Paul Daugherty & Jim Wilson | AWS Executive Summit 2022
(upbeat music) >> Hello, everyone. Welcome to theCUBE's coverage here at AWS re:Invent 2022. This is the Executive Summit with Accenture. I'm John Furrier, your host of theCUBE with two great guests coming on today, really talking about the future, the role of humans. Radically human is going to be the topic. Paul Daugherty, the group Chief Executive Technology and CTO at Accenture. And Jim Wilson, Global Managing Director of Thought Leadership and Technology Research, Accenture. Gentlemen, thank you for coming on theCUBE for this conversation around your new hit book, "Radically Human." >> Thanks, John. It's great to be with you and great to be present at re:Invent. >> We've been following you guys for many, many years now, over a decade. You always have the finger on the pulse. I mean, and as these waves come in, it's really important to understand impact. And more than ever, we're in this, I call it the systems thinking, revolution is going on now where things have consequences and machines are now accelerating their role. Developers are becoming the front lines of running companies, seeing a massive shift. This new technology is transforming the business and shaping our future as as humans. And so I love the book, very, very strong content, really right on point. What was the motivation for the book? And congratulations, but I noticed you got the structure, part one and part two, this book seems to be packing a big punch. What was the motivation, and what was some of the background in putting the book together? >> That's a great question, John. And I'll start, and then, Jim, my co-author and colleague and partner on the book can join in too. If you step back from the book itself, we'd written a first book called "Human + Machine", which focused a lot on artificial intelligence and talked about the potential and future of artificial intelligence to create a more human future for us with the human plus machine pairing. And then when we started working on the next book, it was the COVID era. COVID came on line as we were writing the book. And that was causing really an interesting time in technology for a lot of companies. I mean, think back to what you were doing. Once COVID hit, every company became more dependent on technology. Technology was the lifeline. And so Jim and I got interested in what the impacts of that were on companies, and what was different from the first research we had done around our first book. And what we found, which was super interesting, is that pre-pandemic, the leading companies, the digital leaders that were applying cloud data, AI, and related technologies faster, we're outperforming others by a factor of 2x. And that was before the pandemic. After the pandemic, we redid the research and the gap widened into 5x. And I think that's played a lot into our book. And we talk about that in the opening of our book. And the message there is exactly what you said is technology is not just the lifeline from the pandemic, but now technology is the heart and soul of how companies are driving innovation, how they're responding to global crises around inflation, energy, supply chain crisis because of the war in Ukraine, et cetera. And companies need the technology more than ever. And that's what we're writing about in "Radically Human." And we're taking a step beyond our previous book to talk about what we believe is next. And it's really cloud, data and AI, and the metaverse that signal out as three trends that are really driving transformative change for companies. In the first part of the book, to your question on the structure, talks about the roadmap to that. We talked about the ideas framework, five areas where you need to change your thinking, flip your assumptions on how to apply technology. And then the second part of the book talks about the differentiators that we believe are going to set companies apart as they look to implement this technology and transform their companies for the future. >> Jim, weigh in on this flipping the script, flipping the assumptions. >> You used a really important word there and that is systems. I think when we think about artificial intelligence, and when Paul and I have now talking to companies, a lot of executives think of AI as a point solution. They don't think about AI in terms of taking a systems approach. So we were trying to address that. All right, if you're going to build a roadmap, a technology roadmap for applying intelligent technologies like artificial intelligence, how do you take a holistic systematic view? And that's really the focus of the first section of the book. And then as Paul mentioned, how do you take those systems and really differentiate it using your talent, focusing on trust, experiences and sustainability? >> I like how it reads. It's almost like a masterclass book because you set the table. It's like, 'cause people right now are like in the mode of what's going on around me? I've been living through three years of COVID. We're coming out the other side. The world looks radically different. Humans are much more important. Automation's great, but people are finding out that the human's key, but people are trying to figure out where am I today. So I think the first part really to me hits home. Like, here's the current situation and then part two is here's how you can get better. And it's not just about machines, machines, machines and automation, automation, automation. We're seeing examples where the role of the human, the person in society, whether it's individually or as part of a group, are really now key assets in that kind of this new workforce or this new production system or society. >> Yeah. And just to take a couple examples from the book and highlight that, I think you're exactly right. And that's where "Radically Human", the title came from. And what's happening with technology is that technology itself is becoming more human like in its capability. When you think about the power of the transformer technologies and other things that we're reading about a lot. And the whole hypothesis or premise of the book I should say, is that the more human like the technology is, the more radically human or the more radical the human potential improvement is, the bigger the opportunity. It's pairing the two together rather than, as you said, just looking at the automation or the machine side of it. That's really the radical leap. And one thing Jim and I talked about in context of the book is companies really often haven't been radical enough in applying technology to really get to dramatic gains that they can get. Just a couple examples from the ideas framework, the I in IDEAS. The ideas framework is the first part of the book. The five areas to flip your assumptions. The I stands for intelligence and we're talking about more human and less artificial in terms of the intelligence techniques. Things like common sense learning and other techniques that allow you to develop more powerful ways of engaging people, engaging humans in the systems that we build using the kind of systems thinking that Jim mentioned. And things like emotional AI, common sense AI, new techniques in addition to machine, the big data driven machine learning techniques, which are essential to vision and solving big problems like that. So that's just an example of how you bring it together and enable that human potential. >> I love the idea, go ahead Jim. >> I was going to say we've been used to adapting to technology, and contorting our fingers to keyboards and so on for a long time. And now we're starting to see that technology is in fact beginning to adapt to us and become more natural in many instances. One point that we make is now in the human technology nexus, in fact, the human is in the ascended. That's one of the big ideas that we try to put out there in this book. >> I love the idea of flipping the script, flipping the assumptions, but ideas framework is interesting. I for intelligence, D for data, E for expertise, A for architecture, S for strategy. Notice the strategies last. Normally in the old school days, it's like, hey, strategy first and execution. Really interesting how you guys put that together. It feels like business is becoming agile and iterative and how it's going to be forming. Can you guys, I mean that's my opinion, but I think observing how developers becoming much more part of the app. I mean, if you take digital transformation to its conclusion, the application is the company, It's not a department serving the business, it is the business, therefore developers are running the business, so to speak. This is really radical. I mean, this is how I'm seeing it. What's your reaction to that? Do you see similar parallels to this transformation if you take it down to a conclusion and strategy is just what you do after you get the outcomes you need? What's your reaction to that? >> Yeah, I think one of the most lasting elements of the book might be that chapter on strategy in my opinion, because you need to think about it differently. The old way of doing strategy is dead. You can't do it the way you used to do it. And that's what we tried to lay out with the S in IDEAS, the strategy. The subtitle that chapter is we're all technology companies now. And if you're a technology driven company, the way you need to think about and every company is becoming, that's what I hear when I talk to these suites and CEOs and boards, is everybody's recognizing the essential role that technology plays and therefore they need to master technology. Well, you need to think about strategy differently then because of the pace of technology innovation. And so you need to throw out the old way of doing it. We suggest three new archetypes of how to do strategy that I think are really important. It's about continuous strategy in all cases. An example is one of the techniques we talk about, forever beta, which is, think about a Tesla or companies that it's never quite done. They're always improving and the product is designed to be connected and improving. So it changes along the product and the strategy along how you deploy it to consumers changes as you go. And that's an example of a very different approach to strategy that we believe is essential to consider as you look at the future. Yeah, those multi-month strategy sessions might play out over two or three quarters of going away. And strategy and execution are becoming almost simultaneous these days as Paul was saying. >> It's interesting because that's the trend you're seeing with more data, more automation, but the human plays a much critical role. And just aside on the Tesla example, is well documented. I think I wrote about in a post just this week that during the model three, Elon wanted full automation and had to actually go off scripts and get to humans back in charge 'cause it wasn't working properly. Now they have a balance. But that brings up to part two, which I like, which is this human piece of it. We always talk about skills gaps, there's not enough people to do this, that and the other thing. And talent was a big part of that second half, trust, talent, experiences. That's more of the person's role, either individually as part of a collective group. Is talent the scarce resource now where that's the goal, that's the key 'cause it all could point to that in a way. Skills gap points to, hey, humans are valuable. In fact the value's going up if it's properly architected. What's your reaction to that, guys? Because I think that's something that is not, kind of nuanced point, but it's a feature, not a bug maybe, I don't know. What's your thoughts? >> Yeah, go ahead Jim. >> I was going to say it, we're dramatically underestimating the amount of focus we need to put on talent. That's why we start off that second part of the book, really zooming in on talent. I think you might think that for every hundred dollars that you put into a technology initiative, you might put 50 or 75 into re-skilling initiatives to really compliment that. But what we're seeing is companies need to be much more revolutionary in their focus on talent. We saw economic analysis recently that pointed out that for every $1 you spend on technology, you are likely going to need to spend about $9 on intangible human capital. That means on talent, on getting the best talent, on re-skilling and on changing processes and work tasks. So there's a lot of work that needs to be done. Really that's human focus. It's not just about adopting the technology. Certainly the technology's critical, but we're underestimating the amount of focus that needs to go into the talent factors. >> That's a huge point. >> And I think some of the elements of talent that become really critical that we talked about in the book are becoming a talent creator. We believe the successful companies of the future are going to be able not just to post a job opening and hire people in because there's not going to be enough. And a lot of the jobs that companies are creating don't exist 'cause the technology changing so fast. So the companies that succeed are going to know how to create talent, bring in people, apprentices and such, and shape to tale as they go. We're doing a significant amount of that in our own company. They're going to be learning based organizations where you'll differentiate, you'll get the best employees if you provide better learning environments because that's what employees want. And then democratizing access to technology. Things like Amazon's Honeycode is an example, low-code/no-code development to spread development to wider pools of people. Those types of things are really critical going forward to really unlock the talent potential. And really what you end up with is, yeah, the human talent's important, but it's magnified and multiplied by the power of people, giving them in essence superpowers in using technology in new ways. >> I think you nailed it, that's super important. That point about the force multiplier when you put things in combination, whether it's group constructs, two pizza teams flexing, leveraging the talent. I mean, this is a new configuration. You guys are nailing it there. I love that piece. And I think groups and collectives you're going to start to see a lot more of that. But again, with talent comes trust when you start to have these ephemeral and or forming groups that are forming production systems or experiences. So trust comes up a lot. You guys see the metaverse as an important part there. Obviously metaverse is a pretext to the virtual world where we're going to start to create these group experiences and create new force multipliers. How does the metaverse play into this new radically human world, and what does it mean for the future of business? >> Yeah, I think the metaverse is radically misunderstood to use the word title when we're not with the title of our book. And we believe that the metaverse does have real big potential, massive potential, and I think it'll transform the way we think about digital more so than we've changed our thinking on digital in the last 10 years. So that's the potential of the metaverse. And it's not just about the consumer things, it's about metaverse and the enterprise. It's about the new products you create using distributed ledger and other technologies. And it's about the industrial metaverse of how you bring digital twins and augmented workers online in different ways. And so I believe that it has tremendous potential. We write about that in the book and it really takes radically human to another level. And one way to think about this is cloud is really becoming the operating system of business. You have to build your enterprise around the cloud as you go forward. That's going to shape the way you do business. AI becomes the insight and intelligence in how you work, infused with the human talent and such as we said. And the metaverse then reshapes the experience layers. So you have cloud, AI building on top of this metaverse providing a new way to generate experiences for employees, citizens, consumers, et cetera. And that's the way it unfolds, but trust becomes more important because just as AI raises new questions around trust, every technology raises new questions around trust. The metaverse raises a whole new set of questions. And in the book we outline a five-part framework or five essential parts of the framework around how you establish trust as you implement these new technologies. >> Yeah, we're seeing that about three quarters of companies are really trying to figure out trust, certainly with issues like the metaverse more broadly across their IT so they're focusing on security and privacy, transparency, especially when you're talking about AI systems, explainability. One of the more surprising things that we learned when doing the book, when we were doing the research is that we saw that increasingly consumers and employees want systems to be informed by a sense of humanity. So one company that we've been looking at that's been developing autonomous vehicles, self-driving car systems, they're actually training the system by emulating human behavior. So turning the cameras on test drivers to see how they learn and then training the AI using that sense of humanity 'cause other drivers on the road find human behavior more trustworthy. And similarly, that system is also using explainable AI to actually show which human behaviors that AI system is learning from. Some really interesting innovations happening in that trust space. John. >> Jim, I think you bring up a great point that's worth talking more about. Because you're talking about how human behaviors are being put into the design of new things like machines or software. And we're living in this era of cloud scale, which is compressing this transformation timeline and we've been calling it supercloud, some call it multi-cloud, but it's really a new thing happening where you're seeing an acceleration of the transformation. We think it's going to happen much faster in the next five to 10 years. And so that means these new things are emerging, not just, hey, I'm running a virtual event with chat and some video. It's group behavior, it's groups convening, talking, getting things done, debating, doing things differently. And so this idea of humans informing design decisions or software with low-code/no-code, this completely changes strategy. I mean this is a big point of the book. >> Yeah, no, I go back to one of the, the E in the IDEAS framework is expertise. And we talk about from machine learning to machine teaching, which is exactly that. Machine learning is maybe humans tag data and stuff and feed into algorithms. Machine teaching is how do you really leverage the human expertise in the systems that you develop with AI. One of the examples we give is one of the large consumer platforms that uses human designers to give the system a sense of aesthetic design and product design. A very difficult thing, especially with changing fashion interest and everything else to encode in algorithms and to even have AI do, even if you have fast amounts of data, but with the right human insight and human expertise injected in, you can create amazing new capability that responds to consumers in a much more powerful way. And that's an example of what you just said, John, bringing the two together. >> Well, yeah, it's interesting. I want to to get your thoughts as we get wrap up here soon. How do you apply all these human-centric technologies to the future of business? As you guys talk to leaders in the enterprise of their businesses, as they look at the horizon, they see the the future. They got to start thinking about things like generative AI and how they can bring some of these technologies to the table. We were talking about if open source continues to grow the way it's going, there might not be any code to write, it just writes itself at some point. So you got supply chain issues with security. These are new things you guys are hitting in the book where these are new dynamics, new power dynamics in how things get built. So if you're a business owner and leader, this is a new opportunity, a challenge certainly that is an opportunity. How do you apply all this stuff for business? >> I'll go first then Jim can add in. But the first thing I think starts with recognizing the role that technology does play and investing accordingly in it. So the right technology talent, rethinking the way you do strategy as we talked about earlier and recognizing how you need to build a foundation. That's why the fact you're at re:Invent is so important because companies are, again, rebuilding that operating system of their business in the cloud. And you need that as the foundation to go forward, to do, to build the other types of capabilities. And then I think it's developing those talent systems as well. Do you have the right talent brand? Are you attracting the right employees? Are you developing them in the right way so that you have the right future talent going forward? And then you marry the two together and that's what gives you the radically human formula. >> Yeah. When we were developing that first part of the book, Paul and I did quite a bit of research, and Paul kind of alluded to that research earlier, but one of the things that we saw in really the first year of the pandemic was that there was a lot of first time adoption of intelligent technologies like artificial intelligence. One statistic is that 70% of companies that had never tried AI before went ahead and tried it during the pandemic. So first time adoption rates were way up, but the thing is companies were not trying to do it themselves and to necessarily build an AI department. They were partnering and it's really important to find a partner, often a cloud partner as a way to get started, start small scale, and then scale up doing experiments. So that was one of the key insights that we had. You don't need to do it all yourself. >> If you see the transformation of just AWS, we're here at re:Invent, since we've been covering the events since 2013, every year there's been a thematic thing. It was startups, enterprise, now builders, and now change your company. This year it's continuing that same thing where you're starting to see new things happen. It's not just lift and shift and running a SaaS application on the cloud. People are are changing and refactoring and replatforming categorical applications in for this new era. And we're calling it supercloud, superservices, superapps, 'cause they're different. They're doing different things in leveraging large scale CapEx, large scale talent pools, or talent pools in certain ways. So this is real, something's happening here and we've been talking about it a lot lately. So I have to ask you guys, how does a company know if they're radical enough? Like what is radical? How can I put a pin in that? It's like take a temperature or we like radical enough, what some tell signs can you guys share for companies that are really leaning into this new next inflection point because there are new things happening? How do you know if you're you're pushing the envelope radical enough to take advantage? >> Yeah, I think one. >> You can go ahead, Paul. >> Yeah, I was going to say one of the tests is the impact on your business. You have to start by looking at all this in the context of your business, and is it really taking you to another level? You said it perfectly, John, it used to be we used to talk about migration and workloads to the cloud and things like that. That's still something you need to do. But now our focus with a lot of our customers is on how do you innovate and grow your business in the cloud? What's the platform that you're using for your new digital products and services you're offering to your consumers. I mean it is the business and I think that's the test whether you're being radical enough is on the one hand, are you really using the technology to drive differentiation and real growth and change in your business? And are you equipping people, your human talent with the capabilities they need to perform in very different ways? And those are the two tests that I would give. >> Totally agree. >> Interesting enough, we love this topic and you guys, again, the book is spot on. Very packs of big punch on content, but very relevant in today. And I think one of the things we're looking at is that people who do things differently take advantage of some of these radical approaches like IDEAS, your framework, and understand where they are and what's available and what's coming around the corner. They stand out in the pack or create new business opportunities because the CapEx is taken care of. Now you got your cloud, I mean you're building clouds on top of clouds or something's happening. I think you see it, look at like companies like Snowflake, it's a data warehouse on the cloud. What does that mean? They didn't build a cloud, they used Amazon. So you're starting to see these new things pop up. >> Yeah and that's a good example. And it sounds like a simple thing, data warehouse in the cloud, but the new business capability that a technology like that allows and the portability of being able to connect and use data across cloud environments and such is tremendously powerful. And I think that's why, you talk about companies doing things differently, that's why it's great, again, that you're at re:Invent. If you look at the index of our book, you'll see AWS mentioned a number of times 'cause we tell a lot of customer company stories about how they're leveraging AWS capabilities in cloud and AI to really do transformative things in their business. And I think that's what it's all about. >> Yeah, and one of the things too in the book, it's great 'cause it has the systems thinking, it's got really relevant information, but you guys have seen the movie before. I think one of the wild cards in this era is global. We're global economy, you've got regions, you've got data sovereignty, you're seeing all kinds of new things emerging. Thoughts on the global impact 'cause you take your book and you overlay that to business, like you got to operate all over the world as a human issue, as a geography issue. What's your guys take on the global impact? >> Well that's why you got to think about cloud as one technology. We talked about in the book and cloud is, I think a lot of people think, well, clouds, it's almost old news. Maybe it's been around for a while. As you said, you've been going to re:Invent since 2013. Cloud is really just getting started. And it's 'cause the reasons you said, when you look at what you need to do around sovereign cloud capability if you're in Europe. For many companies it's about multi-cloud capabilities that you need to deploy differently in different regions. And they need to, in some cases for good reason, they have hybrid cloud capability that they match on their own. And then there's the edge capability which comes into play in different ways. And so the architecture becomes very complex and we talk the A in IDEAS is architecture. We talk about all this and how you need to move from the old conception of architecture, which was more static and just modularity was the key thing you thought about. It's more the idea of a living system, of living architecture that's expanding and is what's much more dynamic. And I think that's the way you need to think about it as you manage in a global environment today with the pace of technology advancement. >> Yeah, the innovation is here. It's not stopping. How do you create some defacto standards while not stunting the innovation is going to be a big discussion as these new flipped assumptions start to generate more activity. It's going to be very interesting to watch. Gentlemen, thank you so much for spending the time here on theCUBE as we break down your new book, "Radically Human" and how business leads can flip the script on their business assumptions and put ideas and access to work. This is a big part of the cloud show at re:Invent. Thanks so much for sharing and congratulations on a great book. >> Thanks, John. And just one point I'd add is that one of the things we do talk about in talent is the need to reskill talent. People who need to be relevant in the rapidly changing future. And that's one area where I think we all as institutions, as communities and individuals need to do more is to help those that need to reskilling. And the final point I mentioned is that we've mentioned at the end of the book that all proceeds from the book are being donated to NGOs and nonprofits that are focused on reskilling those who need a skill refresh in light of the radically human change in technology that's happening. >> Great. Buy the book. Proceeds go to a great cause and it's a very relevant book. If you're in the middle of this big wave that's coming. this is a great book. There's a guidepost and also give you some great ideas to reset, reflip the scripts, refactor, replatform. Guys, thanks for coming on and sharing. I really appreciate it. Again, congratulations. >> Thanks, John. >> Thanks, John. Great discussion. >> You're watching theCUBE here covering the executive forum here at AWS re:Invent '22. I'm John Furrier, you're host with Accenture. Thanks for watching. (gentle music)
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This is the Executive It's great to be with you And so I love the book, talks about the roadmap to that. flipping the script, And that's really the focus that the human's key, is that the more human in fact, the human is in the ascended. the business, so to speak. the way you need to think about And just aside on the Tesla the amount of focus we And a lot of the jobs that You guys see the metaverse And in the book we outline One of the more surprising in the next five to 10 years. One of the examples we give in the enterprise of their businesses, rethinking the way you do strategy but one of the things that we So I have to ask you guys, is the impact on your business. because the CapEx is taken care of. and the portability of Yeah, and one of the And it's 'cause the reasons you said, This is a big part of the is that one of the things Buy the book. covering the executive forum
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Chris Wegmann & Merim Becirovic | AWS Executive Summit 2022
(techno music) >> Welcome back to the Cube. I'm John Walls. We continue our coverage here at AWS reInvent 22. We're in the Venetian in Las Vegas, wrapping up our day one coverage here in the executive summit sponsored by Accenture and with me to talk about Accenture, couple of guys who are no strangers at all to the Cube. In fact, I think we got to give you like alumni passes or something. (Chris and Merim laugh) We got to come up with something like that. Um, Merim Becirovic is with us. Uh, Merim's a global IT at Accenture. And Chris Wegmann, who's already been on once today, as a matter of fact. >> Yeah (indistinct) >> So we're going to start charging you rent, Chris. (Chris and Merim laugh) Uh, global technology and practice lead with the AWS business group at Accenture. Good, glad to have you both back and, um, you're welcome to the Cube any time, by the way. >> So don't be scared. >> Thanks, great to be back. Let's talk about >> Sure. >> What, what you folks have been up to. So, um, you are, as we were talking earlier, you are where a lot of your clients would like to be. You, you've begun this transformation. You have fully migrated to the cloud, you've learned, right? >> Yes. You've hit all the bumps along the way. So talk about your journey. >> Yeah. >> And then how you think that experience could be translated to what your clients are going through. >> Yeah, so I'll, I'll hit it from the lessons learned and working together with our business group partners. We, so Accenture's journey to the cloud is complete. We have finished that journey, and as part of that journey, we have migrated all of the services it takes to run Accenture to the public cloud. So now that's done. That was complete. But now we are this, now it is this cloud continuum living in the cloud. And the, now, the thing we talk about, and I'd love to have Chris, you know, shine a little bit more, is we have built our digital core in a cloud, now. We're no longer dependent on data centers. And that has given us tremendous flexibility around how to enable the business as it has grown significantly since we started this journey a few years back. >> Yeah, you know, Merim, like you talk about, right? We talk about our client, we've talked to our clients about building this digital core, right? And, and we've been through that as Accenture, as a global IT organization, you know. Supporting well over 720,000 people. >> Yeah. >> Right? That growth over the last year has been tremendous. Right? So, without the strong digital core built on cloud, right? We couldn't do that, right? We couldn't add that number of people, right? We couldn't make the, the, the changes were needed during, uh, Covid to bring people home, working from home. You know, whether it being uh, the way we changed our business model or things like that, um, you know that was all enabled by cloud. It couldn't be done without that. And, you know, also the variable in our business, right? Is very tied now to our cloud consumption, right? So, you know, it goes up, it goes down, right? We've, you know, Merim and his team have completely built their, their their core with those, with those concepts uh, in mind. >> Yeah, I mean, you're talking about, you know, 700, 800,000 employees and how many countries did you say? >> 130 different countries, at least. >> 130 different countries. So, I mean, no small task, obviously, uh, to get everything done. When did you start? >> So our cloud journey, effectively, we started in 2015. And we were done, kind of right before Covid around 2019. We took a pause for a couple of different things but we could have probably done that faster. And if we were, if I was to do it again now, today we could probably do it in two to three years, flat. With everything that we've learned so far. >> So what's the application, then, to your clients' experiences that, I mean, been there, done that, right? >> You can, exactly right. I mean, you know, we always say that we want to be our best credential, right? And Merim and his team are our best credential in this space. Um, so, you know, a lot of our customers, you know, struggle making that commitment. A lot of 'em are past that struggle, now. They're committed, they're going. Uh, but I talk to a lot of my customers about, you know, do I, do I migrate? Do I modernize? You know, how do I do it? And, and it was interesting with Accenture, right? It, it started out very much as a migration program. >> Yeah. >> Right, so, we made the decision, Merim and his team made the decision to do a migration and now a modernization, right? And, and that's proven very effective. Uh, it, it's, it's, it's proven, you know, uh, we got that core in place, right? We were able to build off of that versus, you know, spending- it would've taken a lot more time just to start with a modernization approach. >> Yeah. Where, where do you draw the line between the two, between migration and modernization, then? Because just by migrating alone, you are modernizing, you know, some of your operations, so you're getting up to speed. But, but how do you draw that line and then how do you get people to jump over it? >> So I, I'll hit it from how our lessons learned. So, when we first started and we did the migrations it was literally lift and shift. And it was a lot of argument about lift and shift isn't worth it. But we found out it was, because it wasn't just about moving the work loads and keeping it like a data center. It was moving the work loads and then optimizing because everything in the cloud was significantly faster. So then I didn't have to consume all the services the same way I did in the data center. I can actually consume them smaller. But also as time went by, what we learned is, hey, now these services are working here. Which ones are actually costing us more money to run? And not that they were costing more than the data center, but it's relative to the cloud which ones cost more in the cloud? Then we looked at that and said, okay how do we want to modernize those? And then we modernized as container capabilities started the evolving, got much more mature. We shifted a lot of workloads to containers. But otherwise, the other principle we push very hard is big consumption of Lambda and uh, serverless capabilities on Amazon. So we have refactored multiple applications to give us that capability to say we no longer need the IAS capabilities, those servers, those VM's, and we run on, on serverless capability. And what's great about that is, now I don't have a server to patch, to scan, to remediate, to upgrade. I've moved away from that capability. And the teams can focus more on building the business capabilities the business wants. Um, like we did to our pricing team. I don't know if you knew this one, Chris, but all the pricing capability has been redone to be cloud native on, on AWS. >> And how, how do you deal with the folks that, that still kind of have a foot in the on-prem world that, um, that they're just not ready to give it up? You know, they, they like the control, they like the self-management. >> Yeah. >> They, they want to be in charge. >> Well, yeah. I mean, a lot of, a lot of our customers, it's, there's a reason why they need on-prem still. And there is on-prem, let's be clear. I mean, it, it is a hybrid cloud world for most of our, our customers, right? Whether they got manufacturing, whether they've got, you know, datas that are, you know, SCADA systems or, or operational IT systems that have to be close to their, their execution or to their, to their factories and things like that. So that's going to happen. I think everyone, and I shouldn't say everyone, but you know, most of our customers know they need to get there, right? And are somewhere on their journey, right? Very few have not started at all. Uh, but it's about acceleration, right? And I, I do think, um, we're going to see more and more acceleration. We saw it with Covid, right? >> Mm-hm. >> And then, you know, obviously I think we're going to see it again, right? With you know, kind of what's going on with the economy and stuff like that. It, it's, you know, it's a great way to push that change through. >> Right. >> And I, I'm really excited, to be honest what I'm really excited about, if I look at what Merim and his team's doing, is they're just leveraging that digital core and truly taking the investments that the hyper scaler's are making, the AWS's are making, and leveraging 'em. So we're not making that investment, right? We're a capital white company, right? So we don't like making good capital investments, right? And we're taking advantage of the capital investments. And we couldn't do that of the, of the hyper scales. We couldn't do that without being there. Right? >> Right. >> We just couldn't do it. >> And maybe, John, if I can build on that. >> Sure. >> Like, one of, one of the things for me when I think about the cloud is, I'm not alone. You know, because when you're in a data center when you're running a data center, you're kind of on an island. And on that island, if you've got security issues, if you got stuff you're dealing with with attackers, you know, you're, you're kind of on an island and you're alone. Whereas in this world, I am where all the investment is, where all the security capabilities are being built, and I have partners that are there with us that help us when these situations come up. So for me, I'm very uh, grateful that we pushed very hard in the beginning to get here. But I wouldn't have it any other way. For us. >> So like, do you- do you want to live outside the fort? >> Yeah. >> No >> No. (laughs) >> You're exactly right. >> Yeah. >> I don't want to live outside the fort. >> Right. >> There are a lot of bad guys out there right now. >> Yeah. >> All right, so, the journey is over. >> Right. You can unpack your bags and get comfortable, right? (Merim laughs) >> No. >> Hardly. >> No. >> So, so what is the, what has this done in terms of setting you up for your future plans? And, and >> So I'll talk about a couple different things and maybe you can build on it, Chris, from what you're seeing, like for us, we, we got very good at, I hate the concept of just FinOps but it's the way of being in the cloud. It's different than running a data center and uh, the way we think about building services, consuming services, allocating services, provisioning services. There's just so much more flexibility there that we can completely fine tune the service that we want to provide. That helps us from when we think about 360 degree value, as we talk to our clients, for ourselves to say it also helps just simply on the sustainability agenda, right, because now, as Amazon builds their capabilities to be more sustainable, those SKUs are available to us, we can naturally consume those SKUs much more effectively. Um, and then uh, the next thing to me, what I'm, what I'm especially excited about is all the stuff we're doing around network. So, you know, pre-Covid, 95% of our traffic was just straight to the internet because we had already finished the journey. So now what do you need a wide area network for anymore? >> Right. >> If you're not routing traffic between data centers what do you need it for? So, we have been working with, with AWS especially, like building these cloud land type capabilities and consuming it. So think of consuming, uh, network same way as you do the cloud. So I'm excited about that one. >> Yeah. That, that, I'm super excited about that, right? Because you know, network's at the core of everything you do, right? And there's always a lot of concern, hey, when I go to the cloud, my network costs are going to go up, right? Um, but I think we've proven, right? >> Yes. >> Being able, that those costs can come down, right? And we can have a better experience, uh, deal with the ebbs and flows of our business whether it's people working from home, people working in the office, you know, or at the client sites. We, we've, you know, we've got that cloud-based backbone that we support. You know, I, I mean Merim, I agree a hundred percent. I think you and your team have done a great job of cost management, cloud cost management, optimization, right? You didn't stop, right? >> No. >> You didn't lo- you didn't just live after the migration on VMs. Right? You know, you went serverless, you went, you know, containerization. >> Yep. >> Uh, and that's kept our cloud bill going down. >> Yes. >> Right. Versus going up, right? >> Yes. >> And I hear from a lot of customers concerned about cloud costs and that type of stuff, but you've proven right, >> Yes. >> That you can keep it flat, if not going down because you're using those last minutes. Sustainability is the other thing that I truly am, I, I love, right? Is, you know, we're all trying to become a more sustainable, sustainable organization. We're trying to help our clients become more sustainable organizations. And you know, you know, your ability to take on Gravitant processors, right? Which use less power. >> Yes. >> Right? Overnight, right? >> Yes. >> Or, hey, I'm using a, you know a, uh, serverless lambda, whatever, right? And I'm not running that server. >> Right. >> You know, so, you're able to show that sustainability gains, um, you know, very quickly. Which you could not do, right? You know, in just doing cloud basic migrations. >> Well, I tell you what I think is impressive, is that you put your money where your mouth is, right? >> Yep. (laughs) >> Is that, that it's, and, and if I'm going to be a client, not to, you know, give you guys a pat on the back, you don't need it. You're doing great without me. But I'd say you've been there, you've done that. And, and so I can learn from you. You understand my pain. >> Yes. >> You understand my reservations, my challenges and uh, you could be my, my headlights here. (Merim laughs) >> So, I think great approach. Kudos to you and certainly wish you both success and to your fourth and fifth appearances on the Cube. (Merim and Chris laugh) Um, we have slots tomorrow if you're arou- available. So, maybe we'll fill it up >> There you go. >> and bring it back again. >> Awesome. >> Guys, thanks for being here. >> Sure. >> It was very nice. >> Appreciate the time. >> All right. >> That's great. >> I've been talking, uh, about Accenture. This is the, of course, executive summit being sponsored by Accenture here at AWS reInvent 22. I'm John Walls. You're watching the Cube, the leader in tech coverage.
SUMMARY :
In fact, I think we got to give you Good, glad to have you both back Thanks, great to be back. So, um, you are, as we You've hit all the bumps along the way. And then how you think that experience and I'd love to have Chris, you know, Yeah, you know, Merim, So, you know, it goes When did you start? And if we were, if I I mean, you know, we always say Uh, it, it's, it's, it's proven, you know, and then how do you get I don't know if you knew this one, Chris, And how, how do you deal with the folks datas that are, you know, SCADA systems And then, you know, obviously I think And I, I'm really excited, to be honest And maybe, John, if you know, you're, you're live outside the fort. There are a lot of bad guys out there and get comfortable, right? and maybe you can build on it, Chris, what do you need it for? Because you know, network's at the core I think you and your team You know, you went serverless, Uh, and that's kept Right. And you know, you know, your ability Or, hey, I'm using a, you know um, you know, very quickly. not to, you know, give you and uh, you could be Kudos to you and certainly the leader in tech coverage.
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Wes Barnes, Pfizer and Jon Harrison, Accenture | AWS Executive Summit 2022
(mellow music) >> Oh, welcome back to theCUBE. We continue our coverage here at AWS re:Invent 22. We're in the Venetian in Las Vegas, and this place is hopping. I'm tell you what. It is a nearly standing room only that exhibit floor is jam packed, and it's been great to be along for the ride here on Accenture's sponsorship at the Executive summit as well. We'll talk about Pfizer today, you know them quite well, one of the largest biopharmaceutical companies in the world but their tech footprint is impressive, to say the least. And to talk more about that is Wes Barnes, senior Director of Pfizer's Digital Hosting Solutions. Wes, good to see you, sir. >> Good to meet you, John. >> And Jon Harrison, the North American lead for Infrastructure and engineering at Accenture. Jon, good to see you as well. >> Good to see you as well. >> Thanks for joining us. >> Happy to be here. >> Alright, so let's jump in. Pfizer, we make drugs, right? >> Pharmaceuticals. >> Yes. >> Among the most preeminent, as I said biopharms in the world. But your tech capabilities and your tech focus as we were talking about earlier, has changed dramatically in the 18 years that you've been there. >> Yep. >> Now, talk about that evolution a little bit to where you were and what you have to be now. >> Yeah, yeah. It's interesting. When I started at Pfizer, IT was an enabling function. It was akin to HR or our facilities function. And over the past couple years, it's dramatically changed. Where Digital now is really at the center of everything we do across Pfizer. You know it really is a core strategic element of our business. >> Yeah. And those elements that you were talking about, just in terms of whether it's research, whether it's your patients, I don't want to go through the laundry lists the litany of things, but the touch points with data and what you need it to do for you in terms of you know, computations, what you, the list is long. It's pretty impressive. >> Yeah, yeah, for sure yeah. >> I mean, shed some light on that for us. >> We cannot release a medicine without the use of technology. And if you think about research now, a huge component of our research is computational chemistry. Manufacturing medicines now is a practice in using data and analytics and predictive machine learning and analytics capabilities to help us determine how to best you know, apply the capabilities to deliver the outcomes that we need. The way in which we connect with patients and payers now is wholly digital. So it's an entirely different way of operating than it was 10 years ago. >> And the past three years, pretty remarkable in many respects, to say the least, I would think, I mean, John, you've seen what Pfizer's been up to, talk about maybe just this, the recent past and all that has happened and what they've been able to do. >> Yeah, I mean, what is so exciting to me about working with a company like Pfizer and working in life sciences more broadly is the impact that they make on patients around the world world, right? I mean, think about those past three years and Pfizer stepped up and met the moment for all of us, right? And as we talk a little bit about the role that we played together with Pfizer with AWS in their journey to the cloud, it's so motivating for myself personally it's so motivating for every single person on the team that we ask to spend nights and weekends migrating things to the cloud, creating new capabilities, knowing that at the end of the day, the work that they're doing is making the world a healthier place. >> Yeah, we talk so much about modernization now, right? And it's, but it kind of means different things to different people depending on where you're coming into the game, right? If you've been smart and been planning all along then this is not a dramatic shift in some cases though, for others it is. Right? >> Yeah. >> Traumatic in some cases for some people. >> For sure. >> For Pfizer, I mean talk about how do you see modernization and what does it mean to your operations? >> Following our success of the COVID program of 2021, I mean it became evident to us that, you know we needed to maintain a new pace of innovation and in fact try to find ways to accelerate that pace of innovation. And as I said earlier everything we do at Pfizer is centered around digital. But despite that, and despite 10 years of consolidating infrastructure and moving towards modern technology, last year, only 10% of Pfizer's infrastructure was in the native public cloud. So we had a problem to solve. In fact, I remember, you know, we had to build up our clinical systems to support the volume of work that we were doing for COVID-19 vaccine. We were rolling things into our data center to build up the capacity to achieve what we needed to achieve. Moving to the public cloud became more imperative to try to achieve the scale and the modern capabilities that we need. >> And so where did you come into play here with this? Because obviously as a partner you're right alongside for the ride but you saw these inherent challenges that they had and how did Accenture answer the bell there? >> Well, so look, I mean we saw Pfizer react to the pandemic. We saw them seize the moment. We talked together about how IT needed to move quicker and quicker towards the cloud to unlock capabilities that would serve Pfizer's business well into the future. And together we laid out some pretty ambitious goals. I mean, really moving at a velocity in a pace that I think for both Accenture and AWS surpassed the velocity and pace that we've done anywhere else. >> Yeah, right, yeah. >> So we've set out on an ambitious plan together. You know, I was kind of reflecting about some of the successes, what went well what didn't in preparation for re:Invent. And you know, many of the folks that'll listen to this will remember the old days of moving data centers when you'd have a war room you'd have a conference bridge open the whole time. Someone would be running around the tile floor in the data center, do a task, call back up to the bridge and say, what do I do next, right? Then when I think about what we did together at Pfizer in moving towards the public cloud, I mean, we had weekends most weekends where we were running a wave with 10,000 plus discrete activities. >> Yeah. >> Wow. >> Right, so that old model doesn't scale. >> Right. >> And we really anchored, >> You have a very crowded data center with a lot of people running into each other. >> You'd have a whole lot of people running around. But we really anchored to an Accenture capability that we call myNav Migrate. I know you guys have talked about it here before so I won't go into that. But what we found is that we approached this problem of velocity not as a technical problem to solve for but as a loading and optimization problem of resources. Right, thought about it just a little bit different way and made sure that we could programmatically control command and control of the program in a way that people didn't have to wait around all Saturday afternoon to be notified that their next activity was ready, right? They could go out, they could live their day and they could get a notification from the platform that says, hey it's about your turn. Right, they could claim it they could do it, they could finish it, and that was really important to us. I mean, to be able to control the program in that type of way at scale. >> Yeah, by the way, the reason we went as fast it was a deliberate choice and you'll talk to plenty of folks who have a five year journey to the public cloud. And the reason we wanted to move as fast as we did and Jon talked about some of it, we wanted to get the capabilities to the business as quickly as we could. The pace of innovation was such that we had to offer native cloud capabilities we had to offer quickly. We also knew that by compressing the time it took to get to the cloud, we could focus the organization get it done as economically as possible but then lift all boats with the tide and move the organization forward in terms of the skills and the capabilities that we need to deliver modern outcomes. >> So, you know, we talk about impacts internally, obviously with your processes, but beyond that, not just scientists not just chemists, but to your, I mean, millions of customers, right? We're talking, you know, globally here. What kind of impacts can you see that directly relate to them, and benefits that they're receiving by this massive technical move you've made? >> Pfizer's mission is breakthroughs that change patient lives. I mean, the work that we do the work that everybody does within Pfizer is about delivering therapies that, you know provide health outcomes that make people live longer, live healthier lives. For us, modernizing our infrastructure means that we can enable the work of scientists to find novel therapies faster or find things that perhaps couldn't have been found any other way without some of the modern technologies that we're bringing to bear. Saving money within infrastructure and IT is treasure that we can pour back into the important areas of research or development or manufacturing. We're also able to, you know, offer an ecosystem and a capability in which we connect with patients differently through digital mechanisms. And modern cloud enables that, you know, using modern digital experiences and customer experience, and patient experience platforms means that we can use wearable devices and mobile technologies and connect to people in different ways and offer solutions that just didn't exist a couple years ago. >> And so, I mean, you're talking about IoT stuff too, right? >> 100%. >> It's way out on the edge and personal mobile, in a mobile environment. And so challenges in terms of you know, data governance and compliance and security, all these things, right? They come into play because it's personal health information. So how, as you've taken them, you know to this public cloud environment how much of a factor are those considerations? Because, you know, this is not just a product a service, it's a live human being. >> Yeah. I mean, you start with that, you think about it through the process and you think about it afterwards, right, I mean, that has to be a core factor in every stage of the program, and it was. >> So in, in terms of where you are now, then, okay, it's not over. >> It's never over. >> I mean, you know, as good as you are today and as fast as you are and as accurate and as efficient. >> Yeah. >> Got to get better, right? You got to stay competitive. >> Yeah. >> So where do you find that? Because, you know, with powers being what they are with speed and what it is how much more is there to squeeze out of this rock? >> There's a lot more to squeeze out of the rock. If you think about what we've done over the past year it's about creating sort of a new minimum viable product for infrastructure. So we've sort of raised the bar and created an environment upon which we can continue to innovate that innovation is going to continue sort of forever at this point. You know, the next focus for us is how to identify the business processes that deliver the greatest value ultimately to our patients. And use the modern platform that we've just built to improve those processes to deliver things faster, deliver new capabilities. Pfizer is making a huge investment in digital medicines therapies that are delivered through smart devices through wearables using, as I said technology that didn't exist before. That wouldn't be possible without the platform that we've built. So over the past year, we've come a long way but I think that we've effectively set the table for all of the things that are yet to come. >> So, Jon, how do you then, as you've learned a lot about life science or, and certainly Pfizer with what they're up to, how do you then apply, you know, what you know about their world to what you know about the tech world and make it actionable for growth to make it actionable for, for future expansion? >> Yeah, I mean, we start by doing it together, right? I think that's a really important part. Accenture brings a wealth of knowledge, both industry experience and expertise, technology experience and expertise. We work together with our clients like Pfizer with our partners like AWS to bring the best across that power of three to meet clients where they're at to understand where they want to go, and then create a bespoke approach that meets their business needs. And that's effectively what we're doing now, right? I mean, if you think about the phase that we've just went through, I mean, a couple of fast facts here no pun intended, right? 7,800 server instances across 11 operating system versions 7,500 databases across 20 database versions, right? 4,700 applications, 350,000 migration activities managed across an eight month period. >> In eight months. >> Yeah. But that's not the goal, right? The goal is now to take, to Wes' point that platform that's been developed and leverage that to the benefit of the business ultimately to the benefit of the patient. >> You know, why them, we have we've talked a lot about Pfizer, but why Accenture? What, what, what's, 'cause it's got to be a two way street, right? >> We've had a long partnership with Accenture. Accenture supports a huge component of our application environment at Pfizer and has for quite a long time. Look, we didn't make it easy on them. We put them up against a large number of world class SIs. But look, Accenture brought, you know, sort of what I think of as the trifecta here. They brought the technical capabilities and knowledge of the AWS environment. They brought the ability to really understand the business outcomes that we were trying to achieve and a program leadership capability that, you know I think is world class. And Jon talked about myNav, you know, we recognized that doing what we were trying to do in the time that we were doing it required new machinery, new analytics and data capabilities that just didn't exist. Automation didn't exist. Some people experience capabilities that would allow us to interface with application owners and users at a velocity and a pace and a scale that just hasn't been seen before at Pfizer. Accenture brought all three of those things together and I think they did a great job helping us get to where we need to be. >> When you hear Jon rattle through the stats like he just did, right? We talk about all, I mean, not that I'm going to ask you to pat yourself on the back but do you ever, >> He should. >> Does it blow your mind a little bit, honestly that you're talking about that magnitude of activity in that compressed period of time? That's extraordinary. >> It's 75% of our global IT footprint now in the public cloud, which is fantastic. I mean, look, I think the timing was right. I think Pfizer is in a little bit of a unique position coming off of COVID. We are incredibly motivated to keep the pace up, I mean across all lines of business. So, you know what we found is a really willing leadership team, executive leadership team, digital leadership team to endorse a change of this magnitude. >> Well, it's a great success story. It's beyond impressive. So congratulations to both you on that front and certainly you wish you continued success down the road as well. >> Thank you. >> Thank you gentlemen. >> Thank you. >> Good job. >> Pfizer, and boy, you talk about a job well done. Just spectacular. All right, you are watching our coverage here on theCUBE, we're at the AWS re:Invent 22 show. This is Executive Summit sponsored by Accenture and you're watching theCUBE the leader in high tech coverage.
