(pensive music) >> Thank you, Jenna, it's great to see you guys and thank you for watching theCUBE's continuous coverage of AWS Storage Day. We're here at The Spheres, it's amazing venue. My name is Dave Vellante. I'm here with Mai-Lan Tomsen Bukovec who's Vice President of Block and Object Storage. Mai-Lan, always a pleasure to see you. Thanks for coming on. >> Nice to see you, Dave. >> It's pretty crazy, you know, this is kind of a hybrid event. We were in Barcelona a while ago, big hybrid event. And now it's, you know, it's hard to tell. It's almost like day-to-day what's happening with COVID and some things are permanent. I think a lot of things are becoming permanent. What are you seeing out there in terms of when you talk to customers, how are they thinking about their business, building resiliency and agility into their business in the context of COVID and beyond? >> Well, Dave, I think what we've learned today is that this is a new normal. These fluctuations that companies are having and supply and demand, in all industries all over the world. That's the new normal. And that has what, is what has driven so much more adoption of cloud in the last 12 to 18 months. And we're going to continue to see that rapid migration to the cloud because companies now know that in the course of days and months, you're, the whole world of your expectations of where your business is going and where, what your customers are going to do, that can change. And that can change not just for a year, but maybe longer than that. That's the new normal. And I think companies are realizing it and our AWS customers are seeing how important it is to accelerate moving everything to the cloud, to continue to adapt to this new normal. >> So storage historically has been, I'm going to drop a box off at the loading dock and, you know, have a nice day. And then maybe the services team is involved in, in a more intimate way, but you're involved every day. So I'm curious as to what that permanence, that new normal, some people call it the new abnormal, but it's the new normal now, what does that mean for storage? >> Dave, in the course of us sitting here over the next few minutes, we're going to have dozens of deployments go out all across our AWS storage services. That means our customers that are using our file services, our transfer services, block and object services, they're all getting improvements as we sit here and talk. That is such a fundamentally different model than the one that you talked about, which is the appliance gets dropped off at the loading dock. It takes a couple months for it to get scheduled for setup and then you have to do data migration to get the data on the new appliance. Meanwhile, we're sitting here and customers storage is just improving, under the hood and in major announcements, like what we're doing today. >> So take us through the sort of, let's go back, 'cause I remember vividly when, when S3 was announced that launched this cloud era and people would, you know, they would do a lot of experimentation of, we were storing, you know, maybe gigabytes, maybe even some terabytes back then. And, and that's evolved. What are you seeing in terms of how people are using data? What are the patterns that you're seeing today? How is that different than maybe 10 years ago? >> I think what's really unique about AWS is that we are the only provider that has been operating at scale for 15 years. And what that means is that we have customers of all sizes, terabytes, petabytes, exabytes, that are running their storage on AWS and running their applications using that storage. And so we have this really unique position of being able to observe and work with customers to develop what they need for storage. And it really breaks down to three main patterns. The first one is what I call the crown jewels, the crown jewels in the cloud. And that pattern is adopted by customers who are looking at the core mission of their business and they're saying to themselves, I actually can't scale this core mission on on-premises. And they're choosing to go to the cloud on the most important thing that their business does because they must, they have to. And so, a great example of that is FINRA, the regulatory body of the US stock exchanges, where, you know, a number of years ago, they took a look at all the data silos that were popping up across their data centers. They were looking at the rate of stock transactions going up and they're saying, we just can't keep up. Not if we want to follow the mission of being the watchdog for consumers, for transactions, for stock transactions. And so they moved that crown jewel of their application to AWS. And what's really interesting Dave, is, as you know, 'cause you've talked to many different companies, it's not technology that stops people from moving to the cloud as quick as they want to, it's culture, it's people, it's processes, it's how businesses work. And when you move the crown jewels into the cloud, you are accelerating that cultural change and that's certainly what FINRA saw. Second thing we see, is where a company will pick a few cloud pilots. We'll take a couple of applications, maybe one or a several across the organization and they'll move that as sort of a reference implementation to the cloud. And then the goal is to try to get the people who did that to generalize all the learning across the company. That is actually a really slow way to change culture. Because, as many of us know, in large organizations, you know, you have, you have some resistance to other organizations changing culture. And so that cloud pilot, while it seems like it would work, it seems logical, it's actually counter-productive to a lot of companies that want to move quickly to the cloud. And the third example is what I think of as new applications or cloud first, net new. And that pattern is where a company or a startup says all new technology initiatives are on the cloud. And we see that for companies like McDonald's, which has transformed their drive up experience by dynamically looking at location orders and providing recommendations. And we see it for the Digital Athlete, which is what the NFL has put together to dynamically take data sources and build these models that help them programmatically simulate risks to player health and put in place some ways to predict and prevent that. But those are the three patterns that we see so many customers falling into depending on what their business wants. >> I like that term, Digital Athlete, my business partner, John Furrier, coined the term tech athlete, you know, years ago on theCUBE. That third pattern seems to me, because you're right, you almost have to shock the system. If you just put your toe in the water, it's going to take too long. But it seems like that third pattern really actually de-risks it in a lot of cases, it's so it's said, people, who's going to argue, oh, the new stuff should be in the cloud. And so, that seems to me to be a very sensible way to approach that, that blocker, if you will, what are your thoughts on that? >> I think you're right, Dave. I think what it does is it allows a company to be able to see the ideas and the technology and the cultural change of cloud in different parts of the organization. And so rather than having a, one group that's supposed to generalize it across an organization, you get it decentralized and adopted by different groups and the culture change just goes faster. >> So you, you bring up decentralization and there's a, there's an emerging trend referred to as a data mesh. It was, it was coined, the term coined by Zhamak Dehghani, a very thought-provoking individual. And the concept is basically the, you know, data is decentralized, and yet we have this tendency to sort of shove it all into, you know, one box or one container, or you could say one cloud, well, the cloud is expanding, it's the cloud is, is decentralizing in many ways. So how do you see data mesh fitting in to those patterns? >> We have customers today that are taking the data mesh architectures and implementing them with AWS services. And Dave, I want to go back to the start of Amazon, when Amazon first began, we grew because the Amazon technologies were built in microservices. Fundamentally, a data mesh is about separation or abstraction of what individual components do. And so if I look at data mesh, really, you're talking about two things, you're talking about separating the data storage and the characteristics of data from the data services that interact and operate on that storage. And with data mesh, it's all about making sure that the businesses, the decentralized business model can work with that data. Now our AWS customers are putting their storage in a centralized place because it's easier to track, it's easier to view compliance and it's easier to predict growth and control costs. But, we started with building blocks and we deliberately built our storage services separate from our data services. So we have data services like Lake Formation and Glue. We have a number of these data services that our customers are using to build that customized data mesh on top of that centralized storage. So really, it's about at the end of the day, speed, it's about innovation. It's about making sure that you can decentralize and separate your data services from your storage so businesses can go faster. >> But that centralized storage is logically centralized. It might not be physically centralized, I mean, we put storage all over the world, >> Mai-Lan: That's correct. >> right? But, but we, to the developer, it looks like it's in one place. >> Mai-Lan: That's right. >> Right? And so, so that's not antithetical to the concept of a data mesh. In fact, it fits in perfectly to the point you were making. I wonder if we could talk a little bit about AWS's storage strategy and it started of course, with, with S3, and that was the focus for years and now of course EBS as well. But now we're seeing, we heard from Wayne this morning, the portfolio is expanding. The innovation is, is accelerating that flywheel that we always talk about. How would you characterize and how do you think about AWS's storage strategy per se? >> We are a dynamically and constantly evolving our AWS storage services based on what the application and the customer want. That is fundamentally what we do every day. We talked a little bit about those deployments that are happening right now, Dave. That is something, that idea of constant dynamic evolution just can't be replicated by on-premises where you buy a box and it sits in your data center for three or more years. And what's unique about us among the cloud services, is again that perspective of the 15 years where we are building applications in ways that are unique because we have more customers and we have more customers doing more things. So, you know, I've said this before. It's all about speed of innovation Dave, time and change wait for no one. And if you're a business and you're trying to transform your business and base it on a set of technologies that change rapidly, you have to use AWS services. Let's, I mean, if you look at some of the launches that we talk about today, and you think about S3's multi-region access points, that's a fundamental change for customers that want to store copies of their data in any number of different regions and get a 60% performance improvement by leveraging the technology that we've built up over, over time, leveraging the, the ability for us to route, to intelligently route a request across our network. That, and FSx for NetApp ONTAP, nobody else has these capabilities today. And it's because we are at the forefront of talking to different customers and that dynamic evolution of storage, that's the core of our strategy. >> So Andy Jassy used to say, oftentimes, AWS is misunderstood and you, you comfortable with that. So help me square this circle 'cause you talked about things you couldn't do on on-prem, and yet you mentioned the relationship with NetApp. You think, look at things like Outposts and Local Zones. So you're actually moving the cloud out to the edge, including on-prem data centers. So, so how do you think about hybrid in that context? >> For us, Dave, it always comes back to what the customer's asking for. And we were talking to customers and they were talking about their edge and what they wanted to do with it. We said, how are we going to help? And so if I just take S3 for Outposts, as an example, or EBS and Outposts, you know, we have customers like Morningstar and Morningstar wants Outposts because they are using it as a step in their journey to being on the cloud. If you take a customer like First Abu Dhabi Bank, they're using Outposts because they need data residency for their compliance requirements. And then we have other customers that are using Outposts to help, like Dish, Dish Networks, as an example, to place the storage as close as account to the applications for low latency. All of those are customer driven requirements for their architecture. For us, Dave, we think in the fullness of time, every customer and all applications are going to be on the cloud, because it makes sense and those businesses need that speed of innovation. But when we build things like our announcement today of FSx for NetApp ONTAP, we build them because customers asked us to help them with their journey to the cloud, just like we built S3 and EBS for Outposts for the same reason. >> Well, when you say over time, you're, you believe that all workloads will be on the cloud, but the cloud is, it's like the universe. I mean, it's expanding. So what's not cloud in the future? When you say on the cloud, you mean wherever you meet customers with that cloud, that includes Outposts, just the programming, it's the programmability of that model, is that correct? That's it, >> That's right. that's what you're talking about? >> In fact, our S3 and EBS Outposts customers, the way that they look at how they use Outposts, it's either as part of developing applications where they'll eventually go the cloud or taking applications that are in the cloud today in AWS regions and running them locally. And so, as you say, this definition of the cloud, you know, it, it's going to evolve over time. But the one thing that we know for sure, is that AWS storage and AWS in general is going to be there one or two steps ahead of where customers are, and deliver on what they need. >> I want to talk about block storage for a moment, if I can, you know, you guys are making some moves in that space. We heard some announcements earlier today. Some of the hardest stuff to move, whether it's cultural or maybe it's just hardened tops, maybe it's, you know, governance edicts, or those really hardcore mission critical apps and workloads, whether it's SAP stuff, Oracle, Microsoft, et cetera. You're clearly seeing that as an opportunity for your customers and in storage in some respects was a blocker previously because of whatever, latency, et cetera, then there's still some, some considerations there. How do you see those workloads eventually moving to the cloud? >> Well, they can move now. With io2 Block Express, we have the performance that those high-end applications need and it's available today. We have customers using them and they're very excited about that technology. And, you know, again, it goes back to what I just said, Dave, we had customers saying, I would like to move my highest performing applications to the cloud and this is what I need from the, from the, the storage underneath them. And that's why we built io2 Block Express and that's how we'll continue to evolve io2 Block Express. It is the first SAN technology in the cloud, but it's built on those core principles that we talked about a few minutes ago, which is dynamically evolving and capabilities that we can add on the fly and customers just get the benefit of it without the cost of migration. >> I want to ask you about, about just the storage, how you think about storage in general, because typically it's been a bucket, you know, it's a container, but it seems, I always say the next 10 years aren't going to be like the last, it seems like, you're really in the data business and you're bringing in machine intelligence, you're bringing in other database technology, this rich set of other services to apply to the data. That's now, there's a lot of data in the cloud and so we can now, whether it's build data products, build data services. So how do you think about the business in that sense? It's no longer just a place to store stuff. It's actually a place to accelerate innovation and build and monetize for your customers. How do you think about that? >> Our customers use the word foundational. Every time they talk about storage, they say for us, it's foundational, and Dave, that's because every business is a data business. Every business is making decisions now on this changing landscape in a world where the new normal means you cannot predict what's going to happen in six months, in a year. And the way that they're making those smart decisions is through data. And so they're taking the data that they have in our storage services and they're using SageMaker to build models. They're, they're using all kinds of different applications like Lake Formation and Glue to build some of the services that you're talking about around authorization and data discovery, to sit on top of the data. And they're able to leverage the data in a way that they have never been able to do before, because they have to. That's what the business world demands today, and that's what we need in the new normal. We need the flexibility and the dynamic foundational storage that we provide in AWS. >> And you think about the great data companies, those were the, you know, trillions in the market cap, their data companies, they put data at their core, but that doesn't mean they shove all the data into a centralized location. It means they have the identity access capabilities, the governance capabilities to, to enable data to be used wherever it needs to be used and, and build that future. That, exciting times we're entering here, Mai-Lan. >> We're just set the start, Dave, we're just at the start. >> Really, what ending do you think we have? So, how do you think about Amazon? It was, it's not a baby anymore. It's not even an adolescent, right? You guys are obviously major player, early adulthood, day one, day zero? (chuckles) >> Dave, we don't age ourself. I think if I look at where we're going for AWS, we are just at the start. So many companies are moving to the cloud, but we're really just at the start. And what's really exciting for us who work on AWS storage, is that when we build these storage services and these data services, we are seeing customers do things that they never thought they could do before. And it's just the beginning. >> I think the potential is unlimited. You mentioned Dish before, I mean, I see what they're doing in the cloud for Telco. I mean, Telco Transformation, that's an industry, every industry, there's a transformation scenario, a disruption scenario. Healthcare has been so reluctant for years and that's happening so quickly, I mean, COVID's certainly accelerating that. Obviously financial services have been super tech savvy, but they're looking at the Fintech saying, okay, how do we play? I mean, there isn't manufacturing with EV. >> Mai-Lan: Government. >> Government, totally. >> It's everywhere, oil and gas. >> There isn't a single industry that's not a digital industry. >> That's right. >> And there's implications for everyone. And it's not just bits and atoms anymore, the old Negroponte, although Nicholas, I think was prescient because he's, he saw this coming, it really is fundamental. Data is fundamental to every business. >> And I think you want, for all of those in different industries, you want to pick the provider where innovation and invention is in our DNA. And that is true, not just for storage, but AWS, and that is driving a lot of the changes you have today, but really what's coming in the future. >> You're right. It's the common editorial factors. It's not just the, the storage of the data. It's the ability to apply other technologies that map into your business process, that map into your organizational skill sets that drive innovation in whatever industry you're in. It's great Mai-Lan, awesome to see you. Thanks so much for coming on theCUBE. >> Great seeing you Dave, take care. >> All right, you too. And keep it right there for more action. We're going to now toss it back to Jenna, Canal and Darko in the studio. Guys, over to you. (pensive music)

