>> Live from Atlanta Georgia, it's theCUBE covering AnsibleFest 2019. Brought to you by Red Hat. Hey, welcome back everyone, it's theCUBE live coverage here in Atlanta for AnsibleFest. Part of Red Hat's event around automation anywhere. I'm John Furrier with my co-host Stu Miniman, next guest is Abraham Snell, Senior IT Analyst at the Southern Company, customer of Ansible. Great to have you, thanks for coming on. >> I'm glad to be here. >> John: So tell us about your company, what do you do there? Talk about what is Southern company, and what do you do there? >> Abraham: Yeah yeah, Southern Company is a very large, probably one of top three energy providers and we're based in the southeast, so we're energy utility so we do electric and gas. We also generate electric and gas so. >> John: And your role there? >> Abraham: And there, I am, so in infrastructure we build systems platforms, so I'm kind of a OS specialist and so we build Red Hat platforms for applications. >> John: And What's your goal here at the AnsibleFest this year? >> Well a couple of things. So, I submitted a talk and so I'll be doing a talk here but the other thing is just to learn other ways, how to increase the automation footprint at our company. >> Stu: Abraham, why don't you walk us through that? We heard in the key note, you know, Red Hat talked about their journey, Microsoft talked about their journey, JP Morgan did. So, I'm assuming that, you know, you're undergoing some kind of journey also. Bring us back to, kind of as far back as you can and you know, where things have been going. >> Yeah so, I heard about Ansible during a time when we were trying to automate our patch process. So, our patch process was taking about 19 hundred man hours per year. So it was highly manual, and so we were looking at some other things like puppet was out, CF engine which is incredibly complex. And then in a sales meeting, we heard about Ansible because that was the direction that Red Hat was going. So, I looked it up and learned about it, and that's the other thing the barriers to entry were so low. It's modular, you can jump in and start learning, you can write a playbook without knowing everything else about Ansible. And so that's how we got started with the journey. >> Stu: Okay so, patches, you said over 19 hundred hours in a year. Do you know how long it takes you now? >> Yeah, we reduced that to about 70 hours a year (Stu laughs) Yeah, so it was a massive reduction in the amount of time that we spent patching. >> Okay and you know, have you been expanding Ansible and you know, where's it going from your footprint? >> Yeah, so as a OS platform group we are doing, you know, we do deployments now, with Ansible. I pretty much do everything with Ansible. Honestly, someone just asked me to deploy some files, I was like, "Yeah Imma write and Ansible playbook for that" or use one that we already have. So, now we have other groups, the data base folks are now using Ansible to patch their databases, and the network folks have been asking us questions so maybe they'll be getting on board. But yeah, from my stand point, I think we should expand Ansible. I don't know if that's my call, that's a little above my pay grade, but I'm definitely going to do everything I can to make sure that... >> John: You like the play book concept? >> Yeah, oh yeah, absolutely. >> I mean, do you guys have a lot of playbooks developing? Do they just like growing everywhere or, people tend to use them or? >> So, you know, I learned something today that there's going to be kind of like a repository and that will actually work. Right know, we probably have about 150 playbooks but people aren't able to just use them because they're just kind of stored. >> John: They're built. So what's your talk going to be? You mentioned you were going to do a talk. >> Abraham: Oh yeah! How.. um. How automation can reduce business conflict. So we're going to talk about creating automations that kind of reduce the silo conflict and so, I'll be talking about creating an easy button for groups who, you know, when you say, "Hey, I want to pass", they go "Nah, you can't pass this week" And so, rather than having that argument about when we're going to pass, we just give them an easy button and say, "Hey, when you're ready, just press this button and it'll pass. And just let us know if anything turns red and we'll fix it". >> John: Do people want to get rid of the conflict, they like the conflict or, I mean, talk about the culture because this is, you know, conflict's been there. >> Abraham: Yeah, oh yeah. >> What's the culture like with the new capability? >> So, I mean the culture is getting better. I wouldn't say we're there, we're on that journey that he mentioned, but when you say people want conflict... >> John: That's it, they're used to it. >> Yeah yeah yeah. >> I mean they're hey, pass when I'm ready >> We're just going to argue with the other. (John laughs) >> The problem with that is it slows business down. So, at the end of the day, what we're all, you know, there for, happens a whole lot slower because we're back and fourth and we're in conflict. So, what automation does is it literally speeds up what we need to be doing, but it also helps us be friends along the way so. >> John: You know, I want to get your thoughts on something. We did a little survey to our CUBE community about automation, you know the couple key bullet points that we were reporting on earlier. Pretty much everyone's agreed, but I want to get your reaction cause you're doing it. One benefit of automation is for the teams are focus efforts on better results. You agree with that? >> Abraham: Yeah, oh yes. >> Security is a big part of it, so automating helps security? >> Abraham: Yeah, I think it does. I think, anytime you can do something the same way every time, you minimize the ability for human error. So, I think that helps security. And so, I'm not a security guy, but... >> John: Well, here's the next one I want to hear your thoughts on. You mentioned culture. Automation drives job satisfaction. >> Abraham: Oh yeah. >> How about that? >> So, a few ways that just come to mind immediately. One is, I have a greater opportunity for success because it's going to work the same way every time, right? The second thing is, it kind of gives people options. So, I talk about this in my talk, you know, we tend to want options around the when, the where, sometimes even the how, and so automation can actually do that. And the third thing is, it really does free us up to do important stuff, you know? And so, when I'm spending my time doing tedious things like paper work, automation helps me now to do the stuff I really want to do, the stuff I come to work to do. >> John: And there's new jobs being created out of this, means new opportunities. This creates growth for people. >> Abraham: That's right! >> Potentially new hire level skills. >> Abraham: Well, one of the cultural aspects of it is, people are afraid that automation's going to kill my job, right? But honestly, when you start building this stuff, we're finding out that man, it takes a village to do all this stuff. So, it really does allow us to learn new things and probably send our careers in another direction. I hadn't seen a job that was killed yet. >> Yeah that's always good but we'd love to get better jobs than doing the mundane stuff. The final point of our quick poll survey of our community was, that infrastructure and DevOps, or Dev professionals, developers or DevOps, they can get re-skilling with this opportunity. Cause it's kind of new things. Is re-skilling a big part of the culture in the trenches when you start looking at these new opportunities, are people embracing them? What's the vibe there? What's your take on it? >> So, my take on it is it's probably some kind of bell curve right? So, you got probably 10% of the folks that are gung-ho, you got a probably that middle 80% that's like either way, and then you got 10% that are like dude I'm about to retire, I don't want to do this anymore, or whatever, or I'm afraid or I don't think I can do it. But, you know, that opportunity... I mean, I was actually trained in college as a developer, I never wanted to do development, so I did and I've been in infrastructure, but now I'm getting to do development again and I kind of like it, right? It's kind of like, okay yeah... >> You got playbooks, you got recipes, you got all kinds of stuff. >> Right! I mean, and I still get to be an infrastructure guy, so I think there's definitely opportunity for growth for that 90% that says, hey we want to do this. >> John: Well, the scale and all the plumbing is going to be still running. You still need network, you still need storage and compute. >> Yeah. >> Now you got these instruction layers kind of building on top of that scale. >> Yes. >> So, the question for you is, are you going to take this across the company and... >> Abraham: Am I going to take it across the company? (John laughs) >> Plow some change through Southern. >> Let me get that promotion. So, you know, I am definitely being a champion for because I want to share this. I mean, it just kind of makes life better. So yes, the plan is, hey let me share this that automation is great. But we actually have an automation team, there's a management team and a structure around automation, and they allow me to kind of be on there, you know, come to their meetings and do some of the things with them so, yeah I'm looking forward to it. Propagating through Southern. >> John: That's awesome. >> Well, you certainly nailed the use case. >> Abraham, does cloud and public cloud fit into this discussion at all yet from your group? >> So, public cloud is in the discussion, and automation is a part of that discussion. But I think we're kind of early on in that process, there's not a whole lot around it. But the one thing where it really does fit is the way of thinking, right? So, now to be cloud-native, automation is just really a part of that so you have to start thinking in a cloud-native fashion. And that's the beginning, right? Mostly now, it's in the strategy time for it, but implementation of some things are coming, and the more we do automation, the more it kind of gets you ready for this idea of cloud. >> Stu: Yeah, I think that's a great point you're talking about, that mindset. The other thing when you talk about infrastructure is, infrastructure used to be kind of the boat anchor that prevented you from responding to the business, it was okay. Can you do this? Yeah, I'll get to it in the next six to twelve months maybe if we have the budget and everything. How does automation help you respond to the business and be more a group of yes. >> Well, I'm glad you said that because infrastructure has often been seen as the party of no, right? (technical difficulty) and don't come back. But with automation, what we're seeing is, there's a lot of things that we can do, because one of the things you don't want to happen in infrastructure is, create a task that I can never get rid of, okay, I'm going to be doing this forever and a day. But now, if it becomes a push button item and I can do it consistently every time, it's like hell yeah! Why don't we do that, why haven't we been doing that in the past so, yeah. That's exactly, you know, a great point is that now infrastructure can feel like a part of the party, rather than being the people sitting in the corner. They don't want to do this, right? >> Yeah, and it's a critical component of the scale. Abraham, I want to finally ask you, my final question for you is, you've had a great experience with Ansible automation. This is the whole conference, automation for all. What's the learnings, your big takeaways over the past couple years as you've been on this wave, and it's going to be bigger behind you. The cloud's coming, lot more scale, lot more software, lot more applications, what's your big learnings, what's your big takeaway? >> You know, my big takeaway, believe it or not, is really not technical. So, I've been doing this 23 or so years, and I never thought that there would be a tool that could really change and affect culture the way it has. And so for me, my big takeaway is, man this automation thing helps my job in ways that's not technical, you know, it helps me work better with other teams, now there are networks of folks that I work with who I never would've worked with before, who are doing automation. We get along, it's not them over there. >> John: Yeah, it's a social network now. >> It's a social network. And who knew that a tool could make that happen? >> John: And you can have a more collaborative relationship, you get in someones face and no one's going to get offended. >> Abraham: That's right >> Have a conversation, share playbooks. >> Abraham: Yeah! Because with automation, now we can all focus on the big picture. What is the corporate goal? Not what is my, you know, I just want to keep this running or I just want to keep this up, why are we keeping it up? Why are we keeping it running, what is the corporate goal? >> John: Brings better teamwork, probably. >> It sure does, yeah. Shared vision >> Abraham. Thank you for coming on and sharing your insights. Appreciate it. >> Stu: Yeah, thank you. Finally, Red Hat accelerators. Maybe just explain the shirt and the hat. >> Oh yeah, got to plug the accelerators. So, the accelerators are like a customer advocacy group, and so what is happened is, and I was actually a charter member of the accelerator so I got to plug that too. Started a couple years ago. They'd just call us and talk about new stuff that's coming out at Red Hat and go, what do ya'll think? And we are brutally frank with them, sometimes too brutally >> John: That's okay, they want that! >> And they keep coming back for more, I'm thinking really guys? We just abused you. (John laughs) No, it is a great group of guys and girls, and for us, the customers, it affords us opportunities to see new technology and get swag I guess. >> John: Getting collaboration scales as well there. >> Oh absolutely, and you get to see what other companies are doing, like you know, my peers, hey! What are you all doing in cloud? What are you all doing in automation? And so you get to share... >> Yeah Stu and I interviewed a lot of the Red Hat folks, they love the feedback. >> Oh yeah. >> They're a technical group, they want brutal honesty. >> Okay, well. >> Cause you're feeding them the product requirements. >> Well, I'm your... >> This is what they want. Thanks for coming on. >> Yes sir, thank you so much. >> Appreciate it. >> Abraham Snell here on theCUBE, I'm John Furrier, Stu Miniman, back for more coverage here at AnsibleFest Day one of two days of coverage. We'll be right back. (music playing)

>>live from Atlanta, Georgia. It's the Q covering Answerable fest 2019. Brought to you by red hat. >>Hey, welcome back. It was a cube. Live coverage here in Atlanta for answerable fast part of red hats. Event around automation anywhere. I'm John for it. With my coast to Minutemen. Next guest's Abram Snell, senior I t analyst at the Southern Company Customer Invincible. Great to have you on. Thanks for coming on. >>I'm glad to be here. >>So tell us what? Your company What do you do there? About what is Southern Company? So So what do you do there? >>Yeah. Yeah, Southern Company is Ah ah. Very large. Probably one of top three energy providers. And we're based in the Southeast. So we're energy utility. So we do electric and gas. We also generate electric and gas. Oh, >>and your role there. >>And and there I am. So, in infrastructure, we build systems platforms s o. I'm a kind of OS specialist, and so we build red hat platforms for applications. >>And what's your what's your goal here? The answerable fest this year? >>Well, a couple of things. So I submitted a talk, and so I'll be doing a talk here. But the other thing is just to learn other ways. How to increase the automation footprint at our company. Abraham, why don't you >>walk us through that? Some we heard in the keynote red hat talked about their journey. Microsoft talk about their journey J. P. Morgan did. So I'm assuming that, you know you're undergoing some kind of journey. Also bring bring us a little bit, you know, bring us back to kind of his far back as you can. And you know where things have been going. >>Yes, So I heard about answerable during the time when we were trying to automate patch process. So our patch process was taken about 1900 man hours per year. So it was It was highly manual. And so we were looking at some other things, like a puppet was out cf engine, which is incredibly complex. And then, in a sales meeting, you heard about answerable because that was the direction that red hat was going. So I looked it up, um, and learned about it. And that's the other thing. The various to entry were so low. It's modular. You could jump in and start learning you can write a play book without knowing everything else about answerable. And so So that's how we got started with the journey. >>Okay, so the patches you said over, like, 1900 hours in a year. Do you know how long addiction now? >>Yeah, we reduced that to about 70 hours. So it was a massive reduction in the amount of time that we spent patching. >>Okay. And, you know, have you been been expanding? Answerable and you know what? What? Where's it going from? Your footprint? >>Yes. So as a West platform group, we are doing, you know, we do deployments now with answerable. Let's do everything with answer. Well, obviously someone just asked me to deploy some files. I was like, You have no right answer playbook for that or use one that we already have. So now we have other groups the database of folks are now using answerable to patch their databases. And the network folks have been asking us questions, so maybe maybe they'll be getting on board. But yet, from my standpoint, I think I think we should expand, answerable. I don't know if it's if that's my call, that's a little above my pay grade, but I'm definitely going to do everything I can to make sure that >>you like the play book concept. >>Oh, yeah. Oh, absolutely. >>I mean, you had a lot of playbooks developing feelings, like growing everywhere. People tend to use them or >>Yeah, so, you know, I learned something today that there's gonna be, like, kind of like a depository, and that that will actually work right now there. We probably have about 150 playbooks, but people aren't able to just use them because they're just kind of stored >>something built. So what you're talking to be eventually going to a talk. >>Oh, yeah. How, um how automation can can reduce business conflict. So we're gonna talk about creating automation. Is that kind of reduced the siloed conflict. And so I'll be talking about creating an easy button for groups who, you know, when you say, Hey, I want a patch that now you can't patch this week. And so, rather than having an argument about when we're gonna patch, just give them an easy button and say, Hey, when you're ready, press this button and it'll patch and just let us know if anything turns red and we'll fix >>it. People want to get rid of the comfort. They like the conflict there. Let me talk about the culture because this is, you know, this conflict. Been there? Yeah. Oh, yeah. What's that? What's the culture like with the new capability? >>S O. I mean, the culture is getting better. I wouldn't say we're there. We're on that journey that hit that he mentioned. But when you say people want conflict, >>that they're used to it. >>Yeah. I mean, there's no way I'm ready. The problem with that is it slows business. So at the end of the day, what were all you know, therefore happens a whole lot slower because we're back and forth and were in conflict. So what automation does is it literally speeds up what we need to be doing. But it also helps us to be friends alone away. So >>don't get your thoughts on. So we did a little survey to our cube community of Amon Automation. You know, a couple of key bullet points a week. We're reporting on earlier much everyone's agreed. But don't get your reaction. You're doing it. One benefit of automation is for the teams are focus efforts on better results. You agree with that? Yes. Security is a big part of it. So automating Help security? >>Yeah, I think it does. I think any time you could do something the same way every time you minimize the ability for human error. So I think that helps security. Um and so I'm not a security gap, but >>well, here's the next one will get your thoughts on you mentioned culture, automation, drives, job satisfaction. >>Oh, yeah, Yeah. What? That So A few ways that just come to mind immediately. One is I have a greater opportunity for success because it's gonna work the same way every time, right? The second thing is it kinda gives people options. So I talk about this in my talk. You know, we we tend to want options around the window where sometimes even the how on dso automation can actually do that. The and the third thing is, it really does free us up to do important stuff, you know? And so when I'm spending my time doing tedious things like paperwork, automation helps me now to do the stuff I really want to do. The stuff. I come to work >>and there's new jobs Being created on this means new opportunities. This creates growth for people that are actually new, higher level skills. >>Well, one of the cultural aspects of it is people are afraid that automation kill my job. Right. But honestly, when you start building this stuff, we're finding out that man. It takes ah village to do all this stuff. So it really does take, allow us to learn new things and probably send our careers in another direction. I hadn't seen a job that was killed. Yeah. >>Yeah, well, that's all these cripples love to get better jobs and doing the mundane stuff. The final point on the quick poll survey of our community was that infrastructure and Dev ops or dead professionals, developers or Dev Ops they get congee re skilling with this opportunity because it's kind of new things. Is Reese killing a big part of the culture in the trenches? When you start looking at these new opportunities or are people embracing that? What's the vibe there? What's your take on >>s? Oh, my take on it is It's probably some kind of bill curve. Right? So you got probably 10% of the folks that are gung ho. You gotta probably that middle 80% That's like, either way. And then you got 10% there. Like, dude, I'm about to retire. I don't wanna do this anymore. Whatever I'm afraid or I don't think I could do it. So But, you know, that opportunity is that I mean, I was actually trained in college as a developer. I never wanted to do development, so I didn't have been an infrastructure. But now I'm getting to do development again, and I kinda like it, right? It's kind of like, OK, >>hey, books. You got recipe, >>right? And I still get to be an infrastructure guy. So, um, I think there's definitely opportunity for growth for that 90% that says, Hey, we want to do >>all the scale and all. All the plumbing is gonna be still running. You got a utility network. You still needed storage and compute. Get the abstraction layers kind of building on top of that scale. Yes. So the question for you is you're gonna take this across the company and >>am I gonna be Oh, yeah. Let's >>change your Southern. >>Let me get that promotion. So you know, I am definitely champion being a champion for because I want to share this. I mean, it just kind of makes life better. So, yes, the plan is Hey, let me share this Automation is great, but we actually have an automation team. There's a management team and a structure around automation, and they allow me to kind of be on their, you know, come to their meetings and do some of the things with them. So, yeah, I'm looking forward to it, too. It propagating through Southern. >>Well, you certainly nailed the use case. >>Abraham does. Does cloud in a public cloud fit into this discussion at all yet from your group? >>So public Cloud is in the discussion, and automation is a part of that discussion. But I think we're kind of early on in that process. There's not a whole lot around it, but but the one thing where it really does fit is the way of thinking, right. So now, to be cloud, native automation is just really a part of that. And so you have to start thinking in a cloud native fashion. And that's beginning, right? Mostly now it's in the strategy time for but implementation of something's coming. And the more we do automation, the more it kind of gets you ready for this idea of cloud. >>Yeah, E. I think that's a great point. You talk about that mind set the other thing when you talk about, you know, infrastructures. Infrastructure used to be kind of the boat anchor that prevented you from responding to the business. It was okay. Can you do this? Yeah. Get to it in the next 6 to 12 months, maybe if we have the budget and everything, How does how does automation help you respond to the business and beam or a group of Yes. >>Well, I'm glad you said that because of infrastructure has often been seen as the party of no right. No. And don't come back. But with the automation, what we're seeing is there a lot of things that we can do because one of the things that you don't want to happen an infrastructure is create a task that I could never get rid of. Okay, I'm gonna be doing this forever and a day. But now, if it becomes a push button item and I could do it consistently every time. It's like, Oh, yeah, why don't we do that? Why haven't we been doing that in the past? So yeah, that's exactly you know, a great point is that now infrastructure can feel like a part of the party rather than being the people sitting in the corner. They don't want to do this, right? >>Yeah, it's great. It's a critical component of scale. Am I want a final after my final question for you is you've had a great experience with answerable automation. This is the whole conference automation for all. What's the learning? Your big takeaway. Over the past couple of years, as you've been on this wave and it's gonna be bigger behind you, the clouds come in a lot more. A lot more scale, more software applications. What's your big learning? What's your big takeaway? >>You know, my big takeaway, believe it or not, is really not technical. So I've been doing this 23 years or so years, and I never thought that there would be a tool that could really change in effect culture the way it has. And so for me, my big takeaway is mean this automation thing. Help for my job in ways that that's not technical, You know? It helps me, you know, work better with other teams. Now their networks of folks that I work with who I never would have worked with before who were doing automation. We get along. It's not them over their social network. It's a social network. And who knew that a tool could could make that happen? >>You have more collaborative relationship, get someone's face, and no one's gonna get offended. Conversations share playbooks. >>Yeah, because because with automation now we we can all focus on the big picture. What is the corporate goal? Not what is my You know, I just want to keep this running. I just want to keep this up. Why are we keeping it up? Why are we keeping it running? What is the corporate go >>Better Teamwork does every vision. Thank you for coming on. Sharing your insights. Appreciate >>it. Yeah. Finally, red hat accelerators. Maybe just explain the shirt in the hat. >>Oh, yeah, Kind of flood. The accelerated. So the accelerator's are like a customer at Advocacy group. And so what has happened is and I was actually a charter member of the accelerator, so I gotta plug that too. Started a couple of years ago. They just call us and talk about new stuff that's coming out at Red Hat and go. What do you think? And we are brutally frank with them, sometimes to brutally. What? That and they keep coming back for more. I'm thinking, really, Guys, we just abused you. But no, it is a great group of guys and girls. And in a Ford And for us, the customers, it affords us opportunities to see new technology and gets away >>again. Collaboration scales as well there. >>Oh, absolutely. And you get to see what other companies are doing. Like, you know, my peers. I go, Hey, what are you doing in Cloud? What are you doing in automation on? So you get the get the shit >>that's doing. I interviewed a lot of the red headed folks. They love the feedback, Their technical group. They want brutal honesty. Okay, you're feeding the product requirements. What they want. Thanks for coming on. So now here on the queue Jumpers Do Minutemen for more coverage here, Answerable fest day One of two days of coverage will be right back