SUMMARY :
and it's been great to be Jon, good to see you as well. Pfizer, we make drugs, right? has changed dramatically in the 18 years to where you were and And over the past couple years, and what you need it to how to best you know, And the past three years, on the team that we ask to to different people depending on Traumatic in some and the modern capabilities that we need. and pace that we've done anywhere else. And you know, many of with a lot of people and made sure that we could get the capabilities to the that directly relate to them, I mean, the work that we do of you know, data governance in every stage of the program, and it was. So in, in terms of where you are now, and as fast as you are and You got to stay competitive. that deliver the greatest value across that power of three to and leverage that to the of the AWS environment. of activity in that in the public cloud, which is fantastic. and certainly you wish Pfizer, and boy, you
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Charles Carter, State of North Carolina | AWS Executive Summit 2022
(soft music) >> We're in Las Vegas at The Venetian for our continued coverage here of re:Invent '22, AWS's big show going on. Great success off to a wonderful start. We're in the Executive Summit sponsored by Accenture. And we're going to talk about public health and the cloud, how those have come together in the great state of North Carolina. Charles Carter is going to help us do that. He's assistant secretary for technology services with the state of North Carolina's Department of Health and Human Services. Charles, good to see you. Thanks for joining us here on "theCUBE". >> Thank you very much for having me. >> Yeah, thanks for making the time. So first off, let's talk about what you do on the homefront before what you're doing here and where you're going. But in terms of kind of what your plan has been, what your journey has been from a cloud perspective and how you've implemented that and where you are right now in your journey. >> Sure, so we started. When I got there, we didn't have a cloud footprint at all. There was a- >> Host: Which was how long ago? >> I got there in 2016, so about six years. >> Host: Six, seven years, yeah. >> Yeah, five, six years. So anyways, we started off with our first module within our Medicaid expansion. And that was the first time that we went into the cloud. We worked with AWS to do our encounter processing system. And it was an incredible success. I think the ease of use was really kind of something that people weren't quite ready for. But it was really exciting to see that. And the scalability, to be able to turn that on and cover the entirety of North Carolina was awesome. So once we saw that and get a little taste of it, then we really wanted to start implementing it throughout DHHS. And we marshaled in a cloud-only cloud-first strategy where you had to actually get an exemption not to go to the cloud. And that was a first for our state. So that was really kind of the what launched us. But then COVID hit. And once COVID came in, that took us to a new level. COVID forced us to build technologies that enabled a better treatment, a better care, a better response from our team. And so we were able to stand up platforms in 48 hours. We were able to stand up COVID vaccine management systems in six weeks. And none of that would've been possible without the cloud. >> So forced your hand in a way because all of a sudden you've got this extraordinarily remote workforce, right, and people trying to- And you're doing different tasks that were totally unexpected, right, prior to that. What kind of a shock to the system was that from I get from an IT perspective? >> Yeah, so from a state government perspective, for example, you never hear you have all the money you need and you have to do it quickly. It just doesn't work like that. But this was a rare moment in time where you had this critical need. The entire country and our state population was kind of on edge. How do we move through this? How do we factor our lives into this new integration? What is this virus? Is it spreading in my county, in my city, my zip code? Where is it? And that kind of desperation really kind of focused everybody in on build me technologies that can get me the data that I need to make good healthcare decisions, good clinical decisions. And so that was our challenge. Cloud enabled it because it can scale so quickly. We can set up things, we can exchange data. We can move data around a lot easier. And the security is better from our perspective. So that COVID experience really kind of pushed us, you know, if you will, out the door. And we're never going back because it's just too good. >> Yeah, was that the aha moment then in a way because you had to do so much so fast and before capabilities that maybe you didn't have or maybe hadn't tapped? >> Yeah, yeah. >> I mean what was the accelerant there? Was COVID that big, or was it somebody who had to make a decision to say, this is where we're going with this, somebody in your shoes or somebody with whom you work? >> Yeah, no, I mean cloud at the end of the day, we knew that in order to do what we needed to do we couldn't do it on-prem. It wasn't an option. So if we wanted to build these capabilities, if we wanted to bring in technologies that really brought data to our key, our governor, our secretary, to make good decisions on behalf of our residents in North Carolina, then we were going to have to build things quickly. And the only way you can do that is in the cloud. So it was when they came back and said, "We need these things," there's only one answer. That's a good thing about technology. It's pretty binary, so it was either go with what we had, which wasn't adequate, or build to what we knew we could do and pretty short order. And because of that, we were able to actually usher in a huge expansion of cloud footprint within DHHS. And now we've actually been able to implement it in other departments simply because of our expertise. And that's been a huge asset for the state of North Carolina as a whole. >> So what's your measuring stick then for value in terms of identifying benefit? 'Cause it's not really about cost. This is about service, I assume, right? >> Right. >> So, you know, how do you quantify the values and the benefits that you're deriving from this migration over to the cloud? >> So from our perspective, it hits several different areas. I mean, you can start in security. We know that if we're in the cloud the tools that can manage and give us visibility in the cloud are 10 times better than an on-prem environment. And so if we can take a lot of these legacy systems and move them to the cloud, we'll be in a better security posture. So we have that piece of it. The other part of it is the data aspect of it, being able to- We're 33 divisions strong, right? We have a large footprint. We have a lot of siloed data elements. And cloud allows us to start integrating those data sets in a much more usable fashion so that we can see that if Charles Carter's in one area in division, a specific division with DHHS, is he somewhere else? And if he is somewhere else, then how do we provide a better clinical care for that individual? And those are conversations that we can't really have if we don't move to the cloud. So those types of- And of course there's always the OKRs, the actual measurements that you apply to things that we're doing. But at the end of the day, can we get the requirements from our business partners, bring those requirements to bear in technology, and really enable the indoctrination of these requirements throughout our clinical and healthcare kills? >> What about they're always pillars here, right? Governance, huge pillar, security, huge pillar, especially in your world, right? >> Yeah. >> So making that move over to the cloud and still recognizing that these are essentials that you have to have in place, I wouldn't say adjustments, but what kind of, I guess, recognition have you had toward that and making sure that you're still very true to those principles that are vital in the terms of public health? >> It is a great question because our secretary at the time and our governor, Roy Cooper, were very focused on enabling transparency. We had to be very transparent with what we were doing because the residents in North Carolina were just really kind of, "What's going on?" It was a scary time for a lot of us. So transparency was a key element towards our success. And in order to do that, you've got to have proper security. You got to have proper governance. You've got to have proper builds within technology that really enable that kind of visibility. One of the things that we did very early on was we set up a governance structure for our cloud environments so that as we wanted to and stand up an easy-to environment or we wanted to do some sort of work within a cloud or stand up in a different environment, we were able actually to set up a framework for how do you introduce that. Are you doing it correctly? Do you have the proper security on it? Do you have the funding for it? Like all the steps that you need to really kind of build into the scaffolding around a lot of these efforts we had to put in place and pretty quickly to get them going. But once we did that, the acceptance and the adoption of it was just tremendous. I mean, it was a light on for all of our business partners 'cause they understood I can either build on-prem, in which case I won't be able to get what I want in any kind of reasonable time period. Or I can build on cloud. And I can have it in some cases in 48 hours. >> Right, tomorrow. >> Yeah, exactly. >> You know, it was a huge difference. >> So where are you there? I mean, this is just not like a really big old lift and shift and we're all done and this is great. Cloud's taken care of all of our needs. Where are you in terms of the journey that you're undertaking? And then ultimately where do you want to go, like how far? What kind of goals have you set for yourself for the next two, three years down the road? >> Yeah, so this is an exciting part because we have actually- Like I mentioned earlier, we are a cloud-first cloud-only strategy, right? There's no reasons for us to be on-prem. It's just a matter of us kind of sunsetting legacy systems and bringing on cloud performance. We hope to be a 60% of our applications, which we have over 400 applications. So it's pretty large footprint. But we're wanting to migrate all of that to the cloud by 2025. So if we can achieve that, I think we'll be well on our way. And the momentum will carry forward for us to do that. We've actually had to do a reorganization of our whole IT structure. I think this is an important part to maintain that momentum because we've reorganized our staff, reorganized ourselves so that we can focus more on how do you adopt cloud, how do you bring in platforms which are all cloud-based, how do you use data within those systems? And that has allowed us to kind of think differently about our responsibilities, who's accountable for what, and to kind of keep those, that momentum going. So we've got some big projects that are on right now. Some of them are lift and shift, like you mentioned. We have a project with kind of a clumsy, monolithic system. It's called (indistinct). We're trying to migrate that to the cloud. We're in the process of doing that. And it's an excellent demonstration of capability once we pull that off. And then of course any new procurement that we put out there no one's making anything for on-prem anymore. Everyone's making their SaaS products for cloud-based experiences. Or if we're going to build or just use integrators then we'll build that in house. But all of it's based on cloud. >> And you mentioned SaaS. How much of this stuff are you doing on your own? And how much are you doing through managed services? >> Yeah, so like I mentioned, we have over 400 applications. So we had a pretty large footprint, right? >> Big, it's huge, right. >> So we're only who we are, and we can only build so much. So we're kind of taking- We did a application rationalization effort, which kind of identified some threats to our systems. Like maybe they're older things, FoxPro, kind of older languages that we're using. And in some cases we got people who are retiring. And there's not many people who can support that anymore. So how do we take those and migrate them to the cloud, either put them on a Salesforce or ServiceNow or Microsoft Dynamics platform and really kind of upgrade those systems? So we're in the process of kind of analyzing those elements. But yeah, that's kind of the exciting launch, if you will, of kind of taking the existing visibility of our applications and then applying it to what we're capable of with the cloud. >> And if you had advice that you could give to your colleagues who are in public health or just in public, the public sector- And your resources, they're finite. This is kind of what you have to deal with. And yet you have needs, and you're trying to stay current. You've got talent challenges, right? You've got rev or spending challenges. So if you could sit down your colleagues in a room and say, "Okay, this has been our experience. Here's what I would keep an eye out for," what kind of headlights would you beat for them? >> Yeah, so I think the biggest aha that I'd like to share with my contemporaries out there is that you've got a great ability to lower your costs, to excite your own personnel because they want to work on the new stuff. We've actually set up a whole professional development pathway within our organization to start getting people certified on AWS, certified on other platforms, to get them ready to start working in those environments. And so all of that work that we're been doing is coming together and allowing us to maintain the momentum. So what I'd recommend to people is, A, look at your own individual staff. I don't think you need to go outside to find the talent. I think you can train the talent that you have interior. I think you've got to aggressively pursue modernization because modernization enables a lot more. It's less expensive. It enables quicker adoption of business requirements and modern business requirements. And then lastly, focus on your data sharing because what you're going to find in the platforms and in the clouds is that there is a lot more opportunities for data integrations and conjoining disparate data sources. So if you can do those elements, you'll find that your capabilities on the business side are much more, much greater on the other end. >> Don't be scared, right, jump in? (laughing) >> Definitely don't be scared. Don't be, the water's warm. (host laughing) Come on in, you're fine, you're fine. (laughing) >> No little toe dipping in there. You're going to dive into the deep end, let her rip. >> Exactly, just go right in, just go right in. >> Well, it sounds like you've done that with great success. >> I'm very happy with it. >> Congratulations on that. And wish you success down the road. >> Thank you very much, I appreciate it. >> Yeah, thank you, Charles. All right, back with more. You are watching theCUBE here in Las Vegas. theCUBE of course the leader, as you know, in tech coverage. (soft music)
SUMMARY :
We're in the Executive Summit and where you are right Sure, so we started. I got there in 2016, And the scalability, to to the system was that And so that was our challenge. And because of that, we were So what's your measuring fashion so that we can see And in order to do that, you've So where are you there? so that we can focus more And how much are you doing So we had a pretty large footprint, right? And in some cases we got And if you had advice talent that you have interior. Don't be, the water's warm. You're going to dive into Exactly, just go right done that with great success. And wish you success down the road. as you know, in tech coverage.
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Deepu Kumar, Tony Abrozie, Ashlee Lane | AWS Executive Summit 2022
>>Now welcome back to the Cube as we continue our coverage here. AWS Reinvent 2022, going out here at the Venetian in Las Vegas. Tens of thousands of attendees. That exhibit Hall is full. Let me tell you, it's been something else. Well, here in the executive summit, sponsored by Accenture. Accenture rather. We're gonna talk about Baptist Health, what's going on with that organization down in South Florida with me. To do that, I have Tony Abro, who's the SVP and Chief Digital and Information Officer. I have Ashley Lane, the managing director of the Accenture Healthcare Practice, and on the far end Poop Kumar, who is the VP and cto Baptist Health Florida won and all. Welcome. Thank you. First off, let's just talk about Baptist Health, the size of your footprint. One and a half million patient visits a year, not a small number. >>That was probably last year's number, but okay. >>Right. But not a small number about your footprint and, and what, I guess the client base basically that you guys are serving in it. >>Absolutely. So we are the largest organization in South Florida system provider and the 11 hospitals soon to be 12, as you said, it's probably about 1.8 million by now. People were, were, were supporting a lot of other units and you know, we're focusing on the four southern counties of South Florida. Okay. >>So got day Broward. Broward, yep. Down that way. Got it. So now let's get to your migration or your cloud transformation. As we're talking about a lot this week, what's been your, I guess, overarching goal, you know, as you worked with Accenture and, and developed a game plan going forward, you know, what was on the front end of that? What was the motivation to say this is the direction we're going to go and this is how we're gonna get there? >>Perfect. So Baptist started a digital transformation initiative before I came about three years ago. The board, the executive steering committee, decided that this is gonna be very important for us to support us, to help our patients and, and consumers. So I was brought in for that digital transformation. And by the way, digital transformation is kind of an umbrella. It's really business transformation with technology, digital technologies. So that's, that's basically where we started in terms of consumer focused and, and, and patient focus. And digital is a big word that really encompasses a lot of things. Cloud is one of, of course. And, you know, AI and ML and all the things that we are here for this, this event, you know, and, and we've started that journey about two years ago. And obviously cloud is very important. AWS is our main cloud provider and clearly in AWS or any club providers is not just the infrastructure they're providing, it's the whole ecosystem that provides us back value into, into our transformation. And then somebody, I think Adam this morning at the keynote said, this is a team sport. So with this big transformation, we need all the help and that we can get to mines and, and, and hands. And that's where Accenture has been invaluable over the last two years. >>Yeah, so as a team sport then depu, you, you've got external stakeholders, otherwise we talked about patience, right? Internal, right. You've, you've got a whole different set of constituents there, basically, but it takes that team, right? You all have to work together. What kind of conversations or what kind of actions, I guess have you had with different departments and what different of sectors of, of the healthcare business as Baptist Health sees it in order to bring them along too, because this is, you know, kind of a shocking turn for them too, right? And how they're gonna be doing business >>Mostly from an end user perspective. This is something that they don't care much about where the infrastructure is hosted or how the services are provided from that perspective. As long as the capabilities function in a better way, they are seemingly not worried about where the hosting is. So what we focus on is in terms of how it's going to be a better experience for, from them, from, from their perspective, right? How is it going to be better responsiveness, availability, or stability overall? So that's been the mode of communication from that perspective. Other than that, from a, from a hosting and service perspective, the clientele doesn't care as much as the infrastructure or the security or the, the technology and digital teams themselves. >>But you know, some of us are resistant to change, right? We're, we're just, we are old dogs. We don't like new tricks and, and change can be a little daunting sometimes. So even though it is about my ease of use and my efficiency and why I can then save my time on so and so forth, if I'm used to doing something a certain way, and that's worked fine for me and here comes Tony and Depo and here comes a, >>They're troublemaker >>And they're stir my pot. Yeah. So, so how do you, the work, you were giving advice maybe to somebody watching this and say, okay, you've got internal, I wouldn't say battles, but discussions to be held. How did you navigate through that? >>Yeah, no, absolutely. And Baptist has been a very well run system, very successful for 60 something odd years. Clearly that conversation did come, why should we change? But you always start with, this is what we think is gonna happen in the future. These are the changes that very likely will happen in the future. One is the consumer expectations are the consumer expectations in terms of their ability to have access to information, get access to care, being control of the process and their, their health and well-being. Everything else that happens in the market. And so you start with the, with that, and that's where clearly there are, there are a lot of signs that point to quite a lot of change in the ecosystem. And therefore, from there, the conversation is how do we now meet that challenge, so to speak, that we all face in, in, in healthcare. >>And then from there, you kind of designed the, a vision of where we want to be in terms of that digital transformation and how do we get there. And then once that is well explained and evangelized, and that's part of our jobs with the help of our colleagues who have, have been doing this with others, then is the, what I call a tell end show. We're gonna say, okay, in this, in this road, we're gonna start with this. It's a small thing and we're gonna show you how it works in terms of, in terms of the process, right? And then as, as you go along and you deliver some things, people understand more, they're on board more and they're ready for for more. So it's iterative from small to larger. >>The proof is always in the place, right? If you can show somebody, so actually I, I obviously we know about Accenture's role, but in terms of almost, almost what Tony was just saying, that you have to show people that it works. How, how do you interface with a client? And when you're talking about these new approaches and you're suggesting changes and, and making these maybe rather dramatic proposals, you know, to how they do things internally, from Accenture's perspective, how do you make it happen? How, how do you bring the client along in this case, batches >>Down? Well, in this case, with Tony and Depu, I mean, they have been on this journey already at another client, right? So they came to Baptist where they had done a similar journey previously. And so it wasn't really about convincing >>Also with Accenture's >>Health, also with Accenture's Health, correct. But it wasn't about telling Tony Dupe, how do we do this? Or anything like that. Cuz they were by far the experts and have, you know, the experience behind it. Well, it's really like, how do we make sure that we're providing the right, right team, the right skills to match, you know, what they wanted to do and their aspirations. So we had brought the, the healthcare knowledge along with the AWS knowledge and the architects and you know, we said that we gotta, you know, let's look at the roadmap and let's make sure that we have the right team and moving at the right pace and, you know, testing everything out and working with all the different vendors in the provider world specifically, there's a lot of different vendors and applications that are, you know, that are provided to them. It's not a lot of custom activity, you know, applications or anything like that. So it was a lot of, you know, working with other third party that we really had to align with them and with Baptist to make sure that, you know, we were moving together at speed. >>Yeah, we've heard about transformation quite a bit. Tony, you brought it up a little bit ago, depu, just, if you had to define transformation in this case, I mean, how big of a, of a, of a change is that? I mean, how, how would you describe it when you say we're gonna transform our, you know, our healthcare business? I mean, I think there are a lot of things that come to my mind, but, but how do you define it and, and when you're, when you're talking to the folks with whom you've got to bring along on this journey? >>So there's the transformation umbrella and compos two or three things. As Tony said, there is this big digital transformation that everybody's talking about. Then there is this technology transformation that powers the digital transformation and business transformation. That's the outcome of the digital transformation. So I think we, we started focusing on all three areas to get the right digital experience for the consumers. We have to transform the way we operate healthcare in its current state or, or in the existing state. It's a lot of manual processes, a lot of antiquated processes, so to speak. So we had to go and reassess some of that and work with the respective business stakeholders to streamline those because in, it's not about putting a digital solution out there with the anti cured processes because the outcome is not what you expect when you do that. So from that perspective, it has been a heavy lifting in terms of how we transform the operations or the processes that facilitates some of the outcomes. >>How do you know it's working >>Well? So I I, to add to what Deep was saying is I think we are fortunate and that, you know, there are a lot of folks inside Baptist who have been wanting this and they're instrumental to this. So this is not a two man plus, you know, show is really a, you know, a, a team sport. Again, that same. So in, in that, that in terms of how do we know it works well when, when we define what we want to do, there is some level of precision along the way. In those iterations, what is it that we want to do next, right? So whatever we introduce, let's say a, a proper fluid check in for a patient into a, for an appointment, we measure that and then we measure the next one, and then we kind of zoom out and we look at the, the journey and say, is this better? >>Is this better for the consumer? Do they like it better? We measure that and it's better for the operations in terms of, but this is the interesting thing is it's always a balance of how much you can change. We want to improve the consumer experience, but as deeply said, there's lot to be changed in, in the operations, how much you do at the same time. And that's where we have to do the prioritization. But you know, the, the interesting thing is that a lot of times, especially on the self servicing for consumers, there are a lot of benefits for the operations as well. And that's, that's where we're in, we're in it together and we measure. Yeah, >>Don't gimme too much control though. I don't, I'm gonna leave the hard lifting for you. >>Absolutely, absolutely right. Thank you. >>So, and, and just real quick, Ashley, maybe you can shine some light on this, about the relationship, about, about next steps, about, you know, you, you're on this, this path and things are going well and, and you've got expansion plans, you want, you know, bring in other services, other systems. Where do you want to take 'em in the big picture in terms of capabilities? >>Well, I, I mean, they've been doing a fantastic job just being one of the first to actually say, Hey, we're gonna go and make an investment in the cloud and digital transformation. And so it's really looking at like, what are the next problems that we need to solve, whether it's patient care diagnosis or how we're doing research or, you know, the next kind of realm of, of how we're gonna use data and to improve patient care. So I think it's, you know, we're getting the foundation, the basics and everything kind of laid out right now. And then it's really, it's like what's the next thing and how can we really improve the patient care and the access that they have. >>Well, it sure sounds like you have a winning accommodation, so I I keep the team together. >>Absolutely. >>Teamwork makes the dream >>Work. Absolutely. It is, as you know. So there's a certain amount of, if you look at the healthcare industry as a whole, and not, not just Baptist, Baptist is, you know, fourth for thinking, but entire industry, there's a lot of catching up to do compared to whatever else is doing, whatever else the consumers are expecting of, of an entity, right? But then once we catch up, there's a lot of other things that we were gonna have to move on, innovate for, for problems that we maybe we don't know we have will have right now. So plenty of work to do. Right. >>Which is job security for everybody, right? >>Yes. >>Listen, thanks for sharing the story. Yeah, yeah. Continued success. I wish you that and I appreciate the time and expertise here today. Thank you. Thanks for being with us. Thank you. Thank you. We'll be back with more. You're watching the Cube here. It's the Executive Summit sponsored by Accenture. And the cube, as I love to remind you, is the leader in tech coverage.
SUMMARY :
I have Ashley Lane, the managing director of the Accenture Healthcare Practice, and on the far end Poop and what, I guess the client base basically that you guys are serving in it. units and you know, we're focusing on the four southern you know, as you worked with Accenture and, and developed a game plan going forward, And, you know, AI and ML and all the things that we are here them along too, because this is, you know, kind of a shocking turn for them too, So that's been the mode of communication But you know, some of us are resistant to change, right? you were giving advice maybe to somebody watching this and say, okay, you've got internal, And so you start with the, with that, and that's where clearly And then as, as you go along and you deliver some things, people and making these maybe rather dramatic proposals, you know, So they came to Baptist where they had done a similar journey previously. the healthcare knowledge along with the AWS knowledge and the architects and you know, come to my mind, but, but how do you define it and, and when you're, when you're talking to the folks with whom you've there with the anti cured processes because the outcome is not what you expect when and that, you know, there are a lot of folks inside Baptist who have been wanting this and But you know, the, the interesting thing is that a lot of times, especially on the self I don't, I'm gonna leave the hard lifting for you. Thank you. about next steps, about, you know, you, you're on this, this path and things are going well So I think it's, you know, we're getting the foundation, the basics and everything kind of laid out right now. So there's a certain amount of, if you look at the healthcare industry And the cube, as I love to remind you, is the leader in tech coverage.
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Fran Gaetens, Sean Finnerty, Ron Kim | AWS Executive Summit 2022
(steady music) >> Oh, welcome back here on theCUBE. I'm John Walls, we're in The Venetian and day one of a jam-packed three days here at AWS re:Invent '22. This is the Executive Summit sponsored by Accenture, and it is Merck time. And I mean, it is loaded with Merck time. We have quite the panel here, in fact. First threesome of the day, by the way. I see you guys have really loaded up nicely. Ron Kim is with us, the SVP and CTO of Merck. Ron, good to see you, sir. >> Thanks, John. >> Also, Fran Gaetens, who's the VP of Technology Infrastructure, Operations, and Experience, which I want to hear more about. Love that job title, Fran. >> Thanks, John. >> And Sean Finnerty, VP of Cloud and Infrastructure Technology. Again, everybody here from Merck. So fellows, thanks for being with us. >> Thanks, John. >> Appreciate the time. >> Yeah. >> So let's just talk about Merck, first off in general in terms of what's happening with the cloud. And Ron, I'll let you jump onto that first. I realize this talk of journey, right? >> Mm-hm. >> It's different for everybody, different slices depending upon where you are, where you start, where you need to finish. Where are you right now in terms of what you're doing with the cloud? >> Yeah, John, we've been on this journey for about two years, have done some great work and achieve some great results in proving we could move to the cloud, moving to the cloud at scale, achieving really measurable financial and operational results. Where we're focusing now going forward is transforming the business. And as you know, our business is saving and improving lives. And so when we talk about moving things to the cloud, it's much more than just moving servers or things like that. It's really contributing towards our business that saves and improves lives. So for our work that we work on together moving into the cloud, the stakes are high, but we think the opportunity's great. And the way to seize that opportunity is what we're doing now, is our BlueSky program and working with AWS and Accenture on it. >> Yeah, so two years, you're two years in. It's like nascent stage still, right? I mean, and it never ends, (laughs) frankly. >> Yeah. >> But talk about that progression and was it, you know, baby steps, was it diving in? I mean, how do you decide, you know, the batting order basically here about how you're going to get things going? >> The early parts of the the two-year journey so far, we're really starting small, primarily driven by a central team. And we did that consciously to get momentum, build the foundation, prove again we could move things to the cloud with success, we could start to scale. And then as that journey went on, now instead of just relying on the central team, we're starting to get the rest of the company involved. So this is not just this team doing the cloud journey. It's the whole company, and that's an ongoing journey, getting all the different stakeholders involved and things like that. But I think that's where we are on the journey now, is look, let's lock arms with everybody in the company. So it's a Merck-wide cloud transformation, not just the BlueSky team. >> Right, and of course, as you know, the C-suite's got to be behind all this. And we hear about how that it's now being driven in some cases, you know, these kind of transformations, whether it's from CEO level down the CTO and CIO and what have you. Fran, the experience part of your job. I just want to get to that real quick. So you know, how do you define that? >> Yeah. First of all, I'm delighted you asked. >> Okay. (laughs) >> And the focus on experience that my team's accountable for transcends, you know, our cloud journey. We have held for the last three years within my organization a priority that's focused on improving the experience that colleagues in our company have with workplace technology and services. And so I'd come into this role at the time and thought carefully, you know, about how to best title our organization in a way that would draw curiosity or inquisition. >> Sure. >> A very creative colleague that we have an opportunity to work with in our company suggested the term, and I loved it and ran with it. And today, it's, you know, still something that we spend a significant portion of cycles focused on. >> Well, it's a very clear signal, right? And a reminder as well that ultimately the experience whether it's your internal stakeholders or external, your customers, right, that you're delivering a very pleasant and efficient, and hopefully you said life-saving >> Yeah. >> experience as well. And I think that'd be a pretty good reminder for your team, isn't it? >> It is. >> "Hey, we're all part of the experience here." >> Yeah. >> Yeah. Right, so Sean, let's talk about some of the things that we've discussed here, branching out within Merck. >> Yep. >> You know, and making it a company effort, not just an IT effort. Right, now all of a sudden, you're into everybody's business and everybody is sharing this. I mean, is there buying that's necessary here? I mean, how do you bring that bunch along? You've all lived it, you know it. They're experiencing it for the first time. >> Yeah, it's a great question and it's one we get quite a bit walking the halls here at re:Invent. We're very lucky in that we do have, you mentioned earlier, top-down support, right? So when we're talking about moving to the cloud, we're not just running around the halls of the technology, you know, cubes of all the people that are sitting there at computers banging away every day. We're meeting with the CEO and a significant portion of the executive team, talking about how does our cloud journey underpin our business transformation aspirations? How do we speed up scientific research? How do we do clinical trials more effectively? How do we manufacture medicine more effectively, more reliably? Those are all underpinned by this technology transformation that we're embarking on sort of from the bottoms up, and meeting in the middle with the top-down strategic imperative to transform the business by leveraging technology. So that clear and unambiguous support coming from the C-suite at our company allows us to prioritize very aggressively and point at that mission to say, "Hey, we're not just here to talk about moving a server or two. We're here to talk about how we transform scientific research and discovery in the interest of our patients and delivering medicine more effectively, more quickly." So it's really, really interesting. >> Yeah, and so being on one side of that, you know, obviously you're dealing with people, whether chemists, scientists, whomever doing computational chemistry whatever it might be. They know their business and you're trying to integrate these new capabilities into their business, right? How do you do that? I mean, how do you know what they need and how do they tell you what they need when they don't know what you have? (laughs) >> That's quite a question. >> Yeah. I got there. >> Yeah, I mean, my initial thought is, you know, there has to be a compelling value to anybody getting impacted by this. And that's what we all work to do. So whether it's faster, less lead time, reducing cycle times, more reliability, innovation, I mean, there has to be something in it for them, and the work we're doing crosses that whole spectrum. So some of the efforts we have, "Hey, this is a cost-savings effort, this is for agility, this is for speed." So you know, it can't be just we're just doing this for the sake of moving of the cloud. There has some business value in it. And you know, Sean and the team have done a great job on kind of putting the rigor behind how do we describe that value so people then say, "Is that value really there or not? And does it really add up?" And I think that's been one of the keys to our success, is the work that Sean and members of his team have been doing is there's a pretty rigorous way we track our progress. And we've involved finance from day one in that. So having their buy in, you know, gives the whole set of results a lot of credibility. >> But tell me about that, Sean, about in terms of identifying value and quantifying it, in terms that a bottom line can orient to that. >> Yeah, absolutely. I mean, I've been at the cloud migration game myself personally for years, right? I got into this game back in 2011. The challenge of those programs has always been articulating the value associated with migrating stuff. It's easy to say, "I'm going to take a server. I'm going to move it from here to here. Then that difference is X, point at that." That's easy, everyone can understand that. But the labor efficiencies and the business value and the business transformation that comes with moving a capability from on-prem or from another hosting service to the cloud and transforming how we deliver, manage, operate, and scale those solutions, that's really where the power of this comes from, is business value tied to discrete actions, moving systems with a plan from one point to another point. And then being able to clearly articulate the value by implementing, as Ron mentioned, models we've created. So we've created actually financial calculation models to put dollars and cents next to labor efficiencies, time liberated, you know, the ability to deliver with higher velocity, higher quality, higher reliability. Those now have dollar values associated with them, which we're able to take, apply to our portfolio, and look for those opportunities that jump out as, "Hey, you know, that one's worth a million bucks. Let's prioritize that one. The ones that maybe have lower value or less business impact, you know, let's put those to the side and get to those later." So we can constantly demonstrate that not only are we raising our ability to deliver for our patients, but we're also delivering value back to the corporation to invest in other things that need focus and attention. >> Yeah, so talk about AWS and Accenture a little bit about, I mean, obviously big players with this. I'm assuming that interaction, maybe Fran, you know, talk about the partnership and again, how they have helped you get to the point that where you currently reside. >> Yeah, our partnership with both firms has been longstanding. That said, you know, what's changed in a market way happened a couple years ago when we originated this cloud acceleration program that we called BlueSky. We worked directly with Accenture to develop a comprehensive business case that, you know, fundamentally lined out the detail of our intention, how we would prosecute this work, and you know, among other things be crystal clear about the value at stake and how we would capture and realize that over time. So you know, through that lens, it's really taken a village with parties from all three firms, you know, to come together, prosecute this important work, but likewise, as I like to say, keep score, you know, in the context of value because ultimately, it's the one thing that we can talk about unambiguously with the program in the context of measurable results. >> Because of the work you do, obviously, you know, invaluable in many respects. But just the thought about cloud, and I know governance, security, compliance, all these things are critical. You know, how do those weigh in, in terms of considerations you have to make? And especially going forward as you develop new ideas, new things, ideas you're trying to bring to market, >> Yeah. >> I mean, how much does that play and the cloud and what exposures there might be? >> Yeah, it plays in quite a bit. And no matter what type of work we do, cloud or on-premise, I mean, security is of utmost importance. That's how we operate. Now what's interesting is when we think about in AWS, you know, AWS has the ability, they have the the scale and the learnings from multiple clients, right? So rather than a single company like us trying to figure out security on our own, we can benefit from what are all the lessons that they've learned that they bake back into their platform. So that's been a great benefit. But regardless of our partner, we'll always be very, a lot of scrutiny about security no matter what. And that's how we should operate. But the benefits of the platform within AWS, I mean, there's a lot of security intelligence built in from their experience, so that's- >> If I can add to that- >> Sure. >> Yeah. To build on prior remarks that Sean had articulated, this migration to the cloud, right, happens to be a catalyst for a broader transformation. One where we're fundamentally changing our ways of working. Ways that consider, you know, topics like security, compliance, documentation, regulatory requirements. And choosing to bake those in to these solutions from the onset rather than consider them as an appendage or an afterthought. So you know, the cloud is a really important part of this. You know, there's no mistake about it, but it's also a powerful catalyst for something that's broader. >> Tremendously more efficient, right? With our thinking and how we're going to plan and how we're going to execute. >> Yeah, and to build on that even more, we view it as an opportunity to raise the bar on our compliance, security, and regulatory readiness game. As we're touching applications across our portfolio, rearchitecting, leaning in on things like the well-architected framework and other things that AWS and Accenture bring to bear. We set the bar higher when we move things from where they are today to a new destination and introduce automation so that that uplift of control does not come at the cost of additional time or labor. It's simply we're raising the bar in ourselves. We're using this transformational opportunity to implement that change. Our customers are along for the ride and reap the benefits of the fact that, you know, we've raised the bar on ourselves, basically. >> Well, you said two years, so the first steps, and I'm sure the next ones are going to be just as successful. I really appreciate the time. Thanks for sharing that and for bringing so much expertise at the table. >> Thanks, John. >> Appreciate that, good to have you guys with us. >> Thanks. >> Talking about Merck and their cloud transformation. Love that word, we've been talking a lot about it this week. You're watching theCUBE, of course, here at the Executive Summit sponsored by Accenture. And theCUBE being, of course, the leader at tech coverage. (calm music)
SUMMARY :
And I mean, it is loaded with Merck time. and Experience, which I So fellows, thanks for being with us. And Ron, I'll let you where you start, where you need to finish. And as you know, our business I mean, and it never ends, (laughs) to the cloud with success, Right, and of course, as you know, I'm delighted you asked. and thought carefully, you know, And today, it's, you know, And I think that'd be of the experience here." about some of the things I mean, how do you bring that bunch along? and point at that mission to say, "Hey, and how do they tell you what they need of the keys to our success, in terms that a bottom and the business value that where you currently reside. it's the one thing that we Because of the work you you know, AWS has the ability, So you know, the cloud is a and how we're going to execute. of the fact that, you know, and I'm sure the next ones are good to have you guys with us. here at the Executive Summit
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Karthik Narain and Tanuja Randery | AWS Executive Summit 2022
(relaxing intro music) >> Welcome back to theCUBE's Coverage here live at reinvent 2022. We're here at the Executive Summit upstairs with the Accenture Set three sets broadcasting live four days with theCUBE. I'm John Furrier your host, with two great guests, cube alumnis, back Tanuja Randery, managing director Amazon web service for Europe middle East and Africa, known as EMEA. Welcome back to the Cube. >> Thank you. >> Great to see you. And Karthik Narain, who's the Accenture first cloud lead. Great to see you back again. >> Thank you. >> Thanks for coming back on. All right, so business transformation is all about digital transformation taken to its conclusion. When companies transform, they are now a digital business. Technologies powering value proposition, data security all in the keynotes higher level service at industry specific solutions. The dynamics of the industry are changing radically in front of our eyes for for the better. Karthik, what's your position on this as Accenture looks at this, we've covered all your successes during the pandemic with AWS. What, what do you guys see out there now as this next layer of power dynamics in the industry take place? >> I think cloud is getting interesting and I think there's a general trend towards specialization that's happening in the world of cloud. And cloud is also moving from a general purpose technology backbone to providing specific industry capabilities for every customer within various industries. But the industry cloud is not a new term. It has been used in the past and it's been used in the past in various degrees, whether that's building horizontal solutions, certain specialized SaaS software or providing capabilities that are horizontal for certain industries. But we see the evolution of industry cloud a little differently and a lot more dynamic, which is we see this as a marketplace where ecosystem of capabilities are going to come together to interact with a common data platform data backbone, data model with workflows that'll come together and integrate all of this stuff and help clients reinvent their industry with newer capabilities, but at the same time use the power of democratized innovation that's already there within that industry. So that's the kind of change we are seeing where customers in their strategy are going to implement industry cloud as one of the tenants as they go through their strategy. >> Yeah, and I see in my notes, fit for purposes is a buzzword people are talking about right size in the cloud and then just building on that. And what's interesting, Tanuja I want to get your thoughts because in the US we're one country, so yeah, integrating is kind of within services. You have purview over countries and these regions it's global impact. This is now a global environment. So it's not just the US North America, it's Latin America it's EMEA, this is another variable in the cross connecting of these fit for purpose. What's your view of the these industry specific solutions? >> Yeah, no and thanks Karthik 'cause I'm a hundred percent aligned. You know, I mean, you know this better than me, John, but 90% of workloads have not yet moved to the cloud. And the only way that we think that's going to happen is by bringing together business and IT. So what does that mean? It means starting with business use cases whether that's digital banking or smart connected factories or frankly if it's predictive maintenance or connected beds. But how do we take those use cases leverage them to really drive outcomes with the technology behind them? I think that's the key unlock that we have to get to. And very specifically, and Adam talked about this a lot today, but data, data is the single unifier for all of business and IT coming together to drive value, right? However, the issue is there's a ton of it, (John Furrier chuckling) right? In fact, fun fact if you put all the data that's going to be created over the next five years, which is more than the last 30 years, on a one terabyte little floppy, disk drive, remember those? Well that's going to be 15 round trips to the moon (John Furrier chuckling) and back. That's how much data it is. So our perspective is you got to unify, single data lake, you got to modernize with AI and ML, and then you're going to have to drive innovation on that. Now, I'll give you one tiny example if I may which I love Ryanair, big airline, 150 million passengers. They are also the largest supplier of ham and cheese sandwiches in the air. And catering at that scale is really difficult, right? If you have too much food wastage, sustainability issues, too little customers are really unhappy. So we work with them leveraging AWS cloud and AI ML to build a panini predictor. And in essence, it's taking the data they've got, data we've got, and actually giving them the opportunity to have just the right number of paninis. >> I love the lock and and the key is data to unlock the value. We heard that in the keynote. Karthik, you guys have been working together with AWS and a lot of successes. We've covered some of those on the cube. As you look at these industry solutions they're not the obvious big problems. They're like businesses, you know it could be the pizza shop it could be the dentist office, it could be any business any industry specific carries over. What is the key to unlock it? Is it the data? Is it the solution? What's that key? >> I think, you know the easier answer is all of the about, but like Tanuja said it all starts by bringing the data together and this is a funny thing. It's not creating new data. This data is there within enterprises. Our clients have these data the industries have the data, but for ages these data has been trapped in functional silos and organizations have been doing analytics within those functions. It's about bringing the data together whether that's a single data warehouse or a data mesh. Those are architectural considerations. But it's about bringing cross-functional data together as step one. Step two, is about utilizing the power of cloud for democratized innovation. It's no longer about one company trying to reinvent the wheel, or create a a new wheel within their enterprise. It's about looking around through the power of cloud marketplace to see if there's a solution that is already existing can we use that? Or if I've created something within my company can I use that as a service for others to use? So, the number one thing is using the power of democratized innovation. Second thing is how do you standardize and digitize functions that does not need to be reinvented every single time so that, you know, your organization can do it or you could use that or take that from elsewhere. And the third element is using the power of the platform economy or platforms to find new avenues of revenue opportunity, customer engagement and experiences. So these are all the things that differentiates organization, but all of this is underpinned by a unified data model that helps, you know, use all the (indistinct) there. >> Tanuja, you have mentioned earlier that not everyone has their journey of the cloud looks the same and certainly in the US and EMEA you have different countries and different areas. >> Yep. >> Their journeys are different. Some want speed and fees, some will roll their own. I mean data brick CEO, when I interviewed them that last week, they started database on a credit card swiped it and they didn't want any support. Amazon's knocking on their door saying, "you want support?" "No, we got it covered." Obviously they're from Berkeley and they're nerds, and they're cool. They can roll their own, but not everyone can. >> Yeah. >> And so you have a mix of customer profiles. How do you view that and what's your strategy? How do you get them over productive seeing that business value? What's that transformation look like? >> Yeah, John, you're absolutely right. So you've got those who are born in cloud, they're very savvy, they know exactly what they need. However, what I do find increasingly, even with these digital native customers, is they're also starting to talk business use cases. So they're talking about, "okay how do I take my platform and build a whole bunch of new services on top of that platform?" So, we still have to work with them on this business use case dimension for the next curve of growth that they want to drive. Currently with the global macroeconomic factors obviously they're also very concerned about profitability and costs. So that's one model. In the enterprise space, you have differences. >> Yeah. >> Right, You have the sort of very, very, very savvy enterprises, right? Who know exactly what they're looking for. But for them then it's about how do I lean into sustainability? In fact, we did a survey, and 77% of users that we surveyed said that they could accelerate their sustainably goals by using cloud. So in many cases they haven't cracked that and we can help them do that. So it's really about horses for courses there. And then, then with some other companies, they've done a lot of the basic infrastructure modernization. However, what they haven't been able to yet do is figure out how they're going to actually become a tech company. So I keep getting asked, can I become a tech company? How do I do that? Right? And then finally there are companies which don't have the skills. So if I go to the SMB segment, they don't always have the skills or the resources. And there using scalable market platforms like AWS marketplace, >> Yeah. >> Allows them to get access to solutions without having to have all the capabilities. So it really is- >> This is where partner network really kind of comes in. >> Absolutely. >> Huge value. Having that channel of solution providers I use that term specifically 'cause you're providing the solution for those folks. >> Yeah. Exact- >> And then the folks at the enterprise, we had a quote on the analyst segment earlier on our Cube, "spend more, save more." >> Yeah. >> That's the cloud equations, >> Yeah. because you're going to get it on sustainability you're going to save it on, you're going to save on cost recovery for revenue, time to revenue. So the cloud is the answer for a lot of enterprises out of the recession. >> Absolutely, and in fact, we need to lean in now you heard Adam say this, right? I mean the cost savings potential alone from on-prem to cloud is between 40 and 60 percent. Just that. But I don't think that's it John. >> The bell tightening he said is reigning some right size. Okay, but then also do more, he didn't say that, but analysts are generally saying, if you spend right on the cloud, you'll save more. That's a general thesis. >> Yeah. >> Do you agree with that? >> I absolutely think so. And by the way, usage is, people use it differently as they get smarter. We're constantly working with our customers by the way though, to continuously cost optimize. So you heard about our Graviton3 instances for example. We're using that to constantly optimize, but at the same time, what are the workloads that you haven't yet brought over to the cloud? (John Furrier chuckling) And so supply chain is a great idea. Our health cloud initiative. So we worked with Accenture on the Accenture Health Insights platform, which runs on AWS as an example or the Goldman Sachs one last year, if you remember. >> I do >> The financial cloud. So those, those are some of the things that I think make it easier for people to consume cloud and reimagine their businesses. >> It's funny, I was talking with Adam and we had a little debate about what an ISV is and I talked to the CEO of Mongo. They don't see themselves on the ISV. As they grew up on the cloud, they become platforms, they have their own ISVs and data bricks and Snowflake and others are developing that dynamic. But there's still ISVs out there. So there's a dynamic of growth going on and the need for partners and our belief is that the ecosystem is going to start doubling in size we believe, because of the demand for purpose built or so out of the box. I hate to use that word "out of the box", but you know turnkey solutions that you can buy another one if it breaks. But use the building blocks if you want to build the foundation. That is more durable, more customizable. Do that if you can. >> Well, >> but- >> we've got a phenomenal, >> shall we talk about this? >> Yeah, go get into- >> So, we've built a five year vision together, Accenture and us. which is called Velocity and you'll be much better in describing it, but I'll give you the simple version of Velocity which is taking AWS powered industry solutions and bringing it to market faster, more repeatable and at lower cost. And so think about vertical solutions sitting on a horizontal accelerator platform able to be deployed making transformation less complex. >> Yeah. >> Karthik, weight in on this, because I've talked to you about this before. We've said years ago the horizontal scalability of the cloud's a beautiful thing but verticals where the ML works great too. Now you got ML in all aspects of it. Horizontal verticals here now. >> Yeah, Yeah, absolutely. Again, the power of this kind of platform that we are launching, by the way we're launching tomorrow we are very excited about it, is, create a platform- >> What are you launching tomorrow? Hold on, I got news out there. What's launching? >> We are going to launch a giant platform, which will help clients accelerate their journey to industry cloud. So that's going to happen tomorrow. So what this platform would provide is that this is going to provide the horizontal capabilities that will help clients bootstrap their launch into cloud. And once they get into cloud, they would be able to build industry solutions on this. The way I imagine this is create the chassis that you need for your industry and then add the cartridges, industry cartridges, which are going to be solutions that are going to be built on top of it. And we are going to do this across various industries starting from, you know, healthcare, life sciences to energy to, you know, public services and so on and so forth >> You're going to create a channel machine. A channel creation machine, you're going to allow people to build their own solutions on top of that platform. And that's launching tomorrow. Make sure we get the news on that. >> Exactly. And- >> Ah, No, >> Sorry, and we genuinely believe the power of industry cloud, if you think about it in the past to create a solution one had to be an ISV to create a solution. What cloud is providing for industry today in the concept of industry clouds, this, industry companies are creating industry solution. The best example is, along with, you know, AWS and Accenture, Ecopetrol, which is a leader in the energy industry, has created a platform, you know called Water Intelligence and Management platform. And through this platform, they are attacking the audacious goal of water sustainability, which is going to be a huge problem for humanity that everybody needs to solve. As part of this platform, the goal is to reduce, you know, fresh water usage by 66% or zero, you know, you know, impact to, you know, groundwater is going to be the goal or ambition of Ecopetrol. So all of this is possible because industry players want to jump to the bandwagon because they have all the toolkit of of the cloud that's available with which they could build a software platform with which they can power their entire industry. >> And make money and have a good business. You guys are doing great. Final word, partnership. Where's it go next? You're doing great. Put a plugin for the Accenture AWS partnership. >> Well, I mean we have a phenomenal relationship and partnership, which is amazing. We really believe in the power of three which is the GSI, the ISV, and us together. And I have to go back to the thing I keep focused on 90% of workloads not in cloud. I think together we can enable those companies to come into the cloud. Very importantly, start to innovate launch new products and refuel the economy. So I think- >> We'll have to check on that >> Very, very optimistic. >> We'll have to check on that number. >> That seems a little- >> You got to check on that number. >> 90 seems a little bit amazing. >> 90% of workloads. >> That sounds, maybe, I'd be surprised. Maybe a little bit lower than that. Maybe. We'll see. >> We got to start turning it. >> It's still a lot. >> (laughs) It's still a lot. >> A lot more. Still first, still early days. Thanks so much for the conversation Karthik great to see you again Tanuja, thanks for your time. >> Thank you, John. >> Congratulations, on your success. Okay, this is theCube up here in the executive summit. You're watching theCube, the leader in high tech coverage, we'll be right back with more coverage here, and the Accenture set after the short break. (calm outro music)