(digital music) >> My, what a difference 10 years makes in the tech industry. At the beginning of the last decade, the cloud generally in AWS specifically ushered in the era where leading developers they tapped into a powerful collection of remote services through programmable interfaces you know, out there in the cloud. By the end of the decade this experience would shape the way virtually every IT professional thinks about acquiring, deploying, consuming and managing technology. Today that remote cloud is becoming ubiquitous, expanding to the "edge" with connections to on-premises, data centers and other local points throughout the globe. One of the most talked about examples of this movement is AWS Outposts, which brings the Amazon experience to the edge wherever that may be. Welcome everyone to this CUBE conversation. My name is Dave Vellante. We're going to explore the ever expanding cloud and how two companies are delivering on customer needs to connect their data center operations to the cloud and the cloud to their on-prem infrastructure and applications. And with me are Joshua Burgin who's the General Manager of AWS Outposts and Michael Sotnick who's the VP at Global Alliances at Pure Storage. Gents, welcome come inside theCUBE. >> Right on. Well, thrilled to be here Dave. >> Great. >> Pleasure is mine, thank you. >> Awesome to have this conversation with you it's really our pleasure. So Joshua, let's start with Outpost. Maybe you could for the audience describe what it is maybe some of the use cases that you're seeing you're heard by narrative upfront maybe you can course correct anything I missed. >> Oh sure. I mean, I think you got it right on. AWS Outpost is a fully managed service that allows you to use AWS, API systems, tools, technology, hardware software innovation in your own data center or a colocation facility. And coming later this year as you put the edge in quotes at almost any edge site, as we announced the small form factor one you and two you Outposts at this last year's re-invent. >> I was excited when I saw Outpost a couple of years ago we were doing theCUBE at reinvent and I said, wow, this is truly going to be interesting. And I'm wondering like, how's Amazon, how are they going to partner? Where do some of the ecosystem get folks fit in? So Michael, you're an AWS Outpost ready partner. You know, what is that program all about? What does that mean for customers? >> Yeah, it's a great question. And you know, like you, Dave, I think we're as a vendor in technology we're inspired by what AWS has done. And when we look at Pure and see the opportunity we have you know, shared customer obsession, focused on outcomes, focused on NPS, great customer experience seeing AWS deliver the cloud to the edge, deliver the cloud to the data center that's just a great fit for us. So we rallied internally across our flash array of block storage solution a unified fast file and object flash plate solution and our container solution Portworx and, you know, across the entire portfolio we're the first to be in our segment the first to be service ready with AWS Outposts. And to us, it's an opportunity to link arms with AWS and cover some ground that's very familiar to us in the data center and clearly cover some ground that's very familiar to AWS in terms of great customer relationships across the board. >> Right, and, you know, I got to say, I've been a student of of Andy Jassy I always have listened to all his talks and go back and read the transcripts and Joshua I've learned that I never say never when it comes to AWS. And you see you guys moving into that, whatever you call it, the hybrid cloud, the on-premises really leaning in in a big way with Outposts and I wonder if you could talk about what's behind that expansion strategy? >> Sure, I mean, the way we looked at it obviously is always kind of working backwards from our customers. We have people tell us that they had some applications with low latency needs or where data resonancy or sovereignty was driven by regulations or in some cases where they needed to do local data processing something like an autonomous vehicle workload or in a factory or a healthcare facility. And they really wanted to say like, look, we're going to move all of our applications, you know the bulk of them to one of your regions in the fullness of time, but what's holding us back is that we want a consistent environment on-prem and in what you call the cloud. So we wanted a continuum of offerings from AWS to be able to serve all those needs. And that's really where Outpost came from. And, you know, we're seeing a lot of traction across financial services with companies like Morningstar and First Abu Dhabi bank, the iGaming space as you can imagine highly regulated industry, every city and, you know, municipality around the world wants to get in on that but they have their own regulations and they really require the infrastructure to be in a specific location and run a certain way. A company like TYPICA, which is based out of Europe they don't want to deliver different solutions depending on whether something's deployed in Minnesota or Germany or, you know, Vancouver. So that's where AWS Outpost comes in and it kind of fits that it works the same way as the things do in the region they can use the same tooling. >> Yeah, so Michael I'm going to ask you this question and maybe Joshua, you can chime in as well. I mean, you've got this, it's sort of a, win-win-win you know, Pure, AWS, you bringing that experience to on-premises, the customer gets that experience that Joshua just explained. I wonder if you could, I mean, you've been out now for a little bit testing the market learning here and there. What are the big takeaways in the learnings you're getting from customers? >> Yeah, I'll start and I'm sure Joshua can compliment quite a bit. And like Joshua hit on, right. You know, I think we take our cues from our customers, Dave, and you know what the customers are looking for, you know is a commercial relationship and so in addition to the technological inspiration we've got from AWS we offer the solution for Outposts and a Pure as a service model. So it's 100% subscription-based for the customer and they're able to consume it, you know the same way that they would all of their services from AWS including Outposts and it's also available on the AWS marketplace. So you've got to meet the customer where they want to be met first and foremost and so they appreciate that. And they see that as a great value in the relationship. You know, the growth of object, you know, I think is another one of those macro trends that's happening in our space. And as customers are deploying locations that are putting out petabytes of object storage requirements there's an increasing need for high-performance object. And that's where we can really compliment an Outpost implementation and deliver high performance and that kind of ubiquitous experience, that hybrid experience to allow the customer on a policy based way to maximize that on-prem performance with Outpost and Pure around that object data set. And then also manage the life cycle of that data and the economics of that data in the cloud. >> So, but Joshua, so you guys obviously you invented that, you know, the modern subscription model for infrastructure but it's different, you're actually installing hardware. So you had to sort of rethink how you did that. What have you learned and how has that model... How do you get it substantially similar as possible to the public cloud? >> Yeah, I mean, I think you called it a win-win-win earlier. And as much as we like to innovate we also like to make things feel kind of comfortable and familiar to people 'cause you think about there's both the developer who's using the APIs and the tools and also the CFO and the people in finance or procurement who are looking at the spending. So with Outposts, it actually feels very similar to the region. If you're used to purchasing our compute savings plans or what people used to call reserved instances or RIs the underlying infrastructure on the Outpost works in a very similar way. You're not going to be deploying a multi-rack Outpost and then ripping it out three weeks later so on demand doesn't really make sense there. But for all the services that are deployed on top of Outposts whether it's application load balancer or elastic cash or Elastic MapReduce, those have the same kind of on demand service model, the pricing model that they do in the region. And so very similarly, the Outpost ready program which lets you use trusted and certified third-party solutions, such as ones from Pure those are also going to feel familiar, whether you're coming from the on-prem world and you're already that technology for your storage, your network monitoring, your security or if you're using that solution from the marketplace in the AWS region, it's going to be a totally seamless deploy on the Outpost. So you're going to get something that's kind of the best of both worlds, familiar to you economically and from an installation perspective but also removing all that undifferentiated heavy lifting of having to patch and manage firmware upgrades and you asked this earlier, what customers really want is that there's this whole world of innovation, things that haven't even been invented yet. A few years ago, we hadn't invented Outposts. People want to know that as those innovations get released to the market they can take advantage of them without having to redeploy and so that's what having an AWS Outpost means. That as third parties or Amazon innovates new services can be made available without shipping a DVD or kind of spinning up an entire staff to manage that. >> Yeah, it's kind of interesting watching this equilibrium you know, take place. And I think it's going to continue to evolve. Obviously AWS has a huge impact on how people think about price, as I said upfront. And it seems like, you know, culturally, Michael, there's a fit. I mean, you guys have always sort of been into that you know, your evergreen model, for the first one that subscription sort of mindset. So it's sort of natural for you whereas, you know, maybe a a legacy company might not (chuckles) be able to lean in as hard as you guys are. Maybe some quick thoughts on that. >> Yeah, look, I love the way you framed that up and couldn't agree more. I think AWS is famous for a lot of things some of the values that they embrace and putting the customer at the center of everything they do couldn't be more shared, you know, with Pure. I think, you know, we talk about our company as one that runs two fires right, to give the customer a great experience. And so we know our way around the data center and I think the opportunity to give that customer, you know a consistent experience with AWS as they deliver Outpost to the data center is a really powerful combination. You know, I think one thing, just look at the backdrop of the pandemic, Dave, you know, every part of a company's organization is going through significant change. And I think the data center is absolutely at the center of some of those changes. And I think every one now as they look at the next generation data center they're asking themselves what are containers what does Kubernetes mean to my business? And I think the opportunity that, you know we see jointly with EKS as a partner is really to help customers achieve that goal of, you know the application deployments anywhere and the ability to drive that application, you know modernize that next generation application cycle. So I love the way you framed it up, giving us credit for being highly differentiated from our legacy competitors and we take great pride in that and really want to give a cloud-like experience to our customers. And I think what we're able to do with AWS Outpost is kind of bring that cloud-like experience that they have come to love from AWS into the data center and at the same time shine a light on what we've always done in terms of a cloud-like experience for the Pure customer. >> There's a lot of ways to skin a cat but when you've invented the cloud and you don't have a lot of legacy baggage you can kind of move faster. And I think that, you know, we're really excited about what's occurring here because take the term digital transformation I mean, before the pandemic (groaning) it's like, yeah okay, it had some meaning but you really had to squint through it and a lot of people were complacent about it. Well, we know what digital means now if you're not a digital business, you're out of business. And so it was kind of this forced march to digital I call it and as a result it really increases the need for things like automation and that cloud experience on-prem because I don't have time to be provisioning LUNs anymore. It's just what you guys call it undifferentiated heavy lifting that is really a no-no these days I just absolutely can't afford it. Let's close on what's next. I mean, we've got new form factors coming we're like super excited about when we see things like what Amazon is doing with custom Silicon we see these innovations coming out with processing power going through the roof. Everybody says Moore's law is dead but processing power is increasing faster than it ever has when you combine all these innovations of GPU's and NPUs and accelerators, it's just, it's amazing. And the costs are coming down so you're going to be able to take advantage of that. Outpost will take advantage of that, Pure will, New Designs but specifically as it relates to Outpost, you got one you, you got two you, you coming optimizing for the edge what do customers need to know about these solutions? Why should they consider this combination of Pure and AWS? Maybe Joshua you can start and Michael you can bring us home. >> Yeah, I mean, you hit a lot of the reasons that people should consider it, right. The pace of innovation is not going to slow down here at AWS or of course, with Pure. Whether you have the need for a single server, or you're somebody like dish rolling out a new cloud enabled, you know cloud native 5G network you want to work with somebody who can deploy all the way at the Telco edge right, with hardware innovation up to a local zone all the way up to a region. You don't want to be working with different providers for that and you don't know what you're going to need in three or five years and frankly, I'm not sure that we know everything yet either but we're going to continue to listen to our customers and as you mentioned, deliver things like graviton and inferential and trainium which are our innovations in custom Silicon. Those are delivering 40% price performance improvements for people who are migrating, that's really an enormous benefit. And we're bringing all of those to the Outpost as well so you don't have to choose between moving to the cloud and that being your only modernization option, you can move to the cloud and at the same time still operate on-prem, you know, at a colo facility or all the way at the edge using all of the same tooling. And you can work with best-in-breed third-party technologies like what's offered by Pure. >> Well, and Michael, I'm going to cut you off before you get a chance to close, but I'll let you close. The Portworx acquisition was really interesting to us because it brings that kind of portability, new programming model and something that Joshua said struck in my mind is when I think about the edge word to me what's going to win the edge you know, obviously the flexibility, the agility but the programmability and the customization. So many different use cases. We're not just going to take general purpose boxes and throw them over the fence and say, here you go. You know, the general purpose, that's not what's going to win the edge it's really going to take a lot more thought than that. But, so I just wanted to put that in there. Michael, bring us home, please. (laughing) >> Right on. Well, look you two, and no surprise here right, you two covered so much great ground there. From first principles you know, what does Pure look at? Like what we did being first in terms of service ready across Portworx, for EKS, for flash plate across unified fast file on object and flash ray, you know for block storage, being first with Outposts we want to be first for the one you and to you solutions. So I think customers can expect, you know that our partnership is going to continue to deliver that cloud-like experience, that cloud experience in the AWS context, that cloud-like experience in the Pure context, you know for their on-prem and hybrid workloads. And I think you hit it up so well like if you're not digital business, you're not in business. And so I think one thing that everyone learned over the last year is exactly that. The other thing they learned is they don't know what they don't know. And so they need to make bets on partners that are modern that are delivering simple solutions that solve complex problems that are automated and that are being delivered with the customer first mindset. And I think in the combination of AWS, Outposts and Pure, we're doing exactly that. >> Great point, so a lot of unknowns out there. Hey guys, congratulations on the progress you've made. It's a great partnership, two super innovative companies and really pleasure to have you in theCUBE. Thank you for coming on. >> Thanks for having us. >> Yeah, always a pleasure. Thank you so much. >> All right, thank you for watching everybody. This is Dave Vellante. We'll see you next time. (digital music)

>> from Bahrain. It's the Q covering AWS Public sector Bahrain brought to you by Amazon Web service is >> Welcome back to the cubes coverage here in by rain in the Middle East for AWS Summit wrapping up event here with the cloud computing shift that's happening. Amazon regions live lot of innovation in the area Middle East and Africa. We're here with the head executive of A W s who manages the territory. Suban Shag, part head of Middle East Africa for public sector. Thanks for coming on. Appreciate it. >> Absolutely. John, Thank you. Thank you for having me here. And thanks for being here with your team, learning about this story from the Middle East and, of course, all the way to North Africa and Africa as well to >> Well, it's been a lot of work that you're on your team have done it been successful, were super interested because there's a big story developing here. The Amazon region, which was announced two years ago, is available on Day one. Pun intended a lot of couples shipping their products on the cloud, but it's also a cultural revolution happening for a whole another generation that could change the landscape of the Middle East. Culture, technology, innovation, banking, entrepreneurship. This is a grass roots groundswell of change, empowerment, self esteem, money making, banking. I mean, all this that's going on >> absolute in the middle of it. Well, hey, we're proud to be part of it, and we're proud to be partners with many different organizations here as well. I think it's actually coming from all different directions, not just the ground swell, but even the leadership, the leadership of the countries that can Bahrain, but also the other countries in the Middle East and across the region. What we're seeing is that these countries air creating these vision plants, and these vision plans air about diversifying the economy, creating opportunity for youth, creating opportunity for folks that are diversifying from the economy. So then they're actually being displaced, and where do you turn to sew? These countries are turning to technology and in ah, Bahrain, in particular, they've set up programs where they helped to develop youth. They helped develop citizens, they could get free training on technology, all that to do, sees it and take it. And we've seen that uptake as well to have seen a lot of Bahrainis just taking courses, getting trained and then building. And that's what you witnessed today at our summit. >> You know, innovation takes on many forms you've seen in every way from the mobile wave. You saw, um, countries that didn't have good infrastructure, stand up mobile, fisher and Beam or connected than some of the incumbent countries that had connectivity last mile into >> an elite leap is >> the lead frog, right? So So this is happening here. But the trend we're seeing is that the old business school adage of focus on your core competency and then it's okay to outsource that that's not a core competency is a trend we're seeing with Cloud where you guys are providing the infrastructure for countries, not just businesses. Yeah, to focus on their core competency, and it's making things go faster. So speed is the table stakes, so it's slow. It's probably the old way. What are some of the conversations around this? Because this seems to be the hottest topic from things I've seen in the United States with CIA and Jed I that Therese has been involved in two education with educate and now here with the government modernizing with cloud first. Yeah, that's trickling throughout the entire country. >> Yeah, well, I mean, it's it's need, I'm part of that is needs. So in some of the countries in the region barring included, they wanted to spend controls. They want to reduce their costs. You want to get away from legacy, They want to get away from licenses they're not using or hardware that's sitting on shelves. So then they come and look at what we're doing in the same Well, wait a second. You're investing in the region. You're making infrastructure available. I can build on top of that, I can leverage open source I can create I could make citizen service is it's almost a no brainer for them to one of the biggest problems they have is that the train people and then those folks go in. They do start ups where they're going to start work for other businesses. Well, which is fantastic. It's actually creating that Gertrude a cycle that we want to be a part of his well too. So already starting to see that happening in the past couple of years. Have you been here? And of course, now we have the region lunch, which is only accelerating the journey. >> Talk about the business because you guys are active. Your presents early with a region which we think is a revitalisation, creates economic value. That's something we've been reporting on. But there's more than that. It's not just by rain. It's the whole region that you cover. What's the business landscape like? What if some of the deals you're doing? What's the startups look like when you talk about some of the the landscape dynamics? >> Absolutely. So first, let's start up Eco system is very, um, I was gonna say robust, but it's it's some to use the word that use. It's a groundswell Right now. We're seeing a lot of interest, Lot of activity. Ah, lot of folks getting into in experimenting very quickly. But it's not easy as we know. Doing a start. It's not easy, so that robust war will come with time. Ah, we're seeing that more funding is going into the space now. It's still very anemic. So in the Middle East, there's not enough funds going in there, especially for the early stage. We're seeing interest coming from outside for the later stages. We're talking about the creams, and we're talking about the cabbages and some of those companies, but at the earliest, ones >> that are clearly validated, growing like >> exactly the ones who have already earned market share with ones that air. Starting right now, they're finding their way. So we didn't do you need more funding for experimentation? Enter AWS and we provide is programs like Activate, which is an early stage start, a program. We work very closely with the V C's and the accelerators, so they're leveraging that now, too. So we're starting to see that growth, whether it's in Dubai or Abu Dhabi or Riyadh or Cairo or here. It's just starting to grow, which is great. And we're seeing