a human to respond to individual alerts happening on individual systems, you're just going to drown in noise. So the requirements of this new world really are, you have to have an analytic spaced approach to monitoring and more automation, more intelligence around detecting the patterns that really matter. >> Right. Which is such a great opportunity for artificial intelligence, right, a machine learning. And we talk about it all the time, everyone wants to talk about those, kind of as a vendor-led something that you buy. Yeah, that's kind of okay, but really where the huge benefit is, companies like you guys and PagerDuty using that technology, integrated in with what you deliver on your core to do a much better job in this crazy increasing scale of volume that's run with these machines. >> Yes, because the systems are becoming so complex that even if you asked a human to go and set up the perfect monitoring or perfect alerting, et cetera, it might be quite a hard challenge, right? So, as a result sort of automation, computer intelligence, et cetera needs to be brought in to bear, because again, it's a more complex system, we need higher order systems that have dealed with them. >> Right. >> You are very, very right, yes. And that's a trend we are starting to see within the product, we are actually focusing a lot on sort of data science capabilities which too are sort of making them more and more sort of machine running and automation. In the future, we have capabilities in the product that can look at populations and identify outliers, look at cyclical problems and identify outliers again. So the idea is to make it easy for users to monitor a complex system without having to get into the guts, so to speak. >> Right. >> And to do it on various sorts of data, right? I think you have an interesting use case that we've been experimenting with recently. >> That's right. >> If you want to talk about that. >> Yeah, so I actually have a talk tomorrow, it's called "Interesting One." It's about monitoring social signals, monitoring humans. So we have these systems, we have these metrics platforms and they are quite generic, the tools that we have nowadays and are sort of available to us are quite powerful, and the set of inputs need not be isolated to what the computers are telling me. Why not look at other things, why not look at business signals? In my case, I'm going to talk about monitoring what the humans are doing on Slack as a way for me to know whether there's something of interest that's going on in my infrastructure, in my service that I need to be aware of, right? And you'll be shocked how surprisingly accurate it tends to be. It's just an interesting thing, and it makes one wonder what else is out there for us to sort of look at? Why confine ourselves, right? >> Right. It's funny because we hear about sentiment analysis in social media all the time, but more in the context of Pepsi or a big consumer brand that's trying to figure out how people feel. But to do it inside your own company on your own internal tool, like a Slack, that's a whole different level of insight. >> You'd be surprised at the number of companies that monitor Twitter to understand whether they have an adage. >> That's right. >> Yeah, because in this day and age, users are on Twitter within seconds if something is perceived to be slow, or something is perceived to be down, they're on Twitter. So there are all sorts of other interesting signals to potentially pull from. >> Right, right. Well and guess what, we were just at AT&T Spark yesterday and the 5G's coming and it's 100x more data'll be flowing through the mobiles, so the problem's not going to get any smaller any time soon. >> No. >> Absolutely. >> So what else have you guys been up to since we last spoke? Continuing to grow, making some interesting moves. >> Absolutely- >> Crossing oceans. >> We've been very, very busy, one of the big areas of investment for us has been international growth, so we've been investing quite a bit in Europe. We have just introduced an instance of our service that's based in a European data center. For a lot of our European-based clients, they prefer to have data locality, data residency within the European Union, so that's something new that we just introduced last month, continue to have a ton of momentum, outed AMIA, they're very much on the cloud journey, and embracing cloud and embracing dev ops, so it's really great to see that momentum out there. >> Right, and clearly with GDPR and those types of things, you have to have a presence for certain types of customers, certain types of data. Anything surprising in that move that you didn't expect or? >> No, I don't know, I'll let you. >> Not in that move, but it's just interesting to see how quickly some of these modern technologies are getting adopted and how- one of the things sort of we talk about a lot in our trade is ephemeral, right? So how things are short-lived nowadays, and you used to lease these servers that used to stay in your data center for three years, then you went to Amazon and you leased your instances, which probably lived for a few months or a few days, then they became containers, and the containers sometimes only for a few hours or for- you know. And then, if you think about serverless and whatnot, it's in a whole different level, and the amount of ephemeral that's going on, especially in the more cloud native companies, was a little bit of a surprise in the sense that, it actually poses a very interesting challenge in how do you monitor something that's changing so fast? And we had to have a lot of engineering put in to sort of make that problem more tractable for us. And it continues to be an area of investment. That to me, was something that was a little bit of a surprise when we started off. Much of this doctorization and coordinating was not yet in place, and so that was an interesting technical challenge as well as a surprise. >> Well I'm curious too as instances, right so there's the core instances that are running core businesses that don't change that much, but it's a promotion, it's a this or that, right? It's a spin up app and a spin down app. Are those even going up on the same infrastructure from the first time they do it to the second time they do it. I mean, how much are you learning that you can leverage as people are doing things differently over and over again as their objectives change, their applications change, they're going to go to market around that specific application. That's changing all the time as well. >> Yeah, so I think the challenge there is to sort of build, at least from a technical point of view, from SignalFX point of view, is build something that is versatile enough to handle these different use cases. We've got new use cases, new ways of doing things are going to continue to happen, probably going to keep on accelerating. So the challenge for us is good and bad, is how do we make a platform that is generic, that can be used for anything that may come down the pike, not only just now. At the second time, how do we innovate to continue to be up to speed with the latest of that's what's going on in terms of infrastructure trends, software delivery trends, and whatnot. Because if we're not able to do that, then that puts us sort of behind. >> Right, right. >> So it's a sort of lot of phonetic innovation, but it's also exciting at the same time. >> Right, right, right. And just the whole concept too, where I think what's best practice quickly becomes expected baseline really, really fast. I mean, what's cutting edge, innovative now unfortunately or fortunately, that become the benchmark by which everything else is measured overnight. That's the thing that just amazes me, what was magical yesterday is just expected, boring behavior today. Alright good, so as we get to the end of the year a lot of exciting stuff, you guys said you're going to be at Reinvent, we will see you there. Anything else that you're looking forward to over the next couple months? >> Just, we're really excited about Reinvent's big show for us, and we'll have some good announcements around the show. And yeah, looking forward to just continuing to do what we've been doing and deliver more rally to our customers. >> Love it, just keep working hard. >> Yep. >> Alright. Arjit, hope your throat gets better before your big talk tomorrow. >> Yeah, that's right. >> Alright, thanks for stopping by Karthik, it was great to see you. >> Great to see you. >> I'm Jeff, you're watching theCUBE, we're at PagerDuty Summit at the Westin St. Francis in San Francisco. Thanks for watching, see you next time.