SUMMARY :
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Joel Rosenberger & Steve Steuart | AWS Executive Summit 2022
>> Well, thanks for joining us here on theCUBE. I'm John Walls. We're at Reinvent AWS's big show going on here in Las Vegas at the Venetian. Going to be here all week, so be sure to tune in here to theCUBE as we continue our executive summit sponsored by Accenture today. Joined now by Steve Steuart, who's the worldwide principal on mainframe migration at Go to Market at AWS. Steve, good to see you, sir. >> Nice to meet you. >> Just found out we're neighbors, as a matter of fact, down in northeastern Florida. >> That's right. >> So we'll exchange addresses later, I'm sure. And Joel Rosenberger, who is a global mainframe monetization lead for the Accenture AWS business group. Joel, good to see you. >> Nice to meet you. >> Thanks for joining us here on theCUBE. >> Absolutely. >> All right, so what's up with the mainframe? We're kind of kidding about 64 Corvette's versus 22 Teslas and making that old Corvette. Dress it up, take it out for the street ride. Make it nice and fun. But let's just set the stage here first off for our viewers about mainframe and kind of the status in terms of modernization and getting it up to 22 standards. >> Right, I mean, I think the big thing is that, you know modernization for mainframes is different for every customer based on their drivers and where they want to go. You know, at AWS we like to say transform with AWS, augmentation pattern, hybrid pattern, working coexisting or transform too. So move some of those workloads into the cloud. And it's not that, you know mainframes are fantastic machines, but they are in dire need of modernization with their applications. And that's really the driving force and the business needs to make a decision based on their drivers, what's best fit for them. And we're here to help. >> So how, Joel, go ahead. >> Oh, I was going to say, and we're saying that too is basically the mainframe is a great technology platform but it's the processes around that that not kept up. So making changes to the mainframe applications can take a couple years, for the simplest changes. And so when Steve talks about modernizing with or on the mainframe it's really how do we improve those processes? And from our perspective and companies are really struggling with that right now. >> Yeah, and how do you go about this, because the mainframe is so center, right? It is so integral, right? >> Oh it's center. >> Oh yeah, absolutely. >> Absolutely essential. And yet you're talking about changes being made over a period of time of years. A lot of sensitivity there, right? >> Oh absolutely. >> Lot of complexity there. So how do you start factoring all that in and selling that to somebody that this journey might take you till 2025 to get it done? >> Well it could be a multi-year process. The selling is really the business drivers. You have to, businesses today need to leverage the cloud to be competitive. >> Absolutely. >> Right, that's just a fact. Right? So, how do you transform with modernize in place, or transform over. But it is a transformational change. If you look at the number one drivers is agility. The CEO say, I want this green next week and well we can't get it to you next week. We can get it to you Q2 of next year. Born in the cop companies... >> That's probably not the answer they want to hear. >> No, they don't want hear that. >> That is not the answer they want to hear. >> Our number one issue is that there are CEOs saying that we can't be agile, but mainframes can't be agile, if you develop, adopt DevOps for your mainframe. >> Yep. >> IBM has an offering, we have an offering as well. And so they need to start looking at that. So what are your drivers? Go to market responsiveness, competitive, what are the drivers? And then you make a decision as to where you want to move the workload. >> Joel: Yep. >> Is it hard though, Joel, just because as you know this environment is so dynamic now, right? >> Yep. >> And change is rapid, and I mean like capital R. >> Yep, absolutely. Yep. >> So all of a sudden you set this two/three year trajectory and yet opportunities, solutions, options can vary in year one or year two and all of a sudden this path you had set is going to have to take a left turn instead of a right turn because of a new development. Right? So it's... >> Absolutely, I mean, and that's one of the biggest struggles that people have is with business agility. Exactly what you're saying is the market is changing faster, like Steve said, it might be a year or so before I can deliver that but the market has already changed from that perspective. >> Right. >> And so I think a lot of people are trying to modernize with that. So they're connecting a lot of web properties to mainframes but that causes additional problems. >> Right. >> And those problems are the mainframe now scales unpredictably, because I don't know, how do I predict web traffic and from that perspective, so a lot of people are struggling do I have enough capacity on the mainframe to do that? Cause it's not elastic like the cloud from that perspective. So there's a lot of patterns that have to be reinvented, or already been invented with the cloud and how do we do that with the mainframe now? >> So you could get benefits not waiting three to four years. >> Absolutely. >> You get benefit pretty much immediately by doing augmentation patterns consuming processing on the mainframe, consuming it maybe certain movements, certain workloads, bringing on down quicker. You know, if you're a large estate it'll take you time but you are able to drive that. Part of our assessments is bottom up what you currently have, and what are your business drivers. >> Yep, absolutely. >> What are the big boulder items you need to do and tackle those. And so it's a process that we work together with our customers to start transforming their mainframe. >> Right. >> Yeah I hear about, I'm sorry, go on Joel. >> Yeah, and a key thing on that is a lot of people look at the mainframe is this big monolith. >> John: Right. >> It's basically the this big thing, I don't know what to do with, I don't want to touch because if I touch it I might break it. I don't have people to fix it. And so there's a lot of concern around that, but one of the things like Steve said is how Accenture and AWS work together is figuring out how do I take that monolith, divide it into smaller pieces either through data augmentation, through an analysis, and figure out a roadmap through that application or that monolithic applications and figure out how to move. >> Well that's, how you get an elephant, right? Leverage is one part at a time. >> Exactly, one part at a time. >> It's just one. >> Right, it's just leverage AI, leverage or AI and our platforms and machine learning. All these things are available and you can coexist with that. >> All right, so tell me about technical debt. I read about technical debt and you know, it kind of comes with the territory, >> Right. >> in terms of mainframe. So how do you, first off, you know, how do you define that and then how do you deal with that? How do you make that go away as far as concerns go? >> Well, you know, you have to look at your, for my definition for technical debts is the same thing when my wife says I have to do something in the backyard and I push it, I'll do it next time. Right? So it starts piling up, right? There's a lot of to-dos at the house. >> Absolutely. >> Right, it's the same thing, it's the IT to-dos that you just put off. >> I'll catch up to that some other time. >> Yep. >> And there you are, they keep on... And so next thing you know, you have this, oh my gosh I got all this work I got to do. >> Right. And that's part of the technical debt. And then so you got to look at how does that resolving that meet my needs for the cloud. So leveraging the cloud, if you're under mainframe you have limited solutions for addressing your technical debt. Leveraging the cloud with the mainframe, now you have multiple options for you. to tackle and eliminate your technical debt. So that's one of the benefits of leveraging the cloud for that. >> And I would add on to what Steve said about technical debt. It's exactly that, it's I haven't done that yet, but one of the things that I've seen is there's multiple ways to solve any problem, any programming problem technical problem from that, there's a shortcut way to get it done quickly, >> John: Right. >> that may not be clean and scalable and that. And what happens is, especially on the mainframe over 40 or 50 years, a lot of those shortcuts have been taken. And so it's not even as easy as, it's basically, you think about it, I didn't do it but now my grass is this high, >> John: Right. >> And now I got to do it, type of thing. So it's really about... >> And you can't use a lawnmower >> You can't use a lawnmower so you have to figure out different ways. >> You can't bag it, >> No, no. >> No, no, a whole nother >> Absolutely. >> Right. >> So understanding technical debt and overcoming it is realizing that those shortcuts need to be re-architected, redesigned, modernized, >> All right. >> from that perspective. And you need to take that perspective on. >> So you guys have to be kind of sometimes the bearer of bad news in a way, right? Because they have these, you said monolithic of systems in place that need revised they got to be modernized. >> Yep. >> And they've been kicking that can down the road. We've talked about some big companies for a long time. So they got a lot of baggage on that side and they have to get up to speed. So if, if you were talking to a prospective client, about understanding why it's time to start doing that necessary housekeeping, how do you convince people that this is the time? >> What are your top three absolutely mission critical applications that you have today, right? What is the staff that maintains it? What is the average age of those resources? And what is your succession strategy? >> Joel: Yep. >> It's as simple as that. >> Oh. >> I would add on to that. A lot of times we don't have to convince the customer right now. >> John: Right. >> The customers are coming to us, because what's happened is this whole digital transformation that's happening in the web and all that kind of stuff. Their competitors are already moving off of that. Or have come up with something else. So the business is coming and saying, why can't I move that fast? >> Right. >> And then, like Steve said is those are the reasons why you can't move that fast. So let's address those reasons. >> All right, the born of the cloud company is coming in, but also another driving force that's happening, If you look at a lot of our new customers. Are the digital natives arriving in the C-suites. So the folks that have always known the internet understand the benefits of the cloud, or where there's a new CIO, new CEO. >> Yep. >> And so we're seeing that changing of the guard type scenario. >> Because a lot of those people grew up with a mainframe. >> Right. Right. >> And of the old guard. >> Sure. >> And they're like, well it's worked for the last 30 years, why don't I just keep it working the same way it is. >> And don't we need it to work? >> Yeah >> Right? The way it has been? >> Yeah, exactly. >> Yeah. >> Well, and that's the other key thing, is the core applications. So what has happened with the cloud is over the last you know, 10, 15 years is a lot of the applications that could move moved. Now we're left with the core applications on the mainframe and those are the ones that a multi-billion dollar company, if they get that wrong, they're out business. So there's a lot of scrutiny and a lot of other things. So a lot of the stuff that we're doing now is to help understand that risk and get over that risk. >> And do companies have the expertise in house, to do this? And where do you find it outside? Because it, you know, might not be the sexiest thing to do. >> That's a great question because, you know Steve and I talk about this all the time which is running the mainframe is different than modernizing the mainframe. >> Steve: Right. And so I might have a lot of skills in house to run the mainframe, but how do I figure out to get, to break up that monolith into pieces. >> Steve: Right. How do I figure out, you know, how the best way to put that on AWS? How do I figure that out? You need to leverage people like AWS and Accenture and others to be able to do that. >> This is, there's a psychology to this and more technical, there's more psychological than technical. So you got to find your unicorns. People should have gas in the tank that want to adopt. >> Joel: Yep, absolutely. >> And the ones that don't, then, you know, they're out. You know, nothing like passive aggressive people showing up to help, to really cause havoc. (all laugh) And that's really what you got to kind of focus on. >> Yes. We see that a lot. >> Right. Right. But that's where the managing service comes in too right? >> Absolutely. >> You can get people there. You can, this is a worry they can check the box and move on and get help in that. >> Yeah. AWS, this is an industry first, where you have a managed service within your console to provision tooling to analyze, develop for the mainframe or deploy onto AWS. But the running of it, specific servers that have been you know, optimized for mainframe workloads with your monitoring and security and all those things it's an industry first. I've been in this business 30 years it's fantastic with what I'm seeing over here. >> And do you have any kind of a guess about what share is still out there to be had, in terms of modernizing mainframes, in terms of businesses? I mean, are there still, well, you know it might be hard to put a, to quantify it with a number, but there's still a lot of folks... >> Oh yeah. >> who haven't made that commitment yet. >> Well, they're beginning to, so if you look at, I think, I'm going to throw a number out, I think it's like 80% of the Fortune 100 companies have mainframes. >> Absolutely. >> Is that right? >> So yeah, if you paid your mortgage today, if you used your cell phone today, if you've done any of those things, core stuff is run on mainframe. >> Financial transactions are huge. >> Oh huge, huge, you've got airlines, manufacturing, >> Insurance. >> healthcare. >> John: Right. >> Pretty much everything runs on a mainframe, if you go deep enough in the organization. >> And so that's all, you know people are making those decisions. And what we've done is what I call an earn trust moment. You know, AWS standing up and saying, 'hey we're here to help our customers to move' we're a large organization, we're doing heavy investments in this. We have R&Dand staff, to help our customers transform with or to AWS. >> And we're seeing that resonated in the marketplace. So last year AWS announced the mainframe modernization service Over the last year, we've seen clients, like I said is they're coming to us now. >> Right. >> Saying we want to go mainframe zero, for lack of a better expression. And so we're just seeing a lot of activity. So what AWS did last year has really resonated within the marketplace and changed that dynamic. >> Well, the mainframe ain't dead yet. >> No. >> It isn't. >> It's not going to die. I think there's going to be a different >> Too big, two powerful and too necessary. >> Absolutely. >> Yeah I think we're going to coexist with it and some will leave, so. >> But you still need that same functionality, just somewhere else. >> All right. >> That's right. Well, appreciate the conversation, neighbor. >> Thank you. (all laugh) >> And have a great show. Look forward to seeing you down the road here. >> Thank you very much. >> Thanks John, appreciate it. >> Thanks for joining us here. You are watching theCUBE here at Reinvent 22. And theCUBE, as I remind you is the leader in high tech coverage. (soothing music)
SUMMARY :
at the Venetian. neighbors, as a matter of fact, monetization lead for the and kind of the status and the business needs to make a decision is basically the mainframe is And yet you're talking and selling that to somebody leverage the cloud to be competitive. We can get it to you Q2 of next year. That's probably not the That is not the if you develop, adopt as to where you want to move the workload. And change is rapid, Yep. So all of a sudden you set of the biggest struggles to modernize with that. on the mainframe to do that? So you could get benefits not waiting but you are able to drive that. What are the big boulder Yeah I hear about, at the mainframe is this big monolith. and figure out how to move. Well that's, how you and you can coexist with that. I read about technical debt and you know, how do you define that and is the same thing when my wife it's the IT to-dos that you just put off. And so next thing you know, you have this, And that's part of the technical debt. but one of the things that I've seen especially on the mainframe And now I got to do it, type of thing. lawnmower so you have to And you need to take that perspective on. So you guys have to and they have to get up to speed. convince the customer right now. So the business is coming and saying, you can't move that fast. So the folks that have changing of the guard type scenario. Because a lot of those Right. And they're like, well it's So a lot of the stuff that we're doing now not be the sexiest thing to do. than modernizing the mainframe. to get, to break up that How do I figure out, you know, So you got to find your unicorns. And that's really what you But that's where the managing and move on and get help in that. develop for the mainframe And do you have any kind of the Fortune 100 So yeah, if you paid if you go deep enough in the organization. And so that's all, you know the mainframe modernization service And so we're just seeing I think there's going to be a different and too necessary. going to coexist with it But you still need Well, appreciate the Thank you. you down the road here. And theCUBE, as I remind you
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Shigeo Kuwabara & Akiko Horie | AWS Executive Summit 2022
(calm tech music) >> Hello everyone. Welcome back to the AWS Cube coverage of Reinvent 2022. I'm John Fur, host of the Cube. We got a great interview segment here co-creating innovation with E.design. We got Shigeo Kuwabara who is with the President and the Chief Executive Officer E.design Insurance, and Akiko Hora Senior Managing Director Financial Services in Japan Inclusion and Diversity Lead at Accenture Japan. Thank you for joining me today. Thanks for coming on the cube. >> You're welcome, You're welcome, Thank you. >> I love this topic. E.design Create co-creating innovation automobile insurance with a product called "&e" It's cloud-based advanced automobile insurance system you guys built and called Safe Driving Together an initiative that uses data to reduce accidents. So great stuff. So let's get into it. Tell us about eDesign Insurance and your vision behind transforming to insurance tech company. Combining the technology, new type of automobile insurance for a digital age. >> Okay. With the pandemic of Covid 19 dissertation is accelerating at rapid pace everywhere. First, insurance were required to define the kind of easy to use, meaningful service they wanted to offer their customers. eDesign in collaboration with Accenture, sought to redefine the company's mission, vision and values by embracing the customer experience in a new way. While a customer's traditional view of automobile insurance is "just in case" Accenture and eDesign form the view that what customers really want is accident prevention. With a redefined objective of co-creating with customers not only peace of mind in the event of an accident, but also a world without accidents. ANDI developed a service that uses cutting edge digital technologies to create a safer and more secure car experience. >> Akiko talk about from insurance perspective and Accenture you know, we know about FinTech, you got InsureTech this is a segment that's growing rapidly, lot of data lot of new capabilities with the cloud. Can you share your thoughts on this new opportunity? >> This is a new innovation for many insurance client especially who owns, the traditional policyholder and the new generations. So they that give the new experience for customers, it makes a big change for the customer experience, and that eDesign is leading this experience in the world I think. >> Awesome. What are the key features of the advanced cloud-based automobile insurance system you guys call ANDI, and how does it work? >> The most advanced full crowd insurance system in the world and it embraces digital convenience to the fullest with a concept of creating safety with data; ANDI enables that initiative Safe Driving Together. It designs new initiative, aims to use available data to reduce the risk and causes of an accident, and to make society as a whole, as a whole safer and more secure. >> Why did you choose Accenture and AWS for this innovation? What unique value do they bring? >> Good question about Accenture. Accenture supported us in a wide range of areas including business, design, and IT. In addition to the industry knowledge embodiment of vision, and definition requirements. The PMO eliminated communication loss between the business and IT sites, and as a result the development was completed in a short period of time. In addition, Accenture studies in cutting edge digital technologies such as AI and data analysis is necessary to become an insured insurance company. And I appreciate Accenture's ability to provide such capabilities as well. >> Akiko talk about the IOT implementation here. A lot of data, a lot of design work. >> Yeah >> Take us through the experience. >> Okay. >> And how does Amazon and Accenture come together. >> ANDI and to support safe driving with eDesign insurance for the compact IOT car sensor with this size to put free charge for all of the policyholders to use a language mobile app. The system captures capture and monitors the drivers driving data, diagnosed and driving mood, and driving behavior which is safe or not and supports safe driving. In the event of the accident the system automatically detect the impact and can summarize the accident situation which is very difficult for the driver to recognize by themselves, and the location, location data. And many others and driver can then report the accident with single tap on their smartphone, very easy. And request assistance or repair shop on the spot. It's very safe and also very smooth for the giving the good experience for customers. >> I know Accenture has great expertise, that's one. But you have been in both involved in this smart market rollout. Can you explain that? The smart market rollout? >> Yeah, it's, it was very interesting that we we had the very smooth importation with eDesign and especially AWS allow us to give the open and crowd system to strong collaboration with many other ecosystem partners and many AI sensors and many IOT sensors opportunity. That gives us a lot of experience and give more opportunity for an eScape company like eDesign sample, so that can be more smooth and open implementation for the future. >> That's great rollout. You know we love this example of AWS Accenture eDesign co-creation. It reminds me of the big super cloud trend where industries can be refactored and and and scaled up. So how was ANDI built and what were the requirements driving the technical solution? >> We, we, we, we brought, we planned the architecture how that works for the future and especially Kuwabarason and the great leadership. He doesn't like something which already in the market and also which can be more fit for the future, the solution which fit for the future and maybe that can allow market customers to have big experience. That's why we, we choose open crowd, new trend, new digital trend and IOT or whatever. That gives our architecture definition, which can, lead by Kuwabarason with AWS with this crowd solution as well as with very packaged basis and also open connection with many other AI in the new technology. So that's why it can be more, this solution going to be grow more in the future and we will have more surprises in the future. Kuwabarason if you have some add add comment please >> Go Ahead. >> (laughing) >> Go ahead. What's your thought? Share? >> Thank, thank you Horason very good comment (laugh). So in collaboration with Accenture, I could develop our team's capability. Because we are working together like one team. That is a key success factor I think. >> Talk about the customer experience, and the results. What feedback have you received from your customers and what does the data say? >> Okay. One interesting feedback we receive is "I was always concerned about my wife's love of driving, but by showing her the ANDI driving score, I was able to point it out to her objectively, which was very helpful." That was a good feedback. In this way there are many positive feedback about the ability of visualize the safety, and danger of ones own driving. When I hear customers say that they can now drive more safely because they can objectively identify their bad driving through ANDI's safe driving program I feel very happy that we created ANDI >> Kiko your thoughts? >> Yeah, it's, it's very obvious that the customers likes how, customers likes the sensor saying how they are driving and they, they they sense my driving behavior is safe they are going to be confident. If not, they going to be very careful in the future that's happening. And maybe that can be aligned with insurance which eDesign is giving is more they feel more confident to drive in in many areas. And also that can give more opportunity that they can have more new type of insurance and new experience with the car. That's, that's kind of the interesting make up of power of the driving including the sensor would be happening. That can be good news for us and we can be more creative to think about new experience for customers. >> Congratulations for receiving the highest IT grand prize from the IT award sponsored by the Japan Institute of Information Technology. What's next for eDesign? Congratulations. What's next? How do you take it further, to change to transform the insurance business? >> Okay. I believe ANDI's strength lies in its data. By sharing data with our customers in a timely manner we contribute to their safe driving. We hope to work with customers to create a safe driving experience that is based on parts and that can be enjoyed like a game. Furthermore, we would like to create a society and community where accidents are less likely to occur. Based on the accumulated data in cooperation with local governments and other organizations. We'd like to contribute to the realization of such a safe and secure society by acquiring and analyzing solid data through ANDI On what kind of accidents occur and under what circumstances. >> Akiko Big awards. What's next? AWS, Accenture, eDesign take us through the vision. >> Yeah, it's, it's, I'm, I'm looking forward to do to do the next things and actually eDesign have not only auto insurance, they cover more home and also many others. So that can be giving the more safer opportunity for customers. They can leave their home very smoothly and even some disaster happening, they can escape very safely. Whatever happening in the family like childcare or maybe even their pet have some challenges we can take care of them and that's kind of many experience which which can align with eDesign's insurance. Most of the things we can give lot of safe and with data and also some IOT things and also insurance that's giving the more opportunity and something can truly resolve the social issue. That can be many opportunities. So that's why we have some plan. But we like to we like to keep a secret for the next future. >> Safe driving together, unlock benefits by gamifying and creating cloud-based advanced data, IOT sensors, encouraging drivers to work together to be safe. This is very, very an important story and thank you so much for sharing. eDesign, thank you for coming on. Congratulations on your awards, and transforming insurance tech. It should be fun. Not a hassle. Thank you for sharing. >> Thank you very much. >> Very much. >> Okay. eDesign co-creating innovation. This is the story of Cloud Next Generation. I'm John Fur the Cube, part of the AWS Reinvent 2022 Cube coverage here with Accenture. Thanks for watching. (calm tech music)
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Christoph Scholtheis, Emanuele Baldassarre, & Philip Schmokel | AWS Executive Summit 2022
foreign welcome to thecube's coverage of AWS re invent 2022. this is a part of our AWS executive Summit AT AWS re invent sponsored by Accenture I'm your host Lisa Martin I've got three guests here with me Christoph schulteis head of devops and infrastructure at Vodafone Germany joins us as well as IMAP baldasare the Accenture AWS business group Europe delivery lead attic Center and Philip schmuckel senior manager at Accenture technology we're going to be talking about what Vodafone Germany is doing in terms of its agile transformation the business and I.T gentlemen it's great to have you on thecube Welcome to the program thank you thanks for having us my pleasure Kristoff let's go ahead and start with you talk to us about what Vodafone Germany is doing in its transformation project with Accenture and with AWS certainly these are but let me first start with explaining what Vodafone does in general so Vodafone is one of the leading telephone and Technology service providers in Germany half of all German citizens are Vodafone customers using Vodafone technology to access the internet make calls and watch TV in the economic sector we provide connectivity for office farms and factories so this is vodafone's largest business and I.T transformation and we're happy to have several Partners on this journey with more than a thousand people working in scaled agile framework with eight Agile Release strings and one of the largest safe implementations in Europe why are we doing this transformation well not only since the recent uncertainties the Telco Market is highly volatile and there are a few challenges that Vodafone was facing in the last years as there are Market changes caused by disruptions from technological advances in competitors or changing customer customer expectations who for example use more of the top services like Netflix or Amazon Prime video what is coming up in the next wave is unknown so Technologies evolve continual disruption from non-tel causes to be expected and being able to innovate fast is the key Focus for everyone in order to be able to react to that we need to cope with that and do so in different aspects to become the leading digital technology company therefore Vodafone Germany is highly simplifying its products as well as processes for example introducing free product upgrades for customers we're driving the change from a business perspective and modernize the it landscape which we call the technology transformation so simply business-led but it driven for that Accenture is our integration partner and AWS provides the services for our platforms got it thank you for the background on the Vodafone the impact that it's making you mentioned the volatility in the Telecom market and also setting the context for what Vodafone Germany is doing with Accenture and AWS email I want to bring you into the conversation now talk to us about the partnership between Accenture and Vodafone in AWS and how is it set up to provide maximum value for customers yeah that's a great question actually well I mean working in Partnership allows obviously to bring in transparency and trust and these are key starting points for a program of this magnitude and a program like this comes out of strong willingness to change the game both internally and on the market so as you can imagine particular attention is required that's top level alignment in general when you implement a program like this you also need to couple the long-term vision of how you want to manage your customers what are the new products that you want to bring to the market with the long-term technology roadmap because the thing that you don't want to happen is that you invest many years and a lot of efforts and then when it comes the end of the journey you figure out that you have to restart a New Journey and then you enter in the NeverEnding Loop so obviously all these things must come together and they come together in what we call the power of three and it consists in AWS Vodafone and Accenture having a strategic Vision alignment and constant updates and most importantly the best of breed in terms of technology and also people so what we do in practice is uh we bring together Market understanding business Vision technical expertise energy collaboration and what is even more important we work as a unique team everybody succeeds here and this is a true win-win partnership more specifically Vodafone leads the Strategic Direction obviously they understand the market they are close to their customers AWS provides all the expertise around the cloud infrastructure insights on the roadmap and this is a key element elasticity both technical but also Financial and the then Accenture comes with its ability to deliver with the strong industry expertise flexibility and when you combine all these ingredients together obviously you understand it's easy to succeed together the power of three it sounds quite compelling it sounds like a very partnership that has a lot of flexibility elasticity as you mentioned and obviously the customer at the end of the day benefits tremendously from that Kristoff I'd like to bring you back into the conversation talk to us about the unified unified platform approach how is walk us through how Vodafone is implementing it with AWS and with Accenture so the applications that form the basis for the transformation program were originally pursuing all kinds of approaches for deployment and use of AWS services in order to support faster adoption and optimize the usage that I mentioned before and we have provided the Vodafone Cloud framework that has been The Trusted platform for several projects within the it in Germany as a side effect the framework facilitates the compliance with Vodafone security requirements and the unified approach also has the benefit that someone who is moving from one team to another will find a structure that looks familiar the best part of the framework though is the operative rights deployment process that helps us reducing the time from implementing for example a new stage from a few weeks to me hours and that together with improvements of the cicd pipeline greatly helped us reducing the time to speed up something and deploy the software on it in order to reach our Target kpis the unified platform provides all kinds of setups like AWS eks and the ecosystem that is commonly used with coping dentists like service mesh monitoring logging and tracing but it can also be used for non-continental erased applications that we have and provide the integration with security monitoring and other tools at the moment we are in contact with other markets of Vodafone to globally share our experience in our code which makes introducing a similar system into other markets straightforward we are also continuously improving our approach and the completely new version of the framework is currently being introduced into the program Germany is doing is really kind of setting the stage as you mentioned Christopher other parts of the business who want to learn from so that's a great thing there that that what you're building is really going to spread throughout the organization and make a positive impact Philip let's bring you into the conversation now let's talk about how you're using AWS specifically to build the new Vodafone Cloud integration platform talk to us about that as part of this overall transformation program sure and let's make it even more specific let's talk API management so looking at the program and from a technology point of view what it really is it is a bold step for Vodafone it's rebuilding huge parts of the infrastructure of their business ID infrastructure on AWS it's Greenfield it's new it's a bold step I would say and then if you put the perspective of API management or integration architecture what I call it it's a unique opportunity at the same time so what it what it gives you is the the opportunity to build the API management layer or an API platform with standardized apis right from the get-go so from the beginning you can build the API platform on top which is in contrast what we see throughout the industry where we see huge problems at our clients at other engagements that try to build these layers as well but they're building them on Legacy so that really makes it unique here for Vodafone and a unique opportunity to we have this API first platform built as part of the transformation program so what we have been built is exactly this platform and as of today there is more than 50 standardized apis throughout the application landscape already available to give you a few examples there is an API where I can change customer data for instance I can change the payment method of a customer straight from an API or I can reboot a customer equipment right from it from an API to fix a network issue other than that of course I can submit an order to order one of vodafone's gigabit internet offerings so on top of the platform there's a developer portal which gives me the option to explore all of the apis yeah in a convenient way in a portal and that's yeah that's developer experience meaning I can log into this portal look through the apis understand what I what I need and just try it out directly from the portal I see the response of an API live in the portal and this is it is really in contrast to what what we've seen before where you would have a long word document a cumbersome spreadsheet a long lasting process to get your hands on and this really gives you the opportunity to just go in try out an API and see how it works so it's really developer experience and a big step forward here then yeah how have we built this platform of course it's running on AWS it's Cloud native it's using eks but what I want to point out here is three principles that that we applied where the first one is of course the cloud native principle meaning we using AKs we are using containers we have infrastructure scales so we aim for every component being Cloud native being meant to be run in the cloud so our infrastructure will sleep at night to save Vodafone cost and it will wake up for the Christmas business where Vodafone intends to do the biggest business and scale of its platform second there is the uh the aim for open API specifications what we aim for is event non-vendor-specific apis so it should not matter whether there's an mdocs backend there's a net tracker back end or an sap Behind These apis it is really meant to decouple the different Business Systems of of a Vodafone by these apis that can be applied by a new custom front-end or by a new business to business application to integrate these apis last but not least there's the automate everything so there's infrastructure as code all around our platform where where I would say the biggest magic of cloud is if we were to lose our production environment lose all apis today it will take us just a few minutes to get everything back and whatever everything I mean redeploy the platform redeploy all apis all services do the configuration again and it will be back in a few minutes that's impressive as downtime is so costly for so many different reasons I think we're gonna know when the vision of this transformation project when it's been achieved how are you going to know that okay so it's kind of flipping the perspective a bit uh maybe uh when I joined Vodafone in in late 2019 I would say the vision for Vodafone was already set and it was really well well put out there it was lived in in the organization it was for Vodafone to become a digital company to become a digital service provider to to get the engineering culture into the company and I would say this Vision has not changed until today maybe now call it a North star and maybe pointing out two big Milestones that have been achieved with this transformation program so we've talked about the safe framework already so with this program we wrote out the one of the biggest safe implementations in the industry which is a big step for Vodafone in its agile Journey as of today there's the safe framework supporting more than 1 000 FTE or 1000 colleagues working and providing value in the transformation program second example or second big milestone was the first go-life of the program so moving stuff to production really proving it works showcasing to the business that it it is actually working there is actually a value provided or constant value provided with a platform and then of course you're asking for next steps right uh talking next steps there is a renewed focus on value and A Renewed focus on value between Accenture and Vodafone means focus on what really provides the most value to Vodafone and I would like to point out two things here the first being migrate more customers scale the platform really prove the the the the the cloud native platform by migrating more customers to it and then second it enables you to decommission the Legacy Stacks decommissioning Legacy Stacks is why we are doing it right so it's migrating to the new migrating to the new platform so last but not least maybe you can hear it we will continue this journey together with with Vodafone to become a digital company or to say that their own words from Telco to TECO I love that from Telco to technology gentlemen thank you so much for joining us on thecube today talking about the power of three Accenture AWS Vodafone how you're really enabling Vodafone to transform into that digital technology company that consumers at the end of the day that demanding consumers want we appreciate your insights and your time thank you so much thank you for having us my pleasure for my guests I'm Lisa Martin you're watching thecube's coverage of the AWS executive Summit AT AWS re invent sponsored by Accenture thanks for watching
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Amar Narayan & Lianne Anderton | AWS Executive Summit 2022