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

>> theCUBE presents KubeCon and CloudNativeCon, Europe, 2022. Brought to you by Red Hat, the cloud-native computing foundation and its ecosystem partners. >> Welcome to Valencia, Spain in KubeCon, CloudNativeCon, Europe, 2022. I'm Keith Townsend with my cohosts, Enrico Signoretti, Senior IT Analyst at GigaOm. >> Exactly. >> 7,500 people I'm told, Enrico. What's the flavor of the show so far? >> It's a fantastic mood, I mean, I found a lot of people wanting to track, talk about what they're doing with Kubernetes, sharing their you know, stories, some war stories that bit tough. And you know, this is where you learn actually. Because we had a lot of Zoom calls, webinar and stuff. But it is when you talk a video, "Oh, I did it this way, and it didn't work out very well." So, and, you start a conversation like this that is really different from learning from Zoom, when, you know, everybody talks about things that work it well, they did it right. No, it's here that you learn from other experiences. >> So we're talking to amazing people the whole week, talking about those experiences here on theCUBE. Fresh on the theCUBE for the first time, Chris Voss, senior software engineer at Microsoft Xbox. Chris, welcome to the theCUBE. >> Thank you so much for having me. >> So first off, give us a high level picture of the environment that you're running at Microsoft. >> Yeah. So, you know, we've got 20 well probably close to 30 clusters at this point around the globe, you know 700 to 1,000 pods per cluster, roughly. So about 22,000 pods total. So yeah, it's pretty, pretty sizable footprint and yeah. So we've been running on Kubernetes since 2018 and well actually might be 2017, but anyways, so yeah, that's kind of our footprint. Yeah. >> So all of that, let's talk about the basics which is security across multiple I'm assuming containers, microservices, etcetera. Why did you and the team settle on Linkerd? >> Yeah, so previously we had our own kind of solution for managing TLS certs and things like that. And we found it to be pretty painful, pretty quickly. And so we knew, you know we wanted something that was a little bit more abstracted away from the developers and things like that, that allowed us to move quickly. And so we began investigating, you know, solutions to that. And a few of our colleagues went to Kubecon in San Diego in 2019, Cloudnativecon as well. And basically they just, you know, sponged it all up. And actually funny enough, my old manager was one of the people who was there and he went to the Linkerd booth and they had a thing going that was like, "Hey, get set up with MTLS in five minutes." And he was like, "This is something we want to do, why not check this out?" And he was able to do it. And so that put it on our radar. And so yeah, we investigated several others and Linkerd just perfectly fit exactly what we needed. >> So, in general we are talking about, you know, security at scale. So how you manage security scale and also flexibility. Right? So, but you know, what is the... You told us about the five minutes to start using there but you know, again, we are talking about war stories. We're talking about, you know, all these. So what kind of challenges you found at the beginning when you started adopting this technology? >> So the biggest ones were around getting up and running with like a new service, especially in the beginning, right, we were, you know, adding a new service almost every day. It felt like. And so, you know, basically it took someone going through a whole bunch of different repos, getting approvals from everyone to get the certs minted, all that fun stuff getting them put into the right environments and in the right clusters, to make sure that, you know, everybody is talking appropriately. And just the amount of work that that took alone was just a huge headache and a huge barrier to entry for us to, quickly move up the number of services we have. >> So, I'm trying to wrap my head around the scale of the challenge. When I think about certification or certificate management, I have to do it on a small scale. And every now and again, when a certificate expires it is just a troubleshooting pain. >> Yes. >> So as I think about that, it costs it's not just certificates across 22,000 pods, or it's certificates across 22,000 pods in multiple applications. How were you doing that before Linkerd? Like, what was the... And what were the pain points? Like what happens when a certificate either fails? Or expired up? Not updated? >> So, I mean, to be completely honest, the biggest thing is we're just unable to make the calls, you know, out or in, based on yeah, what is failing basically. But, you know, we saw essentially an uptick in failures around a certain service and pretty quickly, pretty quickly, we got used to the fact that it was like, oh, it's probably a cert expiration issue. And so we tried, you know, a few things in order to make that a little bit more automated and things like that. But we never came to a solution that like didn't require every engineer on the team to know essentially quite a bit about this, just to get into it, which was a huge issue. >> So talk about day two, after you've deployed Linkerd, how did this alleviate software engineers? And what was like the benefits of now having this automated way of managing certs? >> So the biggest thing is like, there is no touch from developers, everyone on our team... Well, I mean, there are a lot of people who are familiar with security and certs and all of that stuff. But no one has to know it. Like it's not a requirement. Like for instance, I knew nothing about it when I joined the team. And even when I was setting up our newer clusters, I knew very little about it. And I was still able to really quickly set up Linkerd, which was really nice. And it's been, you know, essentially we've been able to just kind of set it, and not think about it too much. Obviously, you know, there're parts of it that you have to think about, we monitor it and all that fun stuff, but yeah, it's been pretty painless almost day one. It took a long time to trust it for developers. You know, anytime there was a failure, it's like, "Oh, could this be Linkerd?" you know. But after a while, like now we don't have that immediate assumption because people have built up that trust, but. >> Also you have this massive infrastructure I mean, 30 clusters. So, I guess, that it's quite different to manage a single cluster in 30. So what are the, you know, consideration that you have to do to install this software on, you know, 30 different cluster, manage different, you know versions probably, et cetera, et cetera, et cetera. >> So, I mean, you know, as far as like... I guess, just to clarify, are you asking specifically with Linkerd? Or are you just asking in more in general? >> Well, I mean, you can take that the question in two ways. >> Okay. >> Sure, yeah, so Linkerd in particular but the 30 cluster also quite interesting. >> Yeah. So, I mean, you know, more generally, you know how we manage our clusters and things like that. We have, you know, a CLI tool that we use in order to like change context very quickly, and switch and communicate with whatever cluster we're trying to connect to and you know, are we debugging or getting logs, whatever. And then, you know, with Linkerd it's nice because again, you know, we aren't having to worry about like, oh, how is this cert being inserted in the right node? Or not the right node, but in the right cluster or things like that. Whereas with Linkerd, we don't really have that concern. When we spin up our clusters, essentially we get the route certificate and everything like that packaged up, passed along to Linkerd on installation. And then essentially, there's not much we have to do after that. >> So talk to me about your upcoming section here at Kubecon. what's the high level talking points? Like what attendees learn? >> Yeah. So it's a journey. Those are the sorts of talks that I find useful. Having not been, you know, I'm not a deep Kubernetes expert from, you know decades or whatever of experience, but-- >> I think nobody is. >> (indistinct). >> True, yes. >> That's also true. >> That's another story >> That's a job posting decades of requirements for-- >> Of course, yeah. But so, you know, it's a journey. It's really just like, hey, what made us decide on a service mesh in the first place? What made us choose Linkerd? And then what are the ways in which, you know, we use Linkerd? So what are those, you know we use some of the extra plugins and things like that. And then finally, a little bit about more what we're going to do in the future. >> Let's talk about not just necessarily the future as in two or three days from now, or two or three years from now. Well, the future after you immediately solve the low level problems with Linkerd, what were some of the surprises? Because Linkerd in service mesh and in general have side benefits. Do you experience any of those side benefits as well? >> Yeah, it's funny, you know, writing the blog post, you know, I hadn't really looked at a lot of the data in years on, you know when we did our investigations and things like that. And we had seen that we like had very low latency and low CPU utilization and things like that. And looking at some of that, I found that we were actually saving time off of requests. And I couldn't really think of why that was and I was talking with someone else and the biggest, unfortunately all that data's gone now, like the source data. So I can't go back and verify this but it makes sense, you know, there's the availability zone routing that Linkerd supports. And so I think that's actually doing it where, you know essentially, if a node is closer to another node, it's essentially, you know, routing to those ones. So when one service is talking to another service and maybe they're on the same node, you know, it short circuits that and allows us to gain some time there. It's not huge, but it adds up after, you know, 10, 20 calls down the line. >> Right. In general, so you are saying that it's smooth operations at this very, you know, simplifying your life. >> And again, we didn't have to really do anything for that. It handled that for us. >> It was there? >> Yep. Yeah, exactly. >> So we know one thing when I do it on my laptop it works fine. When I do it with across 22,000 pods, that's a different experience. What were some of the lessons learned coming out of Kubecon 2018 in San Diego? I was there. I wish I would've ran into the Microsoft folks, but what were some of the hard lessons learned scaling Linkerd across the 22,000 nodes? >> So, you know, the first one and this seems pretty obvious, but was just not something I knew about was the high availability mode of Linkerd. So obviously makes sense. You would want that in, you know a large scale environment. So like, that's one of the big lessons that like, we didn't ride away. No. Like one of the mistakes we made in one of our pre-production clusters was not turning that on. And we were kind of surprised. We were like, whoa, like all of these pods are spinning up but they're having issues, like actually getting injected and things like that. And we found, oh, okay. Yeah, you need to actually give it some more resources. But it's still very lightweight considering, you know, they have high availability mode but it's just a few instances still. >> So from, even from, you know, binary perspective and running Linkerd how much overhead is it? >> That is a great question. So I don't remember off the top of my head, the numbers but it's very lightweight. We evaluated a few different service missions and it was the lightest weight that we encountered at that point. >> And then from a resource perspective, is it a team of Linkerd people? Is it a couple of people? Like how? >> To be completely honest for a long time, it was one person Abraham, who actually is the person who proposed this talk. He couldn't make it to Valencia, but he essentially did probably 95% of the work to get into production. And then this was before, we even had a team dedicated to our infrastructure. And so we have, now we have a team dedicated, we're all kind of Linkerd folks, if not Linkerd experts, we at least can troubleshoot basically. And things like that. So it's, I think a group of six people on our team and then, you know various people who've had experience with it on other teams. >> But others, dedicated just to that. >> No one is dedicated just to it. No, it's pretty like pretty light touch once it's up and running. It took a very long time for us to really understand it and to, you know, get like not getting started, but like getting to where we really felt comfortable letting it go in production. But once it was there, like, it is very, very light touch. >> Well, I really appreciate you stopping by Chris. It's been an amazing conversation to hear how Microsoft is using a open source project. >> Exactly. >> At scale, it's just a few years ago when you would've heard the concept of Microsoft and open source together and like OS, just, you know-- >> They have changed a lot in the last few years. Now, there are huge contributors. And, you know, if you go to Azure, it's full of open source stuff, everywhere so. >> Yeah. >> Wow. The Kubecon 2022, how the world has changed in so many ways. From Valencia Spain, I'm Keith Townsend, along with Enrico Signoretti. You're watching theCUBE, the leader in high tech coverage. (upbeat music)

>>The cube presents, Coon and cloud native con Europe 22, brought to you by the cloud native computing foundation. >>Welcome to Valencia Spain in co con cloud native con Europe, 2022. I'm Keith Townsend with my cohos on Rico senior. Etti senior it analyst at gig home. Exactly 7,500 people I'm told en Rico. What's the flavor of the show so far, >>It's a fantastic mood. I mean, I found a lot of people wanting to track talk about what they're doing with Kubernetes, sharing their, you know, stories, some word stories that meet tough. And you know, this is where you learn actually, because we had a lot of zoom calls, webinar and stuff, but it is when you talk a video, oh, I did it this way and it didn't work out very well. So, and, and you start a conversation like this that is really different from learning from zoom. When, you know, everybody talks about things that working well, they did it, right. No, it's here that you learn from other experiences. >>So we're talking to amazing people the whole week, talking about those experiences here on the queue, fresh on the queue for the first time, Chris Vos, senior software engineer at Microsoft Xbox, Chris, welcome to the queue. >>Thank you so much for having >>Me. So first off, give us a high level picture of the environment that you're running at Microsoft. >>Yeah. So, you know, we've got 20, well probably close to 30 clusters at this point around the globe, you know, 700 to a thousand pods per cluster, roughly. So about 22,000 pods total. So yeah, it's pretty pretty sizable footprint and yeah. So we've been running on Kubernetes since 2018 and well actually might be 2017, but anyways, so yeah, that, that's kind of our, our footprint. >>Yeah. So all of that, let's talk about the basics, which is security across multiple I'm assuming containers, work, microservices, et cetera. Why did you and the team settle on link or do >>Yeah, so previously we had our own kind of solution for managing TLS certs and things like that. And we found it to be pretty painful pretty quickly. And so we knew, you know, we wanted something that was a little bit more abstracted away from the developers and, and things like that that allowed us to move quickly. And so we began investigating, you know, solutions to that. And a few of our colleagues went to Cuban in San Diego in 2019 cloud native con as well. And basically they just, you know, sped it all up. And actually funny enough, my, my old manager was one of the people who was there and he went to the link D booth and they had a thing going that was like, Hey, get set up with MTLS in five minutes. And he was like, this is something we want to do, why not check this out? And he was able to do it. And so that, that put it on our radar. And so yeah, we investigated several others and Leer D just perfectly fit exactly what we needed. >>So, so in general, we are talking about, you know, security at scale. So how you manage security to scale and also flexibility, right. But you know, what is the you, this there, you told us about the five minutes to start using there, but you know, again, we are talking about word stories. We talk about, you know, all these. So what, what, what kind of challenges you found at the beginning when you start adopting this technology? >>So the biggest ones were around getting up and running with like a new service, especially in the beginning, right. We were, you know, adding a new service almost every day. It felt like. And so, you know, basically it took someone going through a whole bunch of different repos, getting approvals from everyone to get the SEARCHs minted, all that fun stuff, getting them put into the right environments and in the right clusters to make sure that, you know, everybody is talking appropriately. And just the amount of work that, that took alone was just a huge headache and a huge barrier to entry for us to, you know, quickly move up the number of services we have. So, >>So I'm, I'm trying to wrap my head around the scale of the challenge. When I think about certification or certificate management, I have to do it on a small scale and the, the, every now and again, when a certificate expires, it is just a troubleshooting pain. Yes. So as I think about that, it costs, it's not just certificates across 22,000 pods or it's certificates across 22,000 pods in multiple applications. How were you doing that before link D like, what was the, what and what were the pain points? Like? What happens when a certificate either fails or expired up not, not updated? >>So, I mean, to be completely honest, the biggest thing is we're just unable to make the calls, you know, out or, or in, based on yeah. What is failing basically. But, you know, we saw essentially an uptick in failures around a certain service and pretty quickly, I pretty quickly, we got used to the fact that it was like, oh, it's probably a cert expiration issue. And so we tried, you know, a few things in order to make that a little bit more automated and things like that, but we never came to a solution that like didn't require every engineer on the team to know essentially quite a bit about this, just to get into it, which was a huge issue. >>So talk about day two after you've deployed link D how did this alleviate software engineers and what was like the, the benefits of now having this automated way of managing >>Certs? So the biggest thing is like, there is no touch from developers, everyone on our team. Well, I mean, there are a lot of people who are familiar with security and certs and all of that stuff, but no one has to know it. Like it's not a requirement. Like for instance, I knew nothing about it when I joined the team. And even when I was setting up our newer clusters, I knew very little about it. And I was still able to really quickly set up blinker D, which was really nice. And, and it's been, you know, essentially we've been able to just kind of set it and not think about it too much. Obviously, you know, there are parts of it that you have to think about. We monitor it and all that fun stuff, but, but yeah, it's been pretty painless almost day one. It took a lot, a long time to trust it for developers. You know, anytime there was a failure, it's like, oh, could this be link or D you know, but after a while, like now we don't have that immediate assumption because people have built up that trust, but >>Also you have this massive infrastructure, I mean, 30 cluster. So I guess that it's quite different to manage a single cluster and 30. So what are the, you know, consideration that you have to do to install this software on, you know, 30 different cluster manage different, you know, versions probably etcetera, etcetera, et cetera. >>So, I mean, you know, the, the, as far as like, I guess, just to clarify, are you asking specifically with Linky or are you just asking in more in general? Well, >>I mean, you, you can take the, the question in the, in two ways, so, okay. Yeah. Yes. Link in particular, but the 30 cluster also quite interesting. >>Yeah. So, I mean, you know, more generally, you know, how we manage our clusters and things like that. We have, you know, a CLI tool that we use in order to like, change context very quickly and switch and communicate with whatever cluster we're trying to connect to and, you know, are we debugging or getting logs, whatever. And then, you know, with link D it's nice because again, you know, we, we, aren't having to worry about like, oh, how is this cert being inserted in the right node or, or not the right node, but in the right cluster or things like that. Whereas with link D we don't, we don't really have that concern when we spin up our, our clusters, essentially we get the root certificate and, and everything like that packaged up, passed along to link D on installation. And then essentially there's not much we have to do after that. >>So talk to me about your upcoming coming section here at Q con what's the, what's the high level talking points? Like what, what will attendees learn? >>Yeah. So it's, it's a journey. Those are the sorts of talks that I find useful. Having not been, you know, I, I'm not a deep Kubernetes expert from, you know, decades or whatever of experience, but I think >>Nobody is >>Also true. That's another story. That's a, that's, that's a job posting decades of requirements for >>Of course. Yeah. But so, you know, it, it's a journey it's really just like, Hey, what made us decide on a service mesh in the first place? What made us choose link D and then what are the ways in which, you know, we, we use link D so what are those, you know, we use some of the extra plugins and things like that. And then finally, a little bit about more, what we're gonna do in the future. >>Let's talk about not just necessarily the future as in two or three days from now, or two or three years from now. Well, the future after you immediately solve the, the low level problems with link D what were some of the, the surprises, because link D in service me in general has have side benefits. Do you experience any of those side benefits as well? >>Yeah, it's funny, you know, writing the, the blog post, you know, I hadn't really looked at a lot of the data in years on, you know, when we did our investigations and things like that. And we had seen that we like had very low latency and low CPU utilization and things like that. And looking at some of that, I found that we were actually saving time off of requests. And I couldn't really think of why that was, and I was talking with someone else and the biggest, unfortunately, all that data's gone now, like the source data. So I can't go back and verify this, but it, it makes sense, you know, there's the availability zone routing that linker D supports. And so I think that's actually doing it where, you know, essentially if a node is closer to another node, it's essentially, you know, routing to those ones. So when one service is talking to another service and maybe on they're on the same node, you know, it, it short circuits that, and allows us to gain some, some time there. It's not huge, but it adds up after, you know, 10, 20 calls down the line. Right. >>In general. So you are saying that it's smooth operations in, in ATS, very, you know, simplifying your life. >>And again, we didn't have to really do anything for that. It, it, it handled that for it was there. Yeah. Yep. Yeah, exactly. >>So we know one thing when I do it on my laptop, it works fine when I do it with across 22,000 pods, that's a different experience. What were some of the lessons learned coming out of KU con 2018 in San Diego was there? I wish I would've ran to the microphone folks, but what were some of the hard lessons learned scaling link D across the 22,000 nodes? >>So, you know, the, the first one, and this seems pretty obvious, but was just not something I knew about was the high availability mode of link D so obviously makes sense. You would want that in a, you know, a large scale environment. So like, that's one of the big lessons that like, we didn't ride away. No. Like one of the mistakes we made in, in one of our pre-production clusters was not turning that on. And we were kind of surprised. We were like, whoa, like all of these pods are spinning up, but they're having issues like actually getting injected and things like that. And we found, oh, okay. Yeah, you need to actually give it some, some more resources, but it's still very lightweight considering, you know, they have high availability mode, but it's just a few instances still. >>So from, even from a, you know, binary perspective and running link D how much overhead is it? >>That is a great question. So I don't remember off the top of my head, the numbers, but it's very lightweight. We, we evaluated a few different service missions and it was the lightest weight that we encountered at that point. >>And then from a resource perspective, is it a team of link D people? Is it a couple of people, like how >>To be completely honest for a long time, it was one person, Abraham who actually is the person who proposed this talk. He couldn't make it to Valencia, but he essentially did probably 95% of the work to get a into production. And then this was before we even had a team dedicated to our infrastructure. And so we have, now we have a team dedicated, we're all kind of Linky folks, if not Linky experts, we at least can troubleshoot basically. And things like that. So it's, I think a group of six people on our team, and then, you know, various people who've had experience with it >>On other teams, but I'm not dedicated just to that. >>I mean, >>No one is dedicated just to it. No, it's pretty like pretty light touch once it's, once it's up and running, it took a very long time for us to really understand it and, and to, you know, get like, not getting started, but like getting to where we really felt comfortable letting it go in production. But once it was there, like, it is very, very light touch. >>Well, I really appreciate you stopping by Chris. It's been an amazing conversation to hear how Microsoft is using a open source project. Exactly. At scale. It's just a few years ago, when you would've heard the concept of Microsoft and open source together and like, oh, that's just, you know, but >>They have changed a lot in the last few years now, there are huge contributors. And, you know, if you go to Azure, it's full of open source stuff, every >>So, yeah. Wow. The Cuban 2022, how the world has changed in so many ways from Licia Spain, I'm Keith Townsend, along with a Rico senior, you're watching the, the leader in high tech coverage.