that interest and some of that, um, should I go into this field? Would what When my mom's safe, I'm an entrepreneur versus a doctor that started swaying Now to where people say entrepreneurship is actually pretty >> cool, it's a legitimate field. >> It's a legitimate feeling that, believe it or not, which is excited, and people are going into it as well. On the enterprise side, s Emi's all the way to large enterprises. We're seeing that folks are saying, Hey, I can actually maybe even get new markets. So if you look at Al Tayyar Group, which are telltale Travel Group, which is out of Saudi Arabia, they're using that to learn more about their custom. Customers come up with new solutions and new packages that they can offer, all using a I and ML, which is incredible or fly Dubai FlyDubai in, In. In Dubai, you probably guessed that Ah, they need to stand up very quickly and online booking system. They did it in four months. It's leveraging cloud. So they're getting that they're getting that idea that you can kick it off real quick, get it running, and then launch it as well, too, and then the government. So we're seeing governments across the region saying, Hey, we've got a controller cost first of all, and we've got to make a better citizen service is we want to make sure that we improve the lives of citizens. So been able to launch new service is in a short amount of time. Today we heard about the I G A. Working on a building permit system that allows people to build quicker because they're able to get a permit in days instead of months. This is an example scene where speed matters to the point where we now have the government challenging business in terms of moving quicker, which is unheard of anywhere else in the world, which is super exciting, >> not certainly in the United States, that's for sure. I would like just to point out that from my standpoint, I heard this many V C. C are seeing them in the hallways mix of veces entrepreneurs business, globalize V's and New Eyes bees. The Amazon partner networks here. Yeah, it is partner Network. So it's all the things are in place now. Yes, What's missing? What do you see? It's to do items. Where do you think that you can raise the bar for AWS? What's what do you sees as to do items for you? What's your plan? >> Well, to your point, I mean, all the ingredients are here. So in terms of what's missing, I don't think there's anything missing spoke putting the ingredients together and build baking that cake. That's what we gotta work on right now, too. So that's why we're doing a lot of activity in the schools across the region, getting our program Educate and Academy, which of two different programs, ones broad. One is very directed to the schools. That is what we're helping to make sure that we get the next generation of learners. We're working on items, a cloud degrees. So in four years you can actually a degree leveraging all the technologies that are enabled by cloud. That's happened at the University of Bahrain, and we hope to get that in other schools. But also just getting training out there, just getting quick training. So you learn a little mint modules and you go and build something that's another area. Need spend more time and again encouraging experimentation. Try some new things, get it out there, see what the market says. So in terms of what we could do more of it. AWS is continue to push that message. Continue developing the people out here so that they're building. >> I gotta ask you, you know, you've been in Silicon Valley. You know that game for the folks living in silicon value in the U. S. What should they know about what's going on in your territory out here that they may not know? Or maybe this was fleeting thought or something that's not being reported. What's what. What's should did people know about what's going on in this region? >> Absolutely. I think sometimes for for many markets that are outside of Silicon Valley outside of the U. S. It's about copycats, start ups, which is fine. You can actually do quite well with that. Ah, usually the returns on that when you go to an exit event is less than what you might see it in the valley. Ah, but again, there's a great triage opportunity. So you want to bring the funds here? But I do see now a change where folks are building original technologies as well, too. And I think we're going to see more of the multiples, tens or 20 time multiples out here in the region, which would be wonderful. Ah, we saw a company today. You know, phonic, which is from Saudi Arabia that is building telecommunications, and, uh, contact invoice type of service is that's gonna be huge if they get this right. And I think they will, because they got a really scrappy and hungry team. That's one of those companies that actually could start getting people to notice the Middle East is a place for original innovation. >> Awesome. Um, anything else on your to do list for next year? What's Ah, Give a quick plug for your crew. You guys hiring? I see the region here. You gotta fill staff here. Actually got curriculum in the schools here. What are you looking >> for? You coming all the big What's not here to do? Yeah. You know, into this is continue to develop my team. We got a wonderful team here. Ah, lot of people that are local to the, uh, to the region. Ah, that We want to make sure that they're growing and contributing. A swell too. Our team missions to do good into. Well, at the same time, I think they go hand in hand. So we want to do more around programs that help to develop communities. You know, there are refugee crisis is around the region. We want to make sure we can help out over there. Ah, women in tech is a big area of focus for us. How can we get more women into technology and leading and technology as well? To have got my team having a mandate to get more solution architects that our women as well to we don't have one yet. We have a lot of great women on our team, but we need more technical women, too. That's another key focus area for us. Um, and just continue building continued to help the communities build solutions on the cloud. >> Zubin Chang, part here, head of the territory here in the Middle East and Africa. That's the cubes coverage of eight of US Summit and buyer in the Middle East. Signing off our second year. We'll be back with more next year and you'll see it around in the territory. Thanks for Thanks for watching.

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen. Brought to you by Del Technologies and its ecosystem partners. >> Welcome back to Las Vegas. Lisa Martin with John Ferrier. You're watching the Cube live at Del Technologies World twenty nineteen. This is our second full day of Double Cube set coverage. We've got a couple of we're gonna really cool conversation coming up for you. We've got Robbie Pender County, one of our alumni on the cue back as VP product management server solutions. Robbie, Welcome back. >> Thank you, Lisa. Much appreciated. >> And you brought some Hollywood? Yes. Glenn Glenn ER, president of Sony Innovation Studios. Glenn and welcome to the Cube. >> Thank you very much. It's great to be here. >> So you are love this intersection of Hollywood and technology. But you're a filmmaker. >> Yeah. I have been filming movies for many years. Uh, I started off making motion pictures for many years. Executive produced him and over so production for them at one of our movie labels called Screen Gems, which is part of Sony Pictures. >> Wait a tremendous amount of evolution of the creative process being really fueled by technology and vice versa. Sony Innovation Studios is not quite one year old. This is a really exciting venture. Tell us about that and and what the the impetus was to start this company. >> You know that the genesis for it was based out of necessity because I looked at a nice Well, you know, I love making movies were doing it for a long time. And the challenge of making good pictures is resource is and you never get enough money believing not you never get enough money and never get enough time. That's everybody's issue, particularly time management. And I thought, Well, you know, we got a pretty good technology company behind us. What if we looked inward towards technology to help us find solutions? And so innovation studios is born out of that idea on what was exciting about it was to know that we had, uh, invited partners to the game right here with Del so that we could make movies and television shows and commercials and even enterprise solutions leaning into state of the art and cutting edge technology. >> And what some of the work prize and you guys envision coming out this mission you mentioned commercials. TV is it going to be like an artist's studio actor? Ackerson Ball is Take us through what this is going to look like. How does it get billed out? >> I lean into my career as a producer. To answer that one and say is going to enable that's one of the greatest things about being a producer is enabling stories, uh, inspiring ideas to be Greenland. That may not have been able to be done so before. And there's a key reason why we can't do that, because one of our key technologies is what we call the volumetric image acquisition. That's a lot of words. You probably say. What the heck is that? But a volumetric image acquisition is our ability to capture a real world, this analog world and digitize it, bring it into our servers using the power of Del and then live in that new environment, which is now a virtual sets. And that virtual set is made out of billions and trillions in quadrillions of points, much like the matter around us. And it's a difference because many people use pixels, which is interpretation of like worry, using points which is representative of the world around us, so it's a whole revolutionary way of looking at it. But what it allows us to do is actually film in it in a thirty K moving volume. >> It's like a monster green screen for the world. Been away >> in a way, your your your your action around it because you have peril X so these cameras could be photographing us. And for all you know, we may not be here. Could be at stage seven at Innovation Studios and not physically here, but you couldn't tell it. If >> this is like cloud computing, we talking check world, you don't the provisional these resource is you just get what you want. This is Hollywood looking at the artistry, enabling faster, more agile storytelling. You don't need to go set up a town and go get the permit. All the all the heavy lifting you're shooting in this new digital realm. >> That's right. Exactly. Now I love going on location on. There's a lot to celebrate about going on location, but we can always get to that location. Think of all the locations that we want to be in that air >> base off limits. Both space, the one I >> haven't been, uh, but but on said I've been I've walked on virtual moons and I've walked on set moons. But what if we did a volumetric image acquisition of someone set off the moon? Now we have that, and then we can walk around it. Or what if there's a great club, a nightclub? This says guys want you shoot here, but we have performances Monday night, Tuesday night, Wednesday night there. You know they have a job. What if we grab that image, acquired it, and then you could be there anytime you want. >> Robbie, we could go for an hour here. This is just a great comic. I >> completely agree with you. >> The Cube. You could. You could sponsor a cube in this new world. We could run the Q twenty four seven. That's absolutely >> right. And we don't even have >> to talk about the relationship with Dale because on Del Technologies, because you're enabling new capabilities. New kind of artistry was just totally cool. Want to get back to the second? But you guys were involved. What's your role? How do you get involved? Tell the story about your >> John. I mean, first and foremost one of things that didn't Glendon mention is he's actually got about fifty movies to his credit. So the guy actually knows this stuff, so which is absolutely fantastic. So we said, How do you go take average to the next level? So what else is better than trying to work something out, wherein we together between what Glenn and Esteem does at the Sony Innovation Labs for Studio Sorry. And as in Dead Technologies could do is to try and actually stretch the boundaries of our technology to a next tent that when he talks about kazillion bytes of data right one followed the harmony of our zeros way have to be able to process the data quickly. We have to be able to go out and do their rendering. We probably have to go out and do whatever is needed to make a high quality movie, and that, I think, in a way, is actually giving us an opportunity to go back and test the boundaries of their technology. They're building, which we believe this is the first of its kind in the media industry. If we can go learn together from this experience, we can actually go ahead and do other things in other industries. To maybe, and we were just talking about how we could also take this. He's got his labs here in Los Angeles, were thinking maybe one of the next things we do based on the learnings we get, we probably could take it to other parts of the world. And if we are successful, we might even take it to other industries. What if we could go do something to help in this field of medicine? >> It's just thinking that, right? Yes. >> Think about it. Lisa, John. I mean, it's phenomenal. I mean, this is something Michael always talks about is how do we as del technologies help in progress in the human kind? And if this is something that we can learn from, I think it's going to be phenomenal. >> I think I think that's so interesting. Not only is that a good angle for Del Technologies, the thing that strikes me is the access toe artist trees, voices, new voices that may be missed in the prop the vetting process the old way. But, you know, you got to know where we're going. No, in the Venture Capital way seen this with democratization of seed labs and incubators, where, if you can create access to the story, tells on the artists we're gonna have one more exposure to people might have missed. But also as things change, like whether it's Ray Ray beaming and streaming, we saw in the gaming side to pull a metric or volumetric things. You're gonna have a better canvas, more paint brushes on the creative side and more. Artist. Is that the mission to get AC, get those artists in there? Is it? Is that part of the core mission submission? Because you're going to be essentially incubating new opportunities really fast. >> It's, uh, it's very important to me. Personally. I know it speaks of the values of both Sony and L. I like to call it the democratization of storytelling. You know, I've been very blessed again, a Hollywood producer, and we maybe curate a certain kind of movie, a certain kind of experience. But there's so many voices around the world that need to be hurt, and there are so many stories that otherwise can't be enabled. Imagine a story that perhaps is a unique >> special voice but requires distance. It requires five disparate locations Perhaps it's in London, Piccadilly Circus and in Times Square. And perhaps it's overto Abu Dhabi on DH Libya somewhere because that's part of the story. We can now collapse geography and bring those locations to a central place and allow a story to be told that may not otherwise have been able to be created. And that's vital to the fabric of storytelling worldwide's >> going change the creative process to you don't have to have that waterfall kind of mentality like we don't talk about intact. You're totally distributed content, decentralized, potentially the creative process going change with all the tools and also the visual tools. >> That's right. It's >> almost becoming unlimited. >> You wanted to be unlimited. You want the human spirit to be unlimited. You want to be able to elevate people on. That's the great thing about what we're trying to achieve and will achieve. >> It is your right. I mean, it is interesting, you know, we were just talking about this, too. Uh, we're in, you know, as an example. Shock tank. Yes, right. I mean, they obviously did it. The filming and stuff, and then they don't have the access. Let's say to the right studio. But the fact is, they had all this done. Andi, you know, they had all the rendering they had captured. Already done. You could now go out and do your chute without having all the space you needed. >> That's right. In the case of Shark Tank, which shoots a Sony Pictures studios, they knew they had a real estate issue. The fact of the matter is, there's a limited amount of sound stages around the world. They needed to sound stages and only had access to one. So we went in and we did a volumetric image acquisition of their exit interview stage. They're set. And then when it came time to shoot the second half a season ten, one hundred contestants went into a virtual set and were filmed in that set. And the funny thing is, one of the guys in the truck you know how you have the camera trucks and, you know, off offstage, he leaned into the mike. Is that you guys, could you move that plant a couple inches to the left and somebody said, Uh, I don't think we can do it right now, he said, We're on a movie lot. You could move a plant. They said No, it's physically not there. We're on innovation studios goes Oh, that's right. It's virtual mind. >> So he was fooled. >> He was pulled. In a way, we're >> being hashing it out within a team. When we heard about some of the things you know Glenn and Team are doing is think about this. If you have to teach people when we are running short of doctors, right? Yeah, if you could. With this technology and the learnings that come from here, if you could go have an expert surgeon do surgery once you're captured, it would be nice. Just imagine, to take that learning, go to the new surgeons of the future and trained them and so they can get into the act without actually doing it. So my point and all this is this is where I think we can take technology, that next level where we can not only learn from one specific industry, but we could potentially put it to human good in terms of what we could to and not only preparing the next of doctors, but also take it to the next level. >> This was a great theme to Michael Dell put out there about these new kinds of use case is that the time is now to do before. Maybe you could get there technology, but maybe aspirational. Hey, let's do it. I could see that, Glenn, I want to ask you specifically. The time is now. This is all kind of coming together. Timing's pretty good. It's only gonna get better. It's gonna be good Tech, Tech mojo Coming for the creative side. Where were we before? Because I can almost imagine this is not a new vision for you. Probably seen it now that this house here now what was it like before for, um and compare contrast where you were a few years ago, maybe decades. Now what's different? Why? Why is this so important >> for me? There's a fundamental change in how we can create content and how we can tell stories. It used to be the two most expensive words in the movie TV industry were what if today that the most important words to me or what if Because what if we could collapse geography? What if we could empower a new story? Technology is at a place where, if we can dream it. Chances are we can make it a reality. We're changing the dynamics of how we may content. He used to be lights, action camera. I think it's now lights, action, compute power action, you know, is that kind of difference. >> That is an amazing vision. I think society now has opportunities to kind of take that from distance learning to distance connections, the distance sharing experiences, whether it's immersion, virtual analog face, the face could really be powerful. Yeah, >> and this is not even a year old. >> That's right. >> So if you look at your your launch, you said, I think let june fourth twenty eighteen. What? Where do you go from here? I mean, like we said, this is like, unlimited possibilities. But besides putting Robbie in the movie, naturally, Yes, of course I have >> a star here >> who? E. >> So I got to say he's got star power. >> What's what's next year? Exactly? >> Very exciting. I will say we have shark tank Thie Advanced Imaging Society gives an award for being the first volume met you set ever put out on the airwaves. Uh, for that television show is a great honor. We have already captured uh, men in black. We captured a fifty thousand square foot stage that had the men in black headquarters has been used for commercials to market the film that comes out this June. We have captured sets where television shows >> and in hopes, that they got a second season and one television show called up and said, Guys, we got the second season so they don't have to go back to what was a very expensive set and a beautiful set >> way captured that set. It reminds me of a story of productions and a friend of mine said, which is every year. The greatest gift I have is building a beautiful set and and to me, the biggest challenges. When I say, remember that sent you built four years ago? I need that again. Now you can go >> toe. It's hard to replicate the exact set. You capture it digitally. It lives. >> That's exactly it. >> And this is amazing. I mean, I'd love to do a cube set into do ah, like a simulcast. Virtually. >> So. This is the next thing John and Lisa. You guys could be sitting anywhere going forward >> way. You don't have to be really sitting here >> you could be doing. What do you have to do? And, you know, you got everything rendered >> captured. We don't have to come to Vegas twenty times a year. >> We billed upset once. You >> know you want to see you here believing that So I'LL take that >> visual is a really beautiful thing. So if we can with hologram just seeing people doing conscious with Hollywood. Frank Zappa just did a concert hologram concert, but bringing real people and from communities around the world where the localization diversity right into a content mixture is just so powerful. >> Actually, you said something very interesting, John, which is one of the other teams to which is, if you have a globally connected society and he wanted try and personalize it to that particular nation ethnicity group. You can do that easily now because you can probably pop in actors from the local area with the same. Yeah, think about it. >> It's surely right. >> There's a cascade of transformations that that this is going Teo to generate. I mean just thinking of how different even acting schools and drama schools will be well, teaching people how to behave in these virtual environments, right? >> How to immerse themselves in these environments. And we have tricks up our sleeves that Khun put the actor in that moment through projection mapping and the other techniques that allow filmmakers and actors to actually understand the world. They're about to stepped in rather than a green screen and saying, OK, there's going to be a creature over here is gonna be blue Water falls over there will actually be able to see that environment because that environment will exist before they step on the stage. >> Well, great job the Del Partnership. On my final question, Glenn, free since you're awesome and got a great vision so smart, experienced, I've been really thinking a lot about how visualization and artistry are coming together and how disciplines silo disciplines like music. They do great music, but they're not translating to the graphics. It was just some about Ray tracing and the impact with GP use for an immersive experiences, which we're seeing on the client side of the house. It del So you got the back and stuff you metrics. And so, as artist trees, the next generation come up. This is now a link between the visual that audio the storytelling. It's not a siloed. >> It is not >> your I want to get your vision on. How do you see this playing out and your advice for young artists? That might be, you know, looked as country. What do you know? That's not how we do it. >> Well, the beautiful thing is that there are new ways to tell stories. You know, Hollywood has evolved over the last century. If you look at the studios and still exist, they have all evolved, and that's why they do exist. Great storytellers evolved. We tell stories differently, so long as we can emotionally relate to the story that's being told. I say, Do it in your own voice. The cinematic power is among us. We're blessed that when we look back, we have that shared experience, whether it's animate from Japan or traditional animation from Walt Disney everybody, she shares a similar history. Now it's opportunity to author our new stories, and we can do that and physical assets and volumetric assets and weaken blend the real and the unreal. With the compute power. The world is our oyster. >> Wow, >> What a nice >> trap right there. >> Exactly. That isn't my job. The transformation of of Hollywood. What it's really like the tip of the iceberg. Unlimited story potential. Thank you, Glenn. Thank you. This has been a fascinating cannot wait to hear, See and feel and touch What's next for Sony Animation studios With your technology power, we appreciate your time. >> Thank you. Thank you both. Which of >> our pleasure for John Carrier? I'm Lisa Martin. You're watching the Cube lie from Del Technologies World twenty nineteen We've just wrapped up Day two we'LL see you tomorrow.