(bright upbeat music) >> Well, hello everybody. John Walls is here on "the CUBE". Great to have you with us as we continue our series here at the AWS Executive Summit sponsored by Accenture. And today we're talking about public service and not just a little slice of public service but probably the largest public sector offering in the UK and for with us or with us. Now to talk about that is Lianne Anderton, who is in with the Intelligent Automation Garage Delivery Lead at the UK Department of Work and Pension. Lianne, good to see you today. Thanks for joining us here on "the CUBE". >> Hi, thanks for having me. >> And also with this us is Amar Narayan, who is a Manager Director at Accenture the AWS Business Group for the Lead in Health and Public Sector, also UK and Ireland. And Amar, I think, you and Lianne, are in the same location, Newcastle, I believe in the UK, is that right? >> Yeah, absolutely. Yep, yeah, we're, here in the northeast of UK. >> Well, thank you for being with us. I appreciate the time. Lianne, let's talk about what you do, the Department of Work and Pension, the famous DWP in England. You have influence or certainly touchpoints with a huge amount of the British population. In what respects, what are you doing for the working class in England and what does technology have to do with all that? >> Sure, so for the Department for Work and Pensions I think the pensions bit is fairly self explanatory so anybody who is over state pension age within the UK. for the work part of that we also deal with people of working age. So, these are people who are either in employment and need additional help through various benefits we offer in the UK. Those people who are out of work. And we also deal with health related benefits as well. And we are currently serving over 20 million claimants every year at this moment in time. So, we're aware of a huge part of the UK government. >> All right, so say that number again. How many? >> 20 million claimants every year. >> Million with an M, right? >> Yeah. >> So, and that's individuals. And so how many transactions, if you will, how many do you think you process in a month? How, much traffic basically, are you seeing? >> An extraordinary amount? I'm not even, I don't think I even know that number. (Lianne laughing) >> Mind blowing, right? So, it's- >> A huge, huge amount. >> Mind blowing. >> Yeah, so, basically the we kind of keep the country going. So, you know, if the department for Work and Pensions kind of didn't exist anymore then actually it would cause an infinite number of problems in society. We, kind of help and support the people who need that. And, yeah, so we play a really vital role in kind of you know, social care and kind of public service. >> So, what was your journey to Accenture then? What, eventually led you to them? What problem were you having and how have you collaborated to solve that? >> So, in terms of how we work with Accenture. So, we had in around 2017 DWP was looking at a projected number of transactions growing by about 210 million which was, you know, an extraordinary amount. And, you know, I think as we've kind of covered everything that we do is on a massive scale. So, we as DWP as an organization we had absolutely no idea how we were going to be able to handle such a massive increase in the transactions. And actually, you know, after kind of various kind of paths and ideas of how we were going to do that, automation, was actually the answer. But the problem that we have with that is that we have, like many governments around the world, we have really older legacy systems. So, each of these benefits that we deal with are on legacy systems. So, whatever we were going to develop had to, you know, connect to all of these, it had to ingest and then process all of these pieces of data some of which, you know, given the fact that a lot of these systems have a lot of manual input you have data issues there that you have to solve and whatever we did, you know, as we've talked about in terms of volumes has to scale instantly as well. So, it has to be able to scale up and down to meet demand and, you know, and that down scaling is also equally as important. So yeah, you've got to be able to scale up to meet the volumes but also you've got to be able to downscale when when it's not needed. But we had nothing that was like that kind of helped us to meet that demand. So, we built our own automation platform, The Intelligent Automation Garage and we did that with Accenture. >> So Amar, I'd like you to chime in here then. So, you're looking at this client who has this massive footprint and obviously vital services, right? So, that's paramount that you have to keep that in mind and the legacy systems that Lianne was just talking about. So, now you're trying to get 'em in the next gen but also respecting that they have a serious investment already in a lot of technology. How do you approach that kind of problem solving, those dynamics and how in this case did you get them to automation as the solution? >> Sure, so I think I think one of the interesting things, yeah as Lianne has sort of described it, right? It's effectively like, you know the department has to have be running all of the time, right? They can't, you know, they can't effectively stop and then do a bunch of IT transformation, you know it's effectively like, you know, changing the wheels of a jumbo jet whilst it's taking off, right? And you've got to do all of that all in one go. But what I think we really, really liked about the situation that we were in and the client relationship we had was that we knew we had to it wasn't just a technology play, we couldn't just go, "All right, let's just put some new technology in." What we also needed to do was really sort of create a culture, an innovation culture, and go, "Well how do we think about the problems that we currently have and how do we think about solving them differently and in collaboration, right?" So, not just the, "Let's just outsource a bunch of technology for to, you know, to Accenture and build a bunch of stuff." So, we very carefully thought about, well actually, the unique situation that they're in the demands that the citizens have on the services that the department provide. And as Lianne mentioned, that technology didn't exist. So, we fundamentally looked at this in a different way. So, we worked really closely with the department. We said, Look, actually what we ultimately need is the equivalent of a virtual workforce. Something where if you already, you know all of a sudden had a hundred thousand pension claims that needed to be processed in a week that you could click your fingers and, you know in a physical world you'd have another building all of your kits, a whole bunch of trained staff that would be able to process that work. And if in the following week you didn't need that you no longer needed that building that stuff or the machinery. And we wanted to replicate that in the virtual world. So, we started designing a platform we utilized and focused on using AWS because it had the scalability. And we thought about, how were we going to connect something as new as AWS to all of these legacy systems. How are we going to make that work in the modern world? How are we going to integrate it? How we going to make sure it's secure? And frankly, we're really honest with the client we said, "Look, this hasn't been done before. Like, nowhere in Accenture has done it. No one's done it in the industry. We've got some smart people, I think we can do it." And, we've prototyped and we've built and we were able to prove that we can do that. And that in itself just created an environment of solving tricky problems and being innovative but most importantly not doing sort of proof of concepts that didn't go anywhere but building something that actually scaled. And I think that was really the real the start of what was has been the Garage. >> So, And Lianne, you mentioned this and you just referred to it Amar, about The Garage, right? The Intelligent Automation Garage. What exactly is it? I mean, we talked about it, what the needs are all this and that, but Lianne, I'll let you jump in first and Amar, certainly compliment her remarks, but what is the IAG, what's the... >> So, you know, I think exactly what kind of Amar, has said from a from a kind of a development point of view I think it started off, you know, really, really small. And the idea is that this is DWP, intelligent automation center of excellence. So, you know, it's aims are that, you know, it makes sure that it scopes out kind of the problems that DWP are are facing properly. So, we really understand what the crux of the problem is. In large organizations It's very easy, I think to think you understand what the problem is where actually, you know, it is really about kind of delving into what that is. And actually we have a dedicated design team that really kind of get under the bonnet of what these issues really are. It then kind of architects what the solutions need to look like using as Amar said, all the exciting new technology that we kind of have available to us. That kind of sensible solution as to what that should look like. We then build that sensible solution and we then, you know as part of that, we make sure that it scales to demand. So, something that might start out with, I dunno, you know a few hundred claimants or kind of cases going through it can quite often, you know, once that's that's been successful scale really, really quickly because as you know, we have 20 million claimants that come through us every year. So, these types of things can grow and expand but also a really key function of what we do is that we have a fully supported in-house service as well. So, all of those automations that we build are then maintained and you know, so any changes that kind of needed to be need to be made to them, we have all that and we have that control and we have our kind of arms wrapped around all of those. But also what that allows us to do is it allows us to be very kind of self-sufficient in making sure that we are as sufficient, sorry, as efficient as possible. And what I mean by that is looking at, you know as new technologies come around and they can allow us to do things more effectively. So, it allows us to kind of almost do that that kind of continuous improvement ourselves. So, that's a huge part of what we do as well. And you know, I think from a size point of view I said this started off really small as in the idea was this was a kind of center of excellence but actually as automation, I think as Amar alluded to is kind of really started to embed in DWP culture what we've started to kind of see is the a massive expansion in the types of of work that people want us to do and the volume of work that we are doing. So, I think we're currently running at around around a hundred people at the moment and I think, you know we started off with a scrum, a couple of scrum teams under Amar, so yeah, it's really grown. But you know, I think this is here to stay within DWP. >> Yeah, well when we talk about automation, you know virtual and robotics and all this I like to kind of keep the human element in mind here too. And Amar, maybe you can touch on that in certain terms of the human factors in this equation. 'Cause people think about, you know, robots it means different things to different people. In your mind, how does automation intersect with the human element here and in terms of the kinds of things Lianne wants to do down the road, you know, is a road for people basically? >> Oh yeah, absolutely. I think fundamentally what the department does is support people and therefore the solutions that we designed and built had to factor that in mind right? We were trying to best support and provide the best service we possibly can. And not only do we need to support the citizens that it supports. The department itself is a big organization, right? We're up to, we're talking between sort of 70 and 80,000 employees. So, how do we embed automation but also make the lives of the, of the DWP agents better as well? And that's what we thought about. So we said, "Well look, we think we can design solutions that do both." So, a lot of our automations go through a design process and we work closely with our operations team and we go, well actually, you know in processing and benefit, there are some aspects of that processing that benefit that are copy and paste, right? It doesn't require much thought around it, but it just requires capturing data and there's elements of that solution or that process that requires actual thought and understanding and really empathy around going, "Well how do I best support this citizen?" And what we tended to do is we took all of the things that were sort of laborious and took a lot of time and would slow down the overall process and we automated those and then we really focused on making sure that the elements that required the human, the human input was made as user friendly and centric as we possibly could. So, if there's a really complex case that needs to be processed, we were able to present the information in a really digestible and understandable way for the agents so that they could make a informed and sensible decision based around a citizen. And what that enabled us to do is essentially meet the demands of the volumes and the peaks that came in but also maintain the quality and if not improve, you know the accuracy of the claims processing that we had. >> So, how do you know, and maybe Lianne, you can address this. How do you know that it's successful on both sides of that equation? And, 'cause Amar raised a very good point. You have 70 to 80,000 employees that you're trying to make their work life much more efficient, much simpler and hopefully make them better at their jobs at the end of the day. But you're also taking care of 20 million clients on the, your side too. So, how do you, what's your measurement for success and what kind of like raw feedback do you get that says, "Okay, this has worked for both of our client bases, both our citizens and our employees?" >> Yeah, so we can look at this both from a a quantitative and a qualitative point of view as well. So, I think from a let take the kind figures first. So we are really hot on making sure that whatever automations we put in place we are there to measure how that automation is working what it's kind of doing and the impact that it's having from an operational point of view. So I think, you know, I think the proof of the fact that the Intelligent Automation Garage is working is that, you know, in the, in its lifetime, we've processed over 20 million items and cases so far. We have 65 scaled and transitioned automations and we've saved over 2 million operational hours. I was going to say that again that's 2 million operational hours. And what that allows us to do as an organization those 2 million hours have allowed us to rather than people as Amar, said, cutting and pasting and doing work that that is essentially very time consuming and repetitive. That 2 million hours we've been able to use on actual decision making. So, the stuff that you need as sentient human being to make judgment calls on and you know and kind of make those decisions that's what it's allowed us as an organization to do. And then I think from a quality point of view I think the feedback that we have from our operational teams is, you know is equally as as great. So, we have that kind of feedback from, you know all the way up from to the director level about, you know how it's kind of like I said that freeing up that time but actually making the operational, you know they don't have an easy job and it's making that an awful lot easier on a day to day basis. It has a real day to day impact. But also, you know, there are other things that kind of the knock on effects in terms of accuracy. So for example, robot will do is exactly as it's told it doesn't make any mistakes, it doesn't have sick days, you know, it does what it says on the tin and actually that kind of impact. So, it's not necessarily, you know, counting your numbers it's the fact that then doesn't generate a call from a customer that kind of says, "Well you, I think you've got this wrong." So, it's all that kind of, these kind of ripple effects that go out. I think is how we measure the fact that A, the garage is working and b, it's delivering the value that we needed to deliver. >> Robots, probably ask better questions too so yeah... (Lianne laughing) So, real quick, just real quick before you head out. So, the big challenge next, eureka, this works, right? Amar, you put together this fantastic system it's in great practice at the DWP, now what do we do? So, it's just in 30 seconds, Amar, maybe if you can look at, be the headlights down the road here for DWP and say, "This is where I think we can jump to next." >> Yeah, so I think, what we've been able to prove as I say is that is scaled innovation and having the return and the value that it creates is here to stay, right? So, I think the next things for us are a continuous expand the stuff that we're doing. Keeping hold of that culture, right? That culture of constantly solving difficult problems and being able to innovate and scale them. So, we are now doing a lot more automations across the department, you know, across different benefits across the digital agenda. I think we're also now becoming almost a bit of the fabric of enabling some of the digital transformation that big organizations look at, right? So moving to a world where you can have a venture driven architectures and being able to sort of scale that. I also think the natural sort of expansion of the team and the type of work that we're going to do is probably also going to expand into sort of the analytics side of it and understanding and seeing how we can take the data from the cases that we're processing to overall have a smoother journey across for our citizens. But it's looking, you know, the future's looking bright. I think we've got a number of different backlogs of items to work on. >> Well, you've got a great story to tell and thank you for sharing it with us here on "the CUBE", talking about DWP, the Department of Work and Pensions in the UK and the great work that Accenture's doing to make 20 million lives plus, a lot simpler for our friends in England. You've been watching ""the CUBE"" the AWS Executive Summit sponsored by Accenture. (bright upbeat music)
SUMMARY :
in the UK and for with us or with us. And Amar, I think, you and in the northeast of UK. Lianne, let's talk about what you do, And we also deal with health All right, so say that number again. And so how many transactions, if you will, I even know that number. So, you know, if the department But the problem that we have with that and the legacy systems that that in the virtual world. and you just referred to it So, all of those automations that we build of the kinds of things Lianne and we go, well actually, you know So, how do you know, and maybe Lianne, So, the stuff that you need So, the big challenge next, the department, you know, story to tell and thank you
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Justin Shirk and Paul Puckett | AWS Executive Summit 2022
>>Welcome back here on the Cube. I'm John Walls. We are in Las Vegas at the Venetian, and this is Reinvent 22 in the Executive Summit sponsored by Accenture. Glad to have you with us here as we continue our conversations. I'm joined by Paul Puckett, who's the former director of the Enterprise Cloud Management Services at the US Army. Paul, good to see you sir. Hey, you as well, John. Thank you. And Justin, she who is managing director and cloud go to market lead at Accenture Federal Services. Justin, good morning to you. Good morning, John. Yeah, glad to have you both here on the cube. First time too, I believe, right? Yes sir. Well, welcome. I wish we had some kind of baptism or indoctrination, but I'll see what I can come up with in the next 10 minutes for you. Let's talk about the Army, Paul. So enterprise cloud management, US Army. You know, I can't imagine the scale we're talking about here. I can't imagine the solutions we're talking about. I can't imagine the users we're talking about. Just for our folks at home, paint the picture a little bit of what kind of landscape it is that you have to cover with that kind of title. >>Sure. The United States Army, about 1.4 million people. Obviously a global organization responsible for protecting and defending the United States as part of our sister services in the Department of Defense. And scale often comes up a lot, right? And we talk about any capability to your solution for the United States Army scale is the, the number one thing, but oftentimes people overlook quality first. And actually when you think of the partnership between the Army and Accenture Federal, we thought a lot when it came to establishing the enterprise Cloud management agency that we wanted to deliver quality first when it came to adopting cloud computing and then scale that quality and not so much be afraid of the, the scale of the army and the size that forces us to make bad decisions. Cuz we wanted to make sure that we proved that there was opportunity and value in the cloud first, and then we wanted to truly scale that. And so no doubt, an immense challenge. The organization's been around for now three years, but I think that we've established irreversible momentum when it comes to modernization, leveraging cloud computing >>For the army. So let's back up. You kind of threw it in there, the ecma. So this agency was, was your a collaboration, right? To create from the ground up and it's in three years in existence. So let's just talk about that. What went into that thinking? What went into the planning and then how did you actually get it up and run into the extent that it is today? >>Sure. Well, it was once the enterprise cloud management office. It was a directorate within the, the CIO G six of the United States Army. So at the headquarters, the army, the chief information Officer, and the G six, which is essentially the military arm for all IT capability were once a joint's organization and the ECMO was created to catalyze the adoption of cloud computing. The army had actually been on a, a cloud adoption journey for many years, but there wasn't a lot of value that was actually derived. And so they created the ecma, well, the ECMO at the time brought me in as the director. And so we were responsible for establishing the new strategy for the adoption of cloud. One of the components of that strategy was essentially we needed an opportunity to be able to buy cloud services at scale. And this was part of our buy secure and build model that we had in place. And so part of the buy piece, we put an acquisition strategy together around how we wanted to buy cloud at scale. We called it the cloud account management optimization. OTA >>Just rolls right off the >>Tongue, it just rolls right off the tongue. And for those that love acronyms, camo, >>Which I liked it when I was say cama, I loved that. That was, that was, >>You always have to have like a tundra, a little >>Piece of that. Very good. It was good. >>But at the time it was novetta, no, Nevada's been bought up by afs, but Novea won that agreement. And so we've had this partnership in place now for just about a year and a half for buying cloud computing net scale. >>So let's talk about, about what you deal with on, on the federal services side here, Justin, in terms of the army. So obviously governance, a major issue, compliance, a major issue, security, you know, paramount importance and all that STEM leads up to quality that Paul was talking about. So when you were looking at this and keeping all those factors in, in your mind, right? I mean, how many, like, oh my God, what kind of days did you have? Oh, well, because this was a handful. >>Well, it was, but you could see when we were responding to the acquisition that it was really, you know, forward thinking and forward leaning in terms of how they thought about cloud acquisition and cloud governance and cloud management. And it's really kind of a sleepy area like cloud account acquisition. Everyone's like, oh, it's easy to get in the cloud, you know, run your credit card on Amazon and you're in, in 30 seconds or less. That's really not the case inside the federal government, whether it's the army, the Air Force or whoever, right? Those, those are, they're real challenges in procuring and acquiring cloud. And so it was clear from, you know, Paul's office that they understood those challenges and we were excited to really meet them with them. >>And, and how, I guess from an institutional perspective, before this was right, I I assume very protective, very tight cloistered, right? You, you, in terms of being open to or, or a more open environment, there might have been some pushback was they're not. Right? So dealing with that, what did you find that to be the case? Well, so >>There's kind of a few pieces to unpacking that. There's a lot of fear in trepidation around something you don't understand, right? And so part of it is the teaching and training and the, and the capability and the opportunity in the cloud and the ability to be exceptionally secure when it comes to no doubt, the sensitivity of the information of the Department of Defense, but also from an action acquisition strategy perspective, more from a financial perspective, the DOD is accustomed to buying hardware. We make these big bets of these big things to, to live in today's centers. And so when we talk about consuming cloud as a utility, there's a lot of fear there as well, because they don't really understand how to kind of pay for something by the drink, if you will, because it incentivizes them to be more efficient with their utilization of resources. >>But when you look at the budgeting process of the d od, there really is not that much of incentive for efficiency. The p PPE process, the planning program, budgeting, execution, they care about execution, which is spending money and you can spend a lot of money in the cloud, right? But how are you actually utilizing that? And so what we wanted to do is create that feedback loop and so the utilization is actually fed into our financial systems that help us then estimate into the future. And that's the capability that we partnered with AFS on is establishing the closing of that feedback loop. So now we can actually optimize our utilization of the cloud. And that's actually driving better incentives in the PPE >>Process. You know, when you think about these keywords here, modernized, digitized, data driven, so on, so forth, I, I don't think a lot of people might connect that to the US government in general just because of, you know, it's a large intentionally slow moving bureaucratic machine, right? Is that fair to characterize it that way? It >>Is, but not in this case. Right? So what we done, >>You you totally juxtapose that. Yeah. >>Yeah. So what we've done is we've really enabled data driven decision making as it relates to cloud accounts and cloud governance. And so we have a, a tool called Cloud Tracker. We deployed for the army at a number of different classifications, and you get a full 360 view of all of your cloud utilization and cloud spend, you know, really up to date within 24 hours of it occurring, right? And there a lot of folks, you know, they didn't never went into the console, they never looked at what they were spending in cloud previously. And so now you just go to a simple web portal and see the entire entirety of the army cloud spend right there at your fingertips. So that really enables like better decision making in terms of like purchasing savings plans and reserved instances and other sorts of AWS specific tools to help you save money. >>So Paul, tell me about Cloud Tracker then. Yeah, I mean from the client side then, can you just say this dashboard lays it out for you right? In great detail about what kind of usage, what kind of efficiencies I assume Yeah. What's working, what's not? >>Absolutely. Well, and, and I think a few things to unpack that's really important here is listen, any cloud service provider has a concept. You can see what you're actually spending. But when it comes to money in the United States government, there are different colors of money. There's regulations when it comes to how money is identified for different capabilities or incentives. And you've gotta be very explicit in how you track and how you spend that money from an auditability perspective. Beyond that, there is a move when it comes to the technology business management, which is the actual labeling of what we actually spend money on for different services or labor or software. And what Cloud Tracker allows us to do is speak the language of the different colors of money. It allows us to also get very fine grain in the actual analysis of, from a TBM perspective, what we're spending on. >>But then also it has real time hooks into our financial systems for execution. And so what that really does for us is it allows us to complete the picture, not just be able to see our spend in the cloud, but also be able to able to see that spending context of all things in the P P P E process as well as the execution process that then really empowers the government to make better investments. And all we're seeing is either cost avoidance or cost savings simply because we're able to close that loop, like I said. Yep. And then we're able to redirect those funds, retag them, remove them through our actual financial office within the headquarters of the army, and be able to repurpose that to other modernization efforts that Congress is essentially asking us to invest >>In. Right. So you know how much money you have, basically. Exactly. Right. You know how much you've already spent, you know how you're spending it, and now you how much you have left, >>You can provide a reliable forecast for your spend. >>Right. You know, hey, we're, we're halfway through this quarter, we're halfway through the, the fiscal year, whatever the case might be. >>Exactly. And the focus on expenditures, you know, the government rates you on, you know, how much have you spent, right? So you have a clear total transparency into what you're going to spend through the rest of the fiscal. Sure. >>All right. Let's just talk about the relationship quickly then about going forward then in terms of federal services and then what on, on the, the US Army side. I mean, what now you've laid this great groundwork, right? You have a really solid foundation where now what next? >>We wanna be all things cloud to the army. I mean, we think there's tremendous opportunity to really aid the modernization efforts and governance across the holistic part of the army. So, you know, we just, we want to, we wanna do it all with the Army as much as we can. It's, it's, it's a fantastic >>Opportunity. Yeah. AFS is, is in a very kind of a strategic role. So as part of the ecma, we own the greater strategy and execution for adoption of cloud on behalf of the entire army. Now, when it comes to delivery of individual capabilities for mission here and there, that's all specific to system owners and different organizations. AFS plays a different role in this instance where they're able to more facilitate the greater strategy on the financial side of the house. And what we've done is we've proven the ability to adopt cloud as a utility rather than this fixed thing, kind of predict the future, spend a whole bunch of money and never use the resource. We're seeing the efficiency for the actual utilization of cloud as a utility. This actually came out as one of the previous NDAs. And so how we actually address nda, I believe it was 2018 in the adoption of cloud as a utility, really is now cornerstone of modernization across all of the do d and really feeds into the Jo Warfighting cloud capability, major acquisition on behalf of all of the D O D to establish buying cloud as just a common service for everyone. >>And so we've been fortunate to inform that team of some of our lessons learned, but when it comes to the partnership, we just see camo moving into production. We've been live for now a year and a half. And so there's another two and a half years of runway there. And then AFS also plays a strategic role at part of our cloud enablement division, which is essentially back to that teaching part, helping the Army understand the opportunity of cloud computing, align the architectures to actually leverage those resources and then deliver capabilities that save soldier's >>Lives. Well, you know, we've, we've always known that the Army does its best work on the ground, and you've done all this groundwork for the military, so I'm not surprised, right? It's, it's a winning formula. Thanks to both of you for being with us here in the executive summit. Great conversation. Awesome. Thanks for having us. A good deal. All right. Thank you. All right. You are watching the executive summit sponsored by Accenture here at Reinvent 22, and you're catching it all on the cube, the leader in high tech coverage.
SUMMARY :
a little bit of what kind of landscape it is that you have to cover with that kind of title. And actually when you think of the partnership between the Army and Accenture Federal, we thought a lot For the army. And so part of the Tongue, it just rolls right off the tongue. Which I liked it when I was say cama, I loved that. It was good. But at the time it was novetta, no, Nevada's been bought up by afs, but Novea won that agreement. So let's talk about, about what you deal with on, on the federal services side here, And so it was clear from, you know, Paul's office that So dealing with that, what did you find that to be the case? in the cloud and the ability to be exceptionally secure when it comes to no doubt, the sensitivity of the information And that's the capability that You know, when you think about these keywords here, modernized, digitized, data driven, So what we done, You you totally juxtapose that. We deployed for the army at a number of different classifications, and you get a full 360 Yeah, I mean from the client side then, can you just say this dashboard lays And what Cloud Tracker allows us to do is speak the language of the different colors of money. And so what So you know how much money you have, basically. You know, hey, we're, we're halfway through this quarter, we're halfway through the, the fiscal year, And the focus on expenditures, you know, the government rates you on, you know, Let's just talk about the relationship quickly then about going forward then in terms of federal services and really aid the modernization efforts and governance across the holistic the ability to adopt cloud as a utility rather than this fixed thing, kind of predict the future, And so we've been fortunate to inform that team of some of our lessons learned, Thanks to both of you for being with us here in the executive summit.
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Chris Wegmann, Accenture & Erik Farr, AWS | AWS Executive Summit 2022
(upbeat music) >> Welcome back to Las Vegas, we're at Reinvent 22, AWS's big show going on here at the Venetian. Several thousand, tens of thousands of folks packing that exhibit four and going to sessions and also learning a lot about what's going on in the cloud space. And today we're going to talk about speed, velocity, to be specific. And with me to do that is Chris Wegmann who's the global technology and business lead for the Accenture AWS business group. And Chris is with Accenture. And then Erik Farr immediately on my right, is the global technology leader again for the AWS business group, but at AWS. So very similar titles guys, you're making it tough on the host. But glad to have you with us here. Really appreciate the time. So let's talk about velocity, you know, what's that all about? And Erik, I'll let you jump in on that. And then Chris, you go from there. How about that? >> Yeah, so with velocity, it's really about innovation. It's really about trying to speed the way that we help our customers, not just innovate through the AWS services, but with Accenture. With their ability to come in and really just kind of bring their expertise in industries and in the technology underpinnings and kind of all of the aspects of what we do together as a partnership. >> Okay. Chris? >> Yeah, so when we came up with a concept around velocity, we worked backwards from the customers the traditional Amazon way, right? So, we looked across a lot of the programs we were doing with our customers as well as we were doing internally when we were building assets to take to the market on AWS. And we found we were spending way too much time, anywhere from six to eight months just getting all the foundation in place, all the integration in place, getting the services to the point where we could actually build on top of it or our customers could build on top of it. And we got challenged. We said, there's got to be a better way, right? And so we took a different look at it. We said, can we go build an application? Can we go build code versus accelerators or our blueprints or that type of stuff that really would allow us to walk into a customer or walk into one of our internal organizations that had a an idea around an application or solution to be built on AWS to take to our customers as a service. And said can we go through just a very simple set of checklist, predefined architectures, predefined solutions and that stuff, and can we just crank it out, right? Can we, and that's what we've built. We built this tool and platform based on that concept. So it's designed and it is helping us internally as well as our customers just go that much faster and get to that innovation that Erik talked about. >> So how did it happen between the two of you? >> Yeah. >> It's not easy, right? I mean, as good as your culture is there's still going to be some bumps along the way right? And so how did that evolve? What was that process like? >> Yeah, it's a great question. So I've been working with Accenture for over five years, working with Chris and other people at Accenture. And over those years we've spent countless discussions with our customers all around the world. And just like Chris said, we see all of the different scenarios that our customers are having to deal with. We see the pain points, we try to figure out how do we get better next time? How do we do this in such a way that allows them, those customers to really kind of innovate using AWS, which is what we're all trying to get to. And during that process we started to realize there's a few key themes that we're seeing, right? Not just the foundations, right, what you build off of at the base level, but the data aspects. Like how is a customer going and developing their data lake, so their data meshes, right? How is this happening? And what we've realized is that we are kind of doing that on a custom basis often and we realize we could actually speed that much faster, faster to value, faster to customer appreciation and additional usage and development of their solutions on AWS. >> So I look at it is, from the beginning we started the business group and the reason why we have very similar names is 'cause we represent each side of the organizations that are here. And when we started the business group seven years ago, the whole idea was better together, right? We should be able to come together and help our clients move that much faster, right? And that's what really was at the foundation of this, right? And how we built this, right? We came together, we both saw the problems, right? Obviously AWS has an immense set of services, has an immense set of capabilities. We had a lot of experience of implementing these. Came together, worked together to build this platform. And it's been a great journey, right? I mean, it's great to see the experiences from both sides come together. Some of the common problems, we each had different ways of addressing them and we had to go and debate, which was the best way. And we really are leveraging our joint customers here as well is to get inputs from them since we were working backwards for them. We've now taken this and pulled them into it and really gotten inputs from them on really what they're looking for above and beyond the services they have today. This is designed not just to be something we go use at the beginning of a journey, right? A cloud journey, it's to help customers continue through their journey as well. >> So, and I might have missed this, so I apologize if I did. But we always talk about speed, right? Everybody's about faster, quicker, more efficient and that. So what makes velocity a unique animal in that respect? What exactly is it delivering then for a customer that isn't just kind of baked into the services you'd be proposing to them anyhow? >> Yeah. So first off velocity is designed with automation at the core, right? So instead of having people going in and making changes or anything like that, it's all completely code backed and automated, right? So that alone allows for immense ability for us to go in and actually accelerate that journey for the customer. But in addition to that, because velocity was all developed to work together with this code, it actually allows these pieces and these components to be deployed together, to work together and to ultimately support that customer use case without actually having to go and recreate that every time. >> Okay. And can you gimme an idea, Chris, about somebody or at least how this has been put into practice then yeah? >> So I'll give you a couple examples. One, internally, right? So as part of our relationship, we're investing in these joint industry solutions, right? So industries, we're working with our different industry clients to solve industry specific problems, right? They're not thinking about, okay, let me go lay down a cloud foundation and go do that. They said, I've got a problem I want you to fix. Insurance is a great example, the underwriting processes and insurance, right? So our insurance teams really looked and said, okay, this is what we're going to go build. This is what we need to modernize that process. So instead of going back and going and building all the components they needed, building a data lake, right? Figuring out how data lake's going to work together, build the automation to create all the different EC2 instances and all the different services, security, all that stuff. You know, we were able to very quickly take velocity, go through a very short process with them, understand what they needed and use that code to create that entire environment. And it's not tied to that once it's created, right? So at that point you can still take the updates that we're giving on new services and things like that, but it's their environment, they're able to build on top of it. And it allowed them to rapidly create this insurance platform, right, that they're now taking out into clients. We're taking that same platform we use there and embedding it in every offering, every service that we give to our customers. So whether we're going out and build a cloud foundation, right? Whether we're rebuilding a cloud foundation because hey, it didn't stay up or keep up with the new services that came out from AWS, or we're going and building a data lake, right? Our customers want to take, they don't want to have to do all that heavy lifting in a lot of cases. They don't want it to go make a lot of those hard decisions, right? They want it kind of rebuilt. And what I love about velocity from the beginning, Erik talked about blocks, building blocks, right? And we also heard from our customers is, "I don't want to buy just one thing, right? And I have one size fits all. Hey, I'm really want something around data. Can you gimme that block? I really need something around compliance. Can you gimme that block?" Good example in Accenture, the compliance portion is an area that our internal organization really wanted. So we were able to give them that block. So we're hopeful that this just gives our clients that much more flexibility and move that much faster. >> So, go ahead EriK. >> Yeah, I was going to say I think to to the point too, the other aspect that we get with velocity is the idea and that the vision is that it's designed to be evergreen. And what that means is as AWS, as we release new services to the market, like we're doing this week right? We as the joint development group of velocity are taking those new services, those new features and updating them so that those functionalities are available to our customers that are already using velocity or that are going to use velocity into the future so that they're all taking advantage of it without having to go and do it into their own environments. >> That's what I was asking you about, about if there's a 2.0 down the road or I mean, how do you meet those growing needs and new capabilities that maybe don't exist now but they will a year from now, six months from now? Yeah so, what's on the drawing board right now? >> Yeah, so yeah, just I'll start. The one area that we're really looking at heavily, so the the velocity fabric is really just the underpinning technology that we've already been talking about. We've also got a set of activators, which is really the fact that we're kind of joint deploying this to our customers. But to answer your question, we have a concept of accelerators. So these accelerators are there to be developed over time and they're going to allow us to take those customer use cases that are typically kind of at a microservice level, right? Something smaller than an entire solution or an entire application. And use those to accelerate either the development of solutions into our customer environment or to accelerate our ability to create solutions to then take it out to our customers. So that's on the roadmap for '23 and beyond. >> So I'll build on what Erik was talking a little bit. A 2.0 is actually today, right? Multiple new services came out today, obviously through the site partnership, we had some insights on what's coming, right? And we could start building to those and start knowing customers are going to want to use those. And the idea of velocity is they don't have to go and figure that out themselves, right? So we'll be able to hand that off fairly shortly after those services are released to general availability. And the customers of Velocity will be able to start using 'em, right? And they don't have to go figure out how to integrate 'em and so on. So that's what's in the future. We'll continue to do that, right? We're committed to this. These industry solutions are going to grow, right? I mean that was one of the big reasons we built this. We knew we were going to be building a lot of these industry solutions. We already got several of 'em that are out in the market and we need this platform to do that. So you'll see a lot of velocity powered industry solutions coming out of Accenture. >> Who came up with the name? >> It's a great question. We wanted something around speed, right? 'Cause that's what it, further, faster. >> BLO did it, right? >> Exactly right. Everyone loves speed, right? And that's what we're talking about. So we really looked at lots of names, obviously, and Velocity is one of those ones that just stuck. It felt really right. It felt like it captured what we were trying to do in the market. You know, Accenture, we don't name a lot of things one off, right? They're really focused on what they do. And this was an exception to that because we thought, and we think that it's really going to drive the speed of our customers. And that was a challenge. And we're starting to see that. We're starting to see the improvement and speed that we can get our customers into the cloud. It's awesome. >> Yeah, it caught my attention right away. >> Yeah. >> So success on nicely done there. >> But I also think that velocity is not just about speed, it's speed in the right direction, right? >> Oh, sure. It's meant to design it in the way that our customers are leading and that we can then go along that journey with them. >> Right, yeah. The last thing you want is to go really fast in the wrong way. >> That's exactly right. That's exactly right. >> That's bad recipe. And you've had very few of those. You've had a lot of good recipes. Thanks for the time fellas, we appreciate. >> No, thanks for having us. >> All about Velocity and that offering going out to the marketplace in a, I guess a modernized version. Could you call it modernized now? By the way, it's only been around for couple years. It's all modernized. You are watching the executive summit sponsored by Accenture and also theCUBE, which is the leader in tech coverage. (upbeat music)
SUMMARY :
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Andy Tay, Accenture & Sara Alligood, AWS | AWS Executive Summit 2022
well you're watching the cube and I knew that you knew that I'm John Walls we're here in Las Vegas it's re invent 22. Big Show AWS putting it on the Big Show here late in 2022 that's going really well we're at the executive Summit right now sponsored by Accenture and we're going to talk about that relationship between Accenture and AWS um kind of where it is now and where it's going you know even bigger things down the road to help us do that two guests Andy Tay who's a senior managing director and the Accenture AWS business group lead at Accenture Andy thanks for being with us thanks for having me and Sarah whose last name was one of my all-time favorites all good because it is it's all good right okay it's all good Sarah all good worldwide leader of accenture's AWS business group for AWS and thank you both again for being here so let's talk about the relationship just in general high level here 30 000 feet a lot of great things have been happening we know a lot of great things are happening but how's this all you think evolved how did how has this come about that you two are just inextricably linked almost here in the cloud space Sarah why don't you jump on that yeah I'd love to um I think one of the the strongest factors that causes that Synergy for us is we both work backwards from our customer outcomes and so just by consistently doing that taking those customer signals um really obsessing over our customers success we know what we're marching towards and so then we kind of extract those themes and really work together to think about okay when we look at this holistically how do we go bigger better faster together and accomplish and solve those customer problems yeah Andy yeah John let me just maybe add and you know to amplify you know what Sarah just touched on um we both have common to our culture this notion of working from the client's perspective first so really delivering to the clients values or um you know in aws's parlance it's you know customer and so that's at the core and when we keep that at the core everything else becomes really easy where we invest what we build key clients we focus on what our team structure is et cetera Etc that's really easy so that sort of core core pillar number one in terms of our sort of you know success factors the second thing that I think really helps us is our sort of scale geographically you know certainly from an Accenture standpoint as you know John we're north of 800 000 people globally um couple that with aws's strength we really do have you know a field depth and breadth across the board that allows us to sort of see and feel what's happening in the market and allows us really to see around the corners as we like to think and say um and and that helps us be intentional on what we do um and then the third thing is really us we might know what we do but we sort of need to then play to our strengths and as you know we're two very different companies one focus on the technology side the other you know focus on the technology Services although we'll touch on you know some of the changes we're looking at as we go forward but that sort of playing to strength is key as well for us as a third pillar of success and so keeping those three things at the core really helps us move you know day to day and year by year and that's what you see in this continued partnership so what are you hearing from your customers these days we've talked a lot already today and it's kind of the buzzword you know modernization right everybody's talking about this transformation I don't care if you're in Mainframe or where you are everybody wants a modernized right now um you know what are you hearing from customers in that regard and I'm sure everybody's in a different state different yeah frame of mind you know some are embracing some are dragging uh what what's your take on the state of play right now well and I think it's like especially in these macroeconomic moments that we're in um time to value is critical for our customers um and then we have the talent shortage but even with those our customers still need us to solve for sustainability and still focus on inclusion diversity and equity and so we can't lower the bar in anything that we've already been doing we need to just keep doing more and building with them and so I think um for us really getting to the to the meat of what our customers need modernization is a big one but we're still seeing just so many of our customers look at basic transformation right how how do I dip in how do I start to move my environment move my people and get ready for what I need to do next for my business and so that that is a challenge and like we said with with the markets as volatile as they are right now I think a lot of customers are just trying to work with us to figure out how to do that in the most optimized and efficient way I just want to kind of rub people on the head and say it's going to be all right I mean it's so volatile as you pointed out Sarah right yeah I mean the market up and down and we're worried about a recession and companies and their plans they want to be Forward Thinking yeah but they've got to you know keep their powder dry too in some respects and get ready for that rainy day you know John it's funny um because you would think you know you've got the one hand you know rub that you know it's gonna be all right and and then on the other end you'll you know maybe clients should sort of hold temper and you know sort of just pause but I think clients get it they see it they feel it they understand the need to invest and I think you know there's a recent study back in 2008 those clients you know Sarah and I were reading the other day those clients who didn't invest ahead of those you know major if you remember those macroeconomic downturn times they came out really on the bad side um and so clients now are realizing that in these times these are the moments to invest and so they get it but they're faced with a couple of challenges one is time Sarah touched on you just don't have time and the second is Talent so we're working in a very intentional way on what we can do to help them there and and as you'll hear later on from Chris Wegman and Eric Farr um we're launching our velocity platform which really helps to compress that type and and get them faster you know time to Value we're also being very intentional on talent and how we help their talent so you know rotate so that we're not just taking the technology Journey but we're also having the people journey and then the third thing Sarah and I really focus on with our teams is figuring out new ways new sources of value for our clients and that's not just cost that's value the broader set and so we find that in moments like this it's actually an opportunity for us to really bring the best of AWS and Accenture to our clients well you hit value and I always find this one kind of tough because there is a big difference between cost and value my cost is X right whatever I write on my chat that's my cost so but but how do you help clients identify that value so that because it's you know it can be a little nebulous right can it not I mean it's uh but you have to validate you got to quantify at the end of the day because that's what the CEO wants to see it's what the CIO wants to see yeah you've got to identify values so how many how do you do that yeah yeah I mean we we have many different ways right velocity which Andy kind of touched on I think is is really um it's our foundational approach to help customers really kind of enter into their Cloud journey and focus on those key factors for Success right so we've got ISB Solutions built in there We've Got Talent and change built in we've got kind of what we're calling the fabric right that foundational technology layer and giving our customers all of that in a way that they can consume in a way that they can control and you know different modules essentially that they can leverage to move it's going to be tangible right they're going to be able to see I've now got access to all these things that I need I can move as I need to move and I'm not constantly you know looking around figuring out how to lock it all together we've given them that picture and that road map on how to really leverage this because we we need to be able to point to tangible outcomes and so that's critical yeah proof's got to be in the pudding and and you know to Sarah's point I think sort of we're entering into this sort of new dare I say new chapter of cloud and then you know sort of the first chapter was sort of those outcomes were around cost you know I've moved you into the cloud you can shut down your data center but now we've sort of got other sources of value now Beyond costs there's news new sources of revenue how do I become a platform company on top of the AWS cloud and then you know eke out new Revenue sources for myself how do I drive new experiences for my customers yeah um how do I maybe tap into the sustainability angle of things and how do I get greater Innovation from my talent how do I operate better in a Sarah said how do I become more Nimble more agile and more responsive to Market demands and so all those areas all those Dynamics all those outcomes are sources of value that were sort of really laser focused on and just ensuring that as a partnership we we help our clients on that Journey so what do you do about talent I mean you brought it up a couple of times UTP has um in terms of of training retaining recruiting all those key elements right now it's an ultra competitive environment right now yeah and there might be a little bit of a talent Gap in terms of what we're producing right so um you know how do you I guess make the most out of that and and make sure you keep the good people around yeah Talent is an interesting one John um and we were just touching on this uh before we got here um you know sort of from an Accenture standpoint um we're obviously focused on growing our AWS Talent um we've now got I think it's north of 27 000 people in Accenture with AWS certifications north of 34 000 certificates you know which is absolutely fantastic a small City it's just I mean it is very intentional in building that um as AWS rolls out new Services Adam touched on a whole bunch of them today we're at the core of that and ramping and building our talent so that we can drive and get our clients quicker to their value and then the second area of focus is what do we do to help our clients Talent how do we train them how do we enable them how do we you know get them to be more agile and you know being able to sort of operate in what we call that digital core operate in the cloud how do we do that and so we're focused um in in capabilities in fact our Accenture head of talent and people and change Christie Smith John is is here this week just for that and we're exploring ways in which we can get tighter and even more Innovative Around Talent and so I ultimately that that bleeds over to where the partnership goes right because if you can enhance that side of it then then everybody wins on that in terms of what you think you know where this is going yeah yeah it's already you know pretty good setup uh things are working pretty well but as the industry changes so rapidly and and you have to meet those needs how do you see the partnership evolving as well to meet those needs down the road we we have a very fortunate position in that our CEOs are both very engaged in this partnership and they push us think bigger go faster figure it out let's ride and there are definite pros and cons and some days I'm flying this close to the Sun but um it isn't a it's an absolute privilege to work with them the way that we get to and so we're always looking I mean Auntie said it earlier this is the relationship that helps us look around corners we've raised the bar and so we're constantly pushing each other pushing our teams just innovating together thinking it all through on where are we going and like I said reading those tea leaves reading those themes from our customers like hey we've just had five customers with the same similar feeling problem that we're trying to solve or we ran into the same issue in the field and how do we put that together and solve for it because we know it's not just five right we know they're more out there and so um I think you know it's it's leadership principles for us right at Amazon that guiding think big um you know insist on high standards that that'll always be core and Central to who we are and then you know fortunately Accenture has a really similar ethos yeah quick take on that Andy yeah I think as we look out you know I think um we're going to we've already seen but we're going to see this continued blurring of Industries um of um you know sort of clients moving into other Industries and yeah sort of this sort of agitation Market agitation um and so I think disruption you know disruption and and we're being you know focused on what do we need to be to do in order to help our clients on those Journeys and and to continue to you know get them you know faster Solutions is an area that we you know we are um really looking at and these are solutions that are either industry Solutions you'll hear a couple of them this week um you know we've got our insurance solution that we're we've developed as an intelligent underwriting capability leveraging AWS AIML to sort of be intelligent and cognitive um you know we've got other Solutions around the around Industries energy and Life Sciences but then also intelligent applications that might be touching you know areas I think earlier today Adam talked about AWS supply chain and that's an area that we are focused on and and proud to be a part of that and we're working very very closely with with Amazon on that uh to help you know our clients move ahead so I think we're going to see this continued blurring and we're going to obviously you know keep addressing that and just keep iterating well it looks like a relationship of trust and expertise right and it's worked out extremely well and uh if this is any indication where the interview went uh even better things are ahead for the partnership so thank you thank you for chiming in I appreciate your perspectives yeah thank you it's been great we continue our coverage here on thecube we're at re invent 22 we're in Las Vegas and you're watching thecube the leader in technical coverage foreign
SUMMARY :
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Jason Beyer & Josh Von Schaumburg | AWS Executive Summit 2022