(upbeat music) >> Hey, welcome to the Cube's coverage of HPE Discover 2021. I'm Lisa Martin. I have two guests with me here today. We're going to be talking to the Walt Disney company. Jason Abraham sent us here, the director of infrastructure engineering. Jason, welcome to the program. >> Hi, how are you doing? >> Doing well and James Irvine is here as well. Account chief technologist at HPE. James, welcome to the program. >> Yeah hi Lisa, thank you. >> Good, so we're going to be talking about all things the HPE supporting Disney relationship, but you know things have been changing so much in technology. Things have been very different for technologists in the last few years. Jason talk to us about how Disney has adapted as business needs have evolved. >> You know, I think not just Disney, but in general, as we've, we've had to evolve, evolve as technologists, right? And one of the ways we've done that is to focus a lot on automation and self-service, enabling developers to move faster to meet the shift in business demand. Business moves at the speed of light. Anybody that's been in this business long enough knows there were years ago, you could have email servers down for three hours and nobody would notice. Now if email went down for more than, you know, 35 seconds, everybody notices, right? So in order to meet the change in demand we've had to focus heavily on automation and self-service which has been a key strategy, a key driver for us as part of private cloud. >> So Jason, with infrastructure as such a large part of your responsibilities and your job title, how has Disney been thinking about private cloud in the last few years? >> So I would say that we were probably one of the, I don't want to say bleeding edge, but certainly out in front when it came to private cloud. We had embarked on a cloud first strategy overall across the enterprise. The goal there was to figure out how we could do more with less and be more agile and be able to flex for our application developers and meet our shifts in demand. However, there are, you know systems that for whatever reasons, business purpose or otherwise need to either span a hybrid cloud or multi-cloud or stay on premise. So in order to get a cloud-like environment for our application developers and whatnot, we decided to build out a robust private cloud environment that allowed all of our application developers to be able to just bring their code or get a server and try to get as much of the public cloud functionality on premise as we possibly could. >> James, let's bring you into the conversation. Talk to us about the HPE Walt Disney company relationship and how HPE is supporting Walt Disney. >> Yeah. The HPE and Disney have had a longstanding relationship dating all the way back to HPE and Disney as far as the audio oscillator is concerned. So we've had an extraordinarily long history in technology and co-innovation partnership that we've worked on together through the years. And as Jason mentioned, you know, the journey around private cloud and working together in that technology relationship is just, has been fantastic and we've supported them with all the innovation and technologies needed for them to meet their goals. >> Excellent. All right, Jason, let's go back to you. I want to dig into this private cloud strategy a little bit more. You mentioned this a minute ago, but as we look at and hear so many discussions and strategies revolving around public multi-cloud, why is private cloud so important to Disney? >> Well, we have a tremendous amount of applications. We, our application portfolio is massive as you can imagine. We find ourselves in unique situations because of all of the different business challenges that we have that are unique to Disney, that we have to develop applications from the ground up far more often than we'd probably like to admit. So- private cloud allows us to take advantage of the public cloud-like services and technology scalability and flexibility and agility, right? And bring those on premise and be close to the business where it's absolutely critical to our business. I don't want to comment on what specific things or services that we have to run close to the business but you can imagine with the expansive footprint of our business and how we have to interact with guests, whether it's from a movie or at a theme park, we do have to have some services that are close to our business. And so, by having private cloud we compliment our public cloud strategy and allow us to keep those, those critical services very close to the business. >> Got it. You just mentioned a number of the elements of Disney. There's been a lot going on, so much going on. It's actually kind of easy to forget how new Disney Plus is, but sitting in the center of a company that's doing so much digitally, how does that shared services play a part in the overall digital transformation of the business? >> That's a great question. So obviously technology is key to our business. If you look at all the different lines of businesses we have and you look at all the different technology that we have, it's absolutely critical in order for us to continue to invest in technology to meet all of our business demands. Where shared services comes in is we enable the business to focus on what is critical to their business, right? We allow resorts and even the immediate media partners to just focus solely on the technology that is critical to driving those businesses, to enabling the guest experience and keeping it great. We are focused on everything else that is not critical for their business, the underlying infrastructure, the underpinning infrastructure, right, such as the global network, global servers, emails and so on and so forth. So it's a great compliment where it frees the business up to focus on what's really critical for them. And we can get economies of scale and synergy across our entire enterprise by delivering core services at a much more efficient cost throughout the company. >> And James, I want to ask you a question and we'll see if this gets approved. I just would love to understand, you've been working as a, with the Walt Disney company for a long time. We've, we've seen the evolution of HPE and we've seen the evolution of Disney. Can we ask you anything about, kind of give us your perspectives on how both companies have evolved in this relationship together? >> I- (laughter) I would, I would say that it's been it's been a great relationship. I would say that the, the, we have continued to lean on HPE from an investment perspective for our servers in certain areas, storage, but mostly servers. One are the big investments we've made recently was HP synergy, which is a composable infrastructure which has allowed us to continue to- invest in our automation strategy and allows us to deliver physical servers much faster, much faster. James, did you want to add anything there? >> Yeah of course Jason, it's been great to partner with Jason and the team, Walt Disney company in particular. And through this experience of them trying to achieve their private cloud goals, we've been able to bring the right technology, the right set of services to achieve these technology outcomes that they've been after and the use of automation to improve life cycle management, day two operations, all the goals and aspirations that they need to really automate infrastructure and make it intelligent and start achieving the goal of the intelligent data center. So it's been a great technology partnership and relationship we've had there. >> Jason back to you, let's, we've talked about Disney's private cloud strategy. I want to talk a little bit more about how that integrates with the rest of Disney's cloud strategy. What can you share with us? >> Well, like anything you'd want the right tool for the right job. And certainly the multi-cloud strategy and the public cloud strategy is a huge part of our overall strategic roadmap, where again we use the private cloud is to compliment that for applications that need to either span or stay on premise. You know, one of the things that we're just getting into now is hybrid cloud, where you have application teams that are like, hey, we really just need to focus on premise. It's where we need to be close to the business, but we have workloads that need to burst to the public cloud or need to scale out to the public cloud. And you really take advantage of that. So again, we don't look at it as, it used to be, not just within Disney, but in general in most cloud strategies, it was, is kind of like an either or. Now we look at it as the right tool for the right job. What's the right bid for your application? And as we continue to look at how the application stack modernizes right? Used to be how do you get servers faster? Well, now it's I don't want a server, I want a container. Now it's I just want to bring my code. I don't even know if I need a container, right? The application developers really want servers that compute. They really want to just focus on application development and they want to focus more on what makes their applications great, right? We want to focus more on commoditization and blurring the lines between public and private. Really, where does the workload run best? Where is it most efficient and where is it best for the business? And so when we look at how we built out our, our private cloud environment, it was really to compliment our existing public cloud strategy. >> Let's talk about people now, Jason, for a second. I know I love that Disney calls their folks, the cast members. I see the pin on your lapel there. How are the cast members at the center of this technology strategy and the how does the private cloud strategy play into that? >> Well, it's one of those things where our cast members are the most important aspect of our, of our brand. If you, if you were to look at what is our what is our most valuable asset? It would certainly be our cast members, right? They are the frontline, whether it's helping a guest, whether it's working on a movie, and our overall technology strategy is all about enabling cast members to do their job as most efficiently and effectively as possible. When it comes to how private cloud fits into that, it's again creating an environment where the application developers and our business partners can accelerate their application growth and the delivery of their services to support our back of house operations for our cast members. So that way it doesn't impact the guest experience. There's nothing more frustrating for a cast member is when they're impeded or have issues trying to get to a resource or unable to efficiently do their job. And so by having the private cloud, by having access to resources on premise, at times it gives them the ability to deliver those and consume those applications even faster. >> Which I'm sure that the guests love. One of the things that you mentioned, Jason, and I want to, James, get your opinion on this too. It's a, it's a statement that we hear very often. You need to do more with less. In that situation, how does Disney navigate that and, and a strategy that is cost-effective while you're growing your public, your private cloud strategy? >> Automation. Right? Automate automation and self-service. It, it really, it's always comes back to, I know it's a buzzword. I know people go, oh, automate this, automate that, you know, what are you, what are you automating? If you look at just the investments we're making right now in the HP synergy line and having composable infrastructure combined with pockets of three-tier architecture as well as hyperconverge, you are, we're bringing a delivery model to application teams and business teams that they haven't that is just like public cloud, right? But that they haven't seen before. So in order to manage massive scale, you need to automate more and you need to automate more in order to make sure that you have self healing, right? So you can, so you can look at things and understand things and see where you're having problems and try to predict them before they happen and increase your uptime and availability. I mean, it all comes back to, again, automation, automation, automation. >> James, do you have the similar opinion when you talk with customers similar to the Walt Disney company that are told we've got to do more but we've got less to work with? Is automation one of your key go-to recommendations? >> Yeah. Automation is at the center of everything that we're trying to achieve today both on-premise and in the public cloud and hyper automation is really kind of where everybody is driving to. The ability to be incredibly big, incredibly efficient using infrastructure as code API driven and using all the tools to really automate that and make the seamless delivery of new products and services just that much quicker. And we've been focused on that both not only from a technology and infrastructure standpoint, but also from a consulting and delivery standpoint. So we're able to really kind of meet all the different needs as it relates to automation, both in a private cloud hybrid cloud or multi-cloud scenario with all of the partnerships that we have across all the hyperscalers. >> James, sticking with you. With that, looking through that consultant lens I want to get some thought leadership from you. What are some of the principles that you'd recommend for businesses that really are working hard to make their private cloud investment work as efficiently as possible for them? >> A lot of that comes down to consulting and understanding. So really kind of driving to what we've referred to as the right mix. What is that right mix of hybrid cloud, private cloud applications that have gravity that needs to remain on premise. And there's just no reason to move them. So working with somebody and partnering with somebody that has the ability to be able to advise and consult in that capacity across the continuum of private public as well as edge is vitally important for people to consider as a part of their strategy. >> Jason, edge is absolutely incredible. We're hearing about it more and more, especially as it's so much more data and machine data is generated there. I want to get your advice for the audience. Same question that I asked James. What principles would you recommend for making the private cloud investment work as hard as possible, as efficiently as possible? >> I would say that, you know it's going to be a unique journey for every single company, but the number one advice is remember, right tool for the right job, right? What is your application stack? What are the types of in that, what is the type of needs of the application owners? And when you start thinking about it, you start dissecting it, are going to be investing more in microservices? Can you go with a more of a server-less container based type of environment or are you using shrink wrap software and you're going to need more eyes, right? It all comes down to, the right tool for the right job. My father was an auto mechanic and I remember as a kid, he had 8,000 tools. And I used to say to him, dad why do you have five screwdrivers? To me they all looked the same, right? I'm not a mechanic, but he goes, no, no, no, Jason, you don't understand. It's the right tool for the right job. You know, that was always his mantra. That would be my advice. >> I like that. I think my dad would have said the same thing, right tool for the right job. Absolutely critically important. So when we think about Disney, we know you generate a ton of data. How does the, the growth of the private cloud, Jason, support that massive data growth? >> Well, as you can imagine, we have ebbs and flows in our data. There's times where we're taking a tremendous amount of data in, and there's times where we're purging a tremendous amount of data for various different reasons, right? So one of the beauties of private cloud and how it compliments the public cloud is when you, you go to, you think about data ingestion, right? And then storage and being able to efficiently get it on premise and whatnot. Having the private cloud there to do those types of things, to use more of those BI type of workloads. They're, you're, you're just trunching a bunch of data. It's really nice to have the private cloud. So that way the application team can add nodes, add collectors if it's, you know, other log aggregation type tools, right? Whatever the tool is, you know, being able to have the flexibility to add nodes very quickly, just like they can in a public cloud, public cloud, but have it on premise so that you can do cost control and get the data in a more timely, more efficient manner. Again though, it comes down to the type of workload and what was best for that business. I would, I would be amiss if I tried to sit here and tell you that all of our big data stuff, were to only reside or only use on-premise technologies. Of course it spans like I said, we've got hybrid cloud and multi-cloud so. >> Well, it kind of goes with the right tool for the right job. One more question for both of you. And I want to go back to that thought leadership angle. Jason, when you are talking with peers of yours, what do you recommend that technology leaders look for when they're going to be partnering with a company on any type of cloud initiative management or implementation project? >> I would say understand your, understand the problem you're trying to solve, understand the technologies that you want to use and understand again your application portfolio and perhaps because I'm in shared services, a large company, I have a unique perspective of having to deal with very different problems at any given day on any given week. And I, you know, sometimes we forget about those, especially as technologists, we tend to forget that the decisions we make have wide and far reaching impact within our application stacks and within the individual businesses. And I think if, if you look at what is my application stack, what are the types of technologies? How, how is it going to be? If you were doing just shrink wrap, then you probably shouldn't be investing in cloud technologies that are heavily focused on containerization, right? If you're custom developing applications, then your entire strategy should probably be focused on how do you build container farms? And if you're doing big data, you probably should bring GPU's into the conversation with something that nobody's talking about really yet. So, you know. >> Sounds like collaboration is really key. James, same question. Last question of our conversation. I'd love to get your perspective on what technology leaders should look for when you're talking with prospective customers. When they're looking to partner for cloud implementation, growth management, what are some of those things that you say, the technology leaders look for this? >> You really need to be working with people who understand your business, that are passionate about your success and really having access to not only the advisory capabilities, but the technology portfolio to help you realize all of your business and technology outcomes. And I think those are super important attributes that we HPE can provide, you know, across the entire portfolio of technologies and services that most customers need to do. And I, and I think that the business outcome, the business transformation is really key to what the future holds for us and having the visionary perspective of not only the customer, but us in joint partnership allows for these great goals to be achieved. >> Great goals and those business outcomes. Well, gentlemen, thank you for joining me on the program today. Talking to me about what Disney's doing with technology, how HPE is supporting that Disney relationship. Jason and James, I appreciate your time. >> Thank you. >> Thank you, Lisa. For Jason Abrahamson and James Irvine, I'm Lisa Martin. You're watching the Cube's coverage of HPE discover 2021. (upbeat music)

[Music] [Music] [Music] [Music] [Music] [Music] that will be successful in the 21st century [Music] being open is really important because it comes with a lot of trust the open-source community now has matured so much and that contribution from the community is really driving innovation [Music] but what's really exciting is the change that we've seen in our teams not only the way they collaborate but the way they operate in the way they work [Music] I think idea is everything ideas can change the way you see things open-source is more than a license it's actually a way of operating [Music] ladies and gentlemen please welcome Red Hat president and chief executive officer Jim Whitehurst [Music] all right well welcome to day two at the Red Hat summit I'm amazed to see this many people here at 8:30 in the morning given the number of people I saw pretty late last night out and about so thank you for being here and have to give a shout out speaking of power participation that DJ is was Mike Walker who is our global director of open innovation labs so really enjoyed that this morning was great to have him doing that so hey so day one yesterday we had some phenomenal announcements both around Red Hat products and things that we're doing as well as some great partner announcements which we found exciting I hope they were interesting to you and I hope you had a chance to learn a little more about that and enjoy the breakout sessions that we had yesterday so yesterday was a lot about the what with these announcements and partnerships today I wanted to spin this morning talking a little bit more about the how right how do we actually survive and thrive in this digitally transformed world and to some extent the easy parts identifying the problem we all know that we have to be able to move more quickly we all know that we have to be able to react to change faster and we all know that we need to innovate more effectively all right so the problem is easy but how do you actually go about solving that right the problem is that's not a product that you can buy off the shelf right it is a capability that you have to build and certainly it's technology enabled but it's also depends on process culture a whole bunch of things to figure out how we actually do that and the answer is likely to be different in different organizations with different objective functions and different starting points right so this is a challenge that we all need to feel our way to an answer on and so I want to spend some time today talking about what we've seen in the market and how people are working to address that and it's one of the reasons that the summit this year the theme is ideas worth it lorring to take us back on a little history lesson so two years ago here at Moscone the theme of the summit was the power of participation and then I talked a lot about the power of groups of people working together and participating are able to solve problems much more quickly and much more effectively than individuals or even individual organizations working by themselves and some of the largest problems that we face in technology but more broadly in the world will ultimately only be solved if we effectively participate and work together then last year the theme of the summit was the impact of the individual and we took this concept of participation a bit further and we talked about how participation has to be active right it's a this isn't something where you can be passive that you can sit back you have to be involved because the problem in a more participative type community is that there is no road map right you can't sit back and wait for an edict on high or some central planning or some central authority to tell you what to do you have to take initiative you have to get involved right this is a active participation sport now one of the things that I talked about as part of that was that planning was dead and it was kind of a key my I think my keynote was actually titled planning is dead and the concept was that in a world that's less knowable when we're solving problems in a more organic bottom-up way our ability to effectively plan into the future it's much less than it was in the past and this idea that you're gonna be able to plan for success and then build to it it really is being replaced by a more bottom-up participative approach now aside from my whole strategic planning team kind of being up in arms saying what are you saying planning is dead I have multiple times had people say to me well I get that point but I still need to prepare for the future how do I prepare my organization for the future isn't that planning and so I wanted to spend a couple minutes talk a little more detail about what I meant by that but importantly taking our own advice we spent a lot of time this past year looking around at what our customers are doing because what a better place to learn then from large companies and small companies around the world information technology organizations having to work to solve these problems for their organizations and so our ability to learn from each other take the power of participation an individual initiative that people and organizations have taken there are just so many great learnings this year that I want to get a chance to share I also thought rather than listening to me do that that we could actually highlight some of the people who are doing this and so I do want to spend about five minutes kind of contextualizing what we're going to go through over the next hour or so and some of the lessons learned but then we want to share some real-world stories of how organizations are attacking some of these problems under this how do we be successful in a world of constant change in uncertainty so just going back a little bit more to last year talking about planning was dead when I said planning it's kind of a planning writ large and so that's if you think about the way traditional organizations work to solve problems and ultimately execute you start off planning so what's a position you want to get to in X years and whether that's a competitive strategy in a position of competitive advantage or a certain position you want an organizational function to reach you kind of lay out a plan to get there you then typically a senior leaders or a planning team prescribes the sets of activities and the organization structure and the other components required to get there and then ultimately execution is about driving compliance against that plan and you look at you say well that's all logical right we plan for something we then figure out how we're gonna get there we go execute to get there and you know in a traditional world that was easy and still some of this makes sense I don't say throw out all of this but you have to recognize in a more uncertain volatile world where you can be blindsided by orthogonal competitors coming in and you the term uber eyes you have to recognize that you can't always plan or know what the future is and so if you don't well then what replaces the traditional model or certainly how do you augment the traditional model to be successful in a world that you knows ambiguous well what we've heard from customers and what you'll see examples of this through the course of this morning planning is can be replaced by configuring so you can configure for a constant rate of change without necessarily having to know what that change is this idea of prescription of here's the activities people need to perform and let's lay these out very very crisply job descriptions what organizations are going to do can be replaced by a greater degree of enablement right so this idea of how do you enable people with the knowledge and things that they need to be able to make the right decisions and then ultimately this idea of execution as compliance can be replaced by a greater level of engagement of people across the organization to ultimately be able to react at a faster speed to the changes that happen so just double clicking in each of those for a couple minutes so what I mean by configure for constant change so again we don't know exactly what the change is going to be but we know it's going to happen and last year I talked a little bit about a process solution to that problem I called it that you have to try learn modify and what that model try learn modify was for anybody in the app dev space it was basically taking the principles of agile and DevOps and applying those more broadly to business processes in technology organizations and ultimately organizations broadly this idea of you don't have to know what your ultimate destination is but you can