>> Live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen. Brought to you by Del Technologies and its ecosystem partners. >> Welcome back to Las Vegas. Lisa Martin with John Ferrier. You're watching the Cube live at Del Technologies World twenty nineteen. This is our second full day of Double Cube set coverage. We've got a couple of we got a really cool conversation coming up for you. We've got Robbie Pender County, one of our alumni on the cue back as VP product management server solutions. Robbie, Welcome back. >> Thank you, Lisa. Much appreciated. >> And you brought some Hollywood? Yes, Glenn Glenn er, president of Sony Innovation Studios. Glenn and welcome to the Cube. >> Thank you very much. It's great to be here. >> So you are love this intersection of Hollywood and technology. But you're a filmmaker. >> Yeah, I have been filming movies for many years. I started off making motion pictures for many years. Executive produced him and oversaw production for them at one of our movie labels called Screen Gems, which is part of Sony Pictures. >> Wait a tremendous amount of evolution of the creative process being really fueled by technology and vice versa. Sony Innovation Studios is not quite one year old. This is a really exciting venture. Tell us about that and and what the The impetus was to start this company. >> You know that the genesis for it was based out of necessity because I looked at a nice Well, you know, I love making movies were doing it for a long time. And the challenge of making good pictures is resource is and you never get enough money. Believe or not, you never get enough money and never get enough time. That's everybody's issue, particularly time management. And I thought, Well, you know, we got a pretty good technology company behind us. What if we looked inward towards technology to help us find solutions? And so innovation studios is born out of that idea on what was exciting about it was to know that we had, uh, invited partners to the game right here with Del so that we could make movies and television shows and commercials and even enterprise solutions leaning into state of the art and cutting edge technology. >> And what some of the work private you guys envision coming out this mission you mentioned commercials TV. Is it going to be like an artist's studio actor actress in ball is take us through what this is going to look like. How does it get billed out? >> I lean into my career as a producer. To answer that one and say is going to enable that's one of the greatest things about being a producer is enabling stories, uh, inspiring ideas to be green lit that may not have been able to be done so before. And there's a key reason why we can't do that, because one of our key technologies is what we call the volumetric image acquisition. That's a lot of words. You probably say. What the heck is that? But a volumetric image acquisition is our ability to capture a real world, this analog world and digitize it, bring it into our servers using the power of Del and then live in that new environment, which is now a virtual sets. And that virtual set is made out of billions and trillions in quadrillions of points, much like the matter around us. And that's a difference because many people use pixels, which is interpretation of like we're using points which is representative of the world around us, so it's a whole revolutionary way of looking at it. But what it allows us to do is actually film in it in a thirty K moving volume. >> It's like a monster green screen for the world. Been away >> in a way, you're you're you're interaction around it because you have peril X, so these cameras could be photographing us. And for all you know, we may not be here. Could be at stage seven at Innovation Studios and not physically here, but you couldn't tell the >> difference. This is like cloud computing. We talking check world, you don't the provisional these resource is you just get what you want. This is Hollywood looking at the artistry, enabling faster, more agile storytelling. You don't need to go set up a town and go get the permit. All the all the heavy lifting you're shooting in this new digital realm. >> That's right. Exactly. Now I love going on location on There's a lot to celebrate about going on location, but we can always get to that location. Think of all the locations that we want to be in that air >> base off limits. Both space, the one I >> haven't been, uh, but but on said I've been I've walked on virtual moons and I've walked on set moons. But what if we did a volumetric image acquisition of someone set off the moon? Now we have that, and then we can walk around it. Or what if there's a great club, a nightclub? This says guys and wanted to shoot here. But we have performances Monday night, Tuesday night, Wednesday night there. You know they have a job. What? We grabbed that image acquired it. And then you could be there anytime you want. >> Robbie, we could go for an hour here. This is just a great comic. I >> completely agree with >> you. The Cube. You could You could sponsor a cube in this new world. We could run the Q twenty four seven is absolutely >> right. And we don't even have >> to talk about the relationship with Dale because on Del Technologies, because you're enabling new capabilities. New kind of artistry, just totally cool. Want to get back to the second? But you guys were involved. What's your role? How do you get involved? Tell the story about your >> John. I mean, first and foremost one of the things didn't Glendon mention is he's actually got about fifty movies to his credit. So the guy actually knows this stuff. So which is absolutely fantastic. So we said, How do you go take coverage to the next level? So what else is better than trying to work something out, wherein we together between what Glenn and Esteem does at the Sony Innovation Labs for Studio Sorry. And as in Dead Technologies could do is to try and actually stretch the boundaries of our technology to a next tent that when he talks about kazillion bytes of data right one followed by harmony, our zeros. We have to be able to process the data quickly. We have to be able to go out and do their rendering. We probably have to go out and do whatever is needed to make a high quality movie, and that, I think, in a way, is actually giving us an opportunity to go back and test the boundaries of their technology. They're building, which we believe this is the first of its kind in the media industry. If we can go learn together from this experience, we can actually go ahead and do other things in other industries do. Maybe. And we were just talking about how we could also take this. He's got his labs here in Los Angeles, were thinking maybe one of the next things we do based on the learning to get. We probably could take it to other parts of the world. And if we are successful, we might even take it to other industries. What if we could go do something to help in this field of medicine? >> It's just thinking that, right? Yes. Think >> about it. Lisa, John. I mean, it's phenomenal. I mean, this is something Michael always talks about is how do we as del technologies help in progress in the human kind? And if this is something that we can learn from, I think it's going to be phenomenal. >> I think I think that's so interesting. Not only is that a good angle for Del Technologies, the thing that strikes me is the access to artist trees, voices, new voices that may be missed in the prop the vetting process the old way. But, you know, you got to know where we're going. No, in the venture, cobble way seen this with democratization of seed labs and incubators where, if you can create access to the story, tells on the artists we're gonna have one more exposure to people might have missed. But also as things change, like whether it's Ray Ray beaming and streaming we saw in the gaming side to volumetric or volumetric things, you're gonna have a better canvas, more paint brushes on the creative side and more action. Is that the mission to get AC Get those artists in there? Is it? Is that part of the core mission submission? Because you're going to be essentially incubating new opportunities really fast. >> It's, uh, it's very important to me. Personally. I know it speaks of the values of both Sony and L. I like to call it the democratization of storytelling. You know, I've been very blessed again, a Hollywood producer, and we maybe curate a certain kind of movie, a certain kind of experience. But there's so many voices around the world that need to be hurt, and there are so many stories that otherwise can't be enabled. Imagine a story that perhaps is >> a unique special voice but requires distance. It requires five disparate locations. Perhaps it's in London Piccadilly Circus and in Times Square. And perhaps it's overto Abu Dhabi on DH Libya somewhere because that's part of the story. We can now collapse geography and bring those locations to a central place and allow a story to be told that may not otherwise have been able to be created. And that's vital to the fabric of storytelling. Worldwide >> is going to change the creative process to You don't have to have that waterfall kind of mentality like we don't talk about intact. You're totally distributed content, decentralized, potentially the creative process going change with all the tools and also the visual tools. >> That's right. It's >> almost becoming unlimited. >> You want it to be unlimited. You want the human spirit to be unlimited. You want to be able to elevate people on. That's the great thing about what we're trying to achieve and will achieve. >> It is your right. I mean, it is interesting, you know, we were just talking about this too. We're in, you know, as an example, shock tank. Yes, right. I mean, they obviously did it the filming and stuff, and then they don't have the access, let's say to the right studio, but The fact is, there had all this done on DH. No, they had all the rendering. They had the captured already done. You could now go out and do your chute without having all the space you needed. >> That's right. In the case of Shark Tank, which shoots a Sony Pictures studios, they knew they had a real estate issue. The fact of the matter is, there's a limited amount of sound stages around the world. They needed to sound stages and only had access to one. So we went in and we did a volumetric image acquisition of their exit interview stage. They're set. And then when it came time to shoot the second half a season ten, one hundred contestants went into a virtual set and were filmed in that set. And the funny thing is, one of the guys in the truck you know how you have the camera trucks and, you know, off offstage, he leaned into the mike. Is that you guys, could you move that plant a couple inches to the left and somebody said, Uh, I don't think we can do it right now, he said. We're on a movie lot. You could move a plant. They said, No, it's physically not there. We're on innovation studios goes Oh, that's right. It's virtual mind. >> So he was fooled. >> He was pulled. In a way, we're >> being hashing it out within a team. When we heard about some of the things you know Glenn and Team are doing is think about this. If you have to teach people when we are running short of doctors, right? Yeah, if you could. With this technology and the learnings that come from here, if you could go have an expert surgeon do surgery once you're captured, it would be nice. Just imagine, to take that learning, go to the new surgeons of the future and trained them and so they can get into the act without actually doing it. So my point in all this is this is where I think we can take technology, that next level where we can not only learn from one specific industry, but we could potentially put it to human good in terms of what we could to and not only preparing the next of doctors, but also take it to the next level. >> This was a great theme to Michael Dell put out there about these new kinds of use case is that the time is now to do before. Maybe you couldn't get there with technology, but maybe aspirational, eh? Let's do it. I could see that. Glenn, I want to ask you specifically. The time is now. This is all kind of coming together. Timing's pretty good. It's only gonna get better. It's gonna be good. Tech, Tech mojo Coming for the creative side. Where were we before? Because I could almost imagine this is not a new vision for you. Probably seen it now that this house here now what was it like before for, um and compare contrast where you were a few years ago, maybe decades. Now what's different? Why? Why is this so important? >> You know, for me, there's a fundamental change in how we can create content and how we can tell stories. It used to be the two most expensive words in the movie TV industry were what if today that the most important words to me or what if Because what if we could collapse geography? What if we could empower a new story? Technology is at a place where if we can dream it. Chances are we can make it a reality. We're changing the dynamics of how we may content. He used to be lights, action, camera. I think it's now lights, action, compute power action, you know, is that kind of difference. >> That is an amazing vision. I think society now has opportunities to kind of take that from distance learning to distance connections, the distance sharing experiences, whether it's immersion, virtual analog face the face. I could really be powerful. Yeah, >> and this is not even a year old. >> That's right. >> So if you look at your your launch, you said, I think let june fourth twenty eighteen. What? Where do you go from here? I mean, like we said, this is like, unlimited possibilities. But besides putting Robbie in the movie, naturally, Yes, of course I have >> a star here >> who video. >> So I got to say he's got star power. >> What's what. The next year? Exactly. >> Very exciting. I will say we have shark tank Thie Advanced Imaging Society gives an award for being the first volume metric set ever put out on the airwaves. Uh, for that television show was a great honor. Uh, we have already captured, uh, men in black. We captured a fifty thousand square foot stage that had the men in black headquarters has been used for commercials to market the film that comes out this June. We have captured sets where television >> shows and in the in hopes that they got a second season and one television show called up and said, Guys, we got the second season so they don't have to go back to what was a very expensive set and a beautiful set >> Way captured that set. It reminds me of a story of productions and a friend of mine said, which is every year. The greatest gift I have is building a beautiful set and and to me, the biggest challenges. When I say, remember that sent you built four years ago. I need that again. Now you can go >> toe hard, replicate the exact set, you capture it digitally. It lives. >> That's exactly it. >> And this is amazing. I mean, I'd love to do a cube set into do ah, like a simulcasts. Virtually. >> So. This is the next thing John and Lisa. You guys could be sitting anywhere going forward. We don't have to be really sitting here you could be doing. What do you have to do? And, you know, you got everything rendered >> captured. We don't have to come to Vegas twenty times a year. >> We billed upset once >> You want to see you here believing that So I'LL take that >> visual is a really beautiful thing. So if we can with hologram just seeing people doing conscious. But Hollywood Frank Zappa just did a concert hologram concert, but bringing real people and from communities around the world where the localization diversity right into a content mixture is just so powerful. >> Actually, you said something very interesting, John, which is one of the other teams to which is, if you have a globally connected society and he wanted try and personalize it to that particular nation ethnicity group. You can do that easily now because you can probably pop in actors from the local area with the same city. Yeah, think about it. >> It's surely right. >> There's a cascade of transformations that that this is going Teo to generate. I mean just thinking of how different even acting schools and drama schools will be well, teaching people how to behave in these virtual environments, right? >> How to immerse themselves in these environments. And we have tricks up our sleeves that Khun put the actor in that moment through projection mapping and the other techniques that allow filmmakers and actors to actually understand the world. They're about to stepped in rather than a green screen and saying, OK, there's going to be a creature over here is gonna be blue Water Falls over there will actually be able to see that environment because that environment will exist before they step on the stage. >> Well, great job the Dale Partnership On my final question, Glenn free since you're awesome and got a great vision so smart, experienced, I've been really thinking a lot about how visualization and artistry are coming together and how disciplines silo disciplines like music. They do great music, but they're not translating to the graphics. It was just some about Ray tracing and the impact with GP use for immersive experiences, which was seeing on the client side of the house. It del So you got the back and stuff, but you metrics. And so, as artist trees, the next generation come up. This is now a link between the visual that audio, the storytelling. It's not a siloed. >> It is not >> your I want to get your vision on. How do you see this playing out and your advice for young artists? That might be, you know, looked as country. What do you know? That's not how we do it. >> Well, the beautiful thing is that there are new ways to tell stories. You know, Hollywood has evolved over the last century. If you look at the studios and still exist, they have all evolved, and that's why they do exist. Great storytellers evolved. We tell stories differently, so long as we can emotionally relate to the story that's being told. I say Do it in your own voice. The cinematic power is among us. We're blessed that when we look back, we have that shared experience, whether it's animate from Japan or traditional animation from Walt Disney, everybody shares a similar history. Now it's opportunity to author our new stories and we can do that and physical assets and volumetric assets and weakened blend the real and the unreal. With the compute power. The world is our oyster. >> Wow, >> What a nice >> trap right there. >> Exactly that is, um I dropped the transformation of Hollywood. What? And it's really think the tip of the iceberg. Unlimited story potential. Thank you, Glenn. Thank you. This has been a fascinating cannot wait to hear, See and feel and touch What's next for Sony Animation studios With your technology power We appreciate your time. >> Yeah, Thank you. Thank you both of >> our pleasure for John Farrier. I'm Lisa Martin. You're watching the Cube lie from Del Technologies World twenty nineteen We've just wrapped up Day two we'LL see you tomorrow.