(bright upbeat music) >> Well, hi everybody, John Wallace here and welcome to theCUBE, the leader in high-tech coverage. Glad to have you aboard here as we continue our coverage here at re:Invent 2022. We're out at The Venetian in Las Vegas. A lot of energy down on that exhibit floor, I promise you. We're a little bit away from the maddening crowd, but we're here with the Executive Summit sponsored by Accenture. I've got two guests I want to introduce you to. Jason Beyer who is the vice president of Data and Analytics at Bridgestone Americas. Jason, good to see you, sir. >> Hello, John. >> And Josh von Schaumburg, who is the managing director and North America lead for AWS Security at Accenture. Josh, good to see you. >> Thanks for having us. >> Yeah, first off, just quick take on the show. I know you've only been here about a day or so, but just your thoughts about what you're seeing on the floor in terms of energy, enthusiasm and, I think, turnout, right? I'm really impressed by it. We've got a lot of people down there. >> Yeah, I've been certainly impressed, John, with the turnout. But just as you say, the energy of the crowd, the excitement for the new things coming, it seems like it's a really pivotal moment for many organizations, including my own, and really excited to see what's coming over the next couple days. >> Let's jump into Bridgestone then. I kind of kidded you before we started the interview saying, all right, tires and golf balls, that's what I relate to, but you have a full array of consumer products and solution you're offering and your responsibility is managing the data and the analytics and making sure those business lines are as efficient as possible. >> Absolutely, John. So in my role, I have the privilege of being in an enterprise position. So I get to see the vast array of Bridgestone, which it is a large, highly vertically integrated company all the way from raw material sourcing of natural rubber to retail services in the automotive industry. We're at scale across those areas. The exciting thing about the company right now is we're going through this business transformation of becoming, you know, building on that heritage and that great legacy of having high quality high performance, highly focused on safety products to becoming a product and solutions company, and particular a sustainable solutions company. So what that means is we're bringing not only those great products to market, tires, golf balls, hoses, all kinds of rubber, air springs products to market, but thinking about how do we service those after they're in the market, how do we bring solutions to help fleets, vehicle owners, vehicle operators operate those in a sustainable way, in a cost effective way? So those solutions, of course, bring all new sets of data and analytics that come with it, and technology and moving to the cloud to be cloud native. So this new phase for the organization that we refer to as Bridgestone 3.0, and that business strategy is driving our cloud strategy, our technology strategy, and our data strategy and AWS and Accenture are important partners in that. >> Yeah, so we hear a lot about that these days about this transformation, this journey that people are on now. And Josh, when Bridgestone or other clients come to you and they talk about their migrations and what's their footprint going to look like and how do they get there, in the case of Bridgestone when they came to you and said, "All right, this is where we want to go with this. We're going to embark on a significant upgrade of our systems here," how do you lead 'em? How do you get 'em there? >> Yeah, I think there are a couple key cloud transformation value drivers that we've emphasized and that I've seen at Bridgestone in my time there. I mean, number one, just the rapid increase in the pace of innovation that we've seen over the last couple years. And a lot of that is also led by the scalability of all of the cloud native AWS services that we're leveraging, and in particular with the CDP platform. It really started off as a single-use case and really a single-tenant data lake. And then through the strategic vision of Jason and the leadership team, we've been able to expand that to 10 plus tenants and use cases. And a big reason behind that is the scalability of all these AWS services, right? So as we add more and more tenants, all the infrastructure just scales without any manual provisioning any tuning that we need to do. And that allows us to go really from idea, to POC, to production in really a matter of months when traditionally it might take years. >> So- >> If I can build upon that. >> Please do, yeah. >> The CDP, or central data platform, is part of a broader reference architecture that reflects that business strategy. So we looked at it and said, we could have taken a couple of different approaches to recognize the business challenges we're facing. We needed to modernize our core, our ERP, our manufacturing solutions move to smart factory and green factories, our PLM solutions. But at the same time, we're moving quickly. We have a startup mindset in our mobility solutions businesses where we're going to market on our customer and commerce solutions, and we needed to move at a different pace. And so to decouple those, we, in partnership with Accenture and AWS, built out a reference architecture that has a decoupling layer that's built around a data fabric, a data connected layer, integrated data services as well. A key part of that architecture is our central data platform built on AWS. This is a comprehensive data lake architecture using all the modern techniques within AWS to bring data together, to coalesce data, as well as recognize the multiple different modes of consumption, whether that's classic reporting, business intelligence, analytics, machine learning data science, as well as API consumption. And so we're building that out. A year ago it was a concept on a PowerPoint and just show and kind of reflect the innovation and speed. As Josh mentioned, we're up to 10 tenants, we're growing exponentially. There's high demand from the organization to leverage data at scale because of the business transformation that I mentioned and that modernization of the core ecosystem. >> That's crazy fast, right? And all of a sudden, whoa! >> Faster than I expected. >> Almost snap overnight. And you raise an interesting point too. I think when you talk about how there was a segment of your business that you wanted to get in the startup mode, whereas I don't think Bridgestone, I don't think about startup, right? I think in a much more, I wouldn't say traditional, but you've got big systems, right? And so how did you kind of inject your teams with that kind of mindset, right? That, hey, you're going to have to hit the pedal here, right? And I want you to experiment. I want you to innovate. And that might be a little bit against the grain from what they were used to. >> So just over two years ago, we built and started the organization that I have the privilege of leading, our data and analytics organization. And it's a COE. It's a center of expertise in the organization. We partner with specialized teams in product development, marketing, other places to enable data and analytics everywhere. We wanted to be pervasive, it's a team sport. But we really embraced at that moment what we refer to as a dual speed mindset. Speed one, we've got to move at the speed of the business. And that's variable. Based on the different business units and lines of lines of business and functional areas, the core modernization efforts, those are multi-year transformation programs that have multiple phases to them, and we're embedded there building the fundamentals of data governance and data management and reporting operational things. But at the same time, we needed to recognize that speed of those startup businesses where we're taking solutions and service offerings to market, doing quick minimum viable product, put it in a market, try it, learn from it adapt. Sometimes shut it down and take those learnings into the next area as well as joint ventures. We've been much more aggressive in terms of the partnerships in the marketplace, the joint ventures, the minority investments, et cetera, really to give us that edge in how we corner the market on the fleet and mobility solutions of the future. So having that dual speed approach of operating at the speed of the business, we also needed to balance that with speed two, which is building those long term capabilities and fundamentals. And that's where we've been building out those practical examples of having data governance and data management across these areas, building robust governance of how we're thinking about data science and the evolution of data science and that maturity towards machine learning. And so having that dual speed approach, it's a difficult balancing act, but it's served us well, really partnering with our key business stakeholders of where we can engage, what services they need, and where do we need to make smart choices between those two different speeds. >> Yeah, you just hit on something I want to ask Josh about, about how you said sometimes you have to shut things down, right? It's one thing to embark on I guess a new opportunity or explore, right? New avenues. And then to tell your client, "Well, might be some bumps along the way." >> Yeah. >> A lot of times people in Jason's position don't want to hear that. (laughs) It's like, I don't want to hear about bumps. >> Yeah. >> We want this to be, again, working with clients in that respect and understanding that there's going to be a learning curve and that some things might not function the way you want them to, we might have to take a right instead of a left. >> Yeah, and I think the value of AWS is you really can fail fast and try to innovate and try different use cases out. You don't have any enormous upfront capital expenditure to start building all these servers in your data center for all of your use cases. You can spin something up easily based in idea and then fail fast and move on to the next idea. And I also wanted to emphasize I think how critical top-down executive buy-in is for any cloud transformation. And you could hear it, the excitement in Jason's voice. And anytime we've seen a failed cloud transformation, the common theme is typically lack of executive buy-in and leadership and vision. And I think from day one, Bridgestone has had that buy-in from Jason throughout the whole executive team, and I think that's really evident in the success of the CDP platform. >> Absolutely. >> And what's been your experience in that regard then? Because I think that's a great point Josh raised that you might be really excited in your position, but you've got to convince the C-suite. >> Yeah. >> And there are a lot of variables there that have to be considered, that are kind of out of your sandbox, right? So for somebody else to make decisions based on a holistic approach, right? >> I could tell you, John, talking with with peers of mine, I recognize that I've probably had a little bit of privilege in that regard because the leadership at Bridgestone has recognized to move to this product and solutions organization and have sustainable solutions for the future we needed to move to the cloud. We needed to shift that technology forward. We needed to have a more data-driven approach to things. And so the selling of that was not a huge uphill a battle to be honest. It was almost more of a pull from the top, from our global group CEO, from our CEOs in our different regions, including in Bridgestone Americas. They've been pushing that forward, they've been driving it. And as Josh mentioned, that's been a really huge key to our success, is that executive alignment to move at this new pace, at this new frame of innovation, because that's what the market is demanding in the changing landscape of mobility and the movement of vehicles and things on the road. >> So how do you two work together going forward, Ben? Because you're in a great position now. You've had this tremendous acceleration in the past year, right? Talking about this tenfold increase and what the platform's enabled you to do, but as you know, you can't stand still. Right? (laughs) >> Yeah. There's so much excitement, so many use cases in the backlog now, and it's really been a snowball effect. I think one of the use cases I'm most excited about is starting to apply ML, you know, machine learning to the data sets. And I think there's an amazing IoT predictive maintenance use case there for all of the the censored data collected across all of the tires that are sold. There's an immense amount of data and ultimately we can use that data to predict failures and make our roads safer and help save lives >> Right. >> It's hard to not take a long time to explain all the things because there is a lot ahead of us. The demand curve for capabilities and the enabling things that AWS is going to support is just tremendous. As Josh mentioned, the, the AI ML use cases ahead of us, incredibly exciting. The way we're building and co-innovating things around how we make data more accessible in our data marketplace and more advanced data governance and data quality techniques. The use of, you know, creating data hubs and moving our API landscape into this environment as well is going to be incredibly empowering in terms of accessibility of data across our enterprise globally, as well as both for our internal stakeholders and our external stakeholders. So, I'll stop there because there's a lot of things in there. >> We could be here a long time. >> Yes, we could. >> But it is an exciting time and I appreciate that you're both sharing your perspectives on this because you've got a winning formula going and look forward to what's happening. And we'll see you next year right back here on the Executive Summit. >> Absolutely. >> To measure the success in 2023. How about that? >> Sounds good, thank you, Jim. >> Is that a deal? >> Awesome. >> Sounds good. >> Excellent, good deal. You've been watching AWS here at Coverage of Reinvent '22. We are the Executive Summit sponsored by Accenture and you are watching theCUBE, the leader in high tech coverage. (gentle music)
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A lot of energy down on that Josh, good to see you. quick take on the show. and really excited to see I kind of kidded you before the cloud to be cloud native. in the case of Bridgestone And a lot of that is also because of the business in the startup mode, and mobility solutions of the future. And then to tell your client, to hear about bumps. and that some things might not function of the CDP platform. that you might be really and the movement of vehicles and what the platform's enabled you to do, for all of the the censored data and the enabling things and look forward to what's happening. To measure the success and you are watching theCUBE,
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Stephen Manley, Druva & Jason Cradit, Summit Carbon Solutions | AWS re:Invent 2022
>>Hey everyone, and welcome back to Las Vegas. Viva Las Vegas, baby. This is the Cube live at AWS Reinvent 2022 with tens of thousands of people. Lisa Martin here with Dave Valante. Dave, we've had some great conversations. This is day one of four days of wall to wall coverage on the cube. We've been talking data. Every company is a data company. Data protection, data resiliency, absolutely table stakes for organizations to, >>And I think ecosystem is the other big theme. And that really came to life last year. You know, we came out of the pandemic and it was like, wow, we are entering a new era. People no longer was the ecosystem worried about it, AWS competing with them. They were more worried about innovating and building on top of AWS and building their own value. And that's really, I think, the theme of the 2020s within the ecosystem. >>And we're gonna be talking about building on top of aws. Two guests join us, two alumni join us. Stephen Manley is here, the CTO of Druva. Welcome back. Jason crat as well is here. CIO and CTO of Summit Carbon Solutions. Guys, great to have you back on the program. >>Thank you. >>Let's start with you giving the audience an understanding of the company. What do you guys do? What do you deliver value for customers? All that good >>Stuff. Yeah, no, for sure. So Summit Carbon is the world's largest carbon capture and sequestration company capturing close to 15 million tons of carbon every year. So it doesn't go into the atmosphere. >>Wow, fantastic. Steven, the, the risk landscape today is crazy, right? There's, there's been massive changes. We've talked about this many times. What are some of the things, you know, ransomware is a, is, I know as you say, this is a, it's not a, if it's gonna happen, it's when it's how frequent, it's what's gonna be the damage. What are some of the challenges and concerns that you're hearing from customers out there today? >>Yeah, you know, it really comes down to three things. And, and everybody is, is terrified of ransomware and justifiably so. So, so the first thing that comes up is, how do I keep up? Because I have so much data in so many places, and the threats are evolving so quickly. I don't have enough money, I don't have enough people, I don't have enough skilled resources to be able to keep up. The second thing, and this ties in with what Dave said, is, is ecosystem. You know, it used to be that your, your backup was siloed, right? They'd sit in the basement and, and you wouldn't see, see them. But now they're saying, I've gotta work with my security team. So rather than hoping the security team stays away from me, how do I integrate with them? How do I tie together? And then the third one, which is on everybody's mind, is when that attack happens, and like you said, it's win and, and the bell rings and they come to me and they say, all right, it's time for you to recover. It's time for, for all this investment we've put in. Am I gonna be ready? Am I going to be able to execute? Because a ransom or recovery is so different than any other recovery they've ever done. So it's those three things that really are top of mind for >>How, so what is the, what are the key differences, if you could summarize? I mean, I >>Know it's so, so the first one is you can't trust the environment you're restoring into. Even with a disaster, it would finish and you'd say, okay, I'm gonna get my data center set up again and I'm gonna get things working. You know, when I try to recover, I don't know if everything's clean yet. I'm trying to recover while I'm still going through incident response. So that's one big difference. A second big difference is I'm not sure if the thing I'm recovering is good, I've gotta scan it. I've gotta make sure what's inside it is, is, is alright. And then the third thing is what we're seeing is the targets are usually not necessarily the crown jewels because those tend to be more protected. And so they're running into this, I need to recover a massive amount of what we might call tier two, tier three apps that I wasn't ready for because I've always been prepared for that tier one disaster. And so, so those three things they go, it's stuff I'm not prepared or covering. It's a flow. I'm not used to having to check things and I'm not sure where I'm gonna recover too when the, when the time comes. >>Yeah, just go ahead. Yeah, that's right. I mean, I think for me, the biggest concern is the blind spots of where did I actually back it up or not. You know, what did I get it? Cuz you, we always protect our e r p, we always protect these sort of classes of tiers of systems, but then it's like, oh, that user's email box didn't get it. Oh, that, you know, that one drive didn't get it. You know, or, or, or whatever it is. You know, the infrastructure behind it all. I forgot to back that up. That to me the blind spots are the scariest part of a ransomware attack. >>And, and if you think about it, some of the most high profile attacks, you know, on the, on the colonial pipeline, they didn't go after the core assets. They went after billing. That's right. But billing brought everything down so they're smart enough to say, right, I'm not gonna take the, the castle head on. Is there is they're that. Exactly. >>And so how do you, I get, I mean you can air gap and do things like that in terms of protecting the, the, the data, the corrupt data. How do you protect the corrupt environment? Like that's, that's a really challenging issue. Is >>It? I don't know. I mean, I'll, I'll you can go second here. I think that what's interesting to me about is that's what cloud's for. You can build as many environments as you want. You only pay for what you use, right? And so you have an opportunity to just reconstruct it. That's why things, everything is code matters. That's why having a cloud partner like Druva matters. So you can just go restore wherever you need to in a totally clean environment. >>So the answer is you gotta do it in the cloud. Yeah. What if it's on prem? >>So if it's on prem, what we see people do is, and, and, and this is where testing and, and where cloud can still be an asset, is you can look and say a lot of those assets I'm running in the data center, I could still recover in the cloud. And so you can go through DR testing and you can start to define what's in your on-prem so that you could make it, you know, so you can make it cloud recoverable. Now, a lot of the people that do that then say, well actually why am I even running this on prem anymore in the first place? I should just move this to the cloud now. But, but, but there are people in that interim step. But, but, but it's really important because you, you're gonna need a clean environment to play in. And it's so hard to have a clean environment set up in a data center cuz it basically means I'm not touching this, I'm just paying for something to sit idle. Whereas cloud, I can spin that up, right? Get a, a cloud foundation suite and, and just again, infrastructures code, spin things up, test it, spin it down. It doesn't cost me money on a daily basis. >>Jason, talk a little bit about how you are using Druva. Why Druva and give us a kind of a landscape of your IT environment with Druva. >>Yeah. You know, so when we first started, you know, we did have a competitor solution and, and, and it was only backing up, you know, we were a startup. It was only backing up our email. And so as you pointed out, the ecosystem really matters because we grew out of email pretty quick as a startup. And we had to have real use cases to protect and the legacy product just wouldn't support us. And so our whole direction, or my direction to my team is back it up wherever it is, you know, go get it. And so we needed somebody in the field, literally in the middle of Nebraska or Iowa to have their laptop backed up. We needed our infrastructure, our data center backed up and we needed our, our SaaS solutions backed up. We needed it all. And so we needed a partner like Druva to help us go get it wherever it's at. >>Talk about the value in, with Druva being cloud native. >>Yeah. To us it's a big deal, right? There's all sorts of products you could go by to go just do endpoint laptop protection or just do SAS backups. For us, the value is in learning one tool and mastering it and then taking it to wherever the data is. To me, we see a lot of value for that because we can have one team focus on one product, get good at it, and drive the value. >>That consolidation theme is big right now, you know, the economic headwinds and so forth. What was the catalyst for you? Was it, is that something you started, you know, years ago? Just it's good practice to do that? What's, >>Well, no, I mean luckily I'm in a very good position as a startup to do define it, you know, but I've been in those legacy organizations where we've got a lot of tech debt and then how do you consolidate your portfolio so that you can gain more value, right? Cause you only get one budget a year, right? And so I'm lucky in, in the learnings I've had in other enterprises to deal with this head on right now as we grow, don't add tech debt, put it in right. Today. >>Talk to us a little bit about the SaaS applications that you're backing up. You know, we, we talk a lot with customers, the shared, the shared responsibility model that a lot of customers aren't aware of. Where are you using that competing solution to protect SaaS applications before driven and talk about Yeah. The, the value in that going, the data protection is our responsibility and not the SA vendor. >>No, absolutely. I mean, and it is funny to go to, you know, it's like Office 365 applications and go to our, our CFO and a leadership and be like, no, we really gotta back it up to a third party. And they're like, but why? >>It's >>In the cloud, right? And so there's a lot of instruction I have to provide to my peers and, and, and my users to help them understand why these things matter. And, and, and it works out really well because we can show value really quick when anything happens. And now we get, I mean, even in SharePoint, people will come to us to restore things when they're fully empowered to do it. But my team's faster. And so we can just get it done for them. And so it's an extra from me, it's an extra SLA or never service level I can provide to my internal customers that, that gives them more faith and trust in my organization. >>How, how are the SEC op teams and the data protection teams, the backup teams, how are they coming together? Is is, is data protection backup just morphing into security? Is it more of an adjacency? What's that dynamic like? >>So I'd say right now, and, and I'll be curious to hear Jason's organization, but certainly what we see broadly is, you know, the, the teams are starting to work together, but I wouldn't say they're merging, right? Because, you know, you think of it in a couple of ways. The first is you've got a production environment and that needs to be secured. And then you've got a protection environment. And that protection environment also has to be secured. So the first conversation for a lot of backup teams is, alright, I need to actually work with the security team to make sure that, that my, my my backup environment, it's air gapped, it's encrypted, it's secured. Then I think the, the then I think you start to see people come together, especially as they go through, say, tabletop exercises for ransomware recovery, where it's, alright, where, where can the backup team add value here? >>Because certainly recovery, that's the basics. But as there log information you can provide, are there detection pieces that you can offer? So, so I think, you know, you start to see a partnership, but, but the reality is, you know, the, the two are still separate, right? Because, you know, my job as a a protection resiliency company is I wanna make sure that when you need your data, it's gonna be there for you. And I certainly want to, to to follow best secure practices and I wanna offer value to the security team, but there's a whole lot of the security ecosystem that I want to plug into. I'm not trying to replace them again. I want to be part of that broader ecosystem. >>So how, how do you guys approach it? Yeah, >>That's interesting. Yeah. So in my organization, we, we are one team and, and not to be too cheesy or you know, whatever, but as Amazon would say, security is job one. And so we treat it as if this is it. And so we never push something into production until we are ready. And ready to us means it's got a security package on it, it's backed up, the users have tested it, we are ready to go. It's not that we're ready just be to provide the service or the thing. It's that we are actually ready to productionize this. And so it's ready for production data and that slows us down in some cases. But that's where DevOps and this idea of just merging everything together into a central, how do we get this done together, has worked out really well for us. So, >>So it's really the DevOps team's responsibility. It's not a separate data protection function. >>Nope. Nope. We have specialists of course, right? Yeah, yeah. Because you need the extra level, the CISSPs and those people Yeah, yeah. To really know what they're doing, but they're just part of the team. Yeah. >>Talk about some of the business outcomes that you're achieving with Druva so far. >>Yeah. The business outcomes for me are, you know, I meet my SLAs that's promising. I can communicate that I feel more secure in the cloud and, and all of my workloads because I can restore it. And, and that to me helps everybody in my organization sleep well, sleep better. We are, we transport a lot of the carbon in a pipeline like Colonial. And so to us, we are, we are potential victims of, of a pipe, a non pipeline group, right? Attacking us, but it's carbon, you know, we're trying to get it outta atmosphere. And so by protecting it, no matter where it is, as long as we've got internet access, we can back it up. That provides tons of value to my team because we have hundreds of people in the field working for us every day who collect data and generate it. >>What would you say to a customer who's maybe on the fence looking at different technologies, why dva? >>You know, I think, you know, do the research in my mind, it'll win if you just do the research, right? I mean, there might be vendors that'll buy you nice dinners or whatever, and those are, those are nice things, but the, the reality is you have to protect your data no matter where it is. If it's in a SaaS application, if it's in a cloud provider, if it's infrastructure, wherever it is, you need it. And if you just go look at the facts, there it is, right? And so I, I'd say be objective. Look at the facts, it'll prove itself. >>Look at the data. There you go. Steven Druva recently announced a data resiliency guarantee with a big whopping financial sum. Talk to us a little bit about that, the value in it for your customers and for prospects, >>Right? So, so basically there's, there's really two parts to this guarantee. The first is, you know, across five different SLAs, and I'll talk about those, you know, if we violate those, the customers can get a payout of up to 10 million, right? So again, putting, putting our money where our mouth is in a pretty large amount. But, but for me, the exciting part, and this is, this is where Jason went, is it's about the SLAs, right? You know, one of Drew's goals is to say, look, we do the job for you, we do the service for you so you can offer that service to your company. And so the SLAs aren't just about ransomware, some of them certainly are, you know, that, that you're going to be able to recover your data in the event of a ransomware attack, that your data won't get exfiltrated as part of a ransomware attack. >>But also things like backup success rates, because as much as recovery matters a lot more than backup, you do need a backup if you're gonna be able to get that recovery done. There's also an SLA to say that, you know, if 10 years down the road you need to recover your data, it's still recoverable, right? So, so that kind of durability piece. And then of course the availability of the service because what's the point of a service if it's not there for you when you need it? And so, so having that breadth of coverage, I think really reflects who Druva is, which is we're doing this job for you, right? We want to make this this service available so you can focus on offering other value inside your business. And >>The insurance underwriters, if they threw holy water on >>That, they, they, they were okay with it. The legal people blessed it, you know, it, you know, the CEO signed off on it, the board of directors. So, you know, it, and it, it's all there in print, it's all there on the web. If you wanna look, you know, make sure, one of the things we wanted to be very clear on is that this isn't just a marketing gimmick that we're, we're putting, that we're putting substance behind it because a lot of these were already in our contracts anyway, because as a SAS vendor, you're signing up for service level agreements anyway. >>Yeah. But most of the service level agreements and SaaS vendors are crap. They're like, you know, hey, you know, if something bad happens, you know, we'll, we'll give you a credit, >>Right? >>For, you know, for when you were down. I mean, it's not, you never get into business impact. I mean, even aws, sorry, I mean, it's true. We're a customer. I read define print, I know what I'm signing up for. But, so that's, >>We read it a lot and we will not, we don't really care about the credits at all. We care about is it their force? Is it a partner? We trust, we fight that every day in our SLAs with our vendors >>In the end, right? I mean this, we are the last line of defense. We are the thing that keeps the business up and running. So if your business, you know, can't get to his data and can't operate, me coming to you and saying, Dave, I've got some credits for you after you, you know, after you declare bankruptcy, it'll be great. Yeah, that's not a win. >>It's no value, >>Not helpful. The goal's gotta be, your business is up and running cuz that's when we're both successful. So, so, so, you know, we view this as we're in it together, right? We wanna make sure your business succeeds. Again, it's not about slight of hand, it's not about, you know, just, just putting fine print in the contract. It's about standing up and delivering. Because if you can't do that, why are we here? Right? The number one thing we hear from our customers is Dr. Just works. And that's the thing I think I'm most proud of is Druva just works. >>So, speaking of Juva, just working, if there's a billboard in Santa Clara near the new offices about Druva, what's, what's the bumper sticker? What's the tagline? >>I, I, I think, I think that's it. I think Druva just works. Keeps your data safe. Simple as that. Safe and secure. Druva works to keep your data safe and secure. >>Saved me. >>Yeah. >>Truva just works. Guys, thanks so much for joining. David, me on the program. Great to have you back on the cube. Thank you. Talking about how you're working together, what Druva is doing to really putting, its its best foot forward. We appreciate your insights and your time. Thank >>You. Thanks guys. It's great to see you guys. Likewise >>The show for our guests and Dave Ante. I'm Lisa Martin, you're watching the Cube, the leader in enterprise and emerging tech coverage.
SUMMARY :
This is the Cube live at And that really came to life last year. Guys, great to have you back on the program. Let's start with you giving the audience an understanding of the company. So Summit Carbon is the world's largest carbon capture and sequestration company capturing you know, ransomware is a, is, I know as you say, this is a, it's not a, if it's gonna happen, Yeah, you know, it really comes down to three things. Know it's so, so the first one is you can't trust the environment you're restoring into. you know, that one drive didn't get it. And, and if you think about it, some of the most high profile attacks, you know, on the, on the colonial pipeline, How do you protect the corrupt environment? And so you have an opportunity to just reconstruct it. So the answer is you gotta do it in the cloud. And so you can go through DR Jason, talk a little bit about how you are using Druva. And so as you pointed out, the ecosystem really matters because we grew out of email pretty quick as There's all sorts of products you could go by to go just do endpoint That consolidation theme is big right now, you know, the economic headwinds and so forth. And so I'm lucky in, in the learnings I've had in other enterprises to deal with this head Where are you using that competing solution I mean, and it is funny to go to, you know, it's like Office 365 applications And so there's a lot of instruction I have to provide to my peers and, and, and my users to help them but certainly what we see broadly is, you know, the, the teams are starting to work together, So, so I think, you know, or you know, whatever, but as Amazon would say, security is job one. So it's really the DevOps team's responsibility. Because you need the extra level, And so to us, we are, we are potential victims of, of a pipe, You know, I think, you know, do the research in my mind, it'll win if you just do the There you go. you know, that, that you're going to be able to recover your data in the event of a ransomware attack, to say that, you know, if 10 years down the road you need to recover your data, it's still recoverable, The legal people blessed it, you know, it, you know, hey, you know, if something bad happens, you know, we'll, For, you know, for when you were down. We read it a lot and we will not, we don't really care about the credits at all. me coming to you and saying, Dave, I've got some credits for you after you, you know, Again, it's not about slight of hand, it's not about, you know, just, I think Druva just works. Great to have you back on the cube. It's great to see you guys. the leader in enterprise and emerging tech coverage.
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Paul Daugherty & Jim Wilson | AWS Executive Summit 2022
(upbeat music) >> Hello, everyone. Welcome to theCUBE's coverage here at AWS re:Invent 2022. This is the Executive Summit with Accenture. I'm John Furrier, your host of theCUBE with two great guests coming on today, really talking about the future, the role of humans. Radically human is going to be the topic. Paul Daugherty, the group Chief Executive Technology and CTO at Accenture. And Jim Wilson, Global Managing Director of Thought Leadership and Technology Research, Accenture. Gentlemen, thank you for coming on theCUBE for this conversation around your new hit book, "Radically Human." >> Thanks, John. It's great to be with you and great to be present at re:Invent. >> We've been following you guys for many, many years now, over a decade. You always have the finger on the pulse. I mean, and as these waves come in, it's really important to understand impact. And more than ever, we're in this, I call it the systems thinking, revolution is going on now where things have consequences and machines are now accelerating their role. Developers are becoming the front lines of running companies, seeing a massive shift. This new technology is transforming the business and shaping our future as as humans. And so I love the book, very, very strong content, really right on point. What was the motivation for the book? And congratulations, but I noticed you got the structure, part one and part two, this book seems to be packing a big punch. What was the motivation, and what was some of the background in putting the book together? >> That's a great question, John. And I'll start, and then, Jim, my co-author and colleague and partner on the book can join in too. If you step back from the book itself, we'd written a first book called "Human + Machine", which focused a lot on artificial intelligence and talked about the potential and future of artificial intelligence to create a more human future for us with the human plus machine pairing. And then when we started working on the next book, it was the COVID era. COVID came on line as we were writing the book. And that was causing really an interesting time in technology for a lot of companies. I mean, think back to what you were doing. Once COVID hit, every company became more dependent on technology. Technology was the lifeline. And so Jim and I got interested in what the impacts of that were on companies, and what was different from the first research we had done around our first book. And what we found, which was super interesting, is that pre-pandemic, the leading companies, the digital leaders that were applying cloud data, AI, and related technologies faster, we're outperforming others by a factor of 2x. And that was before the pandemic. After the pandemic, we redid the research and the gap widened into 5x. And I think that's played a lot into our book. And we talk about that in the opening of our book. And the message there is exactly what you said is technology is not just the lifeline from the pandemic, but now technology is the heart and soul of how companies are driving innovation, how they're responding to global crises around inflation, energy, supply chain crisis because of the war in Ukraine, et cetera. And companies need the technology more than ever. And that's what we're writing about in "Radically Human." And we're taking a step beyond our previous book to talk about what we believe is next. And it's really cloud, data and AI, and the metaverse that signal out as three trends that are really driving transformative change for companies. In the first part of the book, to your question on the structure, talks about the roadmap to that. We talked about the ideas framework, five areas where you need to change your thinking, flip your assumptions on how to apply technology. And then the second part of the book talks about the differentiators that we believe are going to set companies apart as they look to implement this technology and transform their companies for the future. >> Jim, weigh in on this flipping the script, flipping the assumptions. >> You used a really important word there and that is systems. I think when we think about artificial intelligence, and when Paul and I have now talking to companies, a lot of executives think of AI as a point solution. They don't think about AI in terms of taking a systems approach. So we were trying to address that. All right, if you're going to build a roadmap, a technology roadmap for applying intelligent technologies like artificial intelligence, how do you take a holistic systematic view? And that's really the focus of the first section of the book. And then as Paul mentioned, how do you take those systems and really differentiate it using your talent, focusing on trust, experiences and sustainability? >> I like how it reads. It's almost like a masterclass book because you set the table. It's like, 'cause people right now are like in the mode of what's going on around me? I've been living through three years of COVID. We're coming out the other side. The world looks radically different. Humans are much more important. Automation's great, but people are finding out that the human's key, but people are trying to figure out where am I today. So I think the first part really to me hits home. Like, here's the current situation and then part two is here's how you can get better. And it's not just about machines, machines, machines and automation, automation, automation. We're seeing examples where the role of the human, the person in society, whether it's individually or as part of a group, are really now key assets in that kind of this new workforce or this new production system or society. >> Yeah. And just to take a couple examples from the book and highlight that, I think you're exactly right. And that's where "Radically Human", the title came from. And what's happening with technology is that technology itself is becoming more human like in its capability. When you think about the power of the transformer technologies and other things that we're reading about a lot. And the whole hypothesis or premise of the book I should say, is that the more human like the technology is, the more radically human or the more radical the human potential improvement is, the bigger the opportunity. It's pairing the two together rather than, as you said, just looking at the automation or the machine side of it. That's really the radical leap. And one thing Jim and I talked about in context of the book is companies really often haven't been radical enough in applying technology to really get to dramatic gains that they can get. Just a couple examples from the ideas framework, the I in IDEAS. The ideas framework is the first part of the book. The five areas to flip your assumptions. The I stands for intelligence and we're talking about more human and less artificial in terms of the intelligence techniques. Things like common sense learning and other techniques that allow you to develop more powerful ways of engaging people, engaging humans in the systems that we build using the kind of systems thinking that Jim mentioned. And things like emotional AI, common sense AI, new techniques in addition to machine, the big data driven machine learning techniques, which are essential to vision and solving big problems like that. So that's just an example of how you bring it together and enable that human potential. >> I love the idea, go ahead Jim. >> I was going to say we've been used to adapting to technology, and contorting our fingers to keyboards and so on for a long time. And now we're starting to see that technology is in fact beginning to adapt to us and become more natural in many instances. One point that we make is now in the human technology nexus, in fact, the human is in the ascended. That's one of the big ideas that we try to put out there in this book. >> I love the idea of flipping the script, flipping the assumptions, but ideas framework is interesting. I for intelligence, D for data, E for expertise, A for architecture, S for strategy. Notice the strategies last. Normally in the old school days, it's like, hey, strategy first and execution. Really interesting how you guys put that together. It feels like business is becoming agile and iterative and how it's going to be forming. Can you guys, I mean that's my opinion, but I think observing how developers becoming much more part of the app. I mean, if you take digital transformation to its conclusion, the application is the company, It's not a department serving the business, it is the business, therefore developers are running the business, so to speak. This is really radical. I mean, this is how I'm seeing it. What's your reaction to that? Do you see similar parallels to this transformation if you take it down to a conclusion and strategy is just what you do after you get the outcomes you need? What's your reaction to that? >> Yeah, I think one of the most lasting elements of the book might be that chapter on strategy in my opinion, because you need to think about it differently. The old way of doing strategy is dead. You can't do it the way you used to do it. And that's what we tried to lay out with the S in IDEAS, the strategy. The subtitle that chapter is we're all technology companies now. And if you're a technology driven company, the way you need to think about and every company is becoming, that's what I hear when I talk to these suites and CEOs and boards, is everybody's recognizing the essential role that technology plays and therefore they need to master technology. Well, you need to think about strategy differently then because of the pace of technology innovation. And so you need to throw out the old way of doing it. We suggest three new archetypes of how to do strategy that I think are really important. It's about continuous strategy in all cases. An example is one of the techniques we talk about, forever beta, which is, think about a Tesla or companies that it's never quite done. They're always improving and the product is designed to be connected and improving. So it changes along the product and the strategy along how you deploy it to consumers changes as you go. And that's an example of a very different approach to strategy that we believe is essential to consider as you look at the future. Yeah, those multi-month strategy sessions might play out over two or three quarters of going away. And strategy and execution are becoming almost simultaneous these days as Paul was saying. >> It's interesting because that's the trend you're seeing with more data, more automation, but the human plays a much critical role. And just aside on the Tesla example, is well documented. I think I wrote about in a post just this week that during the model three, Elon wanted full automation and had to actually go off scripts and get to humans back in charge 'cause it wasn't working properly. Now they have a balance. But that brings up to part two, which I like, which is this human piece of it. We always talk about skills gaps, there's not enough people to do this, that and the other thing. And talent was a big part of that second half, trust, talent, experiences. That's more of the person's role, either individually as part of a collective group. Is talent the scarce resource now where that's the goal, that's the key 'cause it all could point to that in a way. Skills gap points to, hey, humans are valuable. In fact the value's going up if it's properly architected. What's your reaction to that, guys? Because I think that's something that is not, kind of nuanced point, but it's a feature, not a bug maybe, I don't know. What's your thoughts? >> Yeah, go ahead Jim. >> I was going to say it, we're dramatically underestimating the amount of focus we need to put on talent. That's why we start off that second part of the book, really zooming in on talent. I think you might think that for every hundred dollars that you put into a technology initiative, you might put 50 or 75 into re-skilling initiatives to really compliment that. But what we're seeing is companies need to be much more revolutionary in their focus on talent. We saw economic analysis recently that pointed out that for every $1 you spend on technology, you are likely going to need to spend about $9 on intangible human capital. That means on talent, on getting the best talent, on re-skilling and on changing processes and work tasks. So there's a lot of work that needs to be done. Really that's human focus. It's not just about adopting the technology. Certainly the technology's critical, but we're underestimating the amount of focus that needs to go into the talent factors. >> That's a huge point. >> And I think some of the elements of talent that become really critical that we talked about in the book are becoming a talent creator. We believe the successful companies of the future are going to be able not just to post a job opening and hire people in because there's not going to be enough. And a lot of the jobs that companies are creating don't exist 'cause the technology changing so fast. So the companies that succeed are going to know how to create talent, bring in people, apprentices and such, and shape to tale as they go. We're doing a significant amount of that in our own company. They're going to be learning based organizations where you'll differentiate, you'll get the best employees if you provide better learning environments because that's what employees want. And then democratizing access to technology. Things like Amazon's Honeycode is an example, low-code/no-code development to spread development to wider pools of people. Those types of things are really critical going forward to really unlock the talent potential. And really what you end up with is, yeah, the human talent's important, but it's magnified and multiplied by the power of people, giving them in essence superpowers in using technology in new ways. >> I think you nailed it, that's super important. That point about the force multiplier when you put things in combination, whether it's group constructs, two pizza teams flexing, leveraging the talent. I mean, this is a new configuration. You guys are nailing it there. I love that piece. And I think groups and collectives you're going to start to see a lot more of that. But again, with talent comes trust when you start to have these ephemeral and or forming groups that are forming production systems or experiences. So trust comes up a lot. You guys see the metaverse as an important part there. Obviously metaverse is a pretext to the virtual world where we're going to start to create these group experiences and create new force multipliers. How does the metaverse play into this new radically human world, and what does it mean for the future of business? >> Yeah, I think the metaverse is radically misunderstood to use the word title when we're not with the title of our book. And we believe that the metaverse does have real big potential, massive potential, and I think it'll transform the way we think about digital more so than we've changed our thinking on digital in the last 10 years. So that's the potential of the metaverse. And it's not just about the consumer things, it's about metaverse and the enterprise. It's about the new products you create using distributed ledger and other technologies. And it's about the industrial metaverse of how you bring digital twins and augmented workers online in different ways. And so I believe that it has tremendous potential. We write about that in the book and it really takes radically human to another level. And one way to think about this is cloud is really becoming the operating system of business. You have to build your enterprise around the cloud as you go forward. That's going to shape the way you do business. AI becomes the insight and intelligence in how you work, infused with the human talent and such as we said. And the metaverse then reshapes the experience layers. So you have cloud, AI building on top of this metaverse providing a new way to generate experiences for employees, citizens, consumers, et cetera. And that's the way it unfolds, but trust becomes more important because just as AI raises new questions around trust, every technology raises new questions around trust. The metaverse raises a whole new set of questions. And in the book we outline a five-part framework or five essential parts of the framework around how you establish trust as you implement these new technologies. >> Yeah, we're seeing that about three quarters of companies are really trying to figure out trust, certainly with issues like the metaverse more broadly across their IT so they're focusing on security and privacy, transparency, especially when you're talking about AI systems, explainability. One of the more surprising things that we learned when doing the book, when we were doing the research is that we saw that increasingly consumers and employees want systems to be informed by a sense of humanity. So one company that we've been looking at that's been developing autonomous vehicles, self-driving car systems, they're actually training the system by emulating human behavior. So turning the cameras on test drivers to see how they learn and then training the AI using that sense of humanity 'cause other drivers on the road find human behavior more trustworthy. And similarly, that system is also using explainable AI to actually show which human behaviors that AI system is learning from. Some really interesting innovations happening in that trust space. John. >> Jim, I think you bring up a great point that's worth talking more about. Because you're talking about how human behaviors are being put into the design of new things like machines or software. And we're living in this era of cloud scale, which is compressing this transformation timeline and we've been calling it supercloud, some call it multi-cloud, but it's really a new thing happening where you're seeing an acceleration of the transformation. We think it's going to happen much faster in the next five to 10 years. And so that means these new things are emerging, not just, hey, I'm running a virtual event with chat and some video. It's group behavior, it's groups convening, talking, getting things done, debating, doing things differently. And so this idea of humans informing design decisions or software with low-code/no-code, this completely changes strategy. I mean this is a big point of the book. >> Yeah, no, I go back to one of the, the E in the IDEAS framework is expertise. And we talk about from machine learning to machine teaching, which is exactly that. Machine learning is maybe humans tag data and stuff and feed into algorithms. Machine teaching is how do you really leverage the human expertise in the systems that you develop with AI. One of the examples we give is one of the large consumer platforms that uses human designers to give the system a sense of aesthetic design and product design. A very difficult thing, especially with changing fashion interest and everything else to encode in algorithms and to even have AI do, even if you have fast amounts of data, but with the right human insight and human expertise injected in, you can create amazing new capability that responds to consumers in a much more powerful way. And that's an example of what you just said, John, bringing the two together. >> Well, yeah, it's interesting. I want to to get your thoughts as we get wrap up here soon. How do you apply all these human-centric technologies to the future of business? As you guys talk to leaders in the enterprise of their businesses, as they look at the horizon, they see the the future. They got to start thinking about things like generative AI and how they can bring some of these technologies to the table. We were talking about if open source continues to grow the way it's going, there might not be any code to write, it just writes itself at some point. So you got supply chain issues with security. These are new things you guys are hitting in the book where these are new dynamics, new power dynamics in how things get built. So if you're a business owner and leader, this is a new opportunity, a challenge certainly that is an opportunity. How do you apply all this stuff for business? >> I'll go first then Jim can add in. But the first thing I think starts with recognizing the role that technology does play and investing accordingly in it. So the right technology talent, rethinking the way you do strategy as we talked about earlier and recognizing how you need to build a foundation. That's why the fact you're at re:Invent is so important because companies are, again, rebuilding that operating system of their business in the cloud. And you need that as the foundation to go forward, to do, to build the other types of capabilities. And then I think it's developing those talent systems as well. Do you have the right talent brand? Are you attracting the right employees? Are you developing them in the right way so that you have the right future talent going forward? And then you marry the two together and that's what gives you the radically human formula. >> Yeah. When we were developing that first part of the book, Paul and I did quite a bit of research, and Paul kind of alluded to that research earlier, but one of the things that we saw in really the first year of the pandemic was that there was a lot of first time adoption of intelligent technologies like artificial intelligence. One statistic is that 70% of companies that had never tried AI before went ahead and tried it during the pandemic. So first time adoption rates were way up, but the thing is companies were not trying to do it themselves and to necessarily build an AI department. They were partnering and it's really important to find a partner, often a cloud partner as a way to get started, start small scale, and then scale up doing experiments. So that was one of the key insights that we had. You don't need to do it all yourself. >> If you see the transformation of just AWS, we're here at re:Invent, since we've been covering the events since 2013, every year there's been a thematic thing. It was startups, enterprise, now builders, and now change your company. This year it's continuing that same thing where you're starting to see new things happen. It's not just lift and shift and running a SaaS application on the cloud. People are are changing and refactoring and replatforming categorical applications in for this new era. And we're calling it supercloud, superservices, superapps, 'cause they're different. They're doing different things in leveraging large scale CapEx, large scale talent pools, or talent pools in certain ways. So this is real, something's happening here and we've been talking about it a lot lately. So I have to ask you guys, how does a company know if they're radical enough? Like what is radical? How can I put a pin in that? It's like take a temperature or we like radical enough, what some tell signs can you guys share for companies that are really leaning into this new next inflection point because there are new things happening? How do you know if you're you're pushing the envelope radical enough to take advantage? >> Yeah, I think one. >> You can go ahead, Paul. >> Yeah, I was going to say one of the tests is the impact on your business. You have to start by looking at all this in the context of your business, and is it really taking you to another level? You said it perfectly, John, it used to be we used to talk about migration and workloads to the cloud and things like that. That's still something you need to do. But now our focus with a lot of our customers is on how do you innovate and grow your business in the cloud? What's the platform that you're using for your new digital products and services you're offering to your consumers. I mean it is the business and I think that's the test whether you're being radical enough is on the one hand, are you really using the technology to drive differentiation and real growth and change in your business? And are you equipping people, your human talent with the capabilities they need to perform in very different ways? And those are the two tests that I would give. >> Totally agree. >> Interesting enough, we love this topic and you guys, again, the book is spot on. Very packs of big punch on content, but very relevant in today. And I think one of the things we're looking at is that people who do things differently take advantage of some of these radical approaches like IDEAS, your framework, and understand where they are and what's available and what's coming around the corner. They stand out in the pack or create new business opportunities because the CapEx is taken care of. Now you got your cloud, I mean you're building clouds on top of clouds or something's happening. I think you see it, look at like companies like Snowflake, it's a data warehouse on the cloud. What does that mean? They didn't build a cloud, they used Amazon. So you're starting to see these new things pop up. >> Yeah and that's a good example. And it sounds like a simple thing, data warehouse in the cloud, but the new business capability that a technology like that allows and the portability of being able to connect and use data across cloud environments and such is tremendously powerful. And I think that's why, you talk about companies doing things differently, that's why it's great, again, that you're at re:Invent. If you look at the index of our book, you'll see AWS mentioned a number of times 'cause we tell a lot of customer company stories about how they're leveraging AWS capabilities in cloud and AI to really do transformative things in their business. And I think that's what it's all about. >> Yeah, and one of the things too in the book, it's great 'cause it has the systems thinking, it's got really relevant information, but you guys have seen the movie before. I think one of the wild cards in this era is global. We're global economy, you've got regions, you've got data sovereignty, you're seeing all kinds of new things emerging. Thoughts on the global impact 'cause you take your book and you overlay that to business, like you got to operate all over the world as a human issue, as a geography issue. What's your guys take on the global impact? >> Well that's why you got to think about cloud as one technology. We talked about in the book and cloud is, I think a lot of people think, well, clouds, it's almost old news. Maybe it's been around for a while. As you said, you've been going to re:Invent since 2013. Cloud is really just getting started. And it's 'cause the reasons you said, when you look at what you need to do around sovereign cloud capability if you're in Europe. For many companies it's about multi-cloud capabilities that you need to deploy differently in different regions. And they need to, in some cases for good reason, they have hybrid cloud capability that they match on their own. And then there's the edge capability which comes into play in different ways. And so the architecture becomes very complex and we talk the A in IDEAS is architecture. We talk about all this and how you need to move from the old conception of architecture, which was more static and just modularity was the key thing you thought about. It's more the idea of a living system, of living architecture that's expanding and is what's much more dynamic. And I think that's the way you need to think about it as you manage in a global environment today with the pace of technology advancement. >> Yeah, the innovation is here. It's not stopping. How do you create some defacto standards while not stunting the innovation is going to be a big discussion as these new flipped assumptions start to generate more activity. It's going to be very interesting to watch. Gentlemen, thank you so much for spending the time here on theCUBE as we break down your new book, "Radically Human" and how business leads can flip the script on their business assumptions and put ideas and access to work. This is a big part of the cloud show at re:Invent. Thanks so much for sharing and congratulations on a great book. >> Thanks, John. And just one point I'd add is that one of the things we do talk about in talent is the need to reskill talent. People who need to be relevant in the rapidly changing future. And that's one area where I think we all as institutions, as communities and individuals need to do more is to help those that need to reskilling. And the final point I mentioned is that we've mentioned at the end of the book that all proceeds from the book are being donated to NGOs and nonprofits that are focused on reskilling those who need a skill refresh in light of the radically human change in technology that's happening. >> Great. Buy the book. Proceeds go to a great cause and it's a very relevant book. If you're in the middle of this big wave that's coming. this is a great book. There's a guidepost and also give you some great ideas to reset, reflip the scripts, refactor, replatform. Guys, thanks for coming on and sharing. I really appreciate it. Again, congratulations. >> Thanks, John. >> Thanks, John. Great discussion. >> You're watching theCUBE here covering the executive forum here at AWS re:Invent '22. I'm John Furrier, you're host with Accenture. Thanks for watching. (gentle music)