try and experiment you can learn from those things and you can move forward and so that I do think in technology organizations we've seen tremendous progress even over the last year as organizations are adopting agile endeavor and so that still continues to be I think a great way for people to to configure their processes for change but this year we've seen some great examples of organizations taking a different tack to that problem and that's literally building modularity into their structures themselves right actually building the idea that change is going to happen into how you're laying out your technology architectures right we've all seen the reverse of that when you build these optimized systems for you know kind of one environment you kind of flip over two years later what was the optimized system it's now called a legacy system that needs to be migrated that's an optimized system that now has to be moved to a new environment because the world has changed so again you'll see a great example of that in a few minutes here on stage next this concept of enabled double-clicking on that a little bit so much of what we've done in technology over the past few years has been around automation how do we actually replace things that people were doing with technology or augmenting what people are doing with technology and that's incredibly important and that's work that can continue to go forward it needs to happen it's not really what I'm talking about here though enablement in this case it's much more around how do you make sure individuals are getting the context they need how are you making sure that they're getting the information they need how are you making sure they're getting the tools they need to make decisions on the spot so it's less about automating what people are doing and more about how can you better enable people with tools and technology now from a leadership perspective that's around making sure people understand the strategy of the company the context in which they're working in making sure you've set the appropriate values etc etc from a technology perspective that's ensuring that you're building the right systems that allow the right information the right tools at the right time to the right people now to some extent even that might not be hard but when the world is constantly changing that gets to be even harder and I think that's one of the reasons we see a lot of traction and open source to solve these problems to use flexible systems to help enterprises be able to enable their people not just in it today but to be flexible going forward and again we'll see some great examples of that and finally engagement so again if execution can't be around driving compliance to a plan because you no longer have this kind of Cris plan well what do leaders do how do organizations operate and so you know I'll broadly use the term engagement several of our customers have used this term and this is really saying well how do you engage your people in real-time to make the right decisions how do you accelerate a pace of cadence how do you operate at a different speed so you can react to change and take advantage of opportunities as they arise and everywhere we look IT is a key enabler of this right in the past IT was often seen as an inhibitor to this because the IT systems move slower than the business might want to move but we are seeing with some of these new technologies that literally IT is becoming the enabler and driving the pace of change back on to the business and you'll again see some great examples of that as well so again rather than listen to me sit here and theoretically talk about these things or refer to what we've seen others doing I thought it'd be much more interesting to bring some of our partners and our customers up here to specifically talk about what they're doing so I'm really excited to have a great group of customers who have agreed to stand in front of 7,500 people or however many here this morning and talk a little bit more about what they're doing so really excited to have them here and really appreciate all them agreeing to be a part of this and so to start I want to start with tee systems we have the CEO of tee systems here and I think this is a great story because they're really two parts to it right because he has two perspectives one is as the CEO of a global company itself having to navigate its way through digital disruption and as a global cloud service provider obviously helping its customers through this same type of change so I'm really thrilled to have a del hasta li join me on stage to talk a little bit about T systems and what they're doing and what we're doing jointly together so Adelle [Music] Jim took to see you Adele thank you for being here you for having me please join me I love to DJ when that fantastic we may have to hire him no more events for events where's well employed he's well employed though here that team do not give him mics activation it's great to have you here really do appreciate it well you're the CEO of a large organization that's going through this disruption in the same way we are I'd love to hear a little bit how for your company you're thinking about you know navigating this change that we're going through great well you know key systems as an ICT service provider we've been around for decades I'm not different to many of our clients we had to change the whole disruption of the cloud and digitization and new skills and new capability and agility it's something we had to face as well so over the last five years and especially in the last three years we invested heavily invested over a billion euros in building new capabilities building new offerings new infrastructures to support our clients so to be very disruptive for us as well and so and then with your customers themselves they're going through this set of change and you're working to help them how are you working to help enable your your customers as they're going through this change well you know all of them you know in this journey of changing the way they run their business leveraging IT much more to drive business results digitization and they're all looking for new skills new ideas they're looking for platforms that take them away from traditional waterfall development that takes a year or a year and a half before they see any results to processes and ways of bringing applications in a week in a month etcetera so it's it's we are part of that journey with them helping them for that and speaking of that I know we're working together and to help our joint customers with that can you talk a little bit more about what we're doing together sure well you know our relationship goes back years and years with with the Enterprise Linux but over the last few years we've invested heavily in OpenShift and OpenStack to build peope as layers to build you know flexible infrastructure for our clients and we've been working with you we tested many different technology in the marketplace and been more successful with Red Hat and the stack there and I'll give you an applique an example several large European car manufacturers who have connected cars now as a given have been accelerating the applications that needed to be in the car and in the past it took them years if not you know scores to get an application into the car and today we're using open shift as the past layer to develop to enable these DevOps for these companies and they bring applications in less than a month and it's a huge change in the dynamics of the competitiveness in the marketplace and we rely on your team and in helping us drive that capability to our clients yeah do you find it fascinating so many of the stories that you hear and that we've talked about with with our customers is this need for speed and this ability to accelerate and enable a greater degree of innovation by simply accelerating what what we're seeing with our customers absolutely with that plus you know the speed is important agility is really critical but doing it securely doing it doing it in a way that is not gonna destabilize the you know the broader ecosystem is really critical and things like GDP are which is a new security standard in Europe is something that a lot of our customers worry about they need help with and we're one of the partners that know what that really is all about and how to navigate within that and use not prevent them from using the new technologies yeah I will say it isn't just the speed of the external but the security and the regulation especially GDR we have spent an hour on that with our board this week there you go he said well thank you so much for being here really to appreciate the work that we're doing together and look forward to continued same here thank you thank you [Applause] we've had a great partnership with tea systems over the years and we've really taken it to the next level and what's really exciting about that is you know we've moved beyond just helping kind of host systems for our customers we really are jointly enabling their success and it's really exciting and we're really excited about what we're able to to jointly accomplish so next i'm really excited that we have our innovation award winners here and we'll have on stage with us our innovation award winners this year our BBVA dnm IAG lasat Lufthansa Technik and UPS and yet they're all working in one for specific technology initiatives that they're doing that really really stand out and are really really exciting you'll have a chance to learn a lot more about those through the course of the event over the next couple of days but in this context what I found fascinating is they were each addressing a different point of this configure enable engage and I thought it would be really great for you all to hear about how they're experimenting and working to solve these problems you know real-time large organizations you know happening now let's start with the video to see what they think about when they think about innovation I define innovation is something that's changing the model changing the way of thinking not just a step change improvement not just making something better but actually taking a look at what already exists and then putting them together in new and exciting lives innovation is about to build something nobody has done before historically we had a statement that business drives technology we flip that equation around an IT is now demonstrating to the business at power of technology innovation desde el punto de vista de la tecnología supone salir de plataform as proprietary as ADA Madero cloud basado an open source it's a possibility the open source que no parameter no sir Kamala and I think way that for me open-source stands for flexibility speed security the community and that contribution from the community is really driving innovation innovation at a pace that I don't think our one individual organization could actually do ourselves right so first I'd like to talk with BBVA I love this story because as you know Financial Services is going through a massive set of transformations and BBVA really is at the leading edge of thinking about how to deploy a hybrid cloud strategy and kind of modular layered architecture to be successful regardless of what happens in the future so with that I'd like to welcome on stage Jose Maria Rosetta from BBVA [Music] thank you for being here and congratulations on your innovation award it's been a pleasure to be here with you it's great to have you hi everybody so Josemaria for those who might not be familiar with BBVA can you give us a little bit of background on your company yeah a brief description BBVA is is a bank as a financial institution with diversified business model and that provides well financial services to more than 73 million of customers in more than 20 countries great and I know we've worked with you for a long time so we appreciate that the partnership with you so I thought I'd start with a really easy question for you how will blockchain you know impact financial services in the next five years I've gotten no idea but if someone knows the answer I've got a job for him for him up a pretty good job indeed you know oh all right well let me go a little easier then so how will the global payments industry change in the next you know four or five years five years well I think you need a a Weezer well I tried to make my best prediction means that in five years just probably will be five years older good answer I like that I always abstract up I hope so I hope so yah-yah-yah hope so good point so you know immediately that's the obvious question you have a massive technology infrastructure is a global bank how do you prepare yourself to enable the organization to be successful when you really don't know what the future is gonna be well global banks and wealth BBBS a global gam Bank a certain component foundations you know today I would like to talk about risk and efficiency so World Bank's deal with risk with the market great the operational reputational risk and so on so risk control is part of all or DNA you know and when you've got millions of customers you know efficiency efficiency is a must so I think there's no problem with all these foundations they problem the problem analyze the problems appears when when banks translate these foundations is valued into technology so risk control or risk management avoid risk usually means by the most expensive proprietary technology in the market you know from one of the biggest software companies in the world you know so probably all of you there are so those people in the room were glad to hear you say that yeah probably my guess the name of those companies around San Francisco most of them and efficiency usually means a savory business unit as every department or country has his own specific needs by a specific solution for them so imagine yourself working in a data center full of silos with many different Hardware operating systems different languages and complex interfaces to communicate among them you know not always documented what really never documented so your life your life in is not easy you know in this scenario are well there's no room for innovation so what's been or or strategy be BES ready to move forward in this new digital world well we've chosen a different approach which is quite simple is to replace all local proprietary system by a global platform based on on open source with three main goals you know the first one is reduce the average transaction cost to one-third the second one is increase or developers productivity five times you know and the third is enable or delete the business be able to deliver solutions of three times faster so you're not quite easy Wow and everything with the same reliability as on security standards as we've got today Wow that is an extraordinary set of objectives and I will say their world on the path of making that successful which is just amazing yeah okay this is a long journey sometimes a tough journey you know to be honest so we decided to partnership with the with the best companies in there in the world and world record we think rate cut is one of these companies so we think or your values and your knowledge is critical for BBVA and well as I mentioned before our collaboration started some time ago you know and just an example in today in BBVA a Spain being one of the biggest banks in in the country you know and using red hat technology of course our firm and fronting architecture you know for mobile and internet channels runs the ninety five percent of our customers request this is approximately 3,000 requests per second and our back in architecture execute 70 millions of business transactions a day this is almost a 50% of total online transactions executed in the country so it's all running yes running I hope so you check for you came on stage it's I'll be flying you know okay good there's no wood up here to knock on it's been a really great partnership it's been a pleasure yeah thank you so much for being here thank you thank you [Applause] I do love that story because again so much of what we talk about when we when we talk about preparing for digital is a processed solution and again things like agile and DevOps and modular izing components of work but this idea of thinking about platforms broadly and how they can run anywhere and actually delivering it delivering at a scale it's just a phenomenal project and experience and in the progress they've made it's a great team so next up we have two organizations that have done an exceptional job of enabling their people with the right information and the tools they need to be successful you know in both of these cases these are organizations who are under constant change and so leveraging the power of open-source to help them build these tools to enable and you'll see it the size and the scale of these in two very very different contexts it's great to see and so I'd like to welcome on stage Oh smart alza' with dnm and David Abraham's with IAG [Music] Oh smart welcome thank you so much for being here Dave great to see you thank you appreciate you being here and congratulations to you both on winning the Innovation Awards thank you so Omar I really found your story fascinating and how you're able to enable your people with data which is just significantly accelerated the pace with which they can make decisions and accelerate your ability to to act could you tell us a little more about the project and then what you're doing Jim and Tina when the muchisimas gracias por ever say interesado pono true projecto [Music] encargado registry controller las entradas a leda's persona por la Frontera argentina yo sé de dos siento treinta siete puestos de contrôle tienen lo largo de la Frontera tanto area the restreamer it EEMA e if looool in dilute ammonia shame or cinta me Jonas the tránsito sacra he trod on in another Fronteras dingus idea idea de la Magneto la cual estamos hablando la Frontera cantina tienen extension the kin same in kilo metros esto es el gada mint a maje or allege Estancia kaeun a poor carretera a la co de mexico con el akka a direction emulation s 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calidad de vida de atras de mettre personas SI y meet our que el delito perform a trois Natura from Dana's Argentine sigue siendo en favor de esto SI temes uno de los países mess Alberto's Allah immigration en Latin America yah hora con una plataforma mas segunda first of all I want to thank you for the interest is played for our project the National migration administration or diem records the entry and exit of people on the Argentine territory it grants residents permits to foreigners who wish to live in our country through 237 entry points land air border sea and river ways Jim dnm registered over 80 million transits throughout last year Argentine borders cover about 15,000 kilometers just our just to give you an idea of the magnitude of our borders this is greater than the distance on a highway between Mexico City and Alaska our department applies the mechanisms that prevent the entry and residents of people involved in crimes like terrorism trafficking of persons weapons drugs and others in 2016 we shifted to a more preventive and predictive paradigm that is how Sam's the system for migration analysis was created with red hats great assistance and support this allowed us to tackle the challenge of integrating multiple and varied issues legal issues police databases national and international security organizations like Interpol API advanced passenger information and PNR passenger name record this involved starting private cloud with OpenShift Rev data virtualization cloud forms and fuse that were the basis to develop Sam and implementing machine learning models and artificial intelligence our analysts consulted a number of systems and other manual files before 2016 4 days for each person entering or leaving the country so this has allowed us to optimize our decisions making them in real time each time Sam is consulted it processes patterns of over two billion data entries Sam's aim is to improve the quality of life of our citizens and visitors making sure that crime doesn't pierce our borders in an environment of analytic evolution and constant improvement in essence Sam contributes toward Argentina being one of the leaders in Latin America in terms of immigration with our new system great thank you and and so Dave tell us a little more about the insurance industry and the challenges in the EU face yeah sure so you know in the insurance industry it's a it's been a bit sort of insulated from a lot of major change in disruption just purely from the fact that it's highly regulated and the cost of so that the barrier to entry is quite high in fact if you think about insurance you know you have to have capital reserves to protect against those major events like floods bush fires and so on but the whole thing is a lot of change there's come in a really rapid pace I'm also in the areas of customer expectations you know customers and now looking and expecting for the same levels of flexibility and convenience that they would experience with more modern and new startups they're expecting out of the older institutions like banks and insurance companies like us so definitely expecting the industry to to be a lot more adaptable and to better meet their needs I think the other aspect of it really is in the data the data area where I think that the donor is now creating a much more significant connection between organizations in a car summers especially when you think about the level of devices that are now enabled and the sheer growth of data that's that that's growing at exponential rates so so that the impact then is that the systems that we used to rely on are the technology we used to rely on to be able to handle that kind of growth no longer keeps up and is able to to you know build for the future so we need to sort of change that so what I G's really doing is transform transforming the organization to become a lot more efficient focus more on customers and and really set ourselves up to be agile and adaptive and so ya know as part of your Innovation Award that the specific set of projects you tied a huge amount of different disparate systems together and with M&A and other you have a lot to do there to you tell us a little more about kind of how you're able to better respond to customer needs by being able to do that yeah no you're right so we've we've we're nearly a hundred year old company that's grown from lots of merger and acquisition and just as a result of that that means that data's been sort of spread out and fragmented across multiple brands and multiple products and so the number one sort of issue and problem that we were hearing was that it was too hard to get access to data and it's highly complicated which is not great from a company from our perspective really because because we are a data company right that's what we do we we collect data about people what they what's important to them what they value and the environment in which they live so that we can understand that risk and better manage and protect those people so what we're doing is we're trying to make and what we have been doing is making data more open and accessible and and by that I mean making data more of easily available for people to use it to make decisions in their day-to-day activity and to do that what we've done is built a single data platform across the group that unifies the data into a single source of truth that we can then build on top of that single views of customers for example that puts the right information into the into the hands of the people that need it the most and so now why does open source play such a big part in doing that I know there are a lot of different solutions that could get you there sure well firstly I think I've been sauce has been k2 these and really it's been key because we've basically started started from scratch to build this this new next-generation data platform based on entirely open-source you know using great components like Kafka and Postgres and airflow and and and and and then fundamentally building on top of red Red Hat OpenStack right to power all that and they give us the flexibility that we need to be able to make things happen much faster for example we were just talking to the pivotal guys earlier this week here and some of the stuff that we're doing they're they're things quite interesting innovative writes even sort of maybe first in the world where we've taken the older sort of appliance and dedicated sort of massive parallel processing unit and ported that over onto red Red Hat OpenStack right which is now giving us a lot more flexibility for scale in a much more efficient way but you're right though that we've come from in the past a more traditional approach to to using vendor based technology right which was good back then when you know technology solutions could last for around 10 years or so on and and that was fine but now that we need to move much faster we've had to rethink that and and so our focus has been on using you know more commoditized open source technology built by communities to give us that adaptability and sort of remove the locking in there any entrenchment of technology so that's really helped us but but I think that the last point that's been really critical to us is is answering that that concern and question about ongoing support and maintenance right so you know in a regular environment the regulator is really concerned about anything that could fundamentally impact business operation and and so the question is always about what happens when something goes wrong who's going to be there to support you which is where the value of the the partnership we have with Red Hat has really come into its own right and what what it's done is is it's actually giving us the best of both worlds a means that we can we can leverage and use and and and you know take some of the technology that's being developed by great communities in the open source way but also partner with a trusted partner in red had to say you know they're going to stand behind that community and provide that support when we needed the most so that's been the kind of the real value out of that partnership okay well I appreciate I love the story it's how do you move quickly leverage the power community but do it in a safe secure way and I love the idea of your literally empowering people with machine learning and AI at the moment when they need it it's just an incredible story so thank you so much for being here appreciate it thank you [Applause] you know again you see in these the the importance of enabling people with data and in an old-world was so much data was created with a system in mind versus data is a separate asset that needs to be available real time to anyone is a theme we hear over and over and over again and so you know really looking at open source solutions that allow that flexibility and keep data from getting locked into proprietary silos you know is a theme that we've I've heard over and over over the past year with many of our customers so I love logistics I'm a geek that way I come from that background in the past and I know that running large complex operations requires flawless execution and that requires great data and we have two great examples today around how to engage own organizations in new and more effective ways in the case of lufthansa technik literally IT became the business so it wasn't enabling the business it became the business offering and importantly went from idea to delivery to customers in a hundred days and so this theme of speed and the importance of speed it's a it's a great story you'll hear more about and then also at UPS UPS again I talked a little earlier about IT used to be kind of the long pole in the tent the thing that was slow moving because of the technology but UPS is showing that IT can actually drive the business and the cadence of business even faster by demonstrating the power and potential of technology to engage in this case hundreds of thousands of people to make decisions real-time in the face of obviously constant change around weather mechanicals and all the different things that can happen in a large logistics operation like that so I'd like to welcome on stage to be us more from Lufthansa Technik and Nick Castillo from ups to be us welcome thank you for being here Nick thank you thank you Jim and congratulations on your Innovation Awards oh thank you it's a great honor so to be us let's start with you can you tell us