live from Las Vegas it's the cube covering AWS reinvent 2018 brought to you by Amazon Web Services Intel and their ecosystem partners welcome back to Las Vegas everybody I'm Dave Villeneuve my co-host David Flair you want to the cube the leader in live tech coverage this is our third day of coverage at AWS reinvent 2018 our sixth year covering this event that keeps getting bigger and bigger Dave at 53,000 people amazing place is still jam we still barely have our voices 18 Cockroft is here he's a vice president of cloud architecture and strategy very well known in the industry q Balam thanks so much for coming back on thank you yeah it's the I've been to all of the reinvents we've been far as the customer and then we've been off of one but we watched remotely and hung on every word you know back when there wasn't a lot of information about a DMS now it's like too much information to process it's gonna take us months to sort through it all but at any rate it's it's a phenomenal opportunity for us to to learn to share to inspire folks and you do with some great work talk a little bit about you know some of the fun stuff you're working on and in your current role yeah I have a few different things I do one is one part of my role as I go around the world giving keynotes AWS summits but mostly I call it doing one of Ogle's impressions his deck and I get to presented around the world so we have to digest all of this stuff into a 90-minute deck that we can take to around the world that's a you know what do you leave out there's some it's it's harder and harder every year so that's a lot of fun but the team that I run for AWS I mean recruiting and running is around open-source right and we do we sponsor various events we members of various foundations we make contributions to projects and have been helping that by hiring people from the open-source communities into AWS to help help some of the edge over service teams with their launches of open-source related projects so what I've got what's been happening this year is had like a hundred blog posts related to open source lots of tweets lots of activity lots of events like ask on all things open in coupe car so be there in a couple of weeks exciting to you guys probably again but this week there are a few of the launches where we got quite deeply involved we did a blog posts on the open source blog most at the same time as Jeff fires okay here's the service and here's the open source part of it this is how you contribute and this is what's going on so we've had some fun with that so but it was it two years ago when we first met you've just been on the job for about a month about that particular time and you laid out what you wanted to do in terms of from your previous experience about how you wanted to turn AWS into a an open-source contributor how would you rate yourself in two years I think we've made some good progress really made me a AWS was making contributions to open source but had nobody talking about it and nobody know it was nobody's job to go out and explain what we were doing so that what part of the problem two years ago it was actually more happening so most people knew about but we were just not telling the story and it said it wasn't coming across well and the culture and the culture I mean it was spotty like some parts of AWS were doing a lot of open source other parts we're kind of not really seeing it as a priority so by talking a lot more about it we kind of get a more uniform acceptance across AWC huge organized just there but Amazon as a whole we are actually telling that story the story a much broader story than just AWS and be able to bring that and get everyone go oh this i see everyone doing it so i should be doing that so it helps create the the the leadership for more teams to follow and what we've seen in with you know really the first year building the team the last year kind of getting the content flowing and getting the processes kind of working to get all the all of the different events and blog posts and out the outbound part grips getting increasing number of contributions and launches so now Corrado was a few weeks ago so it you need us launch but that was that was an example that was it's a lot a lot happened from my team from Aaron Gupta my team his a Java champion he used to be at Sun he was a worked at Red Hat on J bar so he's like he knows everybody in Java has great credibility across the Java community and he said we should launch this product in Belgium at like midnight or so you know West Coast time and let's fly in James Gosling and like to a secret like get him on stage without anyone knowing he's gonna do it and do the introduction so it's like this totally crazy idea and it came off beautifully and we even had the the you know the Oracle Java people saying nice things about it the contributions to open JDK just just a really nice example of figuring it out all that get everybody on board get everything done right and then say here's something that matters to the community that we can contribute it'll show up on the rooftop complete thanks the star power thing but mincing James to do it was a right around a lot of credit for that that particular launch but you know this is the kind of people I have on my team and we're like we're pulling them in and pointing them at okay can you help this team figure out how to take this open-source project to market now I mean that was a major contribution to the open-source community and it was just in time wasn't it but another slight view would might be that you and Oracle should have been working this out until not leaving it until the last minute but I mean we were doing this work anyway right okay we're effectively self-supporting our own version of Java or internally we were getting better performance and better sooner bug fixes on open JDK so it made a decision to just move to the open JDK dream and we were just unhooking our internal use of the of the other the other options we have home mix you know a very large organization along for you acquire lots of different versions and flavors of Java you notice this one language so we like clean it up let's get JDK 8 and 10 we're self supporting it and then we announce to our cave will support our Amazon Linux version right and the final step was like the customers were saying please just like supportive on my laptop and anywhere else I need it and the thing we didn't announce then we didn't make a big thing out and arm support we didn't we kind of it was in there by default we didn't talk about it because the ARM chips came out this week so hey and part of it was also have exactly the same version of Java now on all of the Amazon Linux is even the the Intel AMD and arm so that helps the compatibility for people kind of going well it's a different processor architectures ties together so it was all part of the thinking if you didn't want to tip your hand on the announcement this young is right ok so I think sometimes a AWS is misunderstood partly from its own doing I mean you just mentioned you contribute a lot to open-source but you never talked about it generally when AWS doesn't have something to say they don't say a lot about it so others are left to you know make the narrative you come on you've now got an open-source agenda can you just sort of summarize what that motivation is and what the objectives are well we have you know lots of different pieces of this but you have service teams saying I'm gonna launch this product and there's an open source component to it can you help and sometimes that means I hire someone in my team to specialize in that area sometimes it's just our consulting with the team we may know connecting them to the open-source community so that's one piece of it is having that if you think about CN CF in particular cloud native computing foundation that's got lots of projects if you think about the AWS service teams no one team really owns the scope of CN CF but my team has that ownership for CN CF as a whole we have the board seat position and we say ok we have the serval as people over here we've got some entertaining things over here there's some Linux kernel virtualization bits here we can reach out to lots of different teams across AWS but act as a central point where you have something about open-source you want to talk about with with AWS or Amazon even as a whole you can come to us and we'll find the right people and we'll help you make those connections so part of it is acting as an on-ramp for the sort of buffer between the internal the external concerns of the communities there's somewhere to go and partly just getting contributions out there and what we could gain criticized for not making enough contributions well we've been making more and we're making more and we'll just keep making more contributions until people give credit for it and that's that's the if you're like what's the strategy contribute more and then tell people point at it and hope the people like what we did and take the input no it's the customer driven thing right we're gonna do what our customers ask us to do and their customer community focus on the things we want to do and we've been contributing to spinnaker the the Netflix OSS project we made some serious contributions to that in the this year firecracker myths which talk about that a bit and the Robo maker that those are all areas where we've been working with firecracker is particularly interesting isn't it I mean that's a major contribution of improving the performance and capability of those micro VMs yeah can you talk about that a little bit yeah it's the baby it's interesting because it's a piece of software pretty much no one will ever see your use it's the thing you run on the bare metal but lets you run your container Dee that lets you run your container on top right well it's deep down in the guts of the system there's this piece of code but we we kind of there's a few reasons we're using it particularly in production now with its supporting some of our production use of Fargate and lambda there in the middle it's not a hundred centraal out but there's a good chunk of the capacity running on it and that's where it turns out to be useful and just to cook how long we have to get into this but if you think about a customer running a lambda function we would put create a VM with that lambda function in it if they wanted a second lambda function we put it alongside that one no the customer comes and we start a new VM for them and we start a lambda function in that VMs take a while to start up so you have cancer pre-made some sitting there waiting but these are big VMs and we're putting lots of little functions in them what what firecracker lets you do is start a separate micro VM for every function and safely put all of the customers on one machine so you start packing them in it's a much more efficient way to run your capacity our utilization of those machines supporting lambda is vastly higher than having a machine with a bunch of empty space in it that we're trying to weight running for running for the customer so it's that efficiency is the thing and then the speed of starting a VM it's a very it's a very cut-down VM so it's 125 milliseconds with just to start the VM which is incredibly fast when you think hey give me a VM on ec2 it's you know they're in kinda like 30 seconds to a few minutes like I get 12 terabyte VM takes a little while to boot up but you don't have to pay for it till it finished including my good things about these huge machines right how about Robo maker can you talk a little bit about that and it's important so a rubber makers interesting on the open source blog which we posted on Slate on Sunday night early on Monday morning I did an interview with Brian Goerke who's the founder of the open robotics foundation and what we've done there is it's kind of an extension of sage maker if you think about that being AI if you've got these eight where I can deploy an AI model what is the AI model I want to do it wants to read something from the real world and modified the real word so it's a read from a camera or at some of the sensor and then control motors and servos and that's what Robo maker does it wraps the intelligence you can build with sage maker with the robotic operating system that has actually a library of actuators and a library of algorithms control algorithms you've got little brain in the middle and you've got a new robot that does something and we had the the Robo racer low racing car to which where all of these things come together to make an old toy race car that we can drive around tracks which is a whole other topic we get into but what interviewed Brian on what is the history of Rose the robotic operating system where did it come from you know what is the hard thing about running in it turns out the hard thing with Rose wasn't building the robots it was simulating the robots and the simulators quite a CPU intensive job it's graphics intensive you got this virtual world you're running and VR worlds are quite intensive and getting that installed and running was the hard part so what what what robot maker is is that as the service it's this simulator is called gazebo just a funny name so gazebo as a service is the actual service that effectively were charging for with a free tier so you can play with it and then we charge you for the sort of simulation units like how much computing time you're using when the rest of it is all you know cloud9 for the front end and deployment of fleets of data to fleets the robots and updating them and managing them but they're interesting thing is this is getting into like the people that the field of the first robotic thing is high schools high school robotic competitions they're interested yeah universities are interested in a university solar so we kind of it's not just for commercial production robots it's the whole training thing we're getting into STEM education if kids like playing with robots it's like Center and we're pulling all this in so now you can go home and take these like the latest most advanced AI algorithms that used to have to be doing a PhD at Stanford to be playing with and play with your kid you know over Christmas and see what you can come up with really simplifying the whole software development side of that when you look at the Dean came in competitions we're just awesome yeah all the kids they could have gravitate to the hardware cuz they can touch the software was really hard and and and this is gonna I think take a new level is particularly enough and it's all open source yeah you can go yes oh you've got this robot there no no I pointed them somebody who's complaining that we'd done it and no it was some proprietary robot thingy with the toy cars and I pointed them at the github URL it's that you can go build this thing it's all open source you can put anything else you want on it but the robot cars robot has rolls on it the robotic operating system H maker Robo maker all combined together and they're off running races and having all having fun now you guys are both Formula one fans yeah and you guys have been having some you know profile of Formula One folks here you got the little the mini vehicle riff on that really open source but I have another like thing I'm doing on the site it turns out the over the last year or so we started looking for opportunities to do sports sponsorship with a particular focus on Europe and the rest of the world we had a few US sports where they I don't know something with balls I like I like sports with wheels so about the middle of last year like this June we announced the deal with Formula One which is a multi-part deal part of the deal was just take them to the cloud that they have some data centers stuff they were running at a space and their data center is like no they wanted to do a technology refresh so for all the reasons that everyone else is moving to cloud we moved the sports core infrastructure to cloud over some number of years right so that's a process for starting and part of that is the archive of all Formula One races it's a treasure trove like 67 years of archive of everything they've got all the videos were digitizing it we're gonna figure out what to do what you know we've got to process it to label everything anyway so that's one thing and then we went turned up it we all turned up at Silverstone in the UK at that race it was the week after the announcement and that race we have a do as logos turning up on the screen because another piece was sponsorship so we start sponsoring the core video feed that Formula One uses to the world and that's 500 million fans watch Formula One so now 500 million fans for the next few years they're going to see a dope race logos on screen around the analytical insights of what is going on in the sport the odd rear tires are overheating you went round a corner this fast here's the pit stop strategy so we brand advertising associate with a high-technology sport and analytical insights and that's why we did that deal and they get all of our technology AI a lot of help helping them migrate and then the third thing we did that I got involved with was I'd already done a few CIO summits at Formula One races along the way so I was kind of like trying to poke my way into this thing that was happening I'm not involved in sponsorship set up right so hang on if you've done that thing yet and then them so we decided to do some executive events around Formula one so we'll pick a few races we'll have some you know corporate hospitality like things but when you put a bunch of senior executives together for a few days they share they solve each other's problems and you just get out of the way and they know the people that have solved one problem will share it with the other so it's a really it's like a tiny reinvent right here everyone is sharing if you sit next to someone what problem have you sold you can find stuff out so this is a concentrated version of that and we retired it in Monza earlier this year went great amazing I mean it's fun and it you know next to the business so it finally was like can we get someone on the car on Reba okay who's in Abu Dhabi on Saturday can we get them on Sunday night for the launch for the robot slut no this is like top guy in Formula One got here from Abu Dhabi if by Wednesday morning I'm just happy that they got here yeah that was that was a huge tire cube team we've watched your career you've been somebody who you know shares his knowledge and done some great work so thank you so much for coming back in the cube like that congratulations on all your great work Andy Jesse's coming up next we're excited about that keeper right to everybody we'll be back with our next guest Andy Jesse CEO of AWS right - this short break [Music]