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Paul Daugherty & Jim Wilson | AWS Executive Summit 2022
>>Hello and welcome to the Cube's coverage here at AWS Reinvent 2022. This is the Executive Summit with Accenture. I'm John Furry, your host of the Cube at two great guests coming on today, really talking about the future, the role of humans. Radically human is gonna be the topic. Paul Dardy, the group Chief Executive Technology and CTO at Accenture. And Jim Wilson, global managing director of thought Leadership and Technology research. Accenture. Gentlemen, thank you for coming on the cube for this conversation around your new hit book. Radically human. >>Thanks, John. It's great to, great to be with you and great, great to be present at reinvent. >>You know, we've been following you guys for many, many years now, over a decade. You always have the finger on the pulse. I mean, and as these waves come in, it's really important to understand impact. And more than ever, we're kind of in this, I call it the systems thinking, revolutions going on now where things have consequences and, and machines are now accelerating their role. Developers are becoming the front lines of running companies, seeing a massive shift. This new technology is transforming the business and shaping our future as, as humans. And so I love the book. Very, very strong content, really. Right on point. What was the motivation for the book? And congratulations. But, you know, I noticed you got the, the structure part one and part two, This book seems to be packing a big punch. What's, what was the motivation and, and what was some of the background in, in putting the book together? >>That's a great question, John, and I'll start, and then, you know, Jim, my co-author and, and part colleague and partner on this, on the book and join in too. You know, the, if you step back from the book itself, we'd written a first book called, you know, Human Plus Machine, which talked about the, you know, focused a lot on artificial intelligence and talked about the potential and future of artificial intelligence to create a more human future for us with the Human plus machine pairing. And then, you know, when we started, you know, working on the next book, Covid was, you know, it was kinda the Covid era. Covid came online as, as we were writing the book. And, but that was causing really an interesting time in technology for a lot of companies. I mean, think back to what you were doing, you know, once Covid hit, every company became more dependent on technology. >>Technology was the lifeline. And so Jim and I got interested in what the impacts of that were on companies ba, you know, and what was different from the first, you know, research we had done around our first book. And what we found, which was super interesting, is that, is that, you know, pre pandemic, the, the leading companies, the digital leaders that were applying cloud data, AI, and related technologies faster, we're outperforming others by a factor of two x. And that was before the pandemic. After the pandemic. We redid the research and the gap widen into five x. And I think that's, and, and that's kind of played a lot into our book. And we talk about that in the opening of our book. And the message message there is exactly what you said is technology is not just the lifeline, you know, from the pandemic, but now technology is the heart and soul of how companies are driving innovation, how they're responding to global crises around, you know, inflation energy, supply chain crisis because of the war in Ukraine, et cetera. >>And companies need the technology more than ever. And that's what we're writing about in, in Radically Human. And we're taking a step beyond our previous book to talk about what we believe is next. And it's really cloud data and ai and the metaverse that signal out is three trends that are really driving transformative change for companies. And the first part of the book, to your question on the structure, talks about the roadmap to that. We talked about the ideas framework, five areas where you need to change your thinking, flip your assumptions on how to apply technology. And then the second part of the book talks about the differentiators that we believe are gonna set companies apart as they look to, you know, to implement this technology and transform their companies for the future. >>Jim, weigh in on this. Flipping the script, flipping the assumptions. No, >>You, you, you used a really important word there, and that is systems. I think when we think about artificial intelligence, and when Paul and I have now talking to companies, a lot of executives think of AI as kind of a point solution. They don't think of about AI in terms of taking a systems approach. So we were trying to address that, all right, if you're gonna build a roadmap, a technology roadmap for applying intelligent technologies like artificial intelligence, how do you take a holistic systematic view? And that's really the, the focus of the first section of the book. And then as Paul mentioned, how do you take those systems and really differentiate using your talent, focusing on trust, experiences and sustainability. >>You know, I like this, I like how it reads. It's almost like a masterclass book because you kind of set the table. It's like, cuz people right now are like in the mode of, you know, what's going on around me. I'm been living through three years of covid. But coming out the other side, the world looks radically different. Humans are much more important. Automation's great, but people are finding out that the human's key, but people are trying to figure out where I am, where am I today. So I think the first part really to me hits home, like, here's the current situation and then part two is, here's how you can get better. And it's not just about machines, machines, machines and automation, automation, automation. We're seeing examples where the role of the human, the person in society, whether it's individually or as part of a group, are really now key assets in that kind of this new workforce or this new production system or you know, society. >>Yeah. And just to take a couple examples from the book and highlight that, I think you're exactly right. And that's where, you know, radically human, you know, the title came from. And you know, the, what's happening with technology is that technology itself is becoming more human like in its capability. When you think about the power of the transformer technologies and other things that we're reading about a lot and, and that, you know, the whole hypothesis, you know, or premise of the book I should say, is that the more humanlike the technology is, the more radically human or the more radical the, you know, the, the the, the human potential improvement is the more, the bigger the opportunity. It's pairing the two together rather than, as you said, just looking at the automation or the machine side of it. That's really the radical leap. And one thing Jim and I, you know, talk about, you know, talked about, you know, talked about in context of the book is companies really often haven't been radical enough in applying technology to really get to dramatic gains that they can get. >>Just a couple examples from the ideas framework, the eye and ideas is each of the, the ideas framework is the first part of the book, The five areas to flip your Assumptions, The eye stands for intelligence. And we're talking about more, more human and less artificial in terms of the intelligence techniques, things like common sense learning and other techniques that allow you to develop more powerful ways of engaging people, engaging humans in the systems that we build, using the kind of systems thinking that Jim mentioned. And you know, things like emotional ai, common sense ai, new techniques in addition to machine the big data driven machine learning techniques which are essential to vision and solving big problems like that. So that's, that's just an example of, you know, how you bring it together and enable that human potential. >>I love the, we've been, >>We've >>Go ahead Jim. >>I was gonna say we've been used to adapting to technology, you know, and you know, contorting our fingers to keyboards and and so on for a long time. And now we're starting to see that technology is in fact beginning to adapt to us and become more natural in many instances. One point that we make is now in the human technology nexus. In fact, the human is in the ascended. That's one of the, one of the big ideas that we try to put out there in this book. >>You know, I love the idea of flipping the script, flicking assumptions, but, but ideas framework is interesting. I for intelligence, D for data, E for expertise, A for architecture, s for strategy, notice the strategies last. Normally in the old school days, it's like, hey, strategy first and execution really kind of interesting kind of how you guys put that together. It kind of feels like business is becoming agile and iterative and it's how it's gonna be forming. Can you guys, I mean that's my opinion, but I think, you know, observing how developers becoming much more part of, of the app. I mean, if you take digital transformation to its conclusion, the application is the company, It's not a department serving the business, it is the business, therefore developers are running the business, so to speak. This is really radical. I mean, this is kind of how I'm seeing it. What's your reaction to that? Do you see similar parallels to this transformation? If you take it down to a conclusion, strategy is just what you do after you get the outcomes you need. Is that, can you, what's your reaction to that? >>Yeah, yeah, I think, I think one of the most lasting elements of the book might be that chapter on strategy in, in my opinion, because you need to think about it differently. The old, old way of doing strategy is dead. You can't do it the way you used to do it. And that's what we tried to, you know, to lay out with the, the essence ideas, you know, the strategy and the, the, the fun. You know, the, the subtitle that chapter is is we're all technology companies now. And if you're a technology driven company, the way you need to think about and every company is becoming, That's what I hear when I talk to these suites and CEOs and boards, is everybody's recognizing the essential world that technology plays and therefore they need to, to master technology, well, you need to think about strategy differently than because of the pace of technology innovation. >>And so you need to throw out the old way of doing it. We suggest three new archetypes of how to do strategy that I think are really report it's about continuous strategy in all cases. Yet an example is one of the techniques we talk about forever beta, which is, you know, think about a Tesla, you know, companies that, you know, it's never quite done. They're always improving and the product is designed to be connected and improving. So it changes along, you know, the product and the strategy along how you deploy it to consumers changes as you go. And that's an example of a very different approach to strategy that we, we believe is essential to consider as you look at the future. Yeah, those multi-month strategy sessions, you know, might play out over two or three quarters of going away. And strategy and execution are becoming almost simultaneous these days. As Paul was saying, >>It's interesting because that's the kind of the trend you're seeing with more data, more automation. But the human plays a much critical role. And, and just as a side on the Tesla example, you know, is well documented, I think I wrote about in a post just this week that during the model three Elon wanted full automation and had to actually go off script and get to humans back in charge cuz it wasn't working properly. Now they have a balance. But that brings up the, the part two, which I like, which is, you know, this human piece of it, you know, we always talk about skills gaps, there's not enough people to do this, that and the other thing. And talent was a big part of that, that second half, you know, trust, talent experiences, that's the more the person's role, either individually as part of a collective group is talent. The scarce resource now where that's the, that's the goal, that's the, the key because I mean, it all could point to that in a way, you know, skills gap kind of points to, hey, you know, humans are valuable, in fact the value's going up if it's properly architected. What's your reaction to that, guys? Because I think, you know, that's something that is not kind of nuance point, but it's a feature, not a bug maybe, I don't know. What's your thoughts? >>Yeah, it's, go ahead Jim. I was gonna say it, you know, we're, we're dramatically underestimating the amount of focus we need to put on talent. That's why we start off that second part of the book. You know, really zooming in on talent. I think, you know, you might think that for every, you know, a hundred dollars that you put into a technology initiative, you know, you might put 50 or 75 into reskilling initiatives to really compliment that. But what we're seeing is companies need to be much more revolutionary in their focus on talent. We saw a, a economic analysis recently that pointed out that for every $1 you spend on technology, you are likely gonna need to spend about $9 on intangible human capital. That means, you know, on talent, on, on getting the best talent on reskilling and on changing processes and work tasks. So there's a lot of work that needs to be done. Really that's human focus. It's not just about adopting the technology. Certainly the technology's critical, but we're underestimating the amount of focus that needs to go into the talent factors. >>That's a huge point. >>I think some of the elements of talent that become really critical that we, we talked about in the book are, are becoming a talent creator. We believe that the successful companies of the future are gonna be able not, not just to post, you know, post a job opening and hire, hire people in because there's not gonna be enough. And a lot of the jobs that companies are creating don't exist, you know, cause the technology changing so fast. So companies that succeed are gonna know how to create talent, bring in people, apprentices and such and, and, and, you know, shape to tail as they go. We're doing a significant amount of that in our own company. They're gonna be learning based organizations where you'll differentiate, you'll get the best employees if you provide better learning environments because that's what you know, employees want. And then democratizing access to technology, You know, things like, you know, Amazon's honey code is an example, you know, low code, no code development to spread, you know, development to wider pools of people. Those types of things are really critical, you know, going forward to really unlock the talent potential. And really what you end up with is, yeah, the, the human talent's important, but it's magnified to multiplied by the power of people, you know, giving them in essence superpowers in using technology in new >>Ways. I think you nailed it, That's super important. That point about the force multiplier, when you put things in combination with it's group constructs, two pizza teams, flexing, leveraging the talent. I mean, this is kind of a new configuration. You guys are nailing it there. I love that piece. And I think, you know, groups and collectives, you're gonna start to see a lot more of that. But again, with talent comes trust when you start to have these kind of, you know, ephemeral and or forming groups that are forming production systems or, or, or experiences. So trust comes up a lot. You guys see the metaverse as an important part there. Obviously Metaverse is a pretext to the virtual world where we're gonna start to create these group experiences and create new force multipliers. How does the Metaverse play into this new radically human world and and what does it mean for the future of business? >>Yeah, I think the Metaverse is radically, you know, kind of misunderstood to use the word title, word of a, when we're not with the title of our book, you know, and we believe that the metaverse does have real big potential, massive potential, and I think it'll transform the way we think about digital more so than we've changed our thinking on digital in the last 10 years. So, you know, that that's the potential of the metaverse. And it's about, it's not just about the consumer things, it's about metaverse in the enterprise. It's about the new products you create using distributed ledger and other technologies. And it's about the industrial metaverse of how you bring digital twins and augmented workers online in different ways. And so I, I believe you know that it is, has tremendous potential. We write about that in the book and it really takes radically human to another level. >>And one way to think about this is cloud is really becoming the operating system of business. You, you have to build your enterprise around the cloud as you go forward that's gonna shape the way you do business. AI becomes the insight and intelligence in how you work, you know, in infused with, you know, the human talent and such as we said. And the metaverse then reshapes the experience layers. You have cloud AI building on top of this metaverse providing a new way to, to generate experiences for, for employees, citizens, consumers, et cetera. And that's the way it unfolds. But trust becomes more important because the, just as AI raises new questions around trust, you know, every technology raises new questions around trust. The metaverse raises a whole new set of questions. And in the book we outline a five part framework or or five, you know, essential, you know, parts of the framework around how you establish trust as you implement these new technologies. >>Yeah, we're seeing that, you know, about three quarters of companies are really trying to figure out trust, you know, certainly with issues like the metaverse more broadly across their it, so they're, you know, they're focusing on security and privacy transparency, especially when you're talking about AI systems. Explainability. One of the, you know, the more surprising things that we learned when doing the book, when we're doing the research is that we saw that increasingly consumers and employees want systems to be informed by kind of a sense of humanity. So one company that we've been looking at that's been developing autonomous vehicles, self-driving car systems, the, they're, they're actually training the system by emulating human behavior. So kind of turning the cameras on test drivers to see how they learn and then training the AI kind of using that sense of humanity cuz you know, the other drivers on the road find human behavior more trustworthy. And similarly, that system is also using explainable AI to actually show which human behaviors that that AI system is learning from or some really interesting innovations kind of happening in that trust space. John, >>Jim, I think you bring up a great point that's worth talking more about because you know, you're talking about how human behaviors are being put into the, the design of new things like machines or software. And we're living in this era of cloud scale, which is compressing this transformation timeline and you know, we've been calling it super cloud, some call it multicloud, but it's really a new thing happening where you're seeing an acceleration of the transformation. We think it's gonna happen much faster in the next five to 10 years. And so that means these new things are emerging, not just, hey, I'm running a virtual event with Chad and some video, you know, it's, it's group behavior, it's group con groups, convening, talking, getting things done, you know, debating doing things differently. And so this idea of humans informing design decisions or software with low code no code, this completely changes strategy. I mean this is a big point of the book. >>Yeah, no, I go back to, you know, one of the, the, the, the e and the ideas frameworks is expertise. And we talk about, you know, from machine learning to machine teaching, which, which is exactly that, you know, it's, you know, machine learning is, you know, maybe humans tag data and stuff and feed into algorithms. Machine teaching is how do you really leverage the human expertise in the systems that you develop with ai? One of the examples we give is one of the, the large consumer platforms that uses human designers to give the system a sense of aesthetic design and product design. A very difficult thing, especially with changing fashion interest and everything else to code in algorithms and to even have AI do, even if you have fast amounts of data, but with the right human insight and human expertise injected in, you can create, you know, amazing new capability that responds to consumers in a much more powerful way. And that's an example of what you just said, John, bringing the two together. >>Well you, what's interesting is that I wanna to get your thoughts as we can wrap up here soon. How do you apply all these human-centric technologies to the future of business? As you guys talk to leaders in, in the enterprise of their businesses, as they look at the horizon, they see the, the future, they gotta start thinking about things like generative AI and how they can bring some of these technologies to the table where, you know, we were, we were talking about if open source continues to grow the way it's going, there might not be any code to write, it just writes itself at some point. So you got supply chain issues with security. These are, these are new things you guys are hitting on this in the book where these are new dynamics, new power dynamics in how things get built. So if you're a business owner and leader, this is a new opportunity, a challenge, certainly that is an opportunity. How, how do you apply all this stuff for, for business >>Now? I'll go first then Jim Canad. But the, the first thing I think starts with, with recognizing the role that technology does play and investing accordingly in it. So the right, you know, technology, talent, you know, rethinking the way you do strategy as we talked about earlier and recognizing how you need to build a foundation. That's why, you know, the fact you're at reinvent is so important because companies are, you know, again rebuilding that, that operating system of their business in the cloud. And you need that, you know, as the foundation to go forward, to do, you know, to, to build the other, other types of capabilities. And then I think it's developing those talent systems as well. You know, do you, do you have the right the, do you have the right talent brand? Are you attacking the right, attracting the right employees? Are you developing them in the right way so that you have the right future talent going forward and then you marry the two together and that's what, you know, gives you the radically human formula. >>Yeah. When, you know, when we were developing that first part of the book, Paul and I did quite a bit of, of research, and this was ju and Paul kind of alluded to that research earlier, but one of the things that we saw in really the first year of the pandemic was that there was a lot of first time adoption of intelligent technologies like artificial intelligence. You know, one statistic is that 70% of, there was a, there was a of companies that had never tried AI before, went ahead and tried it during the pandemic. So first time adoption rates were way up, but the thing is companies are not, or we're not trying to do it themselves and to, you know, to necessarily, you know, build an it, a AI department. They were partnering and it's really important to, to find a partner, often a cloud partner as a way to get started, start small scale and then scale up doing experiments. So that was one of the, that was one of the key insights that we had. You don't need to do it all yourself. >>If you see the transformation of just aws, we're here at reinvent just since we've been covering the events since 2013, every year there's been kind of a thematic thing. It was, you know, startups, enterprise now builders and now, now change your company this year it's continuing that same thing where you're starting to see new things happen. It's not just lift and shift and, and running a SaaS application on the cloud. People are are changing and refactoring and replatforming, categorical applications in for this new era. And you know, we're calling it super cloud super services, super apps cuz they're different. They're doing different things in leveraging large scale CapEx, large scale talent pools or talent pools in certain ways. So this is real, something's happening here and you know, we've been talking about a lot lately, so I have to ask you guys, how does a company know if they're radical enough? Like when, what is radical? How do, how can I put a pin in that say that could take a temperature or we like radical enough what some tell signs can you guys share for companies that are really leaning into this new next inflection point because there are new things happening. How do you know if you're, you're you're pushing the envelope radical enough to, to take advantage? >>Yeah, I think one, yeah, I was gonna say one of the, one of the tests is is you know, the impact on your business. You have to start by looking at all this in the context of your business and is it really taking you to another level? You said it perfectly, John, it used to be we used to talk about migration and workloads to the cloud and things like that. Yeah. That that's still something you need to do. But now we, our focus, you know, with a lot of our customers is on how do you innovate and grow your business in the cloud? What's, what is, you know, how, how, what's the platform you know, that you're using to, you know, for your, the new digital products and services you're offering to your consumers. I mean it is the business and I think that's the test. Whether being radical, you know, radical enough is on the one hand, is this really, are you really using the technology to drive differentiation and real growth and change in your business? And are you equipping, you know, people, your human talent with the capabilities they need to perform in very different ways? And those are the the two tests that I would give. Totally agree. >>Yeah. You know, interesting enough, we, you know, we, we love this topic and guys, again, the book is spot on. Very packs a big punch on content, but very relevant in today. And I think, you know, one of the things we're looking at is that people who do things differently take advantage of some of these radical approaches like ideas your framework and understand where they are and what's available and what's coming around the corner. They stand out in the, in the pack or create new business opportunities because the CapEx is taken care of. Now you got your cloud, I mean some, you're building clouds on top of clouds or, or something's happening. You can, I think you see it like look at like companies like Snowflake, it's a data warehouse on the cloud. What does that mean? They didn't build a cloud, they used Amazon. So you're starting to see these new things pop up. >>Yeah, and that's a good example and it sounds like a simple thing, data warehouse in the cloud, but the new business capability that a technology like that allows the portability of being able to connect and use data across cloud environments and such is, is, is is tremendously powerful. And I think that's why, you know, you talk about companies doing things differently, that's why it's great again that you're at reinvents. If you look at the index of our book, you'll see, you'll see AWS mentioned a number of times cuz we tell a lot of cus of cus customer and company stories about how they're leveraging aws, AWS capabilities in cloud and AI to really do transformative things in your, in their business. And I, I think that's what it's, that's what it's all about. >>Yeah, and one of the things too in the book, it's great cuz it has kind of a, the systems thinking it's got really relevant information but you know, you guys have seen the, seen the movie before. I think one of the wild cards in this era is global. You know, we're global economy, you've got regions, you've got data sovereignty, you're seeing, you know, all kinds of new things, emerging thoughts on the global impact cuz you, you take your book and you overlay that to business. Like you gotta, you gotta operate all over the world as a human issue. It's a geography issue. What's your guys take on the global impact? >>Well that's, that's why the, the, you gotta think about cloud as as one technology, you know, we talked about in the book and cloud is a lot, I think a lot of people think, well clouds it's almost old news. Maybe it's been around for a while. As you said, you've been going to reinvent since 2013. You know, cloud is really just getting, you know, just getting started. And, and it's cuz the reasons you said, when you look at what you need to do around sovereign cloud capability, if you're in Europe for many companies it's about multi-cloud capabilities. You need to deploy, you know, differently in different, in different regions. And they need to, in some cases for good reason, they have hybrid, hybrid cloud, you know, capability that they, they match on their own. And then there's the edge capability which is comes into play in, in different ways. >>And, and so the architecture becomes very complex and we talk the A in and ideas is architecture. We talk about all this and how you need to move from the old conception of architecture, which was more static and mod and you know, just modularity was kind of the key thing you thought about. It's more the idea of a living system, of living architecture that's, that's expanding and is what's much more dynamic. And I think that's the way you need to think about it as you manage in a global environment today with the, with the pace of technology advancement. >>You know, the innovation is here. It's not stopping. How do you create some defacto standards while not stunting the innovation is gonna be a big discussion as these new flipped assumptions start to generate more activity. It's gonna be very interesting to watch. Gentlemen, thank you so much for spending the time here on the queue as we break down your new book, Radically Human and how it, how business leads can flip the script on their business assumptions and put ideas and access to work. This is a big part of the cloud show at reinvent. Thanks so much for, for sharing and congratulations on a great book. >>You know, Thanks John. And just one point I'd add is that one of the, the things we do talk about in talent is the need to reskill talent. You know, people who need to, you know, be, be relevant to the rapidly changing future. And that's one area where I think we all as institutions, as communities and individuals need to do more is to help those who need to reskilling. And the final point I mentioned is that we mentioned at the end of the book that all proceeds for the book are being donated to not NGOs and nonprofits that are focused on reskilling. Those who need a skill refresh in light of the radically human new, you know, change in technology that's happening >>Great by the book proceeds go to a great cause and it's a very relevant book if you're in the middle of this big way that's coming. This is a great book. There's a guidepost and also give you some great ideas to, to reset re flip the scripts. Refactor, re-platform. Guys, thanks for coming on and sharing, really appreciate it. Again, congratulations. >>Thanks, John. John, great discussion. >>Okay, you're watching the Cube here, covering the executive forum here at AWS Reinvent 22. I'm John Furrier, your host with aen. Thanks for watching.
SUMMARY :
Gentlemen, thank you for coming on the cube for this conversation around your new hit book. But, you know, I noticed you got the, the structure part one and part two, This book seems to be packing And then, you know, when we started, you know, working on the next book, And the message message there is exactly what you said is technology is not just the lifeline, We talked about the ideas framework, five areas where you need Flipping the script, flipping the assumptions. And then as Paul mentioned, how do you take those systems and really It's like, cuz people right now are like in the mode of, you know, what's going on around me. And that's where, you know, radically human, you know, the title came from. And you know, things like emotional ai, common sense ai, new techniques in addition you know, and you know, contorting our fingers to keyboards and and so on for a If you take it down to a conclusion, strategy is just what you do after you get the outcomes And that's what we tried to, you know, to lay out with the, the essence ideas, of the techniques we talk about forever beta, which is, you know, think about a Tesla, which I like, which is, you know, this human piece of it, you know, we always talk about skills gaps, I was gonna say it, you know, we're, we're dramatically underestimating And a lot of the jobs that companies are creating don't exist, you know, cause the technology changing so fast. And I think, you know, And it's about the industrial metaverse of how you bring digital twins and augmented workers online or or five, you know, essential, you know, parts of the framework around how you establish trust as to figure out trust, you know, certainly with issues like the metaverse more broadly across their convening, talking, getting things done, you know, debating doing things differently. And we talk about, you know, from machine learning to machine teaching, the table where, you know, we were, we were talking about if open source continues to grow the way it's going, So the right, you know, technology, talent, you know, rethinking the way you do strategy as we talked about not, or we're not trying to do it themselves and to, you know, to necessarily, And you know, one of the tests is is you know, the impact on your business. And I think, you know, one of the things we're looking at is that people who do things differently take advantage of some of these radical And I think that's why, you know, you talk about companies doing things differently, that's why it's great again the systems thinking it's got really relevant information but you know, the reasons you said, when you look at what you need to do around sovereign cloud capability, And I think that's the way you need to think about it as you manage in a global environment Gentlemen, thank you so much for spending the time here on the queue as we break down your new book, you know, be, be relevant to the rapidly changing future. There's a guidepost and also give you some great ideas I'm John Furrier, your host with aen.
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Ramkumar Pandurangan, Kyndryl | AWS Summit New York 2022
(upbeat electronic music) >> Welcome to theCUBE's continuing coverage of AWS Summit New York 2022. I'm Dave Nicholson, and I am thrilled to be joined by Ramkumar Pandurangan. He is Practice Leader of the Cloud Advisory and Consulting Organization at Kyndryl. Ram, welcome. >> Thanks for having me, David, it's a pleasure. >> First time on theCUBE I believe. >> Ah, yes it is, so a little excited, and anxious as well, but it's great to be here. >> Fantastic. Well, when we're done, you'll be a CUBE alumni, which is actually a very distinguished badge of honor to have so. So, let's get started. Tell me about Kyndryl. I'm particularly interested in a bit of the history, how did Kyndryl come about? >> Yeah, so -- >> And what do you do now? >> I'm sorry. Before we talk about who we are and what we do, let me talk about Kyndryl's, philosophy, right? Basically so, people don't buy the cloud, people buy outcomes, and with this explosive growth in the market, as well as the complexity in which the technology has evolved, it's very challenging for everybody to find the right partner, as well as who to go to deliver it for them. And we do understand that technology is supposed to help drive your business capabilities, but not hinder. So, Kyndryl's primary philosophy is to how we can help enable our clients get the business capabilities using technology. So, having said that, we are a spinoff from IBM in 2021, and we have a strong base of 90,000 skilled professionals across a hundred countries. And, you know, we have almost 75 of the 100 Fortune 100 companies, and we almost cater half of the Fortune 500 companies, just to give you a background. And we have people across applications, data, AI, you know, network, edge, security and resiliency across the globe, but of course, cloud. >> So, do you work with partners from a cloud perspective? What does that look like? >> We have a whole broad ecosystem of partners, and, you know, anywhere from all the hyper scalers, to all the large product companies. And we understand that with a combined force of our years of experience helping our clients to be successful, partnering with our partners to help drive their capabilities. And you know, let's talk about AWS. Everybody knows that AWS has been a pioneer in the public cloud, coming up with a whole catalog of services, which is there, available for anybody. And I would like to call them as construction materials. Right? So, you could take these services, assemble them, and it could be a simple house, or it could be as big as a very complex model, kind of an environment. So, this is where we partner with AWS and bring our years of experience and help our clients go through the journey and successfully deliver in whatever complexity that they have, their existing environments. So, just an example of how we partner with our partners. >> Yeah. That makes a lot of sense. In fact, I heard someone once describe AWS as being like Home Depot, in the sense that they offer all of the bits and bytes. Of course, the AWS folks were like, "What? No, we're nothing like Home Depot!" It's like, well, you kind of are. (laughs) Because it really is important for an organization like Kyndryl to be there, to bridge the divide between the tools and the outcomes, as you mentioned. Well, what are some of the customers, or kinds of customers that you work with in this arena? >> Yeah. So, just to double click on what I said about the 75 of the 100 Fortune 100 companies, we currently manage the top five ad lanes of all ad lanes, we probably manage four of the five largest retailers, and 49% of the mobile connections are supported for the customers, and 61%, or roughly around 60% of the top 50 banks assets are managed by our service. So, we have a huge portfolio across the financial services, public sector, you know, communications, and distribution market across the globe. >> So is it fair to say that each of these customers is somewhere along the digital transformation timeline? Are they all thinking in terms of transforming digitally, what that means? Whether it's application modernization, of course, movement to cloud is part of that, does that sound like the profile of a lot of your customers? >> Exactly. So, each of them are in various, what I call in the paradigm of everybody are trying to modernize, right? Modernization is the way to go. Even though in the last three years we saw that the physical slowdown of the world, like digital transformation took an explosive growth, so everybody realized that not doing the business in a traditional way is going to get to where they want to go. And traditionally, people are cutting costs, or trying to trim down, and trying to see how they can, you know, do incremental modernization. And then they realize, especially in the last three years, that they need to holistically look at how they need to be modernizing it. Right? And that is where either it's a datacenter-driven modernization, or it's an application-centric modernization, which is moving the transformation journey. Or in general, people are holistically looking at how they can improve their overall presence in the digital world. >> So, do you think that the pandemic accelerated that? >> Absolutely. I would say that everybody started realizing how critical, and the businesses who were already a leg up in that world were quickly able to grab that opportunity, and they were able to run with that, and everybody are trying to catch up on that journey. And, you know, a lot of people who started that journey have realized that if they do not have a proper strategy to start off with, they get stuck somewhere. And that is where we can go and help them, wherever they are. >> Talk to me about some of the challenges that you see out in the field working with the actual organizations that are seeking to transform, to go through this digital transformation. What are some of the things that might surprise someone looking in from the outside? >> Again, if you go back to the basics, right, in the digital transformation world, it's not just the technology which is driving everything. People who have not clearly mapped their business objectives to the technology drivers, or the imperatives, are the ones which are, you know, feeling the pinch, that they have some technology driven transformation, but once it is done, they don't see that it's translating back to a business objective which they are trying to accomplish. That's one of the larger things which I see. So, we are trying to go back and help clients to bridge that gap, to make sure that, first, their strategy is in place, and the strategy is holistically looked at. That's one part of it. The second, larger challenge, which I'm seeing a lot of people is, they were able to quickly, you know, grapple around the technology explosion and able to start the journey, but the process and the people associated the transformation regarding those two are a lot more associated with the culture and everything else. So, it's a combination of technical resources, with not able to quickly adapt the operating model, which is the newer operating model required for the digital transformation, are the challenge which is an ongoing one. And none of this is news to anybody, but, practically, when I walk into a company, those are the areas which I continue to see where people are struggling. >> So, Kyndryl isn't solely involved with the virtual movement of workloads from one place to another, you actually work with customers to make those kinds of organizational changes and operational environment changes that need to take place. Is that right? >> Absolutely. So, as I told you, we have a whole suite of clients whom we have been supporting for decades. So, we have one set of those clients who have trusted us for years. And then we have another set of clients who we are providing some kind of services, and now we have newer clients. So between all of them, they're starting to realize that we have the end-to-end capabilities. The differentiator is, we can start from building a business case for somebody, and then strategizing it, creating a roadmap, and then actually doing the design, implement it, and help them to migrate it. And once the migration is done, continue to help optimizing it, and then not only stopping there, but the key thing where everybody have, you know, fallen behind, is how do you operate, manage it once you start migrating it. So, this is where Kyndryl is sitting in a very sweet spot, because we already are managing most of our clients, or we have the client base, they're operating theirs either holistically, or some portions of it, and now when they're trying to go on their journey we are very well suited because we already understand their environment. And while they are transforming into the cloud space, we are also able to bridge that gap by managing their existing and to manage to the cloud. So, we can, end-to-end. >> And yeah, talking about true end-to-end, you know, we're talking to you from AWS Summit New York 2022, of course, so the focus is AWS, but Kyndryl works with other hyperscale cloud partners as well. So I mean, you are primarily an advocate for the customer. Is that a fair? That's what they call in the business "a softball question." (Ramkumar and David laughing) Because if you answer, "no, we're not primarily in involved in the business of advocating for our customers," we should just stop this conversation right now. But seriously, the point is, you are truly an objective consultant in this game. >> Absolutely. Thank you for asking that, (David laughing) because we are a vendor neutral service provider. So we go, and when we walk into the client, we like to hear from the client what their challenges are. Right? Where are they trying to be? If they already started the journey, where they are. They could be anywhere from an on-premises trying to just modernize some aspects of their, you know, operational, or from the application side, or they could be anywhere in the hybrid cloud. And most of them are hybrid multicloud. So, it's not just AWS, it could be Azure, GCP, OCI, Oracle, or IBM cloud. It doesn't matter. We go and meet the client where they are. If they ask us for a point of view, we will provide them once we understand what their objectives, and their technology workloads they are having, and how they want to do it based on that we can. But if they already started journey, we are more than happy to partner with them on any of the cloud journeys. And most of them are in the hybrid multi-cloud as I said, so we are very well suited to help them. And as I said, we are not completely an agnostic service provider. >> Well, if I am an existing business that's seeking to go through digital transformation, I would recognize that there is a lot of power in this idea that you have a history in on-premises IT, going back to, you know, the sort of DNA for IBM global services. And the reason why I think that's important is because anyone can stand up a net new service with nothing existing, in one of the hyperscale clouds. It's a whole different proposition when you have decades of legacy infrastructure and processes that need to be massaged and moved over. I wonder, does Kyndryl get a lot of mileage out of that in terms of being able to say, "Hey, we understand your existing environment because we've been working in this world for decades." Or is the message more, "Hey, we are super cool cloud kids too?" How do you come down on that? Maybe that's a little bit of inside info. (Ramkumar laughing) >> No, the reality on the ground basically, David, is not everybody can move all their workloads to cloud, and not all workloads are suited to go to cloud as well. So, it is us who need to make sure that we can help our clients make the right choices by doing a rationalization of their workloads, and make sure that we understand their business, their end clients whom they're servicing, their capabilities, and then based on that, we can help them to do both, right? Whether it's just on-premises modernization, or help them to take them in a hybrid cloud mode. So the answer is both, right? Even though we currently manage their environment, doesn't mean that we need to continue to support, but, you know, we are moving up the stack to help them, to support them in their hybrid cloud journey as well. And not only that, this gives us a capability or an ability to help them in a much more holistic way by looking at their full ops, right? That's a huge area where people are trying to go into the cloud, or they already started to go into the cloud, but how do they optimize their environment? Right? These are the areas where, and then if you want to modernize some of their operating model, right, how do we deploy the SRE, or the DevSecOps, or the DevOps? So, we kind of look up all those aspects as people are trying to move into the cloud aspect so we can help them both on-premises, or if they want to modernize much more we can do it in the hybrid cloud as well. I don't know whether that fully answered your question. >> Absolutely, it does. In fact, Ram, what you and Kyndryl are doing is what we at theCUBE refer to as having adult conversations about cloud with the clients that you serve. With that, looks like we are at the end of our time together. I really appreciate the chance to hear about what you're doing, and to hear all about Kyndryl. From me, Dave Nicholson, at theCUBE, I'd like to say, stay tuned for a continuing coverage of AWS Summit New York 2022, and always stay tuned to theCUBE. (upbeat electronic music)
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of the Cloud Advisory it's a pleasure. but it's great to be here. in a bit of the history, is to how we can help enable our clients in the public cloud, in the sense that they offer and 49% of the mobile connections and trying to see how they can, you know, and the businesses who were What are some of the things are the ones which are, you know, that need to take place. and now we have newer clients. of course, so the focus is AWS, in the hybrid cloud. in one of the hyperscale clouds. and make sure that we and to hear all about Kyndryl.