a little bit more about what a viet are is yeah avatars are a digital platform offering features like aircraft condition analytics reliability management and predictive maintenance and it helps airlines worldwide to digitize and improve their operations so all of the features work and can be used separately or generate even more where you burn combined and finally we decided to set up a viet as an open platform that means that we avoid the whole aviation industry to join the community and develop ideas on our platform and to be as one of things i found really fascinating about this is that you had a mandate to do this at a hundred days and you ultimately delivered on it you tell us a little bit about that i mean nothing in aviation moves that fast yeah that's been a big challenge so in the beginning of our story the Lufthansa bot asked us to develop somehow digital to win of an aircraft within just hundred days and to deliver something of value within 100 days means you cannot spend much time and producing specifications in terms of paper etc so for us it was pretty clear that we should go for an angel approach and immediately start and developing ideas so we put the best experts we know just in one room and let them start to work and on day 2 I think we already had the first scribbles for the UI on day 5 we wrote the first lines of code and we were able to do that because it has been a major advantage for us to already have four technologies taken place it's based on open source and especially rated solutions because we did not have to waste any time setting up the infrastructure and since we wanted to get feedback very fast we were certainly visited an airline from the Lufthansa group already on day 30 and showed them the first results and got a lot of feedback and because from the very beginning customer centricity has been an important aspect for us and changing the direction based on customer feedback has become quite normal for us over time yeah it's an interesting story not only engaging the people internally but be able to engage with a with that with a launch customer like that and get feedback along the way as it's great thing how is it going overall since launch yeah since the launch last year in April we generated much interest in the industry as well from Airlines as from competitors and in the following month we focused on a few Airlines which had been open minded and already advanced in digital activities and we've got a lot of feedback by working with them and we're able to improve our products by developing new features for example we learned that data integration can become quite complex in the industry and therefore we developed a new feature called quick boarding allowing Airlines to integrate into the via table platform within one day using a self-service so and currently we're heading for the next steps beyond predictive maintenance working on process automation and prescriptive prescriptive maintenance because we believe prediction without fulfillment still isn't enough it really is a great example of even once you're out there quickly continuing to innovate change react it's great to see so Nick I mean we all know ups I'm still always blown away by the size and scale of the company and the logistics operations that you run you tell us a little more about the project and what we're doing together yeah sure Jim and you know first of all I think I didn't get the sportcoat memo I think I'm the first one up here today with a sport coat but you know first on you know on behalf of the 430,000 ups was around the world and our just world-class talented team of 5,000 IT professionals I have to tell you we're humbled to be one of this year's red hat Innovation Award recipients so we really appreciate that you know as a global logistics provider we deliver about 20 million packages each day and we've got a portfolio of technologies both operational and customer tech and another customer facing side the power what we call the UPS smart logistics network and I gotta tell you innovations in our DNA technology is at the core of everything we do you know from the ever familiar first and industry mobile platform that a lot of you see when you get delivered a package which we call the diad which believe it or not we delivered in 1992 my choice a data-driven solution that drives over 40 million of our my choice customers I'm whatever you know what this is great he loves logistics he's a my choice customer you could be one too by the way there's a free app in the App Store but it provides unmatched visibility and really controls that last mile delivery experience so now today we're gonna talk about the solution that we're recognized for which is called site which is part of a much greater platform that we call edge which is transforming how our package delivery teams operate providing them real-time insights into our operations you know this allows them to make decisions based on data from 32 disparate data sources and these insights help us to optimize our operations but more importantly they help us improve the delivery experience for our customers just like you Jim you know on the on the back end is Big Data and it's on a large scale our systems are crunching billions of events to render those insights on an easy-to-use mobile platform in real time I got to tell you placing that information in our operators hands makes ups agile and being agile being able to react to changing conditions as you know is the name of the game in logistics now we built edge in our private cloud where Red Hat technologies play a very important role as part of our overage overarching cloud strategy and our migration to agile and DevOps so it's it's amazing it's amazing the size and scale so so you have this technology vision around engaging people in a more effect way those are my word not yours but but I'd be at that's how it certainly feels and so tell us a little more about how that enables the hundreds of thousands people to make better decisions every day yep so you know we're a people company and the edge platform is really the latest in a series of solutions to really empower our people and really power that smart logistics network you know we've been deploying technology believe it or not since we founded the company in 1907 we'll be a hundred and eleven years old this August it's just a phenomenal story now prior to edge and specifically the syphon ishutin firm ation from a number of disparate systems and reports they then need to manually look across these various data sources and and frankly it was inefficient and prone to inaccuracy and it wasn't really real-time at all now edge consumes data as I mentioned earlier from 32 disparate systems it allows our operators to make decisions on staffing equipment the flow of packages through the buildings in real time the ability to give our people on the ground the most up-to-date data allows them to make informed decisions now that's incredibly empowering because not only are they influencing their local operations but frankly they're influencing the entire global network it's truly extraordinary and so why open source and open shift in particular as part of that solution yeah you know so as I mentioned Red Hat and Red Hat technology you know specifically open shift there's really core to our cloud strategy and to our DevOps strategy the tools and environments that we've partnered with Red Hat to put in place truly are foundational and they've fundamentally changed the way we develop and deploy our systems you know I heard Jose talk earlier you know we had complex solutions that used to take 12 to 18 months to develop and deliver to market today we deliver those same solutions same level of complexity in months and even weeks now openshift enables us to container raise our workloads that run in our private cloud during normal operating periods but as we scale our business during our holiday peak season which is a very sure window about five weeks during the year last year as a matter of fact we delivered seven hundred and sixty-two million packages in that small window and our transactions our systems they just spiked dramatically during that period we think that having open shift will allow us in those peak periods to seamlessly move workloads to the public cloud so we can take advantage of burst capacity economically when needed and I have to tell you having this flexibility I think is key because you know ultimately it's going to allow us to react quickly to customer demands when needed dial back capacity when we don't need that capacity and I have to say it's a really great story of UPS and red hat working you together it really is a great story is just amazing again the size and scope but both stories here a lot speed speed speed getting to market quickly being able to try things it's great lessons learned for all of us the importance of being able to operate at a fundamentally different clock speed so thank you all for being here very much appreciated congratulate thank you [Applause] [Music] alright so while it's great to hear from our Innovation Award winners and it should be no surprise that they're leading and experimenting in some really interesting areas its scale so I hope that you got a chance to learn something from these interviews you'll have an opportunity to learn more about them you'll also have an opportunity to vote on the innovator of the year you can do that on the Red Hat summit mobile app or on the Red Hat Innovation Awards homepage you can learn even more about their stories and you'll have a chance to vote and I'll be back tomorrow to announce the the summit winner so next I like to spend a few minutes on talking about how Red Hat is working to catalyze our customers efforts Marko bill Peter our senior vice president of customer experience and engagement and John Alessio our vice president of global services will both describe areas in how we are working to configure our own organization to effectively engage with our customers to use open source to help drive their success so with that I'd like to welcome marquel on stage [Music] good morning good morning thank you Jim so I want to spend a few minutes to talk about how we are configured how we are configured towards your success how we enable internally as well to work towards your success and actually engage as well you know Paul yesterday talked about the open source culture and our open source development net model you know there's a lot of attributes that we have like transparency meritocracy collaboration those are the key of our culture they made RedHat what it is today and what it will be in the future but we also added our passion for customer success to that let me tell you this is kind of the configuration from a cultural perspective let me tell you a little bit on what that means so if you heard the name my organization is customer experience and engagement right in the past we talked a lot about support it's an important part of the Red Hat right and how we are configured we are configured probably very uniquely in the industry we put support together we have product security in there we add a documentation we add a quality engineering into an organization you think there's like wow why are they doing it we're also running actually the IT team for actually the product teams why are we doing that now you can imagine right we want to go through what you see as well right and I'll give you a few examples on how what's coming out of this configuration we invest more and more in testing integration and use cases which you are applying so you can see it between the support team experiencing a lot what you do and actually changing our test structure that makes a lot of sense we are investing more and more testing outside the boundaries so not exactly how things must fall by product management or engineering but also how does it really run in an environment that you operate we run complex setups internally right taking openshift putting in OpenStack using software-defined storage underneath managing it with cloud forms managing it if inside we do that we want to see how that works right we are reshaping documentation console to kind of help you better instead of just documenting features and knobs as in how can how do you want to achieve things now part of this is the configuration that are the big part of the configuration is the voice of the customer to listen to what you say I've been here at Red Hat a few years and one of my passion has always been really hearing from customers how they do it I travel constantly in the world and meet with customers because I want to know what is really going on we use channels like support we use channels like getting from salespeople the interaction from customers we do surveys we do you know we interact with our people to really hear what you do what we also do what maybe not many know and it's also very unique in the industry we have a webpage called you asked reacted we show very transparently you told us this is an area for improvement and it's not just in support it's across the company right build us a better web store build us this we're very transparent about Hades improvements we want to do with you now if you want to be part of the process today go to the feedback zone on the next floor down and talk to my team I might be there as well hit me up we want to hear the feedback this is how we talk about configuration of the organization how we are configured let me go to let me go to another part which is innovation innovation every day and that in my opinion the enable section right we gotta constantly innovate ourselves how do we work with you how do we actually provide better value how do we provide faster responses in support this is what we would I say is is our you know commitment to innovation which is the enabling that Jim talked about and I give you a few examples which I'm really happy and it kind of shows the open source culture at Red Hat our commitment is for innovation I'll give you good example right if you have a few thousand engineers and you empower them you kind of set the business framework as hey this is an area we got to do something you get a lot of good IDs you get a lot of IDs and you got a shape an inter an area that hey this is really something that brings now a few years ago we kind of said or I say is like based on a lot of feedback is we got to get more and more proactive if you customers and so I shaped my team and and I shaped it around how can we be more proactive it started very simple as in like from kbase articles or knowledgebase articles in getting started guys then we started a a tool that we put out called labs you've probably seen them if you're on the technical side really taking small applications out for you to kind of validate is this configured correctly stat configure there was the start then out of that the ideas came and they took different turns and one of the turns that we came out was right at insights that we launched a few years ago and did you see the demo yesterday that in Paul's keynote that they showed how something was broken with one the data centers how it was applied to fix and how has changed this is how innovation really came from the ground up from the support side and turned into something really a being a cornerstone of our strategy and we're keeping it married from the day to day work right you don't want to separate this you want to actually keep that the data that's coming from the support goes in that because that's the power that we saw yesterday in the demo now innovation doesn't stop when you set the challenge so we did the labs we did the insights we just launched a solution engine called solution engine another thing that came out of that challenge is in how do we break complex issues down that it's easier for you to find a solution quicker it's one example but we're also experimenting with AI so insights uses AI as you probably heard yesterday we also use it internally to actually drive faster resolution we did in one case with a a our I bought basically that we get to 25% faster resolution on challenges that you have the beauty for you obviously it's well this is much faster 10% of all our support cases today are supported and assisted by an AI now I'll give you another example of just trying to tell you the innovation that comes out if you configure and enable the team correctly kbase articles are knowledgebase articles we q8 thousands and thousands every year and then I get feedback as and while they're good but they're in English as you can tell my English is perfect so it's not no issue for that but for many of you is maybe like even here even I read it in Japanese so we actually did machine translation because it's too many that we can do manually the using machine translation I can tell it's a funny example two weeks ago I tried it I tried something from English to German I looked at it the German looked really bad I went back but the English was bad so it really translates one to one actually what it does but it's really cool this is innovation that you can apply and the team actually worked on this and really proud on that now the real innovation there is not these tools the real innovation is that you can actually shape it in a way that the innovation comes that you empower the people that's the configure and enable and what I think is all it's important this don't reinvent the plumbing don't start from scratch use systems like containers on open shift to actually build the innovation in a smaller way without reinventing the plumbing you save a lot of issues on security a lot of issues on reinventing the wheel focus on that that's what we do as well if you want to hear more details again go in the second floor now let's talk about the engage that Jim mentioned before what I translate that engage is actually engaging you as a customer towards your success now what does commitment to success really mean and I want to reflect on that on a traditional IT company shows up with you talk the salesperson solution architect works with you consulting implements solution it comes over to support and trust me in a very traditional way the support guy has no clue what actually was sold early on it's what happens right and this is actually I think that red had better that we're not so silent we don't show our internal silos or internal organization that much today we engage in a way it doesn't matter from which team it comes we have a better flow than that you deserve how the sausage is made but we can never forget what was your business objective early on now how is Red Hat different in this and we are very strong in my opinion you might disagree but we are very strong in a virtual accounting right really putting you in the middle and actually having a solution architect work directly with support or consulting involved and driving that together you can also help us in actually really embracing that model if that's also other partners or system integrators integrate put yourself in the middle be around that's how we want to make sure that we don't lose sight of the original business problem trust me reducing the hierarchy or getting rid of hierarchy and bureaucracy goes a long way now this is how we configured this is how we engage and this is how we are committed to your success with that I'm going to introduce you to John Alessio that talks more about some of the innovation done with customers thank you [Music] good morning I'm John Alessio I'm the vice president of Global Services and I'm delighted to be with you here today I'd like to talk to you about a couple of things as it relates to what we've been doing since the last summit in the services organization at the core of everything we did it's very similar to what Marco talked to you about our number one priority is driving our customer success with red hat technology and as you see here on the screen we have a number of different offerings and capabilities all the way from training certification open innovation labs consulting really pairing those capabilities together with what you just heard from Marco in the support or cee organization really that's the journey you all go through from the beginning of discovering what your business challenge is all the way through designing those solutions and deploying them with red hat now the highlight like to highlight a few things of what we've been up to over the last year so if I start with the training and certification team they've been very busy over the last year really updating enhancing our curriculum if you haven't stopped by the booth there's a preview for new capability around our learning community which is a new way of learning and really driving that enable meant in the community because 70% of what you need to know you learned from your peers and so it's a very key part of our learning strategy and in fact we take customer satisfaction with our training and certification business very seriously we survey all of our students coming out of training 93% of our students tell us they're better prepared because of red hat training and certification after Weeds they've completed the course we've updated the courses and we've trained well over a hundred and fifty thousand people over the last two years so it's a very very key part of our strategy and that combined with innovation labs and the consulting operation really drive that overall journey now we've been equally busy in enhancing the system of enablement and support for our business partners another very very key initiative is building out the ecosystem we've enhanced our open platform which is online partner enablement network we've added new capability and in fact much of the training and enablement that we do for our internal consultants our deal is delivered through the open platform now what I'm really impressed with and thankful for our partners is how they are consuming and leveraging this material we train and enable for sales for pre-sales and for delivery and we're up over 70% year in year in our partners that are enabled on RedHat technology let's give our business partners a round of applause now one of our offerings Red Hat open innovation labs I'd like to talk a bit more about and take you through a case study open innovation labs was created two years ago it's really there to help you on your journey in adopting open source technology it's an immersive experience where your team will work side-by-side with Red Hatters to really propel your journey forward in adopting open source technology and in fact we've been very busy since the summit in Boston as you'll see coming up on the screen we've completed dozens of engagements leveraging our methods tools and processes for open innovation labs as you can see we've worked with large and small accounts in fact if you remember summit last year we had a European customer easier AG on stage which was a startup and we worked with them at the very beginning of their business to create capabilities in a very short four-week engagement but over the last year we've also worked with very large customers such as Optim and Delta Airlines here in North America as well as Motability operations in the European arena one of the accounts I want to spend a little bit more time on is Heritage Bank heritage Bank is a community owned bank in Toowoomba Australia their challenge was not just on creating new innovative technology but their challenge was also around cultural transformation how to get people to work together across the silos within their organization we worked with them at all levels of the organization to create a new capability the first engagement went so well that they asked us to come in into a second engagement so I'd like to do now is run a video with Peter lock the chief executive officer of Heritage Bank so he can take you through their experience Heritage Bank is one of the country's oldest financial institutions we have to be smarter we have to be more innovative we have to be more agile we had to change we had to find people to help us make that change the Red Hat lab is the only one that truly helps drive that change with a business problem the change within the team is very visible from the start to now we've gone from being separated to very single goal minded seeing people that I only ever seen before in their cubicles in the room made me smile programmers in their thinking I'm now understanding how the whole process fits together the productivity of IT will change and that is good for our business that's really the value that were looking for the Red Hat innovation labs for us were a really great experience I'm not interested in running an organization I'm interested in making a great organization to say I was pleasantly surprised by it is an understatement I was delighted I love the quote I was delighted makes my heart warm every time I see that video you know since we were at summit for those of you who are with us in Boston some of you went on our hardhat tours we've opened three physical facilities here at Red Hat where we can conduct red head open Innovation Lab engagements Singapore London and Boston were all opened within the last physical year and in fact our site in Boston is paired with our world-class executive briefing center as well so if you haven't been there please do check it out I'd like to now talk to you a bit about a very special engagement that we just recently completed we just recently completed an engagement with UNICEF the United Nations Children's Fund and the the purpose behind this engagement was really to help UNICEF create an open-source platform that marries big data with social good the idea is UNICEF needs to be better prepared to respond to emergency situations and as you can imagine emergency situations are by nature unpredictable you can't really plan for them they can happen anytime anywhere and so we worked with them on a project that we called school mapping and the idea was to provide more insights so that when emergency situations arise UNICEF could do a much better job in helping the children in the region and so we leveraged our Red Hat open innovation lab methods tools processes that you've heard about just like we did at Heritage Bank and the other accounts I mentioned but then we also leveraged Red Hat software technologies so we leveraged OpenShift container platform we leveraged ansible automation we helped the client with a more agile development approach so they could have releases much more frequently and continue to update this over time we created a continuous integration continuous deployment pipeline we worked on containers and container in the application etc with that we've been able to provide a platform that is going to allow for their growth to better respond to these emergency situations let's watch a short video on UNICEF mission of UNICEF innovation is to apply technology to the world's most pressing problems facing children data is changing the landscape of what we do at UNICEF this means that we can figure out what's happening now on the ground who it's happening to and actually respond to it in much more of a real-time manner than we used to be able to do we love working with open source communities because of their commitment that we should be doing good for the world we're actually with red hat building a sandbox where universities or other researchers or data scientists can connect and help us with our work if you want to use data for social good there's so many groups out there that really need your help and there's so many ways to get involved [Music] so let's give a very very warm red hat summit welcome to Erica kochi co-founder of unicef innovation well Erica first of all welcome to Red Hat summit thanks for having me here it's our pleasure and thank you for joining us so Erica I've just talked a bit about kind of what we've been up to and Red Hat services over the last year we talked a bit about our open innovation labs and we did this project the school mapping project together our two teams and I thought the audience might find it interesting from your point of view on why the approach we use in innovation labs was such a good fit for the school mapping project yeah it was a great fit for for two reasons the first is values everything that we do at UNICEF innovation we use open source technology and that's for a couple of reasons because we can take it from one place and very easily move it to other countries around the world we work in 190 countries so that's really important for us not to be able to scale things also because