(upbeat electronic music) >> Live from Bahrain. It's theCUBE. Covering AWS summit Bahrain. Brought to you by Amazon Web Services. >> And welcome back to theCUBE's live coverage here in Bahrain for the exclusive coverage of the AWS's summit and their announcement and their execution of a new region which should be online here in early 2019. I'm John Furrier, your host with SiliconANGLE Media theCUBE, extracting the signal from the noise, meeting all the people. First time the Middle East and the region should be a big impact, having a digital footprint as size of Amazon Web Services, bringing energy and entrepreneurship and innovation and economic revitalization and enablement. We'd love the coverage, we meet a lot of great people. Our next guest is Simon Martin who's the ambassador of the British embassy here in Bahrain. Simon, welcome to theCUBE. >> Thanks. >> Thanks for joining us. >> My pleasure. >> So, OK, so I want, I want to just kind of get your perspective. I met the US ambassador yesterday the last night at dinner. He's kind of new to the area and the job. >> But he's already, >> You've got experience, >> But he's already well informed, I can tell you (laughs). >> He's well informed (laughs). Birth by fire, thrown in the deep end. You've been here for a few years. >> Yeah, three. >> Take a minute to talk about the environment here, because we're first time here. We're learning or observing. I'm certainly surprised. My daughter was asking me: What are the women like there? We had a women's breakfast yesterday. 70 plus people. The energy, the diversity, interesting culture. Feels like very open, what's your thoughts. >> Well, very much so, I mean, Bahrain has been at the sort of crossroads of international travel for hundreds and hundreds of years. The UK's relationship with Bahrain, the formal one, goes back just over 200. And that was all to do with trade. Manama means the place of sleep. And it was the place that people used to stop to rest on their way across the Arabian subcontinent and towards the Indian subcontinent, and so on. So, it's a place which is naturally welcoming of foreigners and outside ideas. And I think that's what Amazon have found here. So, there is an often lot of change going on in this part of the world. Bahrain is relatively small economy compared to its neighbors. It was the place that oil was first discovered in the Gulf, but, actually, once they discovered it, they realized that she had rather less than most of the neighbors and, therefore, it's an economy which has had to adapt to keep, keep growing. In contrast, >> Mainly, mainly the dependence on oil, other oil-rich areas. >> Yeah. >> Right, is that it? >> Yeah. So, that's been the main stay of the economy for some time, but there is not the, there is not yet the potential for the growth that's needed in order to help develop an economy with its, with the necessary modern infrastructure. A growing population, a need for, for quality employment for young people which is something that we've heard a lot of in the last few years. >> Talk about your history, how long have you been in the job you're in, what's the background, what are some of the things that you've done >> OK >> at the government in the UK. >> Yeah, well, Thank you, so I've been here for three years. Before that, I was working, actually, for His Royal Highness the Prince of Wales. And in that role, visited this part of the world on a couple of occasions, and so, and so the impact of that very important part of our relationship, royal family's relationship with the royal families in this part of the Gulf, and it just opened my eyes a bit to the, to the importance of having multifaceted relationships. And, again, this is what we're now, this is what we are now seeing here, that Amazon Web Services with the cloud region that they are building here have brought a new dimension, >> (laughs) The fly got... >> Not surprised, to the Bahraini economy. >> So, tell me about the multifaceted piece of news. What I'm fascinated by is the Dubai dynamic, right. You know, I see Dubai, a lot of events there, Blockchain events, AI events, a lot of tech events. Feels like New York to me, using the American metaphor. It's kind of like a Silicon Valery kind of vibe. But they all work, been working together for years. What's the historical relationships, how have they changed, and how does cloud computing make up for that? How does that play into it? >> Well, of course there've been, it's been a very collaborative and yet competitive relationship between the different, particularly the finance centers of the Gulf for many years. The economic success story of Dubai is very well known. Bahrain has continued to develop, but without the resources that underpin the UAE success, has done so on a more, more progressive way. But this is always be, going to be a much smaller economy and Bahrain has to, has to compete in niches in which it has the competitive advantage. And it's this, what we have now happening here, is creating a wonderful new niche opportunity for Bahrain. But, of course, I don't think am letting out any secrets to say that each of the countries in the Gulf would love to have been hosting the new cloud region. >> Yeah. >> So Bahrain had try incredibly hard to present an environment in which to host this kind of, this kind of investment which requires regulation. It requires openness and ease of doing business and it also requires an openness to developing the labor force to support not only the Amazon, but all of the train of companies that we're expecting to invest along behind it. >> Well, Simon, I really appreciate your experience and candor here on theCUBE. Certainly, for us it's a new area and you have certainly a perspective for, for the Royal Family in the UK, and now being here. But one of the interesting things I'd like to get your perspective on is, you know, you look at globalization and you look at regulations, you look at digital, things like GDPR, you see all traditional things, you mean, you can go back when I was a young kid growing up, I remember the pound and the French franc and all the different currencies going on, and then EU comes together. And now you have Asia and cryptocurrency. So you have a whole another cloud computing generation coming where that might reimagine the political landscape, might imagine the economic relationships. These are opportunities, but also threats. And so how people handle it is interesting. So, how do you, when you look at that kind of dynamic, you got a little bit uncertainty and opportunity at the same time, depending how you look at it, it's the glass half full or the glass half empty. >> Exactly. >> How should executives and government officials start thinking about this new model, this new marketplace. London is certainly the center of the action and connects now into Bahrain, could be a different dynamic, frictionless, digital. >> Mhmm. >> People living across borders. These are new dynamics. What's your thoughts on this new melting pot of digital impact? >> Well, of course, everybody wants a piece of it, everybody wants to be at the center of a new melting pot. And for Bahrain, they're looking to be the of it within, within this region, but of course, the Dubai Finance Center and, you know, Abu Dhabi and Kuwait, and so on are also, are also very keen, and no one, no one is expecting to be the dominant player. And certainly from Bahrain's perspective, it's very much about creating the environment in which companies will see, this is a good place to start. The Gulf region is a coherent region with an incipient single market, and so on, within the GCC, and so, naturally, investors from the outside are going to look at one place to start. And so what Bahrain has done, and I think it's, it's been very well founded, it's just taken place over the three years that I've been here, it's to dramatically increase the ease of doing business, and then find proportionate ways in which the government can support new companies to get them established. So, you mentioned GDPR and, you know, how's this going to affect a company in the Gulf. Well, I was at the launch of a very interesting new big data software project by one of the, in fact British owned new startups in the FinTech Bay here which is supported by the Economic Development Board. They're starting point is that the product that we are selling out of Bahrain is GDPR compliant, which gives you an idea of the way, >> Yeah. >> in which even from, from this relatively small island in the Gulf, >> Yeah. >> the global perspective has been taken. >> And certainly with, you know, digital currency, the Know Your Customer Anti Money Laundering is the big thing too, you got to get that right. >> Yeah, absolutely. >> So, they have an opportunity with FinTech. Final question for you, as you look out and see the human capital market and the future of work. >> Yeah. >> It's a big conversation we're always having and certainly I live in Silicon Valley where everyone's, no secret that there's a migration out of Silicon Valley due to the prices of living there, but yet concentration of entrepreneurship. People are going to have engineering teams all over the world. so you have a disperse workforce now crossing borders and not just the domicile issue, that's one, you know, taxes, where to domicile, outside say the US or other countries. So, you have a combination of diverse workforces. >> Mhmm. >> This is big, this is a big opportunity too, challenge and opportunity. >> It is, it is. And, of course, there are not just big changes, now, there's constant fluctuation in the way the workforce and the populations in this part of the world and within the gulf are changing. Look at Vision 2030 in Saudi Arabia, the big increase in the Saudi workforce, both through the policy of Saudization and through the creation of many more opportunities for women in the workforce. That's affecting Bahrain. But Bahrain has always been a place where people come to work and sometimes to work remotely, sometimes to live here and work across in Saudi Arabia. So, the Bahrainis feel that they are very, very attuned to these challenges. But I might just mention as well that this is not just about economics. And what impresses me about the reform program you see going on here is that, the idea is that we will create a broader and wider spread opportunity, particularly through the opportunities for young professionals working in AWS, but also in the environment all the way around it, for all communities in Bahrain, not just the wealthy, not just the sort of Ivy league equivalent graduates. >> Yeah. >> And so that's why the academy that they're setting up here can, >> And then network does emerge in social networking is going to bring people closer together. >> Yeah. >> OK, great to have you on. Final question is, as people look at this moment in time, maybe an inflection point, shot heard around the Gulf, if you will, of Amazon, certainly they did this with CIA in our country, the said success is coming in, and kind of changing how things do, reimagining value creation and value capture. What do you see as the impact of the, a diverse region have been in this area and the geography? Just your thoughts on what the impact's going to be. >> Well, of course, this is a virtual world and a cloud region is the virtual concept, so it's easy to say, well it shouldn't take an Amazon Web Services cloud region to transform the way in which governments work here. In practice, what AWS have seen wherever they have established cloud regions, it's a magnet for other businesses to develop around it, and it provides the reassurance that governments need to take that step forward. I don't know whether you heard Max Peterson and his presentation this morning saying he was amazed at the speed with which the entire Bahraini government system has embraced the move to the cloud which, indeed, my own government is doing as we speak. And this, I think, is going to be one of the really big, the really big impacts which will allow governments to get smaller and more efficient and more transparent >> And serve their citizens in a different way, in a better way. >> But one last thing, John. Because, you may not have heard about this is, we're hearing a lot about the shift towards renewable energy in this part of the world, and people say, why on earth would we need renewable energy which is, you know, so much of the world's petrol carbon resources are based here, but, of course, if you don't burn them, you can sell them. And that's very simple economics. The fact is that it has taken longer than other parts of the world for the transition to renewable energy, even though we have so much sunshine and at times quite a lot of wind. The government here just put out a tender for a 100 megawatt solar farm. And the driving force behind that is because AWS have said: we want to power our cloud region from renewable energy. And this is an example of industry and the big investors actually applying a positive force to speed up the direction of the government policy already. And it's something that has been well. >> It's happened fast, this private partnership public relationship, that's a success story. >> And I think there are lots of other ways we will see this happening, as I say, you can't have over 2000 people here all focusing on the cloud technology without bringing an awful lot of extra attention to and focus on what else is going on in Bahrain. >> Yeah. >> From my perspective, the Bahrain government is saying we welcome, we welcome this, this publicity, and we look forward to explaining ourselves. And I think we'll see a lot of further development in this area. >> Simon that's a great point. Sustainable energy and the trade-off between industry, private industry trying to make money, but contributing technology and a co-creation with the government. >> Yeah. >> I mean, data center, it's hot here, you need cooling, you got sun power, you see, you got to have that solution. >> Absolutely, yeah. >> You can't burn it, you can sell it, so good opportunity. >> Yeah, yeah. >> Simon Martin, ambassador, the British ambassador to the embassy here in Bahrain. Thank yo for sharing your insights and color commentary. >> Pleasure to meet you, John. >> Appreciate it. Okay, live coverage here. I'm John Furrier with theCUBE bringing you all the new observations. Our first time in the Middle East region well coherent structure, great economics, great society benefits, cloud computing, Amazon Web Services region opening up in 2019. Exclusive coverage. Stay with us fore more after this short break. (upbeat electronic music)

>> Live from Bahrain, it's theCUBE. Covering AWS Summit Bahrain. Brought to you by Amazon Web Services. >> Hello everyone, welcome to theCUBE's exclusive coverage. We are here in Bahrain in the Middle East for exclusive coverage of AWS's new region in the area. I'm John Furrier, cohost of theCUBE. It's our first time in the Middle East, as we go out into the world and expand theCUBE's mission of bringing you the best content, extracting the signal from the noise, meeting new people, connecting with thought leaders, people creating innovation, creating a new cultural shift with cloud computing. It's a societal global phenomenon, it's a change that's going to impact society, culture, economics, and humans. And this is theCUBE coverage, we're going to continue with that we are excited to have Khalid Al Rumaihi who is the CEO of the Bahrain Economic Development Board. He's the man, and responsible with his team for all the success and vision of bringing an Amazon region into the area. Here in Bahrain, Amazon has announced a region that's going to come in. And we expect to see economic revitalization. We expect to see an amplification of culture. Welcome to theCUBE, thank you for joining me. >> Thanks for having me John. >> Thanks for inviting us, and thanks for having us here. Here in the middle of all the action. Teresa Carlson from Amazon had a vision and you aligned with that vision, you guys are like-minded individuals. You saw something special with digital. >> Right. >> And this is not new. It's not like you woke up one morning and said, hey, let's bring Amazon in. Take us through the history of how we got here with Amazon about to launch a region early 2019 in Bahrain. You guys have had a vision, take us through that. >> You know, I started in my position about three years ago. I remember March 2015, a little more than three years ago. And my first week on the job, was joining his highness the crown prince in a meeting with Teresa. And so, in that meeting, that's what kicked it really off. Teresa heard form his highness, who is the chairman of the Bahrain Economic Development board, the vision for the country. We deregulated our telecom sector about 13, 14 years ago. We were the first country to do that in the Middle East. Which meant that we introduced competition on broadband, on mobile. It dropped prices by about 50%. On connectivity in the country. That attracted Amazon. When they looked at the region, they said, here's a government that's allowing true competition and for a data center obviously broadband communication, and the competitiveness of that price is key. And she was also impressed with his royal highness's vision for the country going forward. We want to become a digital economy, we want to transform this economy from an oil-based economy, to one that is based on information. And so we had a common view. And we determined, at that point, that we were going to do everything in our power to translate the conversation we had there to a reality. And here we are, almost three years later, almost to have a region here. >> And you know, people know my rant and rave, I always talk about, data is the new oil, information is the new oil. In that data and information, digital assets are digital. It a life-blood now of society. Citizen are reacting. Everyone's now connected with mobile devices, you're starting to see autonomous vehicles, you're starting to see a cultural blending between the old world, and then digital. And citizens can get new services, there's more efficiencies but there's actually a better opportunity for the citizens. And also in general. How do you guys look at that when you guys have your meetings, and you're looking at the vision of the future, the citizen benefits. Whether it's an entrepreneur or someone who's just living life. >> Well you know, when we had this discussion with Amazon, we decided to do what we call a cloud first policy. And we decided that we were going to move the government work loads to the cloud. We were going to actually, challenge any government institution, why they're not using the cloud. And it's been phenomenal. Now, it's been phenomenal from a cost saving perspective, which we want to pass on to the citizens. So for the citizens, for be for them to be able to get government services on their mobile phone, to pay their electricity bill to do get their license. And the government, if it reduces its cost can pass that on to that citizen. But more importantly, it's going to allow innovation to take place in the government. We're going to be able to have our education data in the Ministry of Education, communicate with our labor data. We're going to be able to do education in a new way. So it is going to unleash innovation in the government and the way it offers its services. We think it's going to do the same for businesses and for startups. >> We didn't get a chance to film it yesterday, but we were part of with Teresa Carlson's team with you and your startup Bahrain. All the entrepreneurs from the community, very vibrant, talking General Keith Alexander was there, knows a thing or two about cyber and then we had an entrepreneur visionary in John Wood, who's been in the business, but he's also a visionary. He made a comment and you reacted to that around the impact of the AWS region coming here. He was almost like, there's a storm of innovation coming and you align with that. You said, you kind of reacted at dinner last night about it. What is your feeling of what this will bring to the region? 