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Chris Thomas & Rob Krugman | AWS Summit New York 2022
(calm electronic music) >> Okay, welcome back everyone to theCUBE's coverage here live in New York City for AWS Summit 2022. I'm John Furrier, host of theCUBE, but a great conversation here as the day winds down. First of all, 10,000 plus people, this is a big event, just New York City. So sign of the times that some headwinds are happening? I don't think so, not in the cloud enterprise innovation game. Lot going on, this innovation conversation we're going to have now is about the confluence of cloud scale integration data and the future of how FinTech and other markets are going to change with technology. We got Chris Thomas, the CTO of Slalom, and Rob Krugman, chief digital officer at Broadridge. Gentlemen, thanks for coming on theCUBE. >> Thanks for having us. >> So we had a talk before we came on camera about your firm, what you guys do, take a quick minute to just give the scope and size of your firm and what you guys work on. >> Yeah, so Broadridge is a global financial FinTech company. We work on, part of our business is capital markets and wealth, and that's about a third of our business, about $7 trillion a day clearing through our platforms. And then the other side of our business is communications where we help all different types of organizations communicate with their shareholders, communicate with their customers across a variety of different digital channels and capabilities. >> Yeah, and Slalom, give a quick one minute on Slalom. I know you guys, but for the folks that don't know you. >> Yeah, no problem. So Slalom is a modern consulting firm focused on strategy, technology, and business transformation. And me personally, I'm part of the element lab, which is focused on forward thinking technology and disruptive technology in the next five to 10 years. >> Awesome, and that's the scope of this conversation. The next five to 10 years, you guys are working on a project together, you're kind of customer partners. You're building something. What are you guys working on? I can't wait to jump into it, explain. >> Sure, so similar to Chris, at Broadridge, we've created innovation capability, innovation incubation capability, and one of the first areas we're experimenting in is digital assets. So what we're looking to do is we're looking at a variety of different areas where we think consolidation network effects that we could bring can add a significant amount of value. And so the area we're working on is this concept of a wallet of wallets. How do we actually consolidate assets that are held across a variety of different wallets, maybe traditional locations- >> Digital wallets. >> Digital wallets, but maybe even traditional accounts, bring that together and then give control back to the consumer of who they want to share that information with, how they want their transactions to be able to control. So the idea of, people talk about Web 3 being the internet of value. I often think about it as the internet of control. How do you return control back to the individual so that they can make decisions about how and who has access to their information and assets? >> It's interesting, I totally like the value angle, but your point is what's the chicken and the egg here, the cart before the horse, you can look at it both ways and say, okay, control is going to drive the value. This is an interesting nuance, right? >> Yes, absolutely. >> So in this architectural world, they thought about the data plane and the control plane. Everyone's trying to go old school, middleware thinking. Let's own the data plane, we'll win everything. Not going to happen if it goes decentralized, right, Chris? >> Yeah, yeah. I mean, we're building a decentralized application, but it really is built on top of AWS. We have a serverless architecture that scales as our business scales built on top of things like S3, Lambda, DynamoDB, and of course using those security principles like Cognito and AWS Gateway, API Gateway. So we're really building an architecture of Web 3 on top of the Web 2 basics in the cloud. >> I mean, all evolutions are abstractions on top of each other, IG, DNS, Key, it goes the whole nine yards. In digital, at least, that's the way. Question about serverless real quick. I saw that Redshift just launched general availability of serverless in Redshift? >> Yes. >> You're starting to see the serverless now part of almost all the services in AWS. Is that enabling that abstraction, because most people don't see it that way. They go, oh, well, Amazon's not Web 3. They got databases, you could use that stuff. So how do you connect the dots and cross the bridge to the future with the idea that I might not think Web 2 or cloud is Web 3? >> I'll jump in quick. I mean, I think it's the decentralize. If you think about decentralization. serverless and decentralization, you could argue are the same way of, they're saying the same thing in different ways. One is thinking about it from a technology perspective. One is thinking about it from an ecosystem perspective and how things come together. You need serverless components that can talk to each other and communicate with each other to actually really reach the promise of what Web 3 is supposed to be. >> So digital bits or digital assets, I call it digital bits, 'cause I think zero ones. If you digitize everything and everything has value or now control drives the value. I could be a soccer team. I have apparel, I have value in my logos, I have photos, I have CUBE videos. I mean some say that this should be an NFT. Yeah, right, maybe, but digital assets have to be protected, but owned. So ownership drives it too, right? >> Absolutely. >> So how does that fit in, how do you explain that? 'Cause I'm trying to tie the dots here, connect the dots and tie it together. What do I get if I go down this road that you guys are building? >> So I think one of the challenges of digital assets right now is that it's a closed community. And I think the people that play in it, they're really into it. And so you look at things like NFTs and you look at some of the other activities that are happening and there are certain naysayers that look at it and say, this stuff is not based upon value. It's a bunch of artwork, it can't be worth this. Well, how about we do a time out there and we actually look at the underlying technology that's supporting this, the blockchain, and the potential ramifications of that across the entire financial ecosystem, and frankly, all different types of ecosystems of having this immutable record, where information gets stored and gets sent and the ability to go back to it at all times, that's where the real power is. So I think we're starting to see. We've hit a bit of a hiccup, if you will, in the cryptocurrencies. They're going to continue to be there. They won't all be there. A lot of them will probably disappear, but they'll be a finite number. >> What percentage of stuff do you think is vapor BS? If you had to pick an order of magnitude number. >> (laughs) I would say at least 75% of it. (John laughs) >> I mean, there's quite a few projects that are failing right now, but it's interesting in that in the crypto markets, they're failing gracefully. Because it's on the blockchain and it's all very transparent. Things are checked, you know immediately which companies are insolvent and which opportunities are still working. So it's very, very interesting in my opinion. >> Well, and I think the ones that don't have valid premises are the ones that are failing. Like Terra and some of these other ones, if you actually really looked at it, the entire industry knew these things were no good. But then you look at stable coins. And you look at what's going on with CBDCs. These are backed by real underlying assets that people can be comfortable with. And there's not a question of, is this going to happen? The question is, how quickly is it going to happen and how quickly are we going to be using digital currencies? >> It's interesting, we always talk about software, software as money now, money is software and gold and oil's moving over to that crypto. How do you guys see software? 'Cause we were just arguing in the queue, Dave Vellante and I, before you guys came on that the software industry pretty much does not exist anymore, it's open source. So everything's open source as an industry, but the value is integration, innovation. So it's not just software, it's the free. So you got to, it's integration. So how do you guys see this software driving crypto? Because it is software defined money at the end of the day. It's a token. >> No, I think that's absolutely one of the strengths of the crypto markets and the Web 3 market is it's governed by software. And because of that, you can build a trust framework. Everybody knows it's on the public blockchain. Everybody's aware of the software that's driving the rules and the rules of engagement in this blockchain. And it creates that trust network that says, hey, I can transact with you even though I don't know anything about you and I don't need a middleman to tell me I can trust you. Because this software drives that trust framework. >> Lot of disruption, lot of companies go out of business as a middleman in these markets. >> Listen, the intermediaries either have to disrupt themselves or they will be disrupted. I think that's what we're going to learn here. And it's going to start in financial services, but it's going to go to a lot of different places. I think the interesting thing that's happening now is for the first time, you're starting to see the regulators start to get involved. Which is actually a really good thing for the market. Because to Chris's point, transparency is here, how do you actually present that transparency and that trust back to consumers so they feel comfortable once that problem is solved. And I think everyone in the industry welcomes it. All of a sudden you have this ecosystem that people can play in, they can build and they can start to actually create real value. >> Every structural change that I've been involved in my 30 plus year career has been around inflection points. There was always some sort of underbelly. So I'm not going to judge crypto. It's been in the market for a while, but it's a good sign there's innovation happening. So as now, clarity comes into what's real. I think you guys are talking a conversation I think is refreshing because you're saying, okay, cloud is real, Lambda, serverless, all these tools. So Web 3 is certainly real because it's a future architecture, but it's attracting the young, it's a cultural shift. And it's also cooler than boring Web 2 and cloud. So I think the cultural shift, the fact that it's got data involved, there's some disruption around middleman and intermediaries, makes it very attractive to tech geeks. You look at, I read a stat, I heard a stat from a friend in the Bay Area that 30% of Cal computer science students are dropping out and jumping into crypto. So it's attracting the technical nerds, alpha geeks. It's a cultural revolution and there's some cool stuff going on from a business model standpoint. >> There's one thing missing. The thing that's missing, it's what we're trying to work on, I think is experience. I think if you're being honest about the entire marketplace, what you would agree is that this stuff is not easy to use today, and that's got to be satisfied. You need to do something that if it's the 85 year old grandma that wants to actually participate in these markets that not only can they feel comfortable, but they actually know how to do it. You can't use these crazy tools where you use these terms. And I think the industry, as it grows up, will satisfy a lot of those issues. >> And I think this is why I want to tie back and get your reaction to this. I think that's why you guys talking about building on top of AWS is refreshing, 'cause it's not dogmatic. Well, we can't use Amazon, it's not really Web 3. Well, a database could be used when you need it. You don't need to write everything through the blockchain. Databases are a very valuable capability, you get serverless. So all these things now can work together. So what do you guys see for companies that want to be Web 3 for all the good reasons and how do they leverage cloud specifically to get there? What are some things that you guys have learned that you can point to and share, you want to start? >> Well, I think not everything has to be open and public to everybody. You're going to want to have some things that are secret. You're going to want to encrypt some things. You're going to want to put some things within your own walls. And that's where AWS really excels. I think you can have the best of both worlds. So that's my perspective on it. >> The only thing I would add to it, so my view is it's 2022. I actually was joking earlier. I think I was at the first re:Invent. And I remember walking in and this was a new industry. >> It was tiny. >> This is foundational. Like cloud is not a, I don't view like, we shouldn't be having that conversation anymore. Of course you should build this stuff on top of the cloud. Of course you should build it on top of AWS. It just makes sense. And we should, instead of worrying about those challenges, what we should be worrying about are how do we make these applications easier to use? How do we actually- >> Energy efficient. >> How do we enable the promise of what these things are going to bring, and actually make it real, because if it happens, think about traditional assets. There's projects going on globally that are looking at how do you take equity securities and actually move them to the blockchain. When that stuff happens, boom. >> And I like what you guys are doing, I saw the news out through this crypto winter, some major wallet exchanges that have been advertising are hurting. Take me through what you guys are thinking, what the vision is around the wallet of wallets. Is it to provide an experience for the user or the market industry itself? What's the target, is it both? Share the design goals for the wallet of wallets. >> My favorite thing about innovation and innovation labs is that we can experiment. So I'll go in saying we don't know what the final answer is going to be, but this is the premise that we have. In this disparate decentralized ecosystem, you need some mechanism to be able to control what's actually happening at the consumer level. So I think the key target is how do you create an experience where the consumer feels like they're in control of that value? How do they actually control the underlying assets? And then how does it actually get delivered to them? Is it something that comes from their bank, from their broker? Is it coming from an independent organization? How do they manage all of that information? And I think the last part of it are the assets. It's easy to think about cryptos and NFTs, but thinking about traditional assets, thinking about identity information and healthcare records, all of that stuff is going to become part of this ecosystem. And imagine being able to go someplace and saying, oh, you need my information. Well, I'm going to give it to you off my phone and I'm going to give it to you for the next 24 hours so you can use it, but after that you have no access to it. Or you're my financial advisor, here's a view of what I actually have, my underlying assets. What do you recommend I do? So I think we're going to see an evolution in the market. >> Like a data clean room. >> Yeah, but that you control. >> Yes! (laughs) >> Yes! >> I think about it very similarly as well. As my journey into the crypto market has gone through different pathways, different avenues. And I've come to a place where I'm really managing eight different wallets and it's difficult to figure exactly where all my assets are and having a tool like this will allow me to visualize and aggregate those assets and maybe even recombine them in unique ways, I think is hugely valuable. >> My biggest fear is losing my key. >> Well, and that's an experience problem that has to be solved, but let me give you, my favorite use case in this space is, 'cause NFTs, right? People are like, what does NFTs really mean? Title insurance, right? Anyone buy a house or refinance your mortgage? You go through this crazy process that costs seven or eight thousand dollars every single time you close on something to get title insurance so they could validate it. What if that title was actually sitting on the chain, you got an NFT that you put in your wallet and when it goes time to sell your house or to refinance, everything's there. Okay, I'm the owner of the house. I don't know, JP Morgan Chase has the actual mortgage. There's another lien, there's some taxes. >> It's like a link tree in the wallet. (laughs) >> Yeah, think about it, you got a smart contract. Boom, closing happens immediately. >> I think that's one of the most important things. I think people look at NFTs and they think, oh, this is art. And that's sort of how it started in the art and collectable space, but it's actually quickly moving towards utilities and tokenization and passes. And that's where I think the value is. >> And ownership and the token. >> Identity and ownership, especially. >> And the digital rights ownership and the economics behind it really have a lot of scale 'cause I appreciate the FinTech angle you are coming from because I can now see what's going on here with you. It's like, okay, we got to start somewhere. Let's start with the experience. The wallet's a tough nut to crack, 'cause that requires defacto participation in the industry as a defacto standard. So how are you guys doing there? Can you give an update and then how can people get, what's the project called and how do people get involved? >> Yeah, so we're still in the innovation, incubation stages. So we're not launching it yet. But what I will tell you is what a lot of our focus is, how do we make these transactional things that you do? How do we make it easy to pull all your assets together? How do we make it easy to move things from one location to the other location in ways that you're not using a weird cryptographic numeric value for your wallet, but you actually can use real nomenclature that you can renumber and it's easy to understand. Our expectation is that sometime in the fall, we'll actually be in a position to launch this. What we're going to do over the summer is we're going to start allowing people to play with it, get their feedback, and we're going to iterate. >> So sandbox in when, November? >> I think launch in the fall, sometime in the fall. >> Oh, this fall. >> But over the summer, what we're expecting is some type of friends and family type release where we can start to realize what people are doing and then fix the challenges, see if we're on the right track and make the appropriate corrections. >> So right now you guys are just together on this? >> Yep. >> The opening up friends and family or community is going to be controlled. >> It is, yeah. >> Yeah, as a group, I think one thing that's really important to highlight is that we're an innovation lab. We're working with Broadridge's innovation lab, that partnership across innovation labs has allowed us to move very, very quickly to build this. Actually, if you think about it, we were talking about this not too long ago and we're almost close to having an internal launch. So I think it's very rapid development. We follow a lot of the- >> There's buy-in across the board. >> Exactly, exactly, and we saw lot of very- >> So who's going to run this? A Dow, or your companies, is it going to be a separate company? >> So to be honest, we're not entirely sure yet. It's a new product that we're going to be creating. What we actually do with it. Our thought is within an innovation environment, there's three things you could do with something. You can make it a product within the existing infrastructure, you can create a new business unit or you can spin it off as something new. I do think this becomes a product within the organization based upon it's so aligned to what we do today, but we'll see. >> But you guys are financing it? >> Yes. >> As collective companies? >> Yeah, right. >> Got it, okay, cool. Well, let us know how we can help. If you guys want to do a remote in to theCUBE. I would love the mission you guys are on. I think this is the kind of work that every company should be doing in the new R and D. You got to jump in the deep end and swim as fast as possible. But I think you can do it. I think that is refreshing and that's smart. >> And you have to do it quick because this market, I think the one thing we would probably agree on is that it's moving faster than we could, every week there's something else that happens. >> Okay, so now you guys were at Consensus down in Austin when the winter hit and you've been in the business for a long time, you got to know the industries. You see where it's going. What was the big thing you guys learned, any scar tissue from the early data coming in from the collaboration? Was there some aha moments, was there some oh shoot moments? Oh, wow, I didn't think that was going to happen. Share some anecdotal stories from the experience. Good, bad, and if you want to be bold say ugly, too. >> Well, I think the first thing I want to say about the timing, it is the crypto winter, but I actually think now's a really great time to build something because everybody's continuing to build. Folks are focused on the future and that's what we are as well. In terms of some of the challenges, well, the Web 3 space is so new. And there's not a way to just go online and copy somebody else's work and rinse and repeat. We had to figure a lot of things on our own. We had to try different technologies, see which worked better and make sure that it was functioning the way we wanted it to function. Really, so it was not easy. >> They oversold that product out, that's good, like this team. >> But think about it, so the joke is that when winter is when real work happens. If you look at the companies that have not been affected by this it's the infrastructure companies and what it reminds me of, it's a little bit different, but 2001, we had the dot com bust. The entire industry blew up, but what came out of that? >> Everything that exists. >> Amazon, lots of companies grew up out of that environment. >> Everything that was promoted actually happened. >> Yes, but you know what didn't happen- >> Food delivery. >> But you know what's interesting that didn't happen- >> (laughs) Pet food, the soccer never happened. >> The whole Super Bowl, yes. (John laughs) In financial services we built on top of legacy. I think what Web 3 is doing, it's getting rid of that legacy infrastructure. And the banks are going to be involved. There's going to be new players and stuff. But what I'm seeing now is a doubling down of the infrastructure investment of saying okay, how do we actually make this stuff real so we can actually show the promise? >> One of the things I just shared, Rob, you'd appreciate this, is that the digital advertising market's changing because now banner ads and the old techniques are based on Web 2 infrastructure, basically DNS as we know it. And token problems are everywhere. Sites and silos are built because LinkedIn doesn't share information. And the sites want first party data. It's a hoarding exercise, so those practices are going to get decimated. So in comes token economics, that's going to get decimated. So you're already seeing the decline of media. And advertising, cookies are going away. >> I think it's going to change, it's going to be a flip, because I think right now you're not in control. Other people are in control. And I think with tokenomics and some of the other things that are going to happen, it gives back control to the individual. Think about it, right now you get advertising. Now you didn't say I wanted this advertising. Imagine the value of advertising when you say, you know what, I am interested in getting information about this particular type of product. The lead generation, the value of that advertising is significantly higher. >> Organic notifications. >> Yeah. >> Well, gentlemen, I'd love to follow up with you. I'm definitely going to ping in. Now I'm going to put CUBE coin back on the table. For our audience CUBE coin's coming. Really appreciate it, thanks for sharing your insights. Great conversation. >> Excellent, thank you for having us. >> Excellent, thank you so much. >> theCUBE's coverage here from New York City. I'm John Furrier, we'll be back with more live coverage to close out the day. Stay with us, we'll be right back. >> Excellent. (calm electronic music)
SUMMARY :
and the future of how what you guys work on. and wealth, and that's about I know you guys, but for the the next five to 10 years. Awesome, and that's the And so the area we're working on So the idea of, people talk about Web 3 going to drive the value. Not going to happen if it goes and of course using In digital, at least, that's the way. So how do you connect the that can talk to each other or now control drives the value. that you guys are building? and the ability to go do you think is vapor BS? (laughs) I would in that in the crypto markets, is it going to happen on that the software industry that says, hey, I can transact with you Lot of disruption, lot of and they can start to I think you guys are And I think the industry, as it grows up, I think that's why you guys talking I think you can have I think I was at the first re:Invent. applications easier to use? and actually move them to the blockchain. And I like what you guys are doing, all of that stuff is going to And I've come to a place that has to be solved, in the wallet. you got a smart contract. it started in the art So how are you guys doing there? that you can renumber and fall, sometime in the fall. and make the appropriate corrections. or community is going to be controlled. that's really important to highlight So to be honest, we're But I think you can do it. I think the one thing we in from the collaboration? Folks are focused on the future They oversold that product out, If you look at the companies Amazon, lots of companies Everything that was (laughs) Pet food, the And the banks are going to be involved. is that the digital I think it's going to coin back on the table. to close out the day. (calm electronic music)
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Domenic Ravita, SingleStore | AWS Summit New York 2022
(digital music) >> And we're back live in New York. It's theCUBE. It's not SNL, it's better than SNL. Lisa Martin and John Furrier here with about 10,000 to 12,000 folks. (John chuckles) There is a ton of energy here. There's a ton of interest in what's going on. But one of the things that we know that AWS is really well-known for is its massive ecosystem. And one of its ecosystem partners is joining us. Please welcome Domenic Ravita, the VP of Product Marketing from SingleStore. Dominic, great to have you on the program. >> Well, thank you. Glad to be here. >> It's a nice opening, wasn't it? (Lisa and John laughing) >> I love SNL. Who doesn't? >> Right? I know. So some big news came out today. >> Yes. >> Funding. Good number. Talk to us a little bit about that before we dig in to SingleStore and what you guys are doing with AWS. >> Right, yeah. Thank you. We announced this morning our latest round, 116 million. We're really grateful to our customers and our investors and the partners and employees and making SingleStore a success to go on this journey of, really, to fulfill our mission to unify and simplify modern, real time data. >> So talk to us about SingleStore. Give us the value prop, the key differentiators, 'cause obviously customers have choice. Help us understand where you're nailing it. >> SingleStore is all about, what we like to say, the moments that matter. When you have an analytical question about what's happening in the moment, SingleStore is your best way to solve that cost-effectively. So that is for, in the case of Thorn, where they're helping to protect and save children from online trafficking or in the case of True Digital, which early in the pandemic, was a company in Southeast Asia that used anonymized phone pings to identify real time population density changes and movements across Thailand to have a proactive response. So really real time data in the moment can help to save lives quite literally. But also it does things that are just good commercially that gives you an advantage like what we do with Uber to help real time pricing and things like this. >> It's interesting this data intensity happening right now. We were talking earlier on theCUBE with another guest and we said, "Why is it happening now?" The big data has been around since the dupe days. That was hard to work with, then data lakes kicked in. But we seem to be, in the past year, everyone's now aware like, "Wow, I got a lot of data." Is it the pandemic? Now we're seeing customers understand the consequences. So how do you look at that? Because is it just timing, evolution? Are they now getting it or is the technology better? Is machine learning better? What's the forces driving the massive data growth acceleration in terms of implementing and getting stuff out, done? (chuckles) >> We think it's the confluence of a lot of those things you mentioned there. First of all, we just celebrate the 15-year anniversary of the iPhone, so that is like wallpaper now. It's just faded into our daily lives. We don't even think of that as a separate thing. So there's an expectation that we all have instant information and not just for the consumer interactions, for the business interactions. That permeates everything. I think COVID with the pandemic forced everyone, every business to try to move to digital first and so that put pressure on the digital service economy to mature even faster and to be digital first. That is what drives what we call data intensity. And more generally, the economic phenomenon is the data intensive era. It's a continuous competition and game for customers. In every moment in every location, in every dimension, the more data hat you have, the better value prop you can give. And so SingleStore is uniquely positioned to and focused on solving this problem of data intensity by bringing and unifying data together. >> What's the big customer success story? Can you share any examples that highlight that? What are some cool things that are happening that can illustrate this new, I won't say bit that's been flipped, that's been happening for a while, but can you share some cutting edge customer successes? >> It's happening across a lot of industries. So I would say first in financial services, FinTech. FinTech is always at the leading edge of these kind of technology adaptions for speeds and things like that. So we have a customer named IEX Cloud and they're focused on providing real time financial data as an API. So it's a data product, API-first. They're providing a lot of historical information on instruments and that sort of thing, as well as real time trending information. So they have customers like Seeking Alpha, for instance, who are providing real time updates on massive, massive data sets. They looked at lots of different ways to do this and there's the traditional, transactionals, LTP database and then maybe if you want to scale an API like theirs, you might have a separate end-memory cache and then yet another database for analytics. And so we bring all that together and simplify that and the benefit of simplification, but it's also this unification and lower latency. Another example is GE who basically uses us to bring together lots of financial information to provide quicker close to the end-of-month process across many different systems. >> So we think about special purpose databases, you mentioned one of the customers having those. We were in the keynote this morning where AWS is like, "We have the broadest set of special purpose databases," but you're saying the industry can't afford them anymore. Why and would it make SingleStore unique in terms of what you deliver? >> It goes back to this data intensity, in that the new business models that are coming out now are all about giving you this instant context and that's all data-driven and it's digital and it's also analytical. And so the reason that's you can't afford to do this, otherwise, is data's getting so big. Moving that data gets expensive, 'cause in the cloud you pay for every byte you store, every byte you process, every byte you move. So data movement is a cost in dollars and cents. It's a cost in time. It's also a cost in skill sets. So when you have many different specialized data sets or data-based technologies, you need skilled people to manage those. So that's why we think the industry needs to be simplified and then that's why you're seeing this unification trend across the database industry and other parts of the stack happening. With AWS, I mean, they've been a great partner of ours for years since we launched our first cloud database product and their perspective is a little bit different. They're offering choice of the specialty, 'cause many people build this way. But if you're going after real time data, you need to bring it. They also offer a SingleStore as a service on AWS. We offer it that way. It's in the AWS Marketplace. So it's easily consumable that way. >> Access to real time data is no longer a nice-to-have for any company, it's table stakes. We saw that especially in the last 20 months or so with companies that needed to pivot so quickly. What is it about SingleStore that delivers, that you talked about moments that matter? Talk about the access to real time data. How that's a differentiator as well? >> I think businesses need to be where their customers are and in the moments their customers are interacting. So that is the real time business-driver. As far as technology wise, it's not easy to do this. And you think about what makes a database fast? A major way of what makes it fast is how you store the data. And so since 2014, when we first released this, what Gartner called at the time, hybrid transaction/analytical processing or HTAP, where we brought transactional data and analytical data together. Fast forward five years to 2019, we released this innovation called Universal Storage, which does that in a single unified table type. Why that matters is because, I would say, basically cost efficiency and better speed. Again, because you pay for the storage and you pay for the movement. If you're not duplicating that data, moving it across different stores, you're going to have a better experience. >> One of the things you guys pioneered is unifying workloads. You mentioned some of the things you've done. Others are now doing it. Snowflake, Google and others. What does that mean for you guys? I mean, 'cause are they copying you? Are they trying to meet the functionality? >> I think. >> I mean, unification. I mean, people want to just store things and make it, get all the table stakes, check boxes, compliance, security and just keep coding and keep building. >> We think it's actually great 'cause they're validating what we've been seeing in the market for years. And obviously, they see that it's needed by customers. And so we welcome them to the party in terms of bringing these unified workloads together. >> Is it easy or hard? >> It's a difficult thing. We started this in 2014. And we've now have lots of production workloads on this. So we know where all the production edge cases are and that capability is also a building block towards a broader, expansive set of capabilities that we've moved onto that next phase and tomorrow actually we have an event called, The Real Time Data Revolution, excuse me, where we're announcing what's in that new product of ours. >> Is that a physical event or virtual? >> It's a virtual event. >> So we'll get the URL on the show notes, or if you know, just go to the new site. >> Absolutely. SingleStore Real Time Data Revolution, you'll find it. >> Can you tease us with the top three takeaways from Revolution tomorrow? >> So like I said, what makes a database fast? It's the storage and we completed that functionality three years ago with Universal Storage. What we're now doing for this next phase of the evolution is making enterprise features available and Workspaces is one of the foundational capabilities there. What SingleStore Workspaces does is it allows you to have this isolation of compute between your different workloads. So that's often a concern to new users to SingleStore. How can I combine transactions and analytics together? That seems like something that might be not a good thing. Well, there are multiple ways we've been doing that with resource governance, workload management. Workspaces offers another management capability and it's also flexible in that you can scale those workloads independently, or if you have a multi-tenant application, you can segment your application, your customer tenant workloads by each workspace. Another capability we're releasing is called Wasm, which is W-A-S-M, Web Assembly. This is something that's really growing in the open source community and SingleStore's contributing to that open source scene, CF project with WASI and Wasm. Where it's been mentioned mostly in the last few years has been in the browser as a more efficient way to run code in the browser. We're adapting that technology to allow you to run any language of your choice in the database and why that's important, again, it's for data movement. As data gets large in petabyte sizes, you can't move it in and out of Pandas in Python. >> Great innovation. That's real valuable. >> So we call this Code Engine with Wasm and- >> What do you call it? >> Code Engine Powered by Wasm. >> Wow. Wow. And that's open source? >> We contribute to the Wasm open source community. >> But you guys have a service that you- >> Yes. It's our implementation and our database. But Wasm allows you to have code that's portable, so any sort of runtime, which is... At release- >> You move the code, not the data. >> Exactly. >> With the compute. (chuckles) >> That's right, bring the compute to the data is what we say. >> You mentioned a whole bunch of great customer examples, GE, Uber, Thorn, you talked about IEX Cloud. When you're in customer conversations, are you dealing mostly with customers that are looking to you to help replace an existing database that was struggling from a performance perspective? Or are you working with startups who are looking to build a product on SingleStore? Is it both? >> It is a mix of both. I would say among SaaS scale up companies, their API, for instance, is their product or their SaaS application is their product. So quite literally, we're the data engine and the database powering their scale to be able to sign that next big customer or to at least sleep at night to know that it's not going to crash if they sign that next big costumer. So in those cases, we're mainly replacing a lot of databases like MySQL, Postgre, where they're typically starting, but more and more we're finding, it's free to start with SingleStore. You can run it in production for free. And in our developer community, we see a lot of customers running in that way. We have a really interesting community member who has a Minecraft server analytics that he's building based on that SingleStore free tier. In the enterprise, it's different, because there are many incumbent databases there. So it typically is a case where there is a, maybe a new product offering, they're maybe delivering a FinTech API or a new SaaS digital offering, again, to better participate in this digital service economy and they're looking for a better price performance for that real time experience in the app. That's typically the starting point, but there are replacements of traditional incumbent databases as well. >> How has the customer conversation evolved the last couple of years? As we talked about, one of the things we learned in the pandemic was access to real time data and those moments that matter isn't a nice-to-have anymore for businesses. There was that force march to digital. We saw the survivors, we're seeing the thrivers, but want to get your perspective on that. From the customers, how has the conversation evolved or elevated, escalated within an organization as every company has to be a data company? >> It really depends on their business strategy, how they are adapting or how they have adapted to this new digital first orientation and what does that mean for them in the direct interaction with their customers and partners. Often, what it means is they realize that they need to take advantage of using more data in the customer and partner interaction and when they come to those new ideas for new product introductions, they find that it's complicated and expensive to build in the old way. And if you're going to have these real time interactions, interactive applications, APIs, with all this context, you're going to have to find a better, more cost-effective approach to get that to market faster, but also not to have a big sprawling data-based technology infrastructure. We find that in those situations, we're replacing four or five different database technologies. A specialized database for key value, a specialized database for search- >> Because there's no unification before? Is that one of the reasons? >> I think it's an awareness thing. I think technology awareness takes a little bit of time, that there's a new way to do things. I think the old saying about, "Don't pave cow paths when the car..." You could build a straight road and pave it. You don't have to pave along the cow path. I think that's the natural course of technology adaption and so as more- >> And the- pandemic, too, highlighted a lot of the things, like, "Do we really need that?" (chuckles) "Who's going to service that?" >> That's right. >> So it's an awakening moment there where it's like, "Hey, let's look at what's working." >> That's right. >> Double down on it. >> Absolutely. >> What are you excited about new round of funding? We talked about, obviously, probably investments in key growth areas, but what excites you about being part of SingleStore and being a partner of AWS? >> SingleStore is super exciting. I've been in this industry a long time as an engineer and an engineering leader. At the time, we were MemSQL, came into SingleStore. And just that unification and simplification, the systems that I had built as a system engineer and helped architect did the job. They could get the speed and scale you needed to do track and trace kinds of use cases in real time, but it was a big trade off you had to make in terms of the complexity, the skill sets you needed and the cost and just hard to maintain. What excites me most about SingleStore is that it really feels like the iPhone moment for databases because it's not something you asked for, but once your friend has it and shows it to you, why would you have three different devices in your pocket with a flip phone, a calculator? (Lisa and Domenic chuckles) Remember these days? >> Yes. >> And a Blackberry pager. (all chuckling) You just suddenly- >> Or a computer. That's in there. >> That's right. So you just suddenly started using iPhone and that is sort of the moment. It feels like we're at it in the database market where there's a growing awareness and those announcements you mentioned show that others are seeing the same. >> And your point earlier about the iPhone throwing off a lot of data. So now you have data explosions at levels that unprecedented, we've never seen before and the fact that you want to have that iPhone moment, too, as a database. >> Absolutely. >> Great stuff. >> The other part of your question, what excites us about AWS. AWS has been a great partner since the beginning. I mean, when we first released our database, it was the cloud database. It was on AWS by customer demand. That's where our customers were. That's where they were building other applications. And now we have integrations with other native services like AWS Glue and we're in the Marketplace. We've expanded, that said we are a multi-cloud system. We are available in any cloud of your choice and on premise and in hybrid. So we're multi-cloud, hybrid and SaaS distribution. >> Got it. All right. >> Got it. So the event is tomorrow, Revolution. Where can folks go to register? What time does it start? >> 1:00 PM Eastern and- >> 1:00 PM. Eastern. >> Just Google SingleStore Real Time Data Revolution and you'll find it. Love for everyone to join us. >> All right. We look forward to it. Domenic, thank you so much for joining us, talking about SingleStore, the value prop, the differentiators, the validation that's happening in the market and what you guys are doing with AWS. We appreciate it. >> Thanks so much for having me. >> Our pleasure. For Domenic Ravita and John Furrier, I'm Lisa Martin. You're watching theCUBE, live from New York at AWS Summit 22. John and I are going to be back after a short break, so come back. (digital pulsing music)
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James Arlen, Aiven | AWS Summit New York 2022
(upbeat music) >> Hey, guys and girls, welcome back to New York City. Lisa Martin and John Furrier are live with theCUBE at AWS Summit 22, here in The Big Apple. We're excited to be talking about security next. James Arlen joins us, the CISO at Aiven. James, thanks so much for joining us on theCUBE today. >> Absolutely, it's good to be here. >> Tell the audience a little bit about Aiven, what you guys do, what you deliver, and what some of those differentiators are. >> Oh, Aiven. Aiven is a fantastic organization. I'm actually really lucky to work there. It's a database as a service, managed databases, all open source. And we're capital S, serious about open source. So 10 different open source database products delivered as a platform, all managed services, and the game is really about being the most performant, secure, and compliant database as a service on the market, friction free for your developers. You don't need people worrying about how to run databases. You just want to be able to say, here, take care of my data for me. And that's what we do. And that's actually the differentiator. We just take care of it for you. >> Take care of it for you, I like that. >> So they download the open source. They could do it on their own. So all the different projects are out there. >> Yeah, absolutely. >> What do you guys bringing to the table? You said the managed service, can you explain that. >> Yeah, the managed service aspect of it is, really, you could install the software yourself. You can use Postgres or Apache Kafka or any one of the products that we support. Absolutely you can do it yourself. But is that really what you do for a living, or do you develop software, or do you sell a product? So we take and do the hard work of running the systems, running the equipment. We take care of backups, high availability, all the security and compliance things around access and certifications, all of those things that are logging, all of that stuff that's actually difficult to do, well and consistently, that's all we do. >> Talk about the momentum, I see you guys were founded in what? 2016? >> Yes. >> Just in May of '22, raised $210 million in series D funding. >> Yes. >> Talk about the momentum and also from your perspective, all of the massive changes in security. >> It's very interesting to work for a company where you're building more than 100% growth year over year. It's a powers of two thing. Going from one to two, not so scary, two to four, not so scary. 512 to 1024, it's getting scary. (Lisa chuckles) 1024 to 2048, oh crap! I've been with Aiven for just almost two years now, and we are less than 70 when I started, and we're near 500 now. So, explosive growth is very interesting, but it's also that, you're growing within a reasonable burn rate boundary as well. And what that does from a security perspective, is it leaves you in the position that I had. I walked in and I was the first actual CISO. I had a team of four, I now have a team of 40. Because it turns out that like a lot of things in life, as you start unpacking problems, they're kind of fractal. You unpack the problem, you're like oh, well I did deal with that problem, but now I got another problem that I got to deal with. And so there's, it's not turtles all the way down. >> There's a lot of things going on and other authors, survive change. >> And there's fundamental problems that are still not fixed. And yet we treat them like they're fixed. And so we're doing a lot of hard work to make it so that we don't have to do hard work ongoing. >> And that's the value of the managed service. >> Yes. >> Okay, so talk about competition. Obviously, we had ETR on which is Enterprise Research Firm that we trust, we like. And we were looking at the data with the headwinds in the market, looking at the different players like got Amazon has Redshift, Snowflake, and you got Azure Sequence. I think it's called one of those products. The money that's being shifted from on premise data where the old school data warehouse like terra data and whatnot, is going first to Snowflake, then to Azure, then to AWS. Yes, so that points to snowflake being kind of like the bell of the ball if you will, in terms of from a data cloud. >> Absolutely. >> How do you compete with them? What's the pitch 'Cause that seemed to be a knee-jerk reaction from the industry. 'Cause snowflake is hot. They have a good value product. They have a smart team, Databrick is out there too. >> Yeah I mean... >> how do you guys compete against all that. >> So this is that point where you're balancing the value of a specific technology, or a specific technology vendor. And am I going to be stuck with them? So I'm tying my future to their future. With open source, I'm tying my future to the common good right. The internet runs on open source. It doesn't run on anything closed. And so I'm not hitching my wagon to something that I don't control. I'm hitching it to something where, any one of our customers could decide. I'm not getting the value I need from Aiven anymore. I need to go. And we provide you with the tools necessary, to move from our open source managed service to your own. Whether you go on-prem or you run it yourself, on a cloud service provider, move your data to you because it's your data. It's not ours. How can I hold your data? It's like weird extortion ransoming thing. >> Actually speaking, I mean enterprise, it's a big land grab 'cause with cloud you're horizontally scalable. It's a beautiful thing, open source is booming. It's going in Aiven, every day it's just escalating higher and higher. >> Absolutely. >> It is the software business. So open is open. Integration and scale seems to be the competitive advantage. >> Yeah. >> Right. So, how do you guys compete with that? Because now you got open source. How do you offer the same benefits without the lock in, or what's the switching costs? How do you guys maintain that position of not saying the same thing in Snowflake? >> Because all of the biggest data users and consumers tend to give away their data products. LinkedIn gave away their data product. Uber gave away their data product, Facebook gave away their data product. And we now use those as community solutions. So, if the product works for something the scale of LinkedIn, or something the scale of Uber. It will probably work for you too. And scale is just... >> Well Facebook and LinkedIn, they gave away the product to own the data to use against you. >> But it's the product that counts because you need to be able to manipulate data the way they manipulate data, but with yours. >> So low latency needs to work. So horizontally, scalable, fees, machine learning. That's what we're seeing. How do you make that available? Customers want on architecture? What do you recommend? Control plane, data plane, how do you think about that? >> It's interesting. There's architectural reasons to think about it in terms like that. And there's other good architectural reasons to not think about it. There's sort of this dividing line in the cloud, where your cloud service provider, takes over and provides you with the opportunity to say, I don't know. And I don't care >> As long as it's secure >> As long as it's secure absolutely. But there's sort of that water line idea, where if it's below the water line, let somebody else deal. >> What is in the table stakes? 'Cause I like that approach. I think that's a good value proposition. Store it, what boxes have to be checked? Compliance, secure, what are some of the boxes? >> You need to make sure that you've taken care of all of the same basics if you are still running it. Remember you can't absolve yourself of your duty to your customer. You're still on the hook. So, you have to have backups. You have to have access control. You have to understand who's administering it, and how and what they're doing. Good logging, good comprehension there. You have to have anomaly detection, secure operations. You have to have all those compliance check boxes. Especially if you're dealing with regulated data type like PCI data or HIPAA health data or you know what there's other countries besides the United States, there's other kinds of of compliance obligations there. So you have to make sure that you've got all that taken into account. And remember that, like I said, you can't absolve yourself with those things. You can share responsibilities. But you can't walk away from that responsibility. So you still have to make sure that you validate that your vendor knows what they're talking about. >> I wanted to ask you about the cybersecurity skills gap. So I'm kind of giving a little segue here, because you mentioned you've been with Aiven for about two years. >> Almost. >> Almost two years. You've started with a team of four. You've grown at 10X in less than two years. How have you accomplished that, considering we're seeing one of the biggest skills shortages in cyber in history. >> It's amazing, you see this show up in a lot of job Ads, where they ask for 10 years of experience in something that's existed for three years. (John Furrier laughs) And it's like okay, well if I just be logical about this I can hire somebody at less than the skill level that I need today, and bring them up to that skill level. Or I can spend the same amount of time, hoping that I'll find the magical person that has that set of skills that I need. So I can solve the problem of the skills gap by up-skilling the people that I hire. Which is strangely contrary to how this thing works. >> The other thing too, is the market's evolving so fast that, that carry up and pulling someone along, or building and growing your own so to speak is workable. >> It also really helps us with a bunch of sustainability goals. It really helps with anything that has to do with diversity and inclusion, because I can bring forward people who are never given a chance. And say, you know what? You don't have that magical ticket in life, but damn you know what you're talking about? >> It's a classic pedigree. I went to this school, I studied this degree. There's no degree if have to stop a hacker using state of the art malware. (John Furrier laughs) >> Exactly. What I do today as a job, didn't exist when I was in post-secondary at all. >> So when you hire, what do you look for? I mean obviously problem solving. What's your kind of algorithm for hiring? >> Oh, that's a really interesting question. The quickest sort of summary of it is, I'm looking for not a jerk. >> Not a jerk. >> Yeah. >> Okay. >> Because it turns out that the quality that I can't fix in a candidate, is I can't fix whether or not they're a jerk, but I can up-skill them, I can educate them. I can teach them of a part of the world that they've not had any interaction with. But if they're not going to work with the team, if they're going to be, look at me, look at me. If they're going to not have that moment of, I have this great job, and I get to work today. And that's awesome. (Lisa Martin laughs) That's what I'm trying to hire for. >> The essence of this teamwork is fundamental. >> Collaboration. >> Cooperation. >> Curiosity. >> That's the thing yeah, absolutely. >> And everybody? >> Those things, oh absolutely. Those things are really, really hard to interview for. And they're impossible to fix after the fact. So that's where you really want to put the effort. 'Cause I can teach you how to use a computer. I mean it's hard, but it's not that hard. >> Yeah, yeah, yeah. >> Well I love the current state of data management. Good overview, you guys are in the good position. We love open source. Been covering it for, since theCUBE started. It continues to redefine more and more the industry. It is the software industry. Now there's no debate about that. If people want to have that debate, that's kind of waste of time, but there are other ways that are happening. So I have to ask you. As things are going forward with innovation. Okay, if opensource is going to be the software industry. Where's the value? >> That's a fun question wow? >> Is it going to be in the community? Is it the integration? Is it the scale? If you're open and you have low switching costs... >> Yeah so, when you look at Aiven's commitment to open source, a huge part of that is our open source project office, where we contribute back to those core products, whether it's parts of the Apache Foundation, or Postgres, or whatever. We contribute to those, because we have staff who work on those products. They don't work on our stuff. They work on those. And it's like the opposite of a zero sum game. It's more like Nash equilibrium. If you ever watch that movie, "A beautiful mind." That great idea of, you don't have to have winners and losers. You can have everybody loses a little bit but everybody wins a little bit. >> Yeah and that's the open the ethos. >> And that's where it gets tied up. >> Another follow up on that. The other thing I want to get your reaction on is that, now in this modern era of open source, almost all corporations are part of projects. I mean if you're an entrepreneur and you want to get funding it's pretty simple. You start open source project. How many stars you get on GitHub guarantees it's a series C round, pretty much. So open source now has got this new thing going on, where it's not just open source folks who believe in it It's an operating model. What's the dynamic of corporations being part of the system. It used to be, oh what's the balance between corporate and influence, now it's standard. What's your reaction? >> They can do good and they can do harm. And it really comes down to why are you in it? So if you look at the example of open search, which is one of the data products that we operate in the Aiven system. That's a collaboration between Aiven. Hey we're an awesome company, but we're nowhere near the size of AWS. And AWS where we're working together on it. And I just had this conversation with one of the attendees here, where he said, "Well AWS is going to eat your story there. "You're contributing all of this "to the open search platform. "And then AWS is going to go and sell it "and they're going to make more money." And I'm like yep, they are. And I've got staff who work for the organization, who are more fulfilled because they got to deliver something that's used by millions of people. And you think about your jobs. That moment of, (sighs) I did a cool thing today. That's got a lot of value in it. >> And part of something. >> Exactly. >> As a group. >> 100%. >> Exactly. >> And we end up with a product that's used by millions. Some of it we'll capture, because we do a better job running than the AWS does, but everybody ends up winning out of the backend. Again, everybody lost a little, but everybody also won. And that's better than that whole, you have to lose so that I can win. At zero something, that doesn't work. >> I think the silo conversations are coming, what's the balance between siloing something and why that happens. And then what's going to be freely accessible for data. Because the real time information is based upon what you can access. "Hey Siri, what's the weather. "We had a guest on earlier." It says, oh that's a data query. Well, if the weather is, the data weathers stored in a database that's out here and it can't get to the response on the app. Yeah, that's not good, but the data is available. It just didn't get delivered. >> Yeah >> Exactly. >> This is an example of what people are realizing now the consequences of this data, collateral damage or economy value. >> Yeah, and it's understanding how data fits in your environment. And I don't want to get on the accountants too hard, but the accounting organizations, AICPA and ISAE and others, they haven't really done a good job of helping you understand data as an asset, or data as a liability. I hold a lot of customer data. That's a liability to me. It's going to blow up in my face. We don't talk about the income that we get from data, Google. We don't talk about the expense of regenerating that data. We talk about, well what happens if you lose it? I don't know. And we're circling the drain around fiduciary responsibility, and we know how to do this. If you own a manufacturing plant, or if you own a fleet of vehicles you understand the fiduciary duty of managing your asset. But because we can't touch it, we don't do a good job of it. >> How far do you think are people getting into the point where they actually see that asset? Because I think it's out of sight out of mind. Now there's consequences, there's now it's public companies might have to do filings. It's not like sustainability and data. Like, wait a minute, I got to deal with these things. >> It's interesting, we got this great benefit of the move to cloud computing, and the move to utility style computing. But we took away that. I got to walk around and pet my computers. Like oh! This is my good database. I'm very proud of you. Like we're missing that piece now. And when you think about the size of data centers, we become detached from that, you don't really think about, Aiven operates tens of thousands of machines. It would take entire buildings to hold them all. You don't think about it. So how do you recreate that visceral connection to your data? Well, you need to start actually thinking about it. And you need to do some of that tokenization. When was the last time you printed something out, like you get a report and happens to me all the time with security reports. Look at a security report and it's like 150 page PDF. Scroll, scroll, scroll, scroll. Print it out, stump it on the table in front of you. Oh, there's gravitas here. There's something here. Start thinking about those records, count them up, and then try to compare that to something in the real world. My wife is a school teacher, kindergarten to grade three, and tokenizing math is how they teach math to little kids. You want to count something? Here's 10 things, count them. Well, you've got 60,000 customer records, or you have 2 billion data points in your IOT database, tokenize that, what does 2 billion look like? What does $1 million look like in the form of $100 dollars bills on a pallet? >> Wow. >> Right. Tokenize that data, create that visceral connection with it, and then talk about it. >> So when you say tokenized, you mean like token as in decentralization token? >> No, I mean create like a totem or an icon of it. >> Okay, got it. >> A thing you can hold holy. If you're a token company. >> Not token as in Token economics and Crypto. >> If you're a mortgage company, take that customer record for one of your customers, print it out and hold the file. Like in a Manila folder, like it's 1963. Hold that file, and then say yes. And you're explaining to somebody and say yes, and we have 3 million of these. If we printed them all out, it would take up a room this size. >> It shows the scale. >> Right. >> Right. >> Exactly, create that connection back to the human level of interaction with data. How do you interact with a terabyte of data, but you do. >> Right. >> But once she hits upgrade from Google drive. (team laughs) >> What's a terabyte right? We don't hold that anymore. >> Right, right. >> Great conversation. >> Recreate that connection. Talk about data that way. >> The visceral connection with data. >> Follow up after this event. We'd love to dig more and love the approach. Love open source, love what you're doing there. That's a very unique approach. And it's also an alternative to some of the other vast growing plus your valuations are very high too. So you're not like a... You're not too far away from these big valuations. So congratulations. >> Absolutely. >> Yeah excellent, I'm sure there's lots of work to do, lots of strategic work to do with that round of funding. But also lots of opportunity, that it's going to open up, and we know you don't hire jerks. >> I don't >> You have a whole team of non jerks. That's pretty awesome. Especially 40 of 'em. That's impressive James.| >> It is. >> Congratulations to you on what you've accomplished in the course of the team. And thank you for sharing your insights with John and me today, we appreciate it. >> Awesome. >> Thanks very much, it's been great. >> Awesome, for John furrier, I'm Lisa Martin and you're watching theCube, live in New York city at AWS Summit NYC 22, John and I will be right back with our next segment, stick around. (upbeat music)
SUMMARY :