it makes sense we can get we can get more communities involved in this and look not just try to do everything by ourselves but look much open much more openly towards the open source communities out there to help us with our work we can't do it alone yeah and then the second thing is methodology you know the labs are really looking at taking this agile approach to prototyping things trying things failing trying again and that's really necessary when you're developing something new and trying to do something new like mapping every school in the world yeah very challenging work think about it 190 countries Wow and so the open source platform really works well and then the the rapid prototyping was really a good fit so I think the audience might find it interesting on how this application and this platform will help children in Latin America so in a lot of countries in Latin America and many countries throughout the world that UNICEF works in are coming out of either decades of conflict or are are subject to natural disasters and not great infrastructure so it's really important to a for us to know where schools are where communities are well where help is needed what's connected what's not and using a overlay of various sources of data from poverty mapping to satellite imagery to other sources we can really figure out what's happening where resources are where they aren't and so we can plan better to respond to emergencies and to and to really invest in areas that are needed that need that investment excellent excellent it's quite powerful what we were able to do in a relatively short eight or nine week engagement that our two teams did together now many of your colleagues in the audience are using open source today looking to expand their use of open source and I thought you might have some recommendations for them on how they kind of go through that journey and expanding their use of open source since your experience at that yeah for us it was it was very much based on what's this gonna cost we have limited resources and what's how is this gonna spread as quickly as possible mm-hmm and so we really asked ourselves those two questions you know about 10 years ago and what we realized is if we are going to be recommending technologies that governments are going to be using it really needs to be open source they need to have control over it yeah and they need to be working with communities not developing it themselves yeah excellent excellent so I got really inspired with what we were doing here in this project it's one of those you know every customer project is really interesting to me this one kind of pulls a little bit at your heartstrings on what the real impact could be here and so I know some of our colleagues here in the audience may want to get involved how can they get involved well there's many ways to get involved with the other UNICEF or other groups out there you can search for our work on github and there are tasks that you can do right now if and if you're looking for to do she's got work for you and if you want sort of a more a longer engagement or a bigger engagement you can check out our website UNICEF stories org and you can look at the areas you might be interested in and contact us we're always open to collaboration excellent well Erica thank you for being with us here today thank you for the great project we worked on together and have a great summer thank you for being give her a round of applause all right well I hope that's been helpful to you to give you a bit of an update on what we've been focused on in global services the message I'll leave with you is our top priority is customer success as you heard through the story from UNICEF from Heritage Bank and others we can help you innovate where you are today I hope you have a great summit and I'll call out Jim Whitehurst thank you John and thank you Erica that's really an inspiring story we have so many great examples of how individuals and organizations are stepping up to transform in the face of digital disruption I'd like to spend my last few minutes with one real-world example that brings a lot of this together and truly with life-saving impact how many times do you think you can solve a problem which is going to allow a clinician to now save the life I think the challenge all of his physicians are dealing with is data overload I probably look at over 100,000 images in a day and that's just gonna get worse what if it was possible for some computer program to look at these images with them and automatically flag images that might deserve better attention Chris on the surface seems pretty simple but underneath Chris has a lot going on in the past year I've seen Chris Foreman community and a space usually dominated by proprietary software I think Chris can change medicine as we know it today [Music] all right with that I'd like to invite on stage dr. Ellen grant from Boston Children's Hospital dr. grant welcome thank you for being here so dr. grant tell me who is Chris Chris does a lot of work for us and I think Chris is making me or has definitely the potential to make me a better doctor Chris helps us take data from our archives in the hospital and port it to wrap the fastback ends like the mass up and cloud to do rapid data processing and provide it back to me in any format on a desktop an iPad or an iPhone so it it basically brings high-end data analysis right to me at the bedside and that's been a barrier that I struggled with years ago to try to break down so that's where we started with Chris is to to break that barrier between research that occurred on a timeline of days to weeks to months to clinical practice which occurs in the timeline of seconds to minutes well one of things I found really fascinating about this story RedHat in case you can't tell we're really passionate about user driven innovation is this is an example of user driven innovation not directly at a technology company but in medicine excuse me can you tell us just a little bit about the genesis of Chris and how I got started yeah Chris got started when I was running a clinical division and I was very frustrated with not having the latest image analysis tools at my fingertips while I was on clinical practice and I would have to on the research so I could go over and you know do line code and do the data analysis but if I'm always over in clinical I kept forgetting how to do those things and I wanted to have all those innovations that my fingertips and not have to remember all the computer science because I'm a physician not like a better scientist so I wanted to build a platform that gave me easy access to that back-end without having to remember all the details and so that's what Chris does for us is brings allowed me to go into the PAC's grab a dataset send it to a computer and back in to do the analysis and bring it back to me without having to worry about where it was or how it got there that's all involved in the in the platform Chris and why not just go to a vendor and ask them to write a piece of software for you to do that yeah we thought about that and we do a lot of technical innovations and we always work with the experts so we wanted to work with if I'm going to be able to say an optical device I'm going to work with the optical engineers or an EM our system I'm going to work with em our engineers so we wanted to work with people who really knew or the plumbers so to speak of the software in industry so we ended up working with the massive point cloud for the platform and the distributed systems in Red Hat as the infrastructure that's starting to support Chris and that's been actually a really incredible journey for us because medical ready medical softwares not typically been a community process and that's something that working with dan from Red Hat we learned a lot about how to participate in an open community and I think our team has grown a lot as a result of that collaboration and I know you we've talked about in the past that getting this data locked into a proprietary system you may not be able to get out there's a real issue can you talk about the importance of open and how that's worked in the process yeah and I think for the medical community and I find this resonates with other physicians as well too is that it's medical data we want to continue to own and we feel very awkward about giving it to industry so we would rather have our data sitting in an open cloud like the mass open cloud where we can have a data consortium that oversees the data governance so that we're not giving our data way to somebody else but have a platform that we can still keep a control of our own data and I think it's going to be the future because we're running of a space in the hospital we generate so much data and it's just going to get worse as I was mentioning and all the systems run faster we get new devices so the amount of data that we have to filter through is just astronomically increasing so we need to have resources to store and compute on such large databases and so thinking about where this could go I mean this is a classic feels like an open-source project it started really really small with a originally modest set of goals and it's just kind of continue to grow and grow and grow it's a lot like if yes leanest torval Linux would be in 1995 you probably wouldn't think it would be where it is now so if you dream with me a little bit where do you think this could possibly go in the next five years ten years what I hope it'll do is allow us to break down the silos within the hospital because to do the best job at what we physicians do not only do we have to talk and collaborate together as individuals we have to take the data each each community develops and be able to bring it together so in other words I need to be able to bring in information from vital monitors from mr scans from optical devices from genetic tests electronic health record and be able to analyze on all that data combined so ideally this would be a platform that breaks down those information barriers in a hospital and also allows us to collaborate across multiple institutions because many disorders you only see a few in each hospital so we really have to work as teams in the medical community to combine our data together and also I'm hoping that and we even have discussions with people in the developing world because they have systems to generate or to got to create data or say for example an M R system they can't create data but they don't have the resources to analyze on it so this would be a portable for them to participate in this growing data analysis world without having to have the infrastructure there and be a portal into our back-end and we could provide the infrastructure to do the data analysis it really is truly amazing to see how it's just continued to grow and grow and expand it really is it's a phenomenal story thank you so much for being here appreciate it thank you [Applause] I really do love that story it's a great example of user driven innovation you know in a different industry than in technology and you know recognizing that a clinicians need for real-time information is very different than a researchers need you know in projects that can last weeks and months and so rather than trying to get an industry to pivot and change it's a great opportunity to use a user driven approach to directly meet those needs so we still have a long way to go we have two more days of the summit and as I said yesterday you know we're not here to give you all the answers we're here to convene the conversation so I hope you will have an opportunity today and tomorrow to meet some new people to share some ideas we're really really excited about what we can all do when we work together so I hope you found today valuable we still have a lot more happening on the main stage as well this afternoon please join us back for the general session it's a really amazing lineup you'll hear from the women and opensource Award winners you'll also hear more about our collab program which is really cool it's getting middle school girls interested in open sourcing coding and so you'll have an opportunity to see some people involved in that you'll also hear from the open source Story speakers and you'll including in that you will see a demo done by a technologist who happens to be 11 years old so really cool you don't want to miss that so I look forward to seeing you then this afternoon thank you [Applause]

>> Announcer: Live, from Las Vegas, It's theCUBE, covering IBM Think 2018. Brought to you by IBM. >> We're back at IBM Think 2018 from Mandalay Bay in Las Vegas. My name is Dave Vellante. I'm here with Peter Burris, my co-host. You're watching theCUBE, the leader in live tech coverage. Scott Hebner's here as the Vice President of Marketing for IBM Analytics. Scott, welcome back, good to see you. >> Thank you, glad to be back again. >> So you heard Jenny this morning, a very inspiring speech. I love her talks. She's really good in front of an audience and one-on-one. What were your takeaways, specifically as it relates to your group? >> Well I think the theme of this whole conference is a lot of these technologies over the years that have been purchased separately and are thought of separate, quote-unquote, segments, are really all starting to fuse together. They're becoming different facets of the same challenge that a large majority of our clients have. And that is really this evolution towards a more AI based set of business models, right? There's a stack of things that need to be done to make that successful. You've got to move to the cloud for the agility of it, the economics of it. You got to get more value out of your data, and make your data ready for AI. Then you can start to more effectively train your AI models and allow them to continue to learn and everything. So it all really comes together, and I thought that's what she was framing, of what IBM's trying to do uniquely. >> Yeah, and I think it came across that way. Obviously, this conference is about bringing together all the separate... And your organization is evolving. I mean, when you think about IBM... Go back, Peter, to even the Gerstner days, and he said, "No, we're not going to split up "into a million companies. "We're going to have one face to the customer." And then, obviously, IBM was very successful there. You now had some major changes in the marketplace and you're responding to those. >> Yeah, and I think that's exactly right. We're being very customer-driven. One of the great advantages of IBM is that we have so many customers, right? A mix of new ones, a mix of ones we've had for a long time. We have so many people that engage. If you think about the size of IBM and how many are engaged with customers every single day at all levels, from the very most technical to the people that manage relationships, we learn a lot collectively. With all the new technologies, particularly around digital, net promoter score, all these things, we learn a lot about what they're trying to do. And that's what's driving us to fuse these strategies together into a more wholistic one. And that's what you heard this morning from Jenny. >> So, I also really enjoyed what I heard this morning from Jenny. It takes me reminded me, though, of one of those television shows where people bring in their old family artifacts, and then people price them. I imagine enterprises today literally looking at their data, the 80% that nobody has visibility to, and finding Grandpa's letter from Abraham Lincoln. >> Yeah. >> And using and discovering that this is a source of value that they've never envisioned before. Is that kind of the mentality, the conversation, that we're having today? >> No, that's exactly right. A large, large majority of CEOs have declared their data to be a strategic asset, but only about 10% of them believe their company treats it that way. And it leads to the statistic that you just referenced, which is 80% of data is either unanalyzed, untrusted, or inaccessible. So they're sitting on a gold mine of data, right? It's not just empirical customer records, but it's increasingly IOT and sensor data. It's behavioral data. There's a gold mine there. Step one is how do you take advantage of that and get more value out of it, right? Just in today's world, right? And then it really becomes fundamental to being successful with artificial intelligence. You have to have an information architecture. We kind of say if there's no IA, there's no AI. You have to have that information architecture to be successful, and that's really where we're focused on at this conference today, is getting that data ready for AI. >> So getting the data ready for AI, there's a lot that goes into that. But when you consider the notion of data as an asset, and what we heard from Jenny this morning, it seems as so, in many respects, there's kind of two models happening in the industry. You can see if I got this right. Companies that make money off of your data and companies that aren't going to make money off of your data. >> Right. >> Would you agree... I mean, is that kind of how the split is starting to happen in the industry right now? >> Yeah, no, I think that's right. I mean, I think a large majority of our clients are using their data within their firewall to operate their businesses better, better understand their customers. >> No, I learned something different. Yeah, sorry, I apologize. Companies that are going to make money off their customers' data-- >> Yes. >> And companies that are not going to make money off their customers' data. >> Yeah. >> Right? >> Yeah. What I'm saying is... No, I get the question. Different companies have different business models with what they're going to do with their data. Some see it as an asset to run their business more effectively. Others see it at as a direct asset that they sell and resell and resell, right? What I'm saying is the majority of the customers we deal with are looking at their data as an asset to run their business better. >> And that's the basis for the argument that the incumbency, that we're entering back into the area of the incumbency because of all these rich assets that aren't currently being utilized. Is that right? >> That's right. >> Great. >> It all starts with the fact that the data is fragmented everywhere. Business partner networks across different databases. Step one is to make that data simple and accessible. But once you do that, that's not the end of it because you need to make sure that the data that people are using is trusted. You have to have that trusted analytics foundation. So you got to integrate it, replicate it, catalog it, cleanse it, manage its lifecycle. You need to have one version of the truth, right, that everyone works off of, which is a major problem, by the way. It's the whole notion of governance and that falls into other categories like privacy and all the compliance challenges that customers have. Then from there, you have that foundation where you can start to drive more insights out of it through things like machine learning and pattern recognition. As you start to build those skills around data science, it starts to get you really ready for that next step on that ladder to AI. That's where a lot of these customers are figuring out how do I get on this roadmap to AI. And 85% or so say they're going to get there in the next five years. There's a great study from MIT Sloan that came out last year of 3,000 customers and was very clear. The difference between the pioneers that are having success, and those that aren't, is the pioneers have figured out how to make their data ready for AI. It all really starts there. That's really what we're focused on here at the show. >> Let's talk about that incumbent theme. It was part of Jenny's talk this morning. >> Scott: Yup. >> And you're right, the incumbents, their data exists in silos, even though they're maybe data companies, like a bank. >> Scott: Yeah. >> They're organized, perhaps, around their products. Or a manufacturer might be organized around the bottling plant, as you say. Whereas those companies that are AI driven have data at their core. So it's a challenge for the incumbent. >> Huge. >> How are you helping them close that gap, that AI gap, if you will? >> Right, and that's exactly what I was just saying before, is that the data is incredibly dynamic and growing at exponential rates. Not only through what you just mentioned, but there's acquisitions. There's different business partners that evolve through your networks, your client data, things of that nature. >> Dave: And data sources, yeah. >> Data sources are changing. And then you get into the technical layer of all different types of data, from images to empirical data. And then you get into different databases. It becomes a very heterogenous mess. Step one is to make it simple and accessible. And doing that though big data and being able to view through a single layer all the data as it changes, right? Because if you don't have access to your data, then what are you going to be training your AI algorithms on? And again, from there, you've got to govern it in a way that it's trusted data. This is a huge challenge for customers, because they get different versions of data that tell them different things. Which is the single version of the truth? It's kind of like if you've ever been on a... When you get on a treadmill, your watch says this many steps, your phone says another number of steps, the treadmill says the third number of steps. You're like, how many steps did I really take? They have that challenge every day. When you get that foundation and information architecture together, then you're ready for AI. What this MIT Sloan study showed was that bad data is paralyzing to AI. No matter how sophisticated your algorithmic AI capabilities are, bad data is simply paralyzing. So that's really where it needs to start. To circle back to your point about 80% of data, untrusted, unanalyzed, and inaccessible, that's got to be step one on that ladder to AI. >> So how are we going to use ML, machine learning AI, to help us get our data ready for machine learning AI? >> Well, that's exactly what we're doing in the IBM portfolio of data and analytics products, is we have this theme called Machine Learning Everywhere. So it actually is in almost every part of our platform. Hybrid data management uses machine learning to help do a much quicker assessment of how you bring data together and analyze it and things of that nature. We use it in the governance. In fact, we have a technology prototype that we've been working with some customers on, that will do the work for GDPR, the European Compliance Guidelines, in probably a few days to a week versus months and months and months. 'Cause we will go in and do all the entity associations for all your data. Help you organize it in a way that you can actually manage what to do with the compliance. And then, obviously, machine language is fundamental to just business analytics in general, right, pattern recognition. The traditional analytics tools will help you understand the data as it's presented, based on what you are trying to get out of it. Often, you don't know what you're trying to get out of it. Machine learning gives that data science method of actually uncovering patterns, which you can't really see. >> Peter: Creating models. >> Yeah, creating models and then you add the neuro-networks to it in deep learning. It's really literally a ladder that you're building that when you get to AI, you're going to be a lot more successful because you've built that trusted foundation underneath it. And I think Jenny was touching on that to some degree this morning. That's what we're majoring on, is that that data is really the key element of AI. >> Scott, who are the roles that you see developing this information architecture, getting ready for AI? CDO, CIO, Chief Digital Officer, where do they all fit? >> Yeah, I think it leads under the CDO. And actually both CDOs, the chief digital officer and the chief data officer, and their collection of data engineers, data stewards, things of that nature. 'Cause, again, you got to start by getting that information architecture in place. It also involves sort of a new generation of data developers that are building cloud-based data intensive applications, particularly of event-space data, which is a little bit different that customer data from sensors and all that, where you need that massive ingest speeds. It's those data-driven applications from the cloud that are really starting to incorporate machine learning. So they become really key. Then from there, if you think of it as a collaborative lifecycle, you get into the data scientists that are applying analytics. They're applying a more sophisticated version of mathematical programming and data science. Then there's a new, sort of subset of them, which are the AI developers. It's really from the data engineer right through business analysts. There's a lifecycle of people that are part of that team. They all have to work off a common platform, a common set of trusted data, to be successful. 'Cause you can no longer segment it. >> Is your strategy to build tooling that allows all of those roles to collaborate, maybe not the chief digital and chief data officer, but the data engineer, the data quality engineer, the application developer, the data scientist, right. Is that correct? >> That is absolutely correct and the CDOs. Actually, what we're announcing at the show is a new offer called IBM Cloud Private For Data. >> Dave: Right. >> So if you're familiar with IBM Cloud Private, it's our private, behind the firewall, cloud platform. We're coming out with a new offering that plugs into it. It's based on Coubanettis, so it runs on IBM Cloud Private For Data, and will run on other Coubanettis-based platforms. It is a fully integrated data and analytics platform, where no assembly is required. It will provision in minutes a pre-assembled, customized experience for you, based on what your role is. So if you're the CDO and you're the data scientist, and I'm the data engineer, we're all going to have a different set of requirements of what we want to get out of the data and what we're looking to do. It will pre-provision that for you very, very quickly. And you're all working off a common platform. It's collaborative in nature, with dynamic dashboards so you can see what's going on. It's really taking the building blocks that you need to move up that ladder and integrating to microservices in to a cloud platform that is just lightning fast in terms of, not only its ingest speeds of data but, more importantly, the ability to provision new users. So it's a major step forward in making it so much easier, so much more simple to get more out of your data and to get your data ready for AI. >> So, last question. You have this giant portfolio. We just finished our Big Data report. You guys, IBM, came up number one. Well, that was services, but still, you got a lot of software in there as well. >> Scott: Yes, we do. >> You've been working hard to pull those pieces together so the clients, it's simplify data. >> Scott: Yup. >> Okay, here's where are are, 2018, where do you want to take this thing? >> Well, I think, again, I think step one is this unified experiences. Because, again, we were kind of majoring on this conversation about the desegmentation of how people work in a business, what technology, what data they use. 'Cause with AI, it really does need to come together, right? So we're trying to do the same thing for the users, which is provision-based, almost on-demand, what you need based on what you're looking to do. And I think what's going to change as we go through time is it becomes more and more machine learning based, pattern recognition. It's more automated and customized and personalized, based on what you're trying to do. That's going to allow businesses to move at a much more rapid pace. And, again, I think the overriding theme when you look over a five year horizon is, is your data ready for AI? And that's where we're moving this whole thing. It's about the data. It's about the people and their skills. And it's the ability to move quickly. That's where the linkage with cloud comes in. >> Getting to pervasive AI, but you got to get your data house in order first. >> You got it. >> Scott Hebner, thanks very much for coming on theCUBE. >> Thank you. >> Great to see you again. >> Great meeting you. >> All right, keep right there everybody. We'll be back with our next guest. You're watching theCUBE at IBM Think 2018.