'Cause Amazon has proven that when they put a region out, there's unexpected consequences sometimes like things you might not see. What are you expecting for the impact. For AWS? >> I think it's a game changer. I mean, you said data is the new oil. If we think back to the 30s, this country was the first country to discover oil. When, at that time, Texaco and So Cal started a refinery and started extracting oil, all the industries that developed around it refineries, oilfield engineering, oilfield services. You know, I think we're seeing we're going to see that in the new digital economy with data. Amazon coming here is going to do several things. Number one, it's going to unleash this innovation, it's going to reduce latency for people who are storing data looking to retrieve that. It's going to create new jobs, data scientists. We estimate 10,000 jobs are going to come on the back of this, that is going to be for the entire region. And I get it, I emphasize this is going to be a game changer, not just for the kingdom of Bahrain, but for the entire Middle East. We're already seeing startups who are getting educated about what the cloud can do for them, and the scale, the scale that they can reach by going to the cloud early on, we've seen them in the United States. Why can't this region see a unicorn that is able to be a global leader, just by virtue of, going to the cloud and learning from Amazon. And Amazon, AWS shares our passion for the startup community and what this can do for that. >> I want to get to the what's going to attract business to come into Bahrain. But first about what startup impact Amazon has proven and I heard a comment from one of the startups, Amazon Web Services is for big companies. Whoa, whoa, yeah, big companies are using Amazon now, but they won, they were built on the backs of startups. When Amazon first started and startups still use Amazon. It is a dream for a startup, the cost to get a company up off the ground, the speed of innovation with Amazon has proven startups, this is a big opportunity. And so this is going to impact how you set policy and get out of the way entrepreneurs, do you help them? As you look at policy, is that almost a tough decision on your part? 'Cause you guys are used to helping entrepreneurs, very entrepreneur friendly, but almost do you get out of their way, do you help them? What's the strategy for the startups? How do you look at this, because if the acceleration comes in and the training kicks in, you're going to see a renaissance of entrepreneurs, >> Right? >> What do you do, get out of their way, help them out? What's that? >> You got to balance it. I think, you can't coddle them. You can't do everything for the entrepreneur, there's got to be that grit, the resilience, that hunger at the entrepreneur. I was an entrepreneur before I took this role, and I think you've really got to have that fire in your belly. So what we want to do is we want to create an ecosystem, but we don't want to spoon feed them. So what we've done is for instance, we launched a $100 million venture capital fund of funds. And we said, the government shouldn't invest in startups but let's create a fund of funds that will invite venture capitalists to base themselves here, but we're not going to tell these venture capitalist how to invest. So each startup has to pitch itself to these venture capitalists and make sure that there's justification for it. We're going to create, you know, training, we're going to create elements, the regulation. We introduced a bankruptcy law this year, that is going to allow people to fail and to restructure. So we're going to put the policy in place. We're going to allow capital to be there, we're going to look at our training and education. But again, it really is down to the entrepreneur, to, so you've got to mix you've got to balance it. You've got to say, the burden is also on you to think about what's the market opportunity. Here is what the country will do, but then the rest is up to you. And I think, we're going to see our young youth in the region. We're doing this because this region is transforming. This region needs to create jobs. There's about a 100 million jobs you need to create in the Middle East over the next couple years. You're not going to be able to create that in the normal way. So we want people to become employers become entrepreneurs, rather than just employees and looking for a nine to five job. So it's integral to the vision of the region. >> Entrepreneurship is the engine of innovation. All right, let's talk about the region. You know, we're first out here so I'm kind of new, fresh eyes and you see Dubai out there, you got Asia, China and all these in Hong Kong and Singapore. So you guys have a unique opportunity. Dubai is kind of like a New York, it's hustle bustle is built out. You guys have this feeling like a Silicon Valley vibe. >> Right? >> It feels very open, very friendly, so you don't have to compete with each other. And New York does things, Silicon Valley does things. So you have this entrepreneurial culture. The key is a global co-creation a connection. How are you going to attract businesses? Because there is demand in the US for domiciling in places outside the United States. There's been a lot of competition. >> Sure. >> So are you prepared for companies to come here work with you? I know you guys are doing a lot of work. What do you say to the folks out there saying, I need to have a presence. Can I domicile in Bahrain? What's it like? What's the opportunities for me to connect into a growing ecosystem around Bahrain? >> So I'd say first of all, on the region, I mean, just like in Asia, just like in the US, you can have multiple hubs. So you know Bahrain will be a hub alongside a Dubai or a Riyadh or a Kuwait and so forth or a Abu Dhabi. And our niche is, as a small country, we're going to be very agile. One of the reasons why Amazon chose Bahrain is because we have a team Bahrain approach. And I, you know, I came from the private sector, when you're talking to General Electric, you're not talking to one department in General Electric, especially if you're a large customer. The whole company's going to rally around you and bring a solution to you as a customer. We're going to do that as a country. So with Amazon we got all the various ministries and we took a team Bahrain approach and we said we're going to solve through the economic development board, we're going to solve for your problem. Mondelez, which chose to locate their $100 million facility in Bahrain, built a facility about 30 soccer pitches, and they did it within a year and a half. We reclaimed land and had the land ready for them. They called it 'cause they make Oreos, they call it turning ocean to Oreos. >> Yeah. >> And so it's that agility that is going to differentiate us. In terms of niche, we're very interested in FinTech. We think we're going to take a leadership position not only regionally, but globally in FinTech. We have exciting announcements that we're going to make in FinTech. It's a small country, we can be nimble, agile, startup friendly, and kind of innovate. And so we're determined to carve a niche in open banking, in crypto currency exchanges, interesting innovation areas that we think we can excel at. >> Cloud computing certainly is a driver, artificial intelligence, obviously clearly. The fodder for entrepreneurship because it allows you to do things with data at a scale with a cloud engine, talk about FinTech and banking you can't ignore blockchain and crypto currency, which is bubble-ish right now, and then was kind of cleaning itself out, sorting itself out, but when that starts to settle and it becomes legitimate in the sense of a global access to digital money, or software defined money. >> Right. >> And data, that could be an integral part. How do you guys look at that? I know that's something that everyone's talking about. People are looking to do token kind of business models and there's really hasn't been any leadership globally at all on. >> Right. >> This is a place people can domicile, here Malta, here, there and there. So how do you guys look at that market, are you thinking about it, are you kicking the tires, what's happening? >> We're looking at FinTech and saying, really, beyond all the logos and all that. We're looking to reduce the friction for a customer doing the simple things. Looking at aggregating your accounts, understanding how you're spending money, looking at how to transfer money, looking at how to raise capital. If we can look at reducing the friction for people around these challenges, these day to day challenges and use our country as a pilot for doing that. Then imagine the potential that once you illustrate the potential here, you could go replicate it elsewhere. So we're very interested in blockchain. So you talk about crypto currencies, I think the real interesting element is the blockchain opportunity in FinTech and beyond. How can you allow the distributed ledger to have multiple applications. We're going to introduce issuing car licensing by a blockchain. Land, real estate transactions via blockchain. In addition to that, we're looking at open banking and allowing open banking to be prevalent here and allowing entrepreneurs to plug in and get access to that data and innovate around that. So that's how we're thinking about innovation in FinTech. >> Really, thanks for coming on and spending the time. I know you're super busy, and thanks for hosting us with theCUBE as part of the Amazon contingent. I give you the final word for the folks watching out there. What should they know about Bahrain that they might not know about it? And how do they engage with you guys? What are you guys doing? How should someone contact you? How do we engage? And what's the secret sauce of the Bahrain plan? >> Well, first of all, I'm going to plug my institution. It's simple, look at bahrainedb.com. It's on the internet. It's going to give you everything you need about what Bahrain. And what I'd say is, this is a small, but you know in this, in today's world, a global world and interconnected world, small is beautiful. So we're a small, forward thinking country. We're in a region that is about $1.5 trillion in terms of just the Gulf Cooperation Council. And here is a great gateway for tapping into that opportunity. We're about 30 minutes from the kingdom of Saudi Arabia which is doing wonderful things with Vision 2030, and you can be in Bahrain accessing that opportunity. And so I'd invite you to come, look at our website and the Bahrainedb will help you translate that kind of opportunity to a reality. >> Khalid, Chief Executive of Economic Development Board in Bahrain. Bold move congratulations. Bold moves have bold payoffs. Big bet with Amazon. >> Thanks, for having me John. >> Thanks for coming on. It's theCUBE here, we're live in Bahrain here at the Ritz Carlton for AWS summit 2018 here in the Middle East. I'm John Furrier. We'll be back with more coverage after this short break. (upbeat music)

>> [Announcer] From San Francisco, it's theCUBE. Covering Radio 2018, brought to you by VMware. (upbeat music) >> Hello everyone welcome back, this is theCUBE's exclusive coverage here at VMware's Radio 2018, this is their seminal, big-tent event for their top engineers, smartest people come together present their reports, their projects, and come together as a community and share great content and agenda. As Steve Herrod former CTO says, this is like a sales kickoff for engineers, it's motivated and they flex their muscles, technically, stretch their minds. I'm here with Pat Gelsinger, the CEO VMware, great to see you, welcome back to theCUBE. >> Hey thank you very much, it's fun to be here at Radio. >> So this is nerd central, this is >> Absolutely, this is like geek city baby. >> Dave and I always complement you on your business acumen obviously doing great as a CEO, the numbers, business performance, world class organization, check, best place to work, one of the best places to work for, check. But you're kind of a geek at heart, you like to get down and dirty, technical, this is your event. You gettin' down with the folks? >> Yeah it's fun, I was just at our sales, we have a top sales people, our sales club, so we did it in Abu Dhabi this year, so I was just over there a couple of week ago for that so hobnobbing with the sales guys which is super important, right? Their motivation, their creme de la creme of the year, but to me this one is better, right? Just 'cause now the tech guys comin' together 'cause most companies don't do anything like this, right? So it really is a unique piece of the VMware culture where the tech guys get together and they just geek out for a couple of days and to be awarded best of Radio, it's like, oh man you're a god inside of VMware. >> It's like the Sundance Film Festival, Cannes Film Festival, the Oscars, it's a huge accomplishment and knowing people internally. >> Yeah and some of Ray's numbers this morning as he showed in the keynote, I mean it's competitive to get your paper shown here is competitive, right? So there's a set of judges that are picking the papers that are here out of this we already have over 200 invention disclosures that have come out of just the preparation for the conference and we haven't even gotten started yet, and now the keynotes this morning and poster sessions all week long, and letting the engineers just really vibrate off of each others' ideas and challenge them and all of our PEs and fellows roaming around here they're sort of like the big guys on campus, but hey the young Turks are coming up and they're challenging them on ideas it really is a delightful few days. >> I love your perspective, I wanna get your reaction 'cause one, not only do you have a storied history working at Intel, really a great innovative founders of Silicon Valley with HPs of the world, and now you're the chief of VMware a modern era's here, you talk about this all the time publicly about the business context and at the events, but it's different Google had pioneered this notion of 20% of your time you could work on side project, more of an academic culture Google has, I mean I love that it's cool, but VMware has a unique culture and I want you to talk about that dynamic because you have to be versatile now, agile more than ever, you have to be faster time to market, and it's always been hard for companies to crack the code on knocking down the big ideas, solving the hardest problems but yet making it practical at the same time. What's your reaction to how you guys are doing it, >> what's different? Share some color. >> In some ways and I think some of the panel, we had a panel session this morning, Steve did one session, but we had of the original engineers in the company, the five of the original engineers, right were here and they were saying it was sort of like we're doing research in a business who had business objectives, right? Solving problems that had never been solved before, Sort of the VMware culture is if it's not a hard problem, it's not worth it, right? And our objective isn't to be 2x or 10% better, but to be 10x better, right? And when you're doin' those kind of things you can't always put that on a schedule, right? The problem is solved when it's solved, right? And I was just meeting with one of my teams last night and this is, well alright that looked pretty good but I don't think you've met the minimum viable product yet so let's put it in an open beta for six months before we actually call it GA 'cause I don't think you're done >> solving the hard problem yet, right? >> So you're squinting through and looking at the projects from that? >> Yeah right, is it ready? And have we really delivered something that customers can say, "Yeah here's the value proposition you promised, here's what you're delivering me, it is a quality product," right? Which is something that's deep in that history of VMware right in many cases, and I love one of the statistics this morning, they said the early core dumps of ESX, right they found that over 2/3 of them were a result of memory parody errors, not of ESX failures of any sense, so meaning that the hardware was less reliable than the software was, that's all we sort of this magic that we say, we're out to produce world class infrastructure software that's better than the hardware ever could have been and for a hardware guy that's sort >> So that was your problem, originally I think it was on your watch actually the first core dump. Throwback Thursday would they do core dumps from like 10 years ago look at a simpler core, >> look at x say "Hey look at the core dump, Hey look at cool that is." (laughing) >> If I see the Biaz prompt oh my gosh where did that come from? >> Let's get some vinyl records and look at some core dumps from 1992. >> So Pat, now this is important because I think this is a killer point, when you look at innovation VMware has to meet the challenge of being on that next wave and you've said on theCUBE many times, if you're not on that next wave you're driftwood. A lot of companies who try to do R&D end up solving hard problems to attract the top talent, but they end up getting so focused on the problem they end up in a cul-de-sac on the wrong wave, they miss the next wave. >> [Pat] Yeah. >> How do you manage that? 'Cause this is your sticking point is to make sure you don't miss the next wave, you transition properly, how do you avoid that problem of getting so focused on the intoxicating aspect of solving problem and being in a cul-de-sac no market wave missed? >> Yeah and it's hard right? In that sense and I'll say there's, we sort of look at it from three different dimensions, one is, hey you gotta keep this bubbling cauldron of ideas and that's why we're here at Radio, right? Just these people working on ideas, right? You have some really cool stuff and every once in a while you're telling the engineers, "Well that's good but you haven't solved the hardest piece of that problem yet and so on." Then you have to be able to take it from that bubbling cauldron to, I'll say, an incubation product, right? 