We're excited to be talking what you guys do, what you deliver, And that's actually the differentiator. So all the different You said the managed service, or any one of the Just in May of '22, raised $210 million all of the massive changes in security. that I got to deal with. There's a lot of things have to do hard work ongoing. And that's the value of the ball if you will, 'Cause that seemed to how do you guys compete And am I going to be stuck with them? 'cause with cloud you're It is the software business. of not saying the same thing in Snowflake? Because all of the biggest they gave away the product to own the data that counts because you need So low latency needs to work. dividing line in the cloud, But there's sort of that water line idea, What is in the table stakes? that you validate that your vendor knows I wanted to ask you about How have you accomplished hoping that I'll find the magical person is the market's evolving so fast that has to do with There's no degree if have to stop a hacker What I do today as a job, So when you hire, what do you look for? Oh, that's a really and I get to work today. The essence of this teamwork So that's where you really So I have to ask you. Is it going to be in the community? And it's like the opposite and you want to get funding to why are you in it? And we end up with a product is based upon what you can access. the consequences of this data, of helping you understand are people getting into the point where of the move to cloud computing, create that visceral connection with it, or an icon of it. A thing you can hold holy. Not token as in print it out and hold the file. How do you interact But once she hits We don't hold that anymore. Talk about data that way. with data. and love the approach. that it's going to open up, and Especially 40 of 'em. Congratulations to you and you're watching theCube,
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Haseeb Budhani, Rafay & Kevin Coleman, AWS | AWS Summit New York 2022
(gentle music) (upbeat music) (crowd chattering) >> Welcome back to The City That Never Sleeps. Lisa Martin and John Furrier in New York City for AWS Summit '22 with about 10 to 12,000 of our friends. And we've got two more friends joining us here today. We're going to be talking with Haseeb Budhani, one of our alumni, co-founder and CEO of Rafay Systems, and Kevin Coleman, senior manager for Go-to Market for EKS at AWS. Guys, thank you so much for joining us today. >> Thank you very much for having us. Excited to be here. >> Isn't it great to be back at an in-person event with 10, 12,000 people? >> Yes. There are a lot of people here. This is packed. >> A lot of energy here. So, Haseeb, we've got to start with you. Your T-shirt says it all. Don't hate k8s. (Kevin giggles) Talk to us about some of the trends, from a Kubernetes perspective, that you're seeing, and then Kevin will give your follow-up. >> Yeah. >> Yeah, absolutely. So, I think the biggest trend I'm seeing on the enterprise side is that enterprises are forming platform organizations to make Kubernetes a practice across the enterprise. So it used to be that a BU would say, "I need Kubernetes. I have some DevOps engineers, let me just do this myself." And the next one would do the same, and then next one would do the same. And that's not practical, long term, for an enterprise. And this is now becoming a consolidated effort, which is, I think it's great. It speaks to the power of Kubernetes, because it's becoming so important to the enterprise. But that also puts a pressure because what the platform team has to solve for now is they have to find this fine line between automation and governance, right? I mean, the developers, you know, they don't really care about governance. Just give me stuff, I need to compute, I'm going to go. But then the platform organization has to think about, how is this going to play for the enterprise across the board? So that combination of automation and governance is where we are finding, frankly, a lot of success in making enterprise platform team successful. I think, that's a really new thing to me. It's something that's changed in the last six months, I would say, in the industry. I don't know if, Kevin, if you agree with that or not, but that's what I'm seeing. >> Yeah, definitely agree with that. We see a ton of customers in EKS who are building these new platforms using Kubernetes. The term that we hear a lot of customers use is standardization. So they've got various ways that they're deploying applications, whether it's on-prem or in the cloud and region. And they're really trying to standardize the way they deploy applications. And Kubernetes is really that compute substrate that they're standardizing on. >> Kevin, talk about the relationship with Rafay Systems that you have and why you're here together. And two, second part of that question, why is EKS kicking ass so much? (Haseeb and Kevin laughing) All right, go ahead. First one, your relationship. Second one, EKS is doing pretty well. >> Yep, yep, yep. (Lisa laughing) So yeah, we work closely with Rafay, Rafay, excuse me. A lot of joint customer wins with Haseeb and Co, so they're doing great work with EKS customers and, yeah, love the partnership there. In terms of why EKS is doing so well, a number of reasons, I think. Number one, EKS is vanilla, upstream, open-source Kubernetes. So customers want to use that open-source technology, that open-source Kubernetes, and they come to AWS to get it in a managed offering, right? Kubernetes isn't the easiest thing to self-manage. And so customers, you know, back before EKS launched, they were banging down the door at AWS for us to have a managed Kubernetes offering. And, you know, we launched EKS and there's been a ton of customer adoption since then. >> You know, Lisa, when we, theCUBE 12 years, now everyone knows we started in 2010, we used to cover a show called OpenStack. >> I remember that. >> OpenStack Summit. >> What's that now? >> And at the time, at that time, Kubernetes wasn't there. So theCUBE was present at creation. We've been to every KubeCon ever, CNCF then took it over. So we've been watching it from the beginning. >> Right. And it reminds me of the same trend we saw with MapReduce and Hadoop. Very big promise, everyone loved it, but it was hard, very difficult. And Hadoop's case, big data, it ended up becoming a data lake. Now you got Spark, or Snowflake, and Databricks, and Redshift. Here, Kubernetes has not yet been taken over. But, instead, it's being abstracted away and or managed services are emerging. 'Cause general enterprises can't hire enough Kubernetes people. >> Yep. >> They're not that many out there yet. So there's the training issue. But there's been the rise of managed services. >> Yep. >> Can you guys comment on what your thoughts are relative to that trend of hard to use, abstracting away the complexity, and, specifically, the managed services? >> Yeah, absolutely. You want to go? >> Yeah, absolutely. I think, look, it's important to not kid ourselves. It is hard. (Johns laughs) But that doesn't mean it's not practical, right. When Kubernetes is done well, it's a thing of beauty. I mean, we have enough customer to scale, like, you know, it's like a, forget a hockey stick, it's a straight line up, because they just are moving so fast when they have the right platform in place. I think that the mistake that many of us make, and I've made this mistake when we started this company, was trivializing the platform aspect of Kubernetes, right. And a lot of my customers, you know, when they start, they kind of feel like, well, this is not that hard. I can bring this up and running. I just need two people. It'll be fine. And it's hard to hire, but then, I need two, then I need two more, then I need two, it's a lot, right. I think, the one thing I keep telling, like, when I talk to analysts, I say, "Look, somebody needs to write a book that says, 'Yes, it's hard, but, yes, it can be done, and here's how.'" Let's just be open about what it takes to get there, right. And, I mean, you mentioned OpenStack. I think the beauty of Kubernetes is that because it's such an open system, right, even with the managed offering, companies like Rafay can build really productive businesses on top of this Kubernetes platform because it's an open system. I think that is something that was not true with OpenStack. I've spent time with OpenStack also, I remember how it is. >> Well, Amazon had a lot to do with stalling the momentum of OpenStack, but your point about difficulty. Hadoop was always difficult to maintain and hiring against. There were no managed services and no one yet saw that value of big data yet. Here at Kubernetes, people are living a problem called, I'm scaling up. >> Yep. And so it sounds like it's a foundational challenge. The ongoing stuff sounds easier or manageable. >> Once you have the right tooling. >> Is that true? >> Yeah, no, I mean, once you have the right tooling, it's great. I think, look, I mean, you and I have talked about this before, I mean, the thesis behind Rafay is that, you know, there's like 8, 12 things that need to be done right for Kubernetes to work well, right. And my whole thesis was, I don't want my customer to buy 10, 12, 15 products. I want them to buy one platform, right. And I truly believe that, in our market, similar to what vCenter, like what VMware's vCenter did for VMs, I want to do that for Kubernetes, right. And that the reason why I say that is because, see, vCenter is not about hypervisors, right? vCenter is about hypervisor, access, networking, storage, all of the things, like multitenancy, all the things that you need to run an enterprise-grade VM environment. What is that equivalent for the Kubernetes world, right? So what we are doing at Rafay is truly building a vCenter, but for Kubernetes, like a kCenter. I've tried getting the domain. I couldn't get it. (Kevin laughs) >> Well, after the Broadcom view, you don't know what's going to happen. >> Ehh. (John laughs) >> I won't go there! >> Yeah. Yeah, let's not go there today. >> Kevin, EKS, I've heard people say to me, "Love EKS. Just add serverless, that's a home run." There's been a relationship with EKS and some of the other Amazon tools. Can you comment on what you're seeing as the most popular interactions among the services at AWS? >> Yeah, and was your comment there, add serverless? >> Add serverless with AKS at the edge- >> Yeah. >> and things are kind of interesting. >> I mean, so, one of the serverless offerings we have today is actually Fargate. So you can use Fargate, which is our serverless compute offering, or one of our serverless compute offerings with EKS. And so customers love that. Effectively, they get the beauty of EKS and the Kubernetes API but they don't have to manage nodes. So that's, you know, a good amount of adoption with Fargate as well. But then, we also have other ways that they can manage their nodes. We have managed node groups as well, in addition to self-managed nodes also. So there's a variety of options that customers can use from a compute perspective with EKS. And you'll continue to see us evolve the portfolio as well. >> Can you share, Haseeb, can you share a customer example, a joint customer example that you think really articulates the value of what Rafay and AWS are doing together? >> Yeah, absolutely. In fact, we announced a customer very recently on this very show, which is MoneyGram, which is a joint AWS and Rafay customer. Look, we have enough, you know, the thing about these massive customers is that, you know, not everybody's going to give us their logo to use. >> Right. >> But MoneyGram has been a Rafay plus EKS customer for a very, very long time. You know, at this point, I think we've earned their trust, and they've allowed us to, kind of say this publicly. But there's enough of these financial services companies who have, you know, standardized on EKS. So it's EKS first, Rafay second, right. They standardized on EKS. And then they looked around and said, "Who can help me platform EKS across my enterprise?" And we've been very lucky. We have some very large financial services, some very large healthcare companies now, who, A, EKS, B, Rafay. I'm not just saying that because my friend Kevin's here, (Lisa laughs) it's actually true. Look, EKS is a brilliant platform. It scales so well, right. I mean, people try it out, relative to other platforms, and it's just a no-brainer, it just scales. You want to build a big enterprise on the backs of a Kubernetes platform. And I'm not saying that's because I'm biased. Like EKS is really, really good. There's a reason why so many companies are choosing it over many other options in the market. >> You're doing a great job of articulating why the theme (Kevin laughs) of the New York City Summit is scale anything. >> Oh, yeah. >> There you go. >> Oh, yeah. >> I did not even know that but I'm speaking the language, right? >> You are. (John laughs) >> Yeah, absolutely. >> One of the things that we're seeing, also, I want to get your thoughts on, guys, is the app modernization trend, right? >> Yep. >> Because unlike other standards that were hard, that didn't have any benefit downstream 'cause they were too hard to get to, here, Kubernetes is feeding into real app for app developer pressure. They got to get cloud-native apps out. It's fairly new in the mainstream enterprise and a lot of hyperscalers have experience. So I'm going to ask you guys, what is the key thing that you're enabling with Kubernetes in the cloud-native apps? What is the key value? >> Yeah. >> I think, there's a bifurcation happening in the market. One is the Kubernetes Engine market, which is like EKS, AKS, GKE, right. And then there's the, you know, what, back in the day, we used to call operations and management, right. So the OAM layer for Kubernetes is where there's need, right. People are learning, right. Because, as you said before, the skill isn't there, you know, there's not enough talent available to the market. And that's the opportunity we're seeing. Because to solve for the standardization, the governance, and automation that we talked about earlier, you know, you have to solve for, okay, how do I manage my network? How do I manage my service mesh? How do I do chargebacks? What's my, you know, policy around actual Kubernetes policies? What's my blueprinting strategy? How do I do add-on management? How do I do pipelines for updates of add-ons? How do I upgrade my clusters? And we're not done yet, there's a longer list, right? This is a lot, right? >> Yeah. >> And this is what happens, right. It's just a lot. And really, the companies who understand that plethora of problems that need to be solved and build easy-to-use solutions that enterprises can consume with the right governance automation, I think they're going to be very, very successful here. >> Yeah. >> Because this is a train, right? I mean, this is happening whether, it's not us, it's happening, right? Enterprises are going to keep doing this. >> And open-source is a big driver in all of this. >> Absolutely. >> Absolutely. >> And I'll tag onto that. I mean, you talked about platform engineering earlier. Part of the point of building these platforms on top of Kubernetes is giving developers an easier way to get applications into the cloud. So building unique developer experiences that really make it easy for you, as a software developer, to take the code from your laptop, get it out of production as quickly as possible. The question is- >> So is that what you mean, does that tie your point earlier about that vertical, straight-up value once you've set up it, right? >> Yep. >> Because it's taking the burden off the developers for stopping their productivity. >> Absolutely. >> To go check in, is it configured properly? Is the supply chain software going to be there? Who's managing the services? Who's orchestrating the nodes? >> Yep. >> Is that automated, is that where you guys see the value? >> That's a lot of what we see, yeah. In terms of how these companies are building these platforms, is taking all the component pieces that Haseeb was talking about and really putting it into a cohesive whole. And then, you, as a software developer, you don't have to worry about configuring all of those things. You don't have to worry about security policy, governance, how your app is going to be exposed to the internet. >> It sounds like infrastructure is code. >> (laughs) Yeah. >> Come on, like. >> (laughs) Infrastructure's code is a big piece of it, for sure, for sure. >> Yeah, look, infrastructure's code actually- >> Infrastructure's sec is code too, the security. >> Yeah. >> Huge. >> Well, it all goes together. Like, we talk about developer self-service, right? The way we enable developer self-service is by teaching developers, here's a snippet of code that you write and you check it in and your infrastructure will just magically be created. >> Yep. >> But not automatically. It's going to go through a check, like a check through the platform team. These are the workflows that if you get them right, developers don't care, right. All developers want is I want to compute. But then all these 20 things need to happen in the back. That's what, if you nail it, right, I mean, I keep trying to kind of pitch the company, I don't want to do that today. But if you nail that, >> I'll give you a plug at the end. >> you have a good story. >> But I got to, I just have a tangent question 'cause you reminded me. There's two types of developers that have emerged, right. You have the software developer that wants infrastructures code. I just want to write my code, I don't want to stop. I want to build in shift-left for security, shift-right for data. All that's in there. >> Right. >> I'm coding away, I love coding. Then you've got the under-the-hood person. >> Yes. >> I've been to the engines. >> Certainly. >> So that's more of an SRE, data engineer, I'm wiring services together. >> Yeah. >> A lot of people are like, they don't know who they are yet. They're in college or they're transforming from an IT job. They're trying to figure out who they are. So question is, how do you tell a person that's watching, like, who am I? Like, should I be just coding? But I love the tech. Would you guys have any advice there? >> You know, I don't know if I have any guidance in terms of telling people who they are. (all laughing) I mean, I think about it in terms of a spectrum and this is what we hear from customers, is some customers want to shift as much responsibility onto the software teams to manage their infrastructure as well. And then some want to shift it all the way over to the very centralized model. And, you know, we see everything in between as well with our EKS customer base. But, yeah, I'm not sure if I have any direct guidance for people. >> Let's see, any wisdom? >> Aside from experiment. >> If you're coding more, you're a coder. If you like to play with the hardware, >> Yeah. >> or the gears. >> Look, I think it's really important for managers to understand that developers, yes, they have a job, you have to write code, right. But they also want to learn new things. It's only fair, right. >> Oh, yeah. >> So what we see is, developers want to learn. And we enable for them to understand Kubernetes in small pieces, like small steps, right. And that is really, really important because if we completely abstract things away, like Kubernetes, from them, it's not good for them, right. It's good for their careers also, right. It's good for them to learn these things. This is going to be with us for the next 15, 20 years. Everybody should learn it. But I want to learn it because I want to learn, not because this is part of my job, and that's the distinction, right. I don't want this to become my job because I want, I want to write my code. >> Do what you love. If you're more attracted to understanding how automation works, and robotics, or making things scale, you might be under-the-hood. >> Yeah. >> Yeah, look under the hood all day long. But then, in terms of, like, who keeps the lights on for the cluster, for example. >> All right, see- >> That's the job. >> He makes a lot of value. Now you know who you are. Ask these guys. (Lisa laughing) Congratulations on your success on EKS 2. >> Yeah, thank you. >> Quick, give a plug for the company. I know you guys are growing. I want to give you a minute to share to the audience a plug that's going to be, what are you guys doing? You're hiring? How many employees? Funding? Customer new wins? Take a minute to give a plug. >> Absolutely. And look, I come see, John, I think, every show you guys are doing a summit or a KubeCon, I'm here. (John laughing) And every time we come, we talk about new customers. Look, platform teams at enterprises seem to love Rafay because it helps them build that, well, Kubernetes platform that we've talked about on the show today. I think, many large enterprises on the financial service side, healthcare side, digital native side seem to have recognized that running Kubernetes at scale, or even starting with Kubernetes in the early days, getting it right with the right standards, that takes time, that takes effort. And that's where Rafay is a great partner. We provide a great SaaS offering, which you can have up and running very, very quickly. Of course, we love EKS. We work with our friends at AWS. But also works with Azure, we have enough customers in Azure. It also runs in Google. We have enough customers at Google. And it runs on-premises with OpenShift or with EKS A, right, whichever option you want to take. But in terms of that standardization and governance and automation for your developers to move fast, there's no better product in the market right now when it comes to Kubernetes platforms than Rafay. >> Kevin, while we're here, why don't you plug EKS too, come on. >> Yeah, absolutely, why not? (group laughing) So yes, of course. EKS is AWS's managed Kubernetes offering. It's the largest managed Kubernetes service in the world. We help customers who want to adopt Kubernetes and adopt it wherever they want to run Kubernetes, whether it's in region or whether it's on the edge with EKS A or running Kubernetes on Outposts and the evolving portfolio of EKS services as well. We see customers running extremely high-scale Kubernetes clusters, excuse me, and we're here to support them as well. So yeah, that's the managed Kubernetes offering. >> And I'll give the plug for theCUBE, we'll be at KubeCon in Detroit this year. (Lisa laughing) Lisa, look, we're giving a plug to everybody. Come on. >> We're plugging everybody. Well, as we get to plugs, I think, Haseeb, you have a book to write, I think, on Kubernetes. And I think you're wearing the title. >> Well, I do have a book to write, but I'm one of those people who does everything at the very end, so I will never get it right. (group laughing) So if you want to work on it with me, I have some great ideas. >> Ghostwriter. >> Sure! >> But I'm lazy. (Kevin chuckles) >> Ooh. >> So we got to figure something out. >> Somehow I doubt you're lazy. (group laughs) >> No entrepreneur's lazy, I know that. >> Right? >> You're being humble. >> He is. So Haseeb, Kevin, thank you so much for joining John and me today, >> Thank you. >> talking about what you guys are doing at Rafay with EKS, the power, why you shouldn't hate k8s. We appreciate your insights and your time. >> Thank you as well. >> Yeah, thank you very much for having us. >> Our pleasure. >> Thank you. >> We appreciate it. With John Furrier, I'm Lisa Martin. You're watching theCUBE live from New York City at the AWS NYC Summit. John and I will be right back with our next guest, so stick around. (upbeat music) (gentle music)
SUMMARY :
We're going to be talking Thank you very much for having us. This is packed. Talk to us about some of the trends, I mean, the developers, you know, in the cloud and region. that you have and why And so customers, you know, we used to cover a show called OpenStack. And at the time, And it reminds me of the same trend we saw They're not that many out there yet. You want to go? And, I mean, you mentioned OpenStack. Well, Amazon had a lot to do And so it sounds like it's And that the reason why Well, after the Broadcom view, (John laughs) Yeah, let's not go there today. and some of the other Amazon tools. I mean, so, one of the you know, the thing about these who have, you know, standardized on EKS. of the New York City (John laughs) So I'm going to ask you guys, And that's the opportunity we're seeing. I think they're going to be very, I mean, this is happening whether, big driver in all of this. I mean, you talked about Because it's taking the is taking all the component pieces code is a big piece of it, is code too, the security. here's a snippet of code that you write that if you get them right, at the end. I just want to write my I'm coding away, I love coding. So that's more of But I love the tech. And then some want to If you like to play with the hardware, for managers to understand This is going to be with us Do what you love. the cluster, for example. Now you know who you are. I want to give you a minute Kubernetes in the early days, why don't you plug EKS too, come on. and the evolving portfolio And I'll give the plug And I think you're wearing the title. So if you want to work on it with me, But I'm lazy. So we got to (group laughs) So Haseeb, Kevin, thank you so much the power, why you shouldn't hate k8s. Yeah, thank you very much at the AWS NYC Summit.
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theCUBE on Supercloud | AWS Summit New York 2022
welcome back to thecube's live coverage coming to you from the big apple in new york city we're talking all things aws summit but right now i've got two powerhouses you know them you love them john furrier dave vellante going to be talking about super cloud guys we've been talking a lot about this there's a big event coming up on the cube august 9th and i gotta start dave with you because we talk about it pretty much in every interview where it's relevant why super cloud yeah so john furrier years ago started a tradition lisa prior to aws which was to lay down the expectation for our audiences what they should be looking for at aws reinvent okay john when did that start 2012 2013. actually 2013 was our first but 2015 was the first time when we get access to andy jassy who wasn't doing any briefings and we realized that the whole industry started looking at amazon web services as a structural forcing function of massive change uh some say inflection point we were saying complete redefinition so you wrote the trillion dollar baby yeah right which actually turns into probably multi-trillion dollars we got it right on that one surprisingly it was pretty obvious so every year since then john has published the seminal article prior to reinvent so this year we were talking we're coming out of the isolation economy and john hedwig also also adam silevski was the new ceo so we had a one-on-one with adam that's right and then that's where the convergence between andy jassy and adam celebski kicked in which is essentially those guys work together even though they he went off and boomerang back in as they say in aws but what's interesting was is that adam zluski's point of view piggyback jassy but he had a different twist yeah some so you know low you know people who didn't have really a lot of thought into it said oh he's copying microsoft moving up the stack we're like no no no no no something structural is happening again and so john wrote the piece and he started sharing it we're collaborating he said hey dave take a take a look add your perspectives and then jerry chen had just written castles in the cloud and he talked about sub-markets and we were sort of noodling and one of the other things was in 2018 2019 around that time at aws re invent there was this friction between like snowflake and aws because redshift separated compute from storage which was snowflake's whole thing now fast forward to 2021 after we're leaving you know the covert economy by the way everyone was complaining they are asking jassy are you competing with your ecosystem the classic right trope and then in in remember jason used to use cloudera as the example i would like to maybe pick a better example snowflake became that example and what the transition was it went from hey we're kind of competitive for sure there's a lot of examples but it went from we're competitive they're stealing our stuff to you know what we're making so much money building on top of aws specifically but also the clouds and cross clouds so we said there's something new happening in the ecosystem and then just it popped up this term super cloud came up to connote a layer that floats above the hyperscale capex not is it's not pass it's not sas it's the combination of the of those things on top of a new digital infrastructure and we chose the term super cloud we liked it better than multi-cloud because multiplayer at least one other point too i think four or five years earlier dave and i across not just aws reinvent all of our other events we were speculating that there might be a tier two cloud service provider models and we've talked with intel about this and others just kind of like evaluating it staring at it and we met by tier two like maybe competing against amazon but what happened was it wasn't a tier two cloud it was a super cloud built on the capex of aws which means initially was a company didn't have to build aws to be like aws and everybody wanted to be like aws so we saw the emergence of the smart companies saying hey let's refactor our business model in the category or industry scope and to dominate with cloud scale and they did it that then continued that was the premise of chen's post which was kind of rift on the cube initially which is you can have a moat in a castle in the cloud and have a competitive advantage and a sustainable differentiation model and that's exactly what's happening and then you introduce the edge and hybrid you now have a cloud operating model that that super cloud extends as a substrate across all environments so it's not multi-cloud which sounds broken and like put it distance jointed joint barriers hybrid cloud which is the hybrid operating model at scale and you don't have to be amazon to take advantage of all the value creation since they took care of the capex now they win too on the other side because because they're selling ec2 and storage and ml and ai and this is new and this is information that people don't might not know about internally at aws there was a debate dave okay i heard this from sources do we go all in and compete and just own the whole category or open the ecosystem and coexist with [ __ ] why do we have these other companies or snowflake and guess what the decision was let's make it open ecosystem and let's have our own offerings as well and let the winner take off smart because they can't hire enough people and we just had aws and snowflake on the cube a few weeks ago talking about the partnership the co-op petition the value in it but what's been driving it is the voice of the customer but i want to ask you paint the picture for the audience of the critical key components of super cloud what are those yeah so i think first and foremost super cloud as john was saying it's not multi-cloud chuck whitten had a great phrase at dell tech world he said multi-cloud by default right versus multi-cloud by design and multi-cloud has been by default it's been this sort of i run in aws and i run my stack in azure or i run my stack in gcp and it works or i wrap my stack in a container and host it in the cloud that's what multi-cloud has been so the first sort of concept is it's a layer that that abstracts the underlying complexity of all the clouds all the primitives uh it takes advantage of maybe graviton or microsoft tooling hides all that and builds new value on top of that the other piece of of super cloud is it's ecosystem driven really interesting story you just told because literally amazon can't hire everybody right so they have to rely on the ecosystem for feature acceleration so it's it also includes a path layer a super pass layer we call it because you need to develop applications that are specific to the problem that the super cloud is solving so it's not a generic path like openshift it's specific to whether it's snowflake or [ __ ] or aviatrix so that developers can actually build on top of and not have to worry about that underlying and also there's some people that are criticizing um what we're doing in a good way because we want to have an open concept sure but here's the thing that a lot of people don't understand they're criticizing or trying to kind of shoot holes in our new structural change that we're identifying to comparing it to old that's like saying mainframe and mini computers it's like saying well the mainframe does it this way therefore there's no way that's going to be legitimate so the old thinking dave is from people that have no real foresight in the new model right and so they don't really get it right so what i'm saying is that we look at structural change structural change is structural change it either happens or it doesn't so what we're observing is the fact that a snowflake didn't design their solution to be multi-cloud they did it all on aws and then said hey why would we why are we going to stop there let's go to azure because microsoft's got a boatload of customers because they have a vertically stacking integration for their install base so if i'm snowflake why wouldn't i be on azure and the same for gcp and the same for other things so this idea that you can get the value of an amp what amazon did leverage and all that value without paying for it up front is a huge dynamic and that's not just saying oh that's cloud that's saying i have a cloud-like scale cloud-like value proposition which which will look like an ecosystem so to me the acid test is if i build on top of say [ __ ] or say snowflake or super cloud by default i'm either a category leader i own the data at scale or i'm sharing data at scale and i have an ecosystem people are building on top of me so that's a platform so that's really difficult so what's happening is these ecosystem partners are taking advantage as john said of all the hyperscale capex and they're building out their version of a distributed global system and then the other attribute of super cloud is it's got metadata management capability in other words it knows if i'm optimizing for latency where in the super cloud to get the data or how to protect privacy or sovereignty or how many copies to make to have the proper data protection or where the air gap should be for ransomware so these are examples of very specific purpose-built super clouds that are filling gaps that the hyperscalers aren't going after what's a good example of a specific super cloud that you think really articulates what you guys are talking about i think there are a lot of them i think snowflake is a really good example i think vmware is building a multi-cloud management system i think aviatrix and virtual you know private cloud networking and for high performance networking i think to a certain extent what oracle is doing with azure is is is definitely looks like a super cloud i think what capital one is doing by building on to taking their own tools and and and moving that to snowflake now that they're not cross-cloud yet but i predict that they will be of i think uh what veeam is doing in data protection uh dell what they showed at dell tech world with project alpine these are all early examples of super well here's an indicator here's how you look at the example so to me if you're just lifting and shifting that was the first gen cloud that's not changing the business model so i think the number one thing to look at is is the company whether they're in a vertical like insurance or fintech or financial are they refactoring their spend not as an i.t cost but as a refactoring of their business model yes like what snowflake did dave or they say okay i'm gonna change how i operate not change my business model per se or not my business identity if i'm gonna provide financial services i don't have to spend capex it's operating expenses i get the capex leverage i redefine i get the data at scale and now i become a service provider to everybody else because scale will determine the power law of who wins in the verticals and in the industry so we believe that snowflake is a data warehouse in the cloud they call it a data cloud now i don't think snowflake would like that dave i call them a data warehouse no a super data cloud but but so the other key here is you know the old saying that andreessen came up with i guess with every company's a software company well what does that mean it means every company software company every company is going digital well how are they going to do that they're going to do that by taking their business their data their tooling their proprietary you know moat and moving that to the cloud so they can compete at scale every company should be if they're not thinking about doing a super cloud well walmart i think i think andreessen's wrong i think i would revise and say that andreessen and the brain trust at andreas and horowitz is that that's no longer irrelevant every company isn't a software company the software industry is called open source everybody is an open source company and every company will be at super cloud that survives yeah to me to me if you're not looking at super cloud as a strategy to get value and refactor your business model take advantage of what you're paying it for but you're paying now in a new way you're building out value so that's you're either going to be a super cloud or get services from a super cloud so if you're not it's like the old joke dave if you're at the table and you don't know who the sucker is it's probably you right so if you're looking at the marketplace you're saying if i'm not a super cloud i'm probably gonna have to work with one because they're gonna have the data they're gonna have the insights they're gonna have the scale they're going to have the castle in the cloud and they will be called a super cloud so in customer conversations helping customers identify workloads to move to the cloud what are the ideal workloads and services to run in super cloud so i honestly think virtually any workload could be a candidate and i think that it's really the business that they're in that's going to define the workload i'll say what i mean so there's certain businesses where low latency high performance transactions are going to matter that's you know kind of the oracle's business there's certain businesses like snowflake where data sharing is the objective how do i share data in a governed way in a secure way in any location across the world that i can monetize so that's their objective you take a data protection company like veeam their objective is to protect data so they have very specific objectives that ultimately dictate what the workload looks like couchbase is another one they they in my opinion are doing some of the most interesting things at the edge because this is where when you when you really push companies in the cloud including the hyperscalers when they get out to the far edge it starts to get a little squishy couchbase actually is developing capabilities to do that and that's to me that's the big wild card john i think you described it accurately the cloud is expanding you've got public clouds no longer just remote services you're including on-prem and now expanding out to the near edge and the deep what do you call it deep edge or far edge lower sousa called the tiny edge right deep edge well i mean look at look at amazon's outpost announcement to me hp e is opportunity dell has opportunities the hardware box guys companies they have an opportunity to be that gear to be an outpost to be their own output they get better stacks they have better gear they just got to run cloud on it yeah right that's an edge node right so so that's that would be part of the super cloud so this is where i think people that are looking at the old models like operating systems or systems mindsets from the 80s they look they're not understanding the new architecture what i would say to them is yeah i hear what you're saying but the structural change is the nodes on the network distributed computing if you will is going to run hybrid cloud all the way across the fact that it's multiple clouds is just coincidence on who's got the best capex value that people build on for their super cloud capability so why wouldn't i be on azure if microsoft's going to give me all their customers that are running office 365 and teams great if i want to be on amazon's kind of sweet which is their ecosystem why wouldn't i want to tap into that so again you can patch it all together in the super cloud so i think the future will be distributed computing cloud architecture end to end and and we felt that was different from multi-cloud you know if you want to call it multi-cloud 2.0 that's fine but you know frankly you know sometimes we get criticized for not defining it tightly enough but we continue to evolve that definition i've never really seen a great definition from multi-cloud i think multi-cloud by default was the definition i run in multiple clouds you know it works in azure it's not a strategy it's a broken name it's a symptom right it's a symptom of multi-vendor is really what multi-cloud has been and so we felt like it was a new term of examples look what we're talking about snowflake data bricks databricks another good one these are these are examples goldman sachs and we felt like the term immediately connotes something bigger something that sits above the clouds and is part of a digital platform you know the people poo poo the metaverse because it's really you know not well defined but every 15 or 20 years this industry goes through dave let me ask you a question so uh lisa you too if i'm in the insurance vertical uh and i'm a i'm an insurance company i have competitors my customers can go there and and do business with that company and you know and they all know that they go to the same conferences but in that sector now you have new dynamics your i.t spend isn't going to keep the lights on and make your apps work your back-end systems and your mobile app to get your whatever now it's like i have cloud scale so what if i refactored my business model become a super cloud and become the major primary service provider to all the competitors and the people that are the the the channel partners of the of the ecosystem that means that company could change the category totally okay and become the dominant category leader literally in two three years if i'm geico okay i i got business in the cloud because i got the app and i'm doing transactions on geico but with all the data that they're collecting there's adjacent businesses that they can get into maybe they're in the safety business maybe they can sell data to governments maybe they can inform logistics and highway you know patterns roll up all the people that don't have the same scale they have and service them with that data and they get subscription revenue and they can build on top of the geico super insurance cloud right yes it's it's unlimited opportunity that's why it's but the multi-trillion dollar baby so talk to us you've done an amazing job of talking which i know you would of why super cloud what it is the critical components the key workloads great examples talk to us in our last few minutes about the event the cube on super cloud august 9th what's the audience going to who are they going to hear from what are they going to learn yeah so august 9th live out of our palo alto studio we're going to have a program that's going to run from 9 a.m to 1 p.m and we're going to have a number of industry luminaries in there uh kit colbert from from vmware is going to talk about you know their strategy uh benoit de javille uh from snowflake is going to is going to be there of g written house of sky-high security um i i i don't want to give it away but i think steve mullaney is going to come on adrian uh cockroft is coming on the panel keith townsend sanjeev mohan will be on so we'll be running that live and also we'll be bringing in pre-recorded interviews that we'll have prior to the show that will run post the live event it's really a pilot virtual event we want to do a physical event we're thinking but the pilot is to bring our trusted friends together they're credible that have industry experience to try to understand the scope of what we're talking about and open it up and help flesh out the definition make it an open model where we can it's not just our opinion we're observing identifying the structural changes but bringing in smart people our smart friends and companies are saying yeah we get behind this because it has it has legs for a reason so we're gonna zoom out and let people participate and let the conversation and the community drive the content and that is super important to the cube as you know dave but i think that's what's going on lisa is that it's a pilot if it has legs we'll do a physical event certainly we're getting phones to bring it off the hook for sponsors so we don't want to go and go all in on sponsorships right now because it's not about money making it's about getting that super cloud clarity around to help companies yeah we want to evolve the concept and and bring in outside perspectives well the community is one of the best places to do that absolutely organic it's an organic community where i mean people want to find out what's going on with the best practices of how to transform a business and right now digital transformation is not just getting digitized it's taking advantage of the technology to leapfrog the competition so all the successful people we talked to at least have the same common theme i'm changing my game but not changing my game to the customer i'm just going to do it differently better faster cheaper more efficient and have higher margins and beat the competition that's the company doesn't want to beat the competition go to thecube.net if you're not all they're all ready to register for the cube on supercloud august 9th 9am pacific you won't want to miss it for john furrier and dave vellante i'm lisa martin we're all coming at you from new york city at aws summit 22. i'll be right back with our next guest [Music] you
SUMMARY :
and the deep what do you call it deep
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James Forrester | AWS Summit New York 2022
(light music) >> Hello, welcome back everybody to theCUBE's coverage in New York City of AWS Summit 2022. I'm John Furrier, host of theCUBE. We had Dave Vellante, Lisa Martin here earlier. I'm going to wrap it up here with James Forrester, last interview of the day here in New York. Wish we would have had another day. It's a packed house, 10,000 people. James Forrester's the VP Worldwide Technical Leader for VMware's Cloud on AWS. On AWS is a big distinction. James, welcome to theCube. Thanks for coming on. >> Thank you so much, John. It's great to be here. >> So I think it's been like six years since the announcement of VMware's Cloud on AWS, which is a separate instance, separate hardware, but it's changed the game for VMware. You guys have done a lot of work, successful traction with customers. Clarified, I remember at that time, it really clarified VMware's Cloud play. Which then gave VMware more time to work on what it's doing now, which is, you know, using all their assets and their operations with Tanzu, Monterey, Cloud Native, Cross Cloud. What they call you guys call Cross Cloud, I call Super Cloud, action, a lot of stuff happening. So thanks for coming on. Okay. So first question is, what's the future look like for VMware's Cloud on AWS? >> Super bright, super bright. And there's a couple of great reasons for that. I think firstly, what we're seeing is that customers have now made enough progress in their cloud journeys. Many of them have chosen AWS and they're going full force. We're going to help them go faster. We're going to help them get there and get native to those adjacent services much quicker with more confidence and more resiliency. So it's a super exciting time to be doing what we do. >> You know, VMware has had a steady install base, okay. I mean basically it's like almost ingrained in the operations. What do you guys see as that next level step up function? Because you know, obviously Broadcom is buying VMware. Obviously that utility will be in place, but there's more. There's more there that customers can tap into. This is the promise of the cross-cloud. How do you talk about that when you got the AWS action? How does that all integrate? >> Yeah, absolutely. And of course, because so many customers are going to AWS on their own cloud journeys right now, what we get to have the conversation about is how they can get there more confidently. And so for customers who are just starting out, who are looking at their application portfolios, who have a ton of skilled IT professionals who they want to bring into that cloud journey, they can use the skills they already have. For those folks who are a little bit further along but they may be finding that refactoring their applications is more complex, more difficult that they anticipated, we give them a way of moving with confidence and with much less risk so they can do those cloud journeys that they anticipated. >> You know, James, I want to get your thoughts on what the state of the current situation is, vis-à-vis, your customers and your customers' appetite for AWS services. 'Cause one of the promises of the original deal was clarifying messaging but more importantly, customers can get the VMware Cloud and take advantage of the higher level services on AWS. What's the update there? What's the current state of the art? What's some of the patterns that you're seeing on the uptake of services and how they're working together? >> Yeah, it's a great call out. And honestly, one of the misconceptions that I address right out of the gate is that somehow going VMware Cloud takes you away from those services. It doesn't, it gets you closer to them. Full, direct, native access to all of those hundreds of great AWS services. So what we often find is that customers have their enterprise data, inside data workloads in their data centers. But what they want to do is get that up next to the AWS services that can use it, like Redshift and Athena and Glue. They can move those workloads right adjacent to those services to start using them right away. So it's a great way to look at the platform. >> So one of the observations that's pretty well understood right now by most people, I'd say 90%, if not more, not a hundred percent 'cause I've heard people like not get it, but it's pretty clear that the operating model for the the enterprise will be hybrid as a steady state. I don't think there's any debate on that unless you think there is. >> Do you feel the same- >> No debate. No debate. >> Okay. Hybrid's a steady state. What does that mean as clients start to think about edge and their data centers. 'Cause now the private cloud is back in the game. So I've heard people talk about private cloud, which we, I think we coined the term with Dave, Wikibon years ago, but it kind of went away because that was not the public cloud. So public cloud won, on premise didn't go away. We saw Amazon with Outpost. So now they're like, I can still have stuff on prem and run it in a cloud operations. So they're calling that private cloud, I think. So you're starting to hear the same things. What it means basically is that hybrid is winning. It's the standard. What does the hybrid environment look like from a VMware perspective as you guys look at that and have been building that out 'cause you have customers that are on premises. >> Yeah. >> Is it just to the cloud and back? Is it, is there any changes? Is there new connective tissue? Is there a glue layer? What's the operating model for VMware customers? >> Well, customers wanted those same benefits from public cloud agility, cost benefits, elasticity, innovation, sovereignty, sustainability, but they wanted to be able to do that everywhere. They wanted it in their data centers. They wanted it at the edge. And as you've pointed out public cloud delivered that for customers. AWS first out there delivering that for customers. Now with innovations like VMware Cloud and AWS outpost, we're able to bring that back into the data center. We're able to bring those same benefits of public cloud into the customers on-prem environment. And you're right. We see hybrid just rolling and rolling and being able to offer our solution across all of it. >> Yeah, we're big fans of VMware because theCube's 12 years old, we've been at every VMworld. Now they're calling it VMware Explorer, the events coming up. So the folks watching, plug for VMware Explorer, formerly VMworld, it's on the schedule. Content catalog just came out last week. It's looking pretty good. So put a plug out there. We'll be there with theCube, two sets. So you know, if you're going to VMworld, now Explorer go register, get up there. It's in San Francisco, always a great event. vSphere and vSAN, always great products. But you got Carbon Black, you got Security. So these things have all been working kind of pistons for VMware. Tanzu, I know Raghu and those guys are doing it. Craig McLuckie and team, they're working on that. You got Tanzu, you got Monterey. That's the new cloud native thing. How is that tracking vis-à-vis, the operating model of the the core engine, vSphere, vSAN and others. And then with the native services of Cloud. So you got AWS Cloud with VMware Cloud, vSphere, vSAN, Carbon Black, and Security. And then you got the Tanzu over here. How are those three things coming together? >> Well, the services that customers know and love first and foremost that they've been running the mission critical workloads on, vSphere, vSAN, NSX. What VMware cloud and AWS is, is a packaging together of those services. So customers don't have to configure it all themselves and do the heavy lifting. We manage and run it on their behalf. What we are adding to that most recently with Tanzu is now the ability to run containers within the same environment. 'Cause customers tell us they've got parts of their organization that are very much on vSphere VMs. Parts of their organization are moving to containers. We want be able to provide a single operating model, a single layer, a single way of managing all of that. No matter where it's deployed. >> You know, remember back in the day, when Raghu wasn't the CEO, Carl Eschenbach was there, Sanjay Poonen was there. Carl's now at Sequoia Capital, Raghu's a CEO. Sanjay's kind of looking for a next gig. I always said, why doesn't vSphere and NSX become that abstraction layer and commoditize the network so that white boxes and Dell and HP could all play in that layer? It just never happened yet. Is that something you guys talk about at all? Like, I mean in the, in the smokey room, in the execs, is that happening? What's the vision? >> Well, we always work backwards- from customers, right? (John laughing) And what customers are telling us is they want us to help them with that undifferentiated heavy lifting. So who knows where that could take us, but right now we're very focused on helping those customers move with confidence to the cloud. >> You didn't take the bait on that one. I appreciate that. (James laughing) Okay. So let's get some perspective. You're out with customers. What are the big things that you're seeing right now from your customers right now? 'Cause you look behind us here, 10,000 people at this event. This is not a no-show. This is not a throwaway event in, you know, somewhere in the corner of the world. This is New York City, only one summit. This is bigger than Snowflake Summit and that was packed. So from an event standpoint, this is pretty a big game statement here for AWS. These companies are not experiencing headwinds, they're changing. So what are your customers telling you around what they're looking at for the cloud native architecture? I mean obviously the digital transformation is continuing, obviously clouds here. And again, we were saying earlier, this is the first time in history that the cloud hyperscalers have been in market during a so-called downturn. So there's no other data. 2008, I wouldn't call 'em up and running. They were building, but AWS, Azure, others, these cloud players they're in market. And so you're starting to see kind of some data coming out saying, Hey, this thing's still working, the engine of innovation is cranking out and it's not slowing down the digital transformation. It might change the capital markets and valuations but it's not changing customers. That's what I'm hearing. Now, you probably would agree with that, right? >> James: I think that's exactly right. >> Okay. So let's stay with that. If you believe that, then it's like, okay, what are they doing? So what are customers doubling down on? What are some of the patterns you're seeing in the environment today that you could share with the audience? >> Yeah, so I think first and foremost is that steady transition to the cloud to deliver all of those benefits, agility, cost, elasticity, innovation, sovereignty, sustainability that hasn't gone away at all. In fact, it's only accelerated. With workloads like virtual desktops, which became so critical during COVID the need to be able to provide that kind of scalable elastic capacity has only increased. Now, coupled with that, most of these customers are already on a cloud journey. And while some folks may have had the luxury of letting that go a little bit more slowly, nowadays the urgency is pervasive across all of the industries that we get to talk to in New York. Everyone needs to go faster. Everybody's not seeing the progress that they expected that we think we can help them deliver. So the opportunity I think that's come out of COVID is more workloads, different use cases, disaster recovery, ransomware- >> Is that more of an awareness or reality or both? >> Both. Absolutely. >> Okay. So let me ask the next question. 'Cause this is a good conversation, I think. I agree a hundred percent. We're seeing the same exact thing. Now let's talk about how companies are thinking about the real opportunity that's emerged, which is refactoring the business model without actually changing the makeup of the organization per se, to take on new territories and potentially take over categories. >> James: Mm hmm. >> So I mean a data warehouse and a data cloud's kind of the same thing. Snowflake probably wouldn't like me saying that they're a data warehouse because they call themselves a data cloud, but it's kind of the same thing, just refactored on AWS. >> James: Yep. >> That's a super cloud. So that's an opportunity for everyone to do that in every vertical. How many customers are actually thinking that way and actually taking steps to pursue that, capture that opportunity? Or do you agree it's the opportunity? >> No, I think that that is an opportunity and I love that idea of super cloud in that what I think customers have started to realize, over the last couple of years in particular, is it's very difficult to take advantage of all of those great cloud services if your applications are still behind a whole lot of different layers of firewalls and so forth. So getting the application close to those services, in proximity to those services is that first step in modernization. Then it doesn't have to be a change the wings on the plane while it's flying conversation, which- >> John: Yeah. >> You know, is very risky for a lot of organizations. >> John: Exactly. >> It's a let's get the plane going a little bit faster. Let's get the plane going a little bit smoother, and let's get the plane to its destination with less risk. >> You know, James, that reminds me of the old school conversations of non disruptive operations. Remember those days? >> James: I do, yeah. >> Mostly around storage and, and servers. But that's what basically what you're saying. Transform while operating, right? >> James: Exactly. >> So this is, you can do both. You got to make time and it's a talent question too. I'd love to get your thoughts on how customers are thinking about who do you put on which task. 'Cause you want your A players on both areas. You don't want all your A players, what I hear, CSOs and CIOs telling me is that, I put all my A players on transformation, I got no one running the business. >> James: Mm hmm. >> So you got to kind of balance. That's a cultural team decision. >> It's a cultural team decision. It's also a skills marketplace decision. >> John: Yeah. >> And there's a practical reality to the skills that are available and how fast you can hire them. So a big part of the conversation that we have is when customers have existing skills sets, plug those into their transformation, plug those into their business outcomes. I like to use the phrase, "Let's make heroes out of IT" because they can be a much more critical player than they think they can be. Yeah, IT basically is not even around anymore. It's part of the organization. And then you have data science and data engineering coming in. So it's, you know, IT is not a department anymore, it's the company >> Exactly right. >> If you're kind of going down that road, yeah. >> Yeah. Alright, so final question. What's the biggest change you've seen and observed in your current year and a half? You know, we're coming out of COVID, knowing what was before, what sea change, what inflection point are we in now? How would you describe this current market? 'Cause again, we're kind of in a unique market. You know, you got crypto around the corner, people getting attracted to that, little bubbly obviously, reality of cloud and 2.0 or super cloud emerging. On premise is not going away. Edge exploding on the industrial side, especially with machine learning coming along. So this operating model is clearly in sight. What's the biggest observation you've noticed. >> I think it's the sense of urgency over the last couple of years in that most customers I talked to are no longer relaxed about the timing of delivering cloud capabilities to their organizations. Most customers are on sort of a transformation journey of their own and digital transformation and cloud transformation are absolutely fundamental to that. >> One more real quick follow up question if you don't mind, 'cause I appreciate your time. One of the things that's come up a lot in our conversations is the role of the ecosystem. Not only as a part of the business model but also validation of the enablement that cloud offers companies. You have an enabling platform, your ecosystem is well known. And so your customers are starting to develop ecosystems. So if the cloud model kind of trickles like downstream, ecosystem is kind of a proof of something. >> James: Mm hmm. >> What's your view of all this ecosystem discussion as we transform this next generation? >> Yeah, I think it touches on a couple of things. So obviously there is a technology ecosystem, which is evolving very rapidly in support of cloud and cloud transformation. But what's interesting, I think is the business ecosystem that's evolving around it. We're seeing our customers evolve their own businesses to assume that those cloud capabilities will be available to them. And if the cloud capabilities are not available to them in a timely fashion, then the ecosystem starts to have a domino effect. So the ecosystems are interdependent between business, and technology, and skills, and talent. And I think that's a great to be >> James Forrester, they're going to shut us down. The speakers are on, they're going to pull the plug. Thanks for being our last interview here in New York City and bringing us home. Really appreciate you taking the time to come on theCube. >> John, thanks so much. Great to be here, really enjoyed it. Okay. We are wrapping it up here in New York City. I'm John Ford with theCube, great day. For Lisa Martin, Dave Vellante, and the entire crew of theCube here on the ground. Live in person events are back. theCube hybrid, get online, check out our coverage there. The SiliconANGLE and thecube.net. I'm John Furrier signing off from New York City. See you next time. (light music)
SUMMARY :
last interview of the It's great to be here. but it's changed the game for VMware. and get native to those This is the promise of the cross-cloud. more difficult that they anticipated, of the original deal that I address right out of the gate is that the operating model No debate. cloud is back in the game. into the data center. of the the core engine, is now the ability to run containers and commoditize the to help them with that in history that the cloud What are some of the the need to be able to provide that kind of the organization per se, and a data cloud's kind of the same thing. and actually taking steps to pursue that, So getting the application for a lot of organizations. and let's get the plane to its of the old school conversations what you're saying. I got no one running the business. So you got to kind of balance. It's a cultural team decision. So a big part of the down that road, yeah. Edge exploding on the industrial side, are no longer relaxed about the timing One of the things that's come up a lot So the ecosystems are the time to come on theCube. Vellante, and the entire crew
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