(energetic electronic music) >> Narrator: Live from Nassau in the Bahamas, it's theCUBE! Covering POLYCON18, brought to you by Polymath. >> Hey, welcome back everyone. This is exclusive live CUBE coverage here in the Bahamas for POLYCON18, it's a crypto event. Just talking economics. It's all the players in the space really discussing the future. I'm John Furrier with my co-host Dave Vellante. Our next guest, Bill Tai, friend, Facebook friend, industry legend, venture capitalist, kite surfer. His Twitter handle is @kitevc. Follow him. He's also involved in Bitfury and a lot of Bitcoin-related activities. Been a mentor to others. Great to have you, Bill. >> Thank you, John. I really appreciate you having me on the show. >> You tweeted in 2010, "This Bitcoin thing is interesting. "Check out this white paper." Can? >> Yeah, that was a >> Seminal moment. >> You know, back then I didn't know it would be, maybe a seminal moment. I was just lonely. (laughing) So, and the back story there, a very good friend of mine is Philip Rosedale, and he had approached me when he was starting a site called Second Life, where you basically create a digital avatar, maybe of yourself, maybe not, and you have this kind of, you know, world where you have people in an unstructured environment. And in the very early days of Second Life, when people were kind of just milling about, I said to Philip, I said, "Hey, Philip. "You know, maybe we should create a currency." I said, you know like, "If you think about it. "Think about what is Las Vegas? "Las Vegas is this pile of sand "but there is this metropolis on it. "How did that happen?" I said, "You know, if you took ten people, "sat them in a circle, and you put one poker chip "in the system, and said 'Pass it to the right,' "and everybody did that a million times a year. "Everybody would have a million dollars of income. "And then you could take chunks off "and build a casino, and build a resort, "and you'd have Las Vegas." So I said, "Let's do that." And so the Linden dollar was born. And so, soon, there was this thriving economy in Second Life that just, it was quite amazing to see. And so, when Bitcoin came out in 2009, as soon as I heard about it, I wanted to see what it was. So I went to the site and I read the paper, and it just seemed really cool. And so I started to play with it a little bit, and by 2010, I just thought it was really cool, but no one else had seen it. >> Yeah. >> So I took to Twitter to say, (laughing) "Is anyone out there "using this P to P digital currency?" You know, and >> It's funny. Our first web, You know, I started SiliconANGLE in 2009. David and I partnered in 2010. Our first website, the developer didn't want PayPal. He wanted Bitcoin. It was 22 cents, I think, at the time and we used the site for about half a year, and then we changed it and went back paid fiat. But if you think about where these come from, you brought up Second Life. Okay, online virtual world, really ahead of its time, but really set the stage for what we're seeing now. Gaming people who know virtual currencies, thrive on crypto. >> Yeah. Yes. >> So I'd like to get your perspective. Because, I know you've done a lot of investing in mobile and gaming, and what not. Where does that cross over? Because there's been a lot of virtual currencies going on in games. >> Yes. >> For a long, long time. >> Yes. >> How is that influencing and impacting this industry? >> Well, you know it's, I guess you have to ask, when you ask, you know, where does the real and where does the digital, like do they cross? And what are they? What is currency? Is the U.S. dollar real, right? And actually, let me pause for a second and reach down to my phone, because did you see a tweet today from Sheila Bair? I have to read this. Okay, so I just saw a tweet from @zerohedge earlier today. Sheila Bair, on Bitcoin, Quote, "I don't think we should ban it. "The green bills in your pocket don't have "an intrinsic value either." >> Well, look, the government wants to get rid of paper money. The people want to get rid of paper money. Why not? >> What is it really? Right? I mean so >> Backed by the U.S. military maybe, I don't know, I mean what >> What is it? >> What is it? Right. >> That's a good question. >> So I don't really see a difference. You know, they're kind of the same thing. You know, it's just something that people believe in, as the embodiment of value exchange. Whatever it is. So if it's a green piece of paper, or it's not. If it's shell, if it's a pebble. There is a fascinating book that you can read called The Ascent of Money by Niall Ferguson. He's at Stanford now at the Hoover Institute, but he got widely known after the great financial crisis unfolded. He basically wrote a book called The Ascent of Money which tracks the history of value exchange across civilized communities, for thousands of years, from pebbles to shells, to feathers, to credit, to default swaps. And coined the term "Cimerica," which is sort of the interdependence of the cash flow. And what became apparent to me when I read that, was that the world of ICOs is actually no different than anything we've experienced in civilized humanity. You know, if you think about, even in the United States, in the 1800s, at one time there were over 200 currencies circulating at the same time. If you think about the formation of the United States as colonies, a bunch of guys get off the boats. They draw lines around the forest. Here's Connecticut, here's Vermont, here's New York, here's Virginia. Let's do an ICO. They all did an ICO. If you think about it, they created their own unit of currency per their community and geography, no different than what's happening today. >> When Lincoln was shot, there was a five dollar confederate bill in his wallet, right? I mean, the confederates had their own money. >> Yeah, and also you brought a point up in the conference you were in in Dubai, which I thought was really intriguing, and provocative, but also kind of real. The Oil Dollar Association post-World War II, >> Yeah >> Essentially wasn't actually securitizing oil That was an ICO. >> It was the tokenization of oil, right. Yeah, so, you know, the modern currency system that we have today, that is commonly known as the Petrodollar, so it's actually a relatively recent phenomenon. So if you think about, of course, the quote "U.S. dollar" was around a little bit longer than 1944, but it was really at Brett Woods that the dollar had its sort of birth to become the world's standard currency. And, you know, this is maybe a little bit of an over-simplification, but think about the picture after World War II. So, you basically have every major productive economy have war, destroy themselves. The U.S. enters late, finishes it all off completely, and you basically have 100 million people milling about. A little bit like Second Life, right? So, what do you do? Got to make them productive. Create a currency, set of currencies. So for every community of interest, like every token community of interest, you say, "Well, here's a lira, here's a franc, "Here's a pound, here's a mark. "Let's take gold, "reference the dollar to gold, and reference "every one of these currencies against the dollar. "Gentlemen, start your engines." Right? >> There you go. >> So how is that different than an ICO? Okay, so that was fixed to gold for a long time until people started to game it. And when the French accumulated a lot of dollars and they realized, whoa, there's more dollars than there is gold, I'm just going to go cash all this in. So they literally came over to take all the gold, and then the president took it off the gold standard. >> Dave Vellante: That's right. >> So it had to couple with something. So what it the utility token that that became? That became referenced to petroleum because the U.S. had basically forced everybody in the Middle East to accept dollars as payment and what that did was it created the dollar as a storage of energy. So you could basically take a token of oil and, as a separate nation, you could store that through your trade, if you had sort of a surplus, and you provided yourself energy security. >> Well, most currencies, right, historically have had a pretty short shelf life. Presumably the same will be true in the Blockchain world. >> Don't know. >> The crypto world. >> Yeah, it's, if you look at the history of humans over six million years, and it's arguable it's at four or six, or whatever it is, you're right. Like there have always been multiple currencies all the time. And very rarely have they ever become sort of like super-dominating currencies. That is also a very recent phenomena. I think, driven by the industrial revolution, and a combination of the Petrodollar and scale economics and manufacturing. So, so that >> Yeah, and overwhelmingly here, at this event, people feel like security tokens, as an asset class, are going to vastly overtake utility tokens. >> You know, actually, securities are a whole, I mean regular securities, (laughing) that's an interesting subject altogether. Right, okay, so there was a time, in my lifetime, when I was a securities analyst at Alex Brown in the '80s, and in that period of time, everything traded at ten times earnings, right? So you had a barometer for, a stock should be valued at this, because is should have a PE of actual real earnings. >> Dave Vellante: Independent of its growth or anything else, right? >> Yes, and if it grew, you had a PEG ratio, so you'd have a little bit higher growth, and so a little higher PE, but what's happened to securities over time, of that ilk, okay, you had to get these companies profitable to get them public in that era, and then over time the sort of like network effects have come in, and communities of interest have formed around companies. So, and the structure of securities has moved from give me something with earnings multiply it by a number to get the value, to give me a share of something that has no voting rights and no earnings. Does that sound like a token? That's Snapchat, right? (laughing) >> So you literally have, you know, Google, Facebook, all these companies now issue shares that don't have the characteristics of equity shares. They don't vote. What are they now, right? So tokenization is sort of a natural extension of that. >> Dave Vellante: Do you see that as a >> They don't have dividends either >> You see that as a fundamental shift in the value equation, the perceived value equation? Both? Is it sustainable? >> I think it's basically, so, you know, I go back and forth on this, because is it a trend line or is it a return in the past? Right? So what is a confederate dollar that was in Abraham Lincoln's pocket? It's a belief. So what is a share of Snapchat? It's a belief. It doesn't have earnings >> John Furrier: And a token is a belief. >> Right. >> But the trend is securing something, right? So the trend we're seeing is, obviously the ruling, first of all the ruling in Switzerland was interesting. You now have a trading so an asset, so security, asset, and then trading. So they kind of went a little bit deeper, which I think is helpful. >> Yeah. >> For the community. But what are they securing? So the trend, as we see, is percentage of revenue, non dilutive and equity in the classic sense, so kind of a token. And then some sort of either buyback options, people are doing things like that. Do you see patterns like that? What are you seeing for? >> Well. >> I mean a security token makes sense. It's all credited. The paperwork's known. >> Yeah, so, you know, it feels like, so some people refer to sort of Bitcoin as digital gold, you know, and in that sense, like gold is a commodity but is the root of securities, you know, whether it's gold ETF's or something, because you perceive a limited supply, and you perceive a storage of value, so that is where I think Bitcoin sits. But then I think this whole other category of utility tokens, that may be considered security tokens by definition of law, that resembles the petrodollar. And as we were talking about earlier, you know gold used to represent or a dollar used to represent a share of gold, but it didn't anymore. So what was underpinning it? It was basically, in my opinion, the ability for that token to have utility as an instrument to purchase oil for your energy security. And so, I think that's kind of where the utility tokens are today. >> You're a leader in the industry, and you're well-known. Communities need to thrive. And factions form, curriencies form, and can be very productive, and also can be counterproductive. >> Yeah. >> So what is the unwritten rules that you guys are putting forth. Are people meeting? Are you talking? And sometimes, as people make money, which a lot of people are making a lot of money right now. I mean, for some people, it's the first time. Didn't have money, make money. You know, egos kind of come in. So all of these are normal things. But again, this is a societal community dynamic, >> Yes. >> But super important. Institutional investors are coming in. >> Right. >> Big money. This isn't Burning Man. This isn't. Burning Man's cool, but you can't model this industry after Burning Man. Maybe you could. I don't know. What is your take? >> Well, you know, it's, I think that the guiding principle really needs to be looking out for the greater good, because I think that is the issue that everyone is trying to solve for. And it's not just endemic to Bitcoin and Blockchain. It's a societal issue that's been with us since the creation of civilization. And I don't know how to solve for that, but I think you need people to stand up and just make sure that people are thinking about that all the time. You know, and I think, over my career, I think I started as kind of like a geek hacker, sitting in the back of the room, working on little microchips and building stuff, and I still do that on weekends sometimes, but, you know, for whatever reason, I've been thrust into this role now where I do have a set of communities of interest that started actually around kiteboarding, but it became sort of a larger community around entrepreneurship. And we've actually, I have a 501(c)(3) that supports ocean causes and entrepreneurial things, and it's called ACTAI Global, and we have a couple value statements. We actually, we're codifying it, so we actually have a little pin, you know the ACTAI stands for Athletes, Conservationists, Technologists, Artists and Innovators, and all of us collectively, we combine our energy to work on causes. Some of the things that we support are around ocean conservation and the preservation of ecosystems, but we also work on a lot of other entrepreneurial efforts to help each other. But the thing that I've realized with our group is we've been very productive as a community, and you see a lot of companies that are born in our community, funded in our community, like, you know, whether it's Canva or Zoom, or any number of projects that turn into community-based companies because the group of people, they think and they stand for something greater than themselves. So that's kind of one principle. It's sort of like, how do you, how do you place your values as something to support the greater community, and that's something that I think, if everybody would just think about that a little bit, and stand for something greater than themselves, the world would be a better place. And on that note, the second ethos that we operate to is that we strive to leave every person or place we touch better than before we touched it. So when you see us like kiting at a beach, you'll see us picking up garbage, too. You know? We don't go someplace without trying to improve it a little bit. And I think we help each other on the companies, too. And I think the last thing that people really should try to do, everybody in this world of technology, has a little bit of a superpower, whatever that is. You know, they wouldn't be doing the things that they're doing if they weren't totally insanely focused on a piece of technology. They know something that other people don't. And if everybody would just try a little bit to use the powers the universe has granted them, to empower others, to unlock other people, the world would be a better place. So I think, you know, I think all of these factions, if we could just get people to stand for something greater than themselves, work to make people and places better off than before they touched them, and empower other people, I think we'll have some great outcomes. >> You know, empathy, empathy is a wonderful thing. And also you mentioned, know your neighbor. You know, that's a big thing. We're doing our part here in theCUBE, bringing our mission content. Bill, been great to have you on. And we'll get that clip out on the network about your mission. Great stuff. >> Thank you, thanks. >> And great to see you >> It's an awesome philosophy. >> be successful, you're a great leader. People look up to you, and certainly we're glad to have you on theCUBE. Thanks for joining us. Hey, more live coverage after this short break here on theCUBE in the Bahamas for crypto currency, token economics, POLYCON18. We'll be back with more after this short break.

(clicking) >> I am Lisa Martin with theCUBE on the ground at Google for the sixth annual Top Women in Cloud Awards event with CloudNOW. Very excited to be joined by next guest, Ajit George, the Managing Director of the Shanti Bhavan Children's Project. Welcome to the cube. >> Hi Lisa, it's great to be here. >> So, I was so excited to have a chat with you. The Shanti Bhavan Children's Project is incredible. Tell us about it, 20 years now, tell us about what that is, how your family is involved, and what it's helping to do for these young children in Bangelore, India? >> Sure, Shanti Bhavan was founded by my father, Dr. Abraham George, 20 years ago, and its goal is to educate children, but also to eliminate poverty and change entire systems of communities and governments. It, the way we achieve this goal is by taking children from the poorest communities in India, giving them a high-quality, boarding school education, from the age of four until they graduate from 12th grade, and we cover everything during that period. So, their healthcare, their clothing, their boarding, food, all of that is taken care of, as well as training in soft skills. So, debate, interpersonal and interview skills, leadership skills, and the whole nine yards. While we educate them in the highest curriculum, the toughest standards in India, and then we pay for their entire college degree afterwards. So, that is 17 years of a high-quality intervention per child from the very first day they start school to the very first day of work. >> That's incredible and you have a very high college graduation rate, isn't that correct? Yeah, that is correct. If they pass out of high school, their high school graduation rate is about 77%, University graduation rate is 98% and so- >> Wow, 98%. >> It's been pretty exciting and they go on from those, from college to multinational companies, like Mercedes-Benz or Amazon, or Goldman Sachs. So, our kids who come from urban slums or rural villages with huts with no running water or electricity are making more in their first five years, than their parents make in a lifetime. So, it's a quantum leap, it is a genuine breaking the cycle of poverty, and the ability to become both, either the primary or the sole breadwinner for their entire family. So, four or five other people are dependent on them at the age of 21. >> And that's incredible, I was watching, there is a Daughters of Destiny, Netflix Original Docuseries. I saw the trailer of it today, incredibly profound. One of the things that, a couple things that really stuck out to me was, this is taking children from poverty to possibility. And also, one of the young girls that was in that trailer had said, "I've got a lot to lose, it's now or never for me." These children seem to really understand the gravity of their situation, and genuinely recognize the opportunity that they've been given. >> Yeah, sure, every single Shanti Bhavan child understands, it's almost like they've won the lottery, they've had an opportunity that no one in their families have ever had, but no one from their communities have had either. They're the first person in their family for generations to get any kind of education, and so that's a powerful opportunity, but it's also an important obligation or duty to give back to the family and to make an impact for the community because they are given this golden ticket, and they want to do something important with it. If they don't succeed, nobody gives them a second chance. Kids from that kind of community, and from that kind of circumstance, don't really have a second chance if they aren't able to make the most of it. So when you hear those stories they're talking about, "hey, I really need to seize this moment." "I need to seize this opportunity," maybe, "my mother's back at home and she needs my help," maybe, "my father's bedridden." A lot of these kids have generational debt, so they owe money to, like a money lender, which is an illegal lender and that's a couple generations back. Maybe their grandparents have taken out this debt, so they have all these debts piled up on them, and they have healthcare bills piled up on them, and they've got housing and all of these other problems. Then they have to educate their younger brothers and sisters and pay for dowries for their family members. It's the enormous responsibilities on one child is huge, but they're able to step up because they're given this powerful education, this great opportunity, so there's a lot of pressure, but there's also this great knowledge that they have a horizon out there that no one in their family has ever had before. >> That's incredible and so in the last couple minutes here, CloudNOW, where we are at the awards event tonight, they've teamed up with Intel, Apcera, and CB Technologies, to launch the Daughters of Destiny STEM scholarship. So exciting, what's that going to mean for current students, at Shanti Bhavan or the future students? >> Right, I think I'm really, really thankful, first of all to CB Technologies, Intel, and Apcera, as well as the CloudNOW. This scholarship is the first of its kind within our program and it allows these three young ladies, who are the first recipients of the scholarship, and hopefully there'll be many more recipients, but these young ladies to get a high-quality college education in the STEM fields, which is their passion. So, it opens doors for them for their education, potentially for internships and maybe job opportunities after college. So, I think this is a gateway to something bright and beautiful. >> Oh, I love that and how you described it for these children as a quantum leap, is as profound as what's been shown in the Netflix series. So, Ajit, thank you so much for joining. I wish we had more time, this is such an incredible project that you're working on, but we thank you for stopping by theCUBE and sharing it with us. >> Thank you so much, Lisa, it's great to be here. >> We want to thank you for watching theCUBE. I'm Lisa Martin on the ground at Google for the CloudNOW, Top Women in Technology Awards. Bye for now. (closing music)

live from San Francisco California it's the queue at vmworld 2014 brought to you by vmware cisco EMC HP and nutanix now here are your hosts John furrier and Dave vellante okay welcome back and run live in San Francisco California this is the cube vmworld 2014 our 50 year covering vmworld I'm John for my coach Dave vellante Sanjay pune in the EVP and general manager end-user computing friend of the cube he's been on throughout his career at SAAP that he moves right across the street to VMware last year and great to see you great good to see back in the cube Thank You John's pleasure to be what a year right so last year you came on board guns blend Pat was really excited you've accomplished some of your goals I think you laid out I said what's your goals for next year you laid out some goals and then big acquisition AirWatch securities hot mobile was booming we are living in a multi cloud mobile infrastructure demand tell us what happened over the past year obviously big M&A give us the details yo John and Dave I was like on day like point five day one when I came down there cute but I was actually watching the replay and I'm like I actually said that and it made sense no it's been a great year and its really been a team effort so the first thing that I did was I said you know well before we decide the what and the how I really want to figure out who's on the bus so we really both kind of promoted a couple of key people within the company like kid Kohlberg remember kid was like the star of last year's show he's now our CTO and user computing what hired a couple of rock stars for the industry like summit the lawn and a few others who've really come in and shaped us and then as the team started to gel we then began to ask our customers what was the key missing part in our strategy and it was mobile it's very clear and we began to then ask ourselves listen if we're going to get into the mobile space you know do we build do we buy to we partner and we were winning deals in the desktop space primarily against Citrix we compete in there getting a lot of market share but the mobile space we'd lose deals and I go and ask our customers who you pickin and eighty ninety percent of time was AirWatch same time our CIO was doing an evaluation internally we were running on an SMB tool fiber link that then since got bought by IBM were running out of steam with it because as SME tool and I said listen you evaluate the market look at all the options and based on what you pick will probably influenced our acquisition decision they love their watch do so you know those were two or three key moments it's the franchise player in the team right I mean ultimately ultimately you know Mobile is today kind of that sizzle point if you're talking mobile cloud it is the sizzle point John Marshall and Alan dabiri came in they've added a lot so you know I talked to my keynote about three core pillars desktop mobile content collaboration we really feel like today when I was looking back we had a tenth of the portfolio last year this time and I think you know lots of good vision but now we actually a vision and substance right i think is pretty powerful so is it the lebron james who it was the is that the Tom Brady is it the Ray Allen you know the key role play I love basketball all those teams are great i think i'm some of my favorite all the Phil Jackson teams yeah my role is really to be the coach and to bring into the construct the Michael Jordan the Scottie Pippen's you know all that construct so that when you put together a world-class ski I really believe we have the best end-user computing team in the industry bar not and this team really is now packed with people and process and product innovation and that's what you've seen the last 12 months it's a real tribute to this fantastic and use a computing team so as you talk about the news this morning around SI p we didn't catch the detail that we were on the cube here can you just take us through some of those some of those key highlights I mean clearly I have a soft corner for a safe as you would expect that was there for seven years and have a tremendous respect they are the leader in business applications a tremendous player you know hundreds of thousands of customers and what we felt was if you could marry the best of breed aspects of what sa fie does well applications mobile applications cloud applications on-premise applications all of that what we do very well which is management and security for mobile and that's what our customers have among the 13 thousand customers of AirWatch probably the biggest basin enterprise rsap customers and they've been longing for better integration you know you but I what's going on over there you know we asked you I mean listen to the end of the day we want to do what's best for customers and you know so packed bill mcdermott myself talk Kevin ruchi bharani who was on stage and we felt that we could build integration between the mobile apps and the mobile platform of SI p where s if he is very good with the management and security of air watch where we're very good you get the combination to best debrief and I think the customer quote in that press release put it well so G Abraham basically said he was a CIO sigma-aldrich we love the fact that you're bringing together the best of breed aspects of mobile security from AirWatch with mobile apps and mobile platform Mississippi and that's a nessuno abdur for the enterprise because of reality because the challenge people are having is it was taking it was too hard it was taking too long so how does that change now with this integration I mean in essence era what AirWatch provides is an elegant simple cloud centric mobile management security solutions much more than MDM device management at Marikana management and you know in every ranking by the analyst they are the undecided gold medal now you can basically use that solution and make sure that your applications also work so let's say you're bringing up we showed in the demo an example of essay p medical records or maybe SI p furia Psychlo whatever have you you can now bring that up on a device that's secure and the posture is checked with their watch and that's the best combination of both and this could just apply to any application it could be a box it could be our own content locker SI p is a clearly the leader in business application I start sweet recently and said VMware working with apple and United Airlines to bring mobility airplanes all secured by air watch obviously United Airlines big customer GE and other things so the interface to pretty much everything whether it's big data is going to be some mobile or edge device is that the number one requirement that you're hearing from customers that it's not just mobile users is the Internet of Things part of this how do you see that that's interesting piece is that is that true don't absolutely I think well I talked about the United Airlines case start in fact it's right off the website of Apple you go to apple and look at the business case studies they have the United Airlines is one of those case studies in the case that is actually pretty simple you know you've got these pilots that are lugging around 30 40 pound bags lots of paper manuals their flight landing instructions now those are being digitized with iPads in the cockpit so as you think about what the future is everything goes digital that first invades the cockpit then the flight attendants habit so they can check to make sure they have a list of the passengers and they can serve their passengers better and that's the way the world is moving but then you take that same concept and you extend now to machines where every single potential machine that is on the Internet can be tracked can be managed and security and our proposition there is to manage and secure every possible machine and thing and then analyze the data coming out of it we think that's a huge opportunity FML touch in Chicago last year and the chairman of the United told me a one percent savings in efficiency just on just on gas is billions of dollars of real savings so you know this brings back down to the the whole concept it's not just an IT thing it's a business process thing so how far along are you seeing the customer base on things like this is it is where it's--okay IT got workers out there you know bring your own device to work okay but outside of that what is the the uptake if you will on really connected intelligence yeah i think it's a it's and when we have you know 13,000 customers that we've had their watched 50,000 our customers with horizon 500,000 customers we have vmware many of them start speaking and we're finding in a couple of industries and consumer packaged goods and retail industries people are looking at things like for example smart vending in devices medical devices the future of a protected medtronics was on stage and they are a rare watch customer they were talking about the fact that their vision is well beyond just the mobile devices every medical device being protected potentially by air watch you look at oil and gas customers practically almost every oil and gas customers in AirWatch customer there's going to be embedded intelligence inside a lot of the oil and gas machinery and infrastructure that protects people from potential damage we expect to be able to secure that so our proposition in that equation is the management and security of every machine and everything and then the beautiful part of it is beyond just management and security I think the analytics of data coming out of that is a treasure trove of incredible valuable places for big data you know we spoke with bill McDermott when you were also at sa p and they had a very vertical approach and when we go talk about the big data conferences with a Q veterans all this vertical we need to have a vertical niche to kind of be a major player or or even a differentiated niche player but how does that affect your business is it vertical eyes you mentioned a loyal and gas flow but you know airlines is there a horizontal platform that can work across the industries or is it specifically verticals you see up your levels now you're at a different you're the edge of the network what's your take on that do you have to be a vertical player or zero horizontal plane that's a great question Jon I think that as the world's leaf asta scrawing and biggest infrastructure software company VMware that's what we've been going from zero to you know roughly run rate six billion in 15 years there is fundamentally first off a horizontal play that goes across and cuts across many industries but very quickly we find as we were able to package solutions by industries so I talked for example at the keynote about the health care industry and how we were you imagine a doctor walking into their office moving from their office to the ward from their desktop to an iPad to potentially getting into the room and they then have a thin terminal client terminal and then they collaborate with their other doctor that has you know an iPad to healthcare is one example state and local public sector is a different example we're being successful education retail manufacturing we picked four or five verticals I been fortunate in the fact that much of my experience at SAAP was running the industries at SI p so i have a good amount of experience at industry solutions we're certainly not an application's player like i say p where we're going to vertical eyes in a vertical stack applications but you're going to see us drive solutions and when you drive industry solutions and let's say five or ten industries where we're relevant you're going to see our average selling price growth and differentiation is application-specific is tends to be vertical but as a platform product player you're this way yeah you don't wait fundamentally to start with but then you start creating solutions yeah which are scenarios that work in a particular industry to enable those guys exactly and we pick the five or ten industries where we think we're going to go focus and we're starting to see as we do that our average selling price growth everything they have some fools yeah you know what the other thing that happens is that you actually start becoming relevant to a line of business buyer beyond just idea and that's very important I was on the performance metrics give us some data can you share some of that pat was glowing with always performing well so can you share some numbers yeah I'll tell you what we did the last three quarters and growth this is the fastest growing the one of the fastest growing business units in q4 last year we grew thirty percent north of thirty percent in q1 or we announced we grew north of thirty percent again and then in q2 we said we grew north of fifty percent right and now some of that results the contribution of area watch but organic or inorganic we are growing and it's not a small business you can grow from one to two and that's a hundred percent this is a size of a part of VMware's revenue and a growing part of it we're talking hundreds of millions of here is that for ya I mean it's well over ten percent of the revenue and the growing percentage of the total company's revenue I think that this is going to become an increasing part of the embers total revenue total relevance the CIO and because a mobile cloud and a big part of the brand appeal of the inland I mean listen remember is well known as an infrastructure company done very well in the data center but the moment you start talking mobile and clouds you're appealing to the CIO and that's a very different type of conversation we want to raise the appeal of VMware I yield to the CIO and we think mobile it's a big market you guys did the TAM analysis Pat I probably has you doing that but whoever may be Jonathan it's a big chunk of it at his EUC a sizable pardon bigger than it was before and we just have to kind of grow into that Tam and then grow the tam further and that's and you started that kind of throw that sounds getting the flywheel effect going and the problem with VD I was always a cost cost cost and you know so it was a narrow niche this mobile it seems to change that hold concussion for my cost of value you know Dave it's a very good point first off mobile for us means more than just a device it means being on the move and on the move means you could be on the move and you're using a laptop here we got to think about the relevance of how you get solutions on to your laptop and desktop I think part of the reason video I gonna hit a little bit of a bump and some of our competitors have been stalling and declining is it's just too complex into costly and we fundamentally now reinvented a modern stack for desktop virtualization that runs on top of all the great innovation that we have in the software-defined data sound like virtual set like vSphere and a lot of things we're doing so all of a sudden the cost of EDI we can show we take down by at least thirty to forty percent that's a game changer now you add moberly to say listen when you go from a desktop or a laptop to a tablet or phone you've got the leader in mobile security and management AirWatch integrated the horizon this is what we announced with the workspace sweep and the final pillar is being able to share that content in a very simple yet secure way so think sort of Dropbox but all of a security and SharePoint brought you that's the third pillar all three of those desktop mobile and content extremely so you're saying saji the tipping point is the asset leverage that you're getting out of the infrastructure is you move toward this sort of software-defined thing that enables this type of decline in cost and accelerated growth absolutely and that's you know the whole aspect of how software has been done is you integrate things so your lower costs and you make it much much easier to be able to palette and by now either could be bottom premise or the cloud so we're seeing that connection of you know the head and the body think of the body being the traditional software-defined data center the head being end-user computing all the connective tissue muscle fiber blood vessels and so on so forth making that connected now makes us a lot more appealing than telling a customer listen by your data center infrastructure from VMware your desktop infrastructure from Citrix your mobile infrastructure from MobileIron and you're you know content collaboration solution from like 10 different starters right increasingly we think that that's not the way in which people are going to be buying software Sanjay just some highlights from the keynote looking here on Twitter through our little listening tool great reviews by the way electric flying speed she's gonna be CEO someday Pat heads up on that that was coming from the Trident that was this guy without a limiting move on stage when I said fat ought to be thinking about an ice bucket challenge so anyway rights beyond amazing executive really got really great reviews on the twittersphere besides a challenging pat calcium of the ice bucket challenge of which joe 2g already challenged so let's see how he's out of fun again oh fun in all seriousness two quotes i want to pull out from the twittersphere you said software in the modern cars more than the nasa spacecraft awesome comment when I pivot on that in a second the other one was Sanjay is emphasizing the importance of world-class infrastructure so first define world-class infrastructure from your perspective given your industry experience in vision for the future and to talk about how it relates to the modern car were just NASA and the change of speed of Technology you know John when I gave my keynote i put this beautiful picture of this incredible modern architecture in single protocol to marina marina bay sands tower it's three big towers I think 40 50 60 floors and a fantastic infinity swimming pools at the top and not been a Singapore you got to go there and check out the swimming pool at the top of it but the only way in which you could make those three towers work was world-class foundational infrastructure the three towers by the way was a metaphor to desktop mobile content collaboration and of course the beautiful workspace view at the top of it so the thrust the impersonalist well all of that to us the software-defined data center is the de facto interest so that makes a lot of that happen we feel very very fortunate and blessed to have the world's best infrastructure that makes that happen virtual server storage networking management all of that put together allows me to be able to build world-class towers on top of that and the end of the day it's not just solid it's lower cost of ownership in the opportunity now my comment about the the 1970s spacecraft and so just to say that today we live in a software economy it's not to say that hardware is not important but someone joked that software is like the wine and hardware is like the bottle while it was important but the the software glue really ties Harvard together in a very special way and that's really the genius of what's making everything whether it's a device whether it's a machine even more relevant and that clearly was defined in 1972 spacecraft but today you can see this invading automobile thermostat refrigerator vending machine that we believe the future so how to ask you to shoot the arrow forward what are you getting excited about I'll see the accelerated pace of change from the spacecraft to the car after you mention the United Airlines and Apple it's a well documented as an end user environment certainly the interfaces everything and that seems to be the focus area what's your view what is exciting where's the inflection point enabling technology that you're watching from the foundation only to the top I mean listen i spent seven years at SAAP primarily in the analytics and big data space and then fire that another five years that companies like in thematically and I've just my life has been about end-users and whereas we came in here we coined this phrase which is our big broad vision we want to allow end-users to work at the speed of life so if you think about your life in the consumer world you don't lug around 300 CDs into your car you have an ipod you have an iphone your connect to the iCloud and it's all seamlessly there you watch a movie you start off on netflix you go from San Francisco to New York to Barcelona you may start and then stop you know someplace else and you can you can start exactly where you stop house of cards or whatever have you watching enterprise software has been unfortunately hard to use complex hard to implement and the more that we can make enterprise software simple simple and secure we to do the security part of it pretty good we tend to do the simplicity part so i think enterprise software companies can actually take a page out of the book of consumer software companies on the simplicity now the consumer companies could take a lesson out of the book from us and security and but when you put simplicity and security together you get magic when you could put together control and choice together you get magic so it's not the consumerization of IITs we all love it's the IT of consumers each other you could really flip that around like dead laptop staff I mean there's so many different place in the words that you could do that's exactly the way but I think that's a great point Sanjay thanks so much for coming to Cuba congratulations on a great keynote and thanks for coming to spend your valuable time with us here of the cube appreciate it we live here in San Francisco we write back with our next guest after the short break thanks John