'Cause VMware yeah we do R&D, we do core research as well, but fundamentally we've been able to create markets based on our products and really scale them, right? The embarrassing truth of any enterprise software company is for every dollar of R&D you spend, you spend two dollars of sales and marketing, so we can't under invest in those products that we've picked that now are scaling into the market, we have to put the >> dedicated sales >> [John] Get the leverage >> out of it >> The SEs et cetera, that's really frightening. When I'm done innovating a new idea maybe I've dumped 10 million or 15 million into the core idea, okay, now I got to go spend twice that amount on >> Good marketing. >> Marketing of it and boy it's expensive to bring things into the enterprise and if the product isn't robust and solid and really compelling, then it might be three or four x, so you're now rewarded with your R&D investment to go spend on sales and marketing now, so yeah we've really taken and we have a very BCG matrix kind of view of how we take products from incubation into early market success and then into scale and finally cash cow and retirement and that process is one you have to be equally disciplined about. The third piece of it is you have to be able to declare failure and for failures, it's how do you harvest technologies and learning, but be able to look at something vCloud Air and say, "Okay we weren't successful" and now go build a multi cloud, an Amazon partnership coming out of it, we have to be able to make those shifts right and be able to declare failure, be able to move our customers forward, and then move on to the next big thing >> [John] I mean the math works >> 'Cause you're not gonna get 'em all right. >> So to your point, the math works when you can abandon quickly >> [Pat] Yeah. >> That's where the winners are 'cause then you can move the probability of success somewhere else. >> Yeah and if you can't declare failure, right, and view that in the positive and proud way. One of the failures of vCloud Air became the success of our hybrid cloud service capability now, right a lot of this ability to move workloads between public clouds was a direct harvesting of our vCloud Air failure, we're able to take that technology forward and that's now one of the pillars of how we're differentiate and our Amazon service, OBH partnership, IBM, are building on those hybrid cloud capabilities. >> Pat we've been watching you that's one of the things I will say that you're really amazing at, you're good at, you're the captain, you've got your hand on the wheel, you gotta know when to say, "Hey, close that hatch, or we're going to sink," you gotta, or I'm not that there, knowing when to make the calls. So I gotta ask you, when you look at the marketplace now, you have the option to build, the option to buy, and you have to kinda also balance those three areas, you've got Ray, you've got Rajiv, and you've got the Corp Dev guys, they have to work together and sometimes, hey let's go buy that hot start up or no I have it internally, and sometimes it might be in a core competency area. Talk about as the CEO, you've got your hand on the wheel, okay, you're steering the ship, you're setting the direction, the team's workin' hard, how do you make those calls buy build, and when it's in the core area as the market's shifting, what's that look like for you? What your view as you look forward? >> Yeah there's clearly and we think about the case let's take two examples of our buy. AirWatch, hey we saw that we had nothing in mobility and if we're gonna be in end-user computing we must have mobility in the family, so we really in some degree, we didn't have a choice, we had to go buy if we're gonna be in that space and it became foundational for us in that area. You might have argued, hey we should have done that five years sooner, but we didn't, we had to make a buy decision and then we went out and shopped, literally MobileIron or AirWatch? We looked at those and bake those off until almost the last day, alright? And I went into that expecting we were gonna buy MobileIron, right? >> [John] Really? What was the tipping point? >> Right, well, I became a Silicon Valley company, I thought their technology was a little bit better, I thought the AirWatch guys were a little bit too much market and focused on winning the early market, I didn't know if the product had the quality of a VMware product, so I really was handicapping the MobileIron one and the team came out unanimously with my agreement that AirWatch was the right thing, right? In the case of Nicira, one of the other foundational acquisitions that we did, we had a lot of the distributive virtual switch technology we had already innovated, but we hadn't put a control plane, a scale control plane against and that's Nicira did, so there it was really bringing those pieces together which really has become, I'll say, a marquee aspect of our acquisition, in many cases we're in the space >> You feel good about that, how much you paid for that. >> Oh yeah, I mean at the time people said, "1.2 billion for less than 10 million of revenue, what are you guys stupid?" Now everybody says, "Wow you're brilliant." >> So they didn't look at the underlying technology. >> Absolutely >> Leverage you were getting. >> Four years of hard work, core technology, right, and boom, we're unquestionably the leader in software defined networking now as a result of making a pretty bold bet at the time. Obviously organic innovation is the best because it sort of fits in your stream, you don't have to go, you know, change gooey practices or test release practices, it's already part of you as well. But sometimes, hey, I get to look over 10 startups and pick the winner. I may not be able to fund 10 startups internally and pick the winner, but I can look out over, you pay a premium, and one of the unique things about VMware is that over the 60 or so 70 acquisitions I think we've done now, as a company we have a highly successful track record. >> Is that because of the architectural decisions? It's not just bolt on a business unit and say stand alone and produce cash you guys are thinking strategically around how it fits architecturally, is that the difference? >> I'd say it boils down to a handful of things. That's absolutely one of 'em. We're looking deep at technology, how does it fit our technology, can we bring it in? Second we look at the culture of the company, right? We've said no to some acquisitions just 'cause we've decided that culture won't fit our culture or we're not gonna be able to mold it into our culture as well. Number three, we protect this thing, we run a process by which, hey if this is the acquired company, right, and here's the CEO of this startup company, he has passion, he is the commander of his universe, and tomorrow some low-level legal person can say, "No you can't do that," right, yesterday he was enjoying (laughing). Do we protect them? Do we turn their passion and get them to believe that their passion, remember, they're, yeah they wanna be successful, but they wanna turn their passion and objective into a big industry-changing event. And is that passion better executed inside of the platform of VMware? So we protect them, that low-level legal person can't say no or that finance person, we run a special board process around 'em to protect 'em. >> You don't want people handcuffed. >> Yeah, absolutely, we want them to be unleashed, that they have more power not less after they become part of this company that the platform for their vision and passion becomes bigger as part of ours so we protect 'em like crazy in that process. >> And you do that here at Radio as well. You wanna unleash the ground swell, get the grass roots movement going, let the sparks of innovation kinda fly out there. >> Yeah and our success rate is close to 90% on acquisitions and the industry average is below 50% so I think we've really mastered organic and inorganic innovation as good as any company has in the industry. >> Yeah I will say that's the totally true. And also Vsam became a project that came out of Radio that's been highly successful. >> [Pat] Yeah totally organic in that one. >> So you guys think strategically, it's not just bolting on revenue, although that could help if you can find it, there's not much out there for you guys. (both men laughing) Let's talk about some of the hot trends here at Radio. One of the things we're seeing, obviously with tie-in of the competitive, but also the comradery, a lot of, it's interesting to see how competitive it is, but also again VMware's got a hard core engineering culture, but also a hardcore community culture that shines through, it's obvious, so props to the folks running Radio and then the process. But when you look at the trends, what's trending up is the blockchain. We talked to some of your folks there you guys are looking at this, this is really strategic aspect, you talked with Dave about it briefly at Dell Technologies World, what's your view on blockchain? Obviously, you look at infrastructure, blockchain jumps out at you, your reaction to the hype and allusions and reality of blockchain crypto currency, not so much the ICO's, I think that's just a funding dynamic, lot of project-based stuff, but really there's some infrastructuring dynamics, your thoughts on blockchain as an infrastructure enabler for future wave? >> Yeah you know a couple of comments and one is, I think blockchain as a algorithmic breakthrough is on par with public private key encryption, alright? It's just sort of opened up the world of general purpose cryptography, and I think this idea of an immutable distributive ledger, right, sort of busts apart the database and I don't have to bring things together now the databases spreads, right, across it, immutability, right, transactability, et cetera, takes a lot of the acid characteristics of core databases and now does it in the fully distributive way, very powerful and I think it's gonna change supply chains, change financial systems, it's gonna have very broad implications so overall we're in, we believe very much in the importance of that. >> Real quick, to interrupt you real quick, >> 'cause I wanna get this thought in because you brought up general purpose, one of the things we've been kind of talking off camera, most of our team members is, blockchain looks a lot like maybe processors, general purpose processors, opening up an PC revolution, in the sense of general purpose computing. Blockchain seems to have that same dynamic, potentially, not as a direct metaphor, but if you can open up a new dynamic, that could explode new business models yet to be foreseen. >> Oh yeah, yeah, yeah absolutely. If we could take the cost of transactions down by an order of magnitude, right? If you could increase the reliability of a supply chain, right? If you could right in fact guarantee the source of origin of any product against the ultimate place of consumption, these are industry-changing type of capabilities, so we do see it quite significantly that way. But then as VMware looks at it, if there's not a hard problem to solve, then we shouldn't be in this space. So our team, one of the core problems of blockchain, right >> [John] Slow. >> Is the exponential compute requirements of higher order blockchains, so our team has solved that problem we've done some algorithmic breakthroughs that we believe allow blockchain to scale, a close to linear scale as opposed to exponential scale, wow that's game-changing for, we're also solving the auditability problem, immutable, anonymous, immutable is great, but a lot of things need to audited, right? So how can you bring some of those core concepts into blockchain? So those are some of the hard problems that we're solving, sort of back to the 10x culture, solve hard problems in fundamental ways and that's what we think that we can bring to the blockchain universe. >> Well Pat, I think it's amazing that you're here at the event, I know that you love, look forward to this as well, but to have the CEO come in at the Radio event and really lead the troops by example is awesome. We've got VMworld coming up around the corner, give us some teasers, what's happening? I know you're gonna get in trouble from Robin Matlock, (Pat laughing) but come on tell us what's coming at VMworld. >> (laughes) Well you know we have, of course we have a lot of key products, updates and other things that are coming out. I hope to broaden at VMworld this year, the view of the cloud, right? And you say, "Broaden the view of the cloud, what are you talking about Pat?" Well you're gonna have to come to VMware to get the full story, but I do think that we've thought about the hybrid cloud world largely in this idea of public and private in the past, right? But we see that the vision that we're pursuing is one much larger than that where, right, it's public, private, telco, and edge, right? And the confluence of those four worlds, we believe is something that VMware is uniquely positioned to be able to bring right to the marketplace and the implications of that so, I'm quite excited as I broaden our general view >> of the cloud as we come up on VMworld. >> And one of the exciting things it's our ninth year at VMworld, we've been every year one since theCUBE's existed and thank you for your support. >> Ah that's great. >> But I gotta say, one of the things we can do is look at the tape as they say, you said in 2011 or 2012, hybrid cloud and I kind of was like, Pat come on, hybrid cloud. >> Now everybody's talking about it. >> I think that's what it is. >> Yeah. >> But 2012? How many years ago was that? >> I think 2012 I think is when we first started to use that word. >> Yeah you put the stake in the ground, >> again, you saw that as a wave and a lot's been changed and you look back since 2012 you make the right calls, you feel good about where you're at? Things you could do over? What would you do given from a progress standpoint? What's changed radically in your mind? 'Cause we're still talking about private cloud, what, I mean obviously service mesh is around the corner other cool stuff's happening. >> Yeah you know, clearly I think when we think about the STBC, hey we called it right, we're executing better than anybody else. So you can sort of say check, right? Virtual storage, check. We talk about what we've done at NuComputing, transformed their workplace, check. We're unquestionably the industry leader in that area. I think this idea of hybrid cloud it's taken us too hard, too long too hard to realize that the multicloud vision, so that's the one I'd say, okay we haven't delivered as rapidly or as effectively as we needed to, it's now really starting to materialize, but it's taken me a couple, three years longer than it should have to get there and we comment on the vCloud Air and a little bit of the miss that we had there and that delayed our schedule, also some of the Amazon aspects sent us sideways a little bit, but hey I think we're on a very good path now but then to broaden it, to what we're doing in telco, what we're doing in edge, okay this gets to be really really powerful. >> Pat, great for you success. Thanks for coming by theCUBE here at Radio 2018 this is where all the R&D, it's where the ideas are booming I'm John Furrier with Pat Gelsinger, here in San Francisco for Radio 2018, we'll be back with more coverage after this break, thanks for watching. (upbeat music)

>> Narrator: Live from Nice, France. It's theCUBE, covering .NEXT Conference 2017 Europe. Brought to you by Nutanix. Hi, I'm Stu Miniman and this is SiliconANGLE Media's coverage of theCUBE at Nutanix .NEXT in East Frant. Really excited to have on the program Rob Lloyd who is the CEO of Hyperloop One. Off of the keynote this morning Rob, thank you so much for finding time to join us. It's great to join you. So, it's interesting. I've been watching Hyperloop since the day one when it got announced. I'm study mechanical engineering. So transportation's something I looked at. But I've been in the tech world. I knew you back from your Cisco days. When I talked to some friends of mine that didn't know about Hyperloop, you kind of explain it was like, "Oh! Remember the bank pneumatic tubes? "It's like we're going to do that with people." And they're like, "That sounds crazy!" And then you say, "Well, Elon Musk is behind it." And they're like, "Well, OK, another Elon Musk thing "that's probably going to be near impossible, "but they will find a way to make it work." >> Rob: Mm-hmm. You talked a little about your journey in the keynote this morning, but let's start, Hyperloop One. Pre-revenue, give kind of a thumbnail of the company and where you are today. So it's a three year old company. Literally in a garage, in the very late part of 2014, our founder, co-founder, started on November 2nd. So, just an idea. A white paper that Elon wrote, which was the concepts of something very different. A new mode of transportation. Slightly outraged by the expense and archaic nature of the High-Speed Rail in California proposal. So, that's the starting point. A company that was founded, co-founded by Shervin Pishevar, a venture capitalist, and some brilliant engineer, Josh Giegel. Now, from that point, 300 people, 245 million dollars raised and just this summer, having only started on the designs, tested some concepts: a magnetic levitation, a custom-design linear electric motor, evacuating a tube to the equivalent of 200,000 feet above the Earth's surface. We built a full-scale prototype. 500 meters prove the tech is working, and the cool part is that the speed with which this engineering and development is occurring is like nothing else. So, it's kind of DevOps for hardware. And we saw what happened when people kind of went to Agile Development Methodologies. We saw it in tech. But it really hasn't hit the traditional methods of transportation, where people build in silos. They're not closely associated with a fabricator or a welder. And we have mechanical engineers working with fabricators working with welders, and you make amazing progress when you see that happen. You stated, it's been over 100 years since we had a kind of major new transportation model. The tooling that allows you to prototype this... I know, it's kind of, friend of mine, it's watching the space stuff and watching the videos that you put out. Everything from testing the engine, to the pod. If I remember, wasn't there a contest around the pods, too? Well, actually, yeah. The tools we have today, the analytics tools, the way we can model things, didn't exist when we did our first moonshots, when the United States said we're going to put a man on the moon and NASA was mobilized and the country was excited. We didn't have the tools we have today. So we have much, much better tools. We have methodologies and approaches that are not accepted everywhere but are embraced in our company. And you make things happen that were taking five years from an engineering perspective. And you can build a full-scale prototype in 10 months. That really changes the speed with which this can occur. Most people say this would take a decade. This is going to take three years. As I said, like other Elon Musk companies, you've got strong conviction at Hyperloop One. Some of the things that kind of skeptics come up with reminds me a lot of autonomous vehicles. "Ah, well, regulators are never going to let it happen, "and, gosh, safety." It's like "I'm putting software? "It's going to do this? We're going to be going at what speeds?" And you know, "How fast?" And all these things. How long's this going to take before its reality? Can you give us a little bit of that road map, as to how we make sure that once somebody actually goes in this, that they're not going to end up just completely flattened? So, the way that we're approaching this is actually different than the way in which most new technologies are regulated in transportation. We're going to partner with one or two countries. We're going to partner with the regulator while we're designing the commercial version of our technology. So while we commercialize, which is the next two to three years of our road map, we know the tech works. Now you build a commercial offer. You build the car. You build the pod. We will commercialize this. We're going to work with them now, so we don't come to them in three to five years and say, "Would you please certify this?" And in doing so, we actually bring a huge opportunity to the countries that go first. We ran a global competition, to kind of AKA Peter Diamandis, who's on our board, like the X Prize. We actually asked countries, "Who'd like to build the world's first Hyperloop?" 2,600 people registered. 100 serious submissions. Dozens of them are now real projects moving forward with government support. So, the short answer is, we have to do it differently. We're going to partner with a regulator while we're commercializing the tech. And then when we get there, of course you want it to be safe. Of course you'll need certification. But you do that now rather than later. And you'll end up bringing benefits to a country that chooses to go first. Did I hear right that the first solution is probably going to be in the Middle East? There is a good probability that's the case. The land is fairly flat. We can build along existing right-of-ways. There's massive investments in airports and ports there. Wherever there's a very dense transportation hub today, airports, downtown centers, connections to metro or train stations, that's where we want to put kind of a Hyperloop portals. So think of it as the backbone between two data centers. All the activity going on in the data center, we want to connect those high-density locations. But it's not just one-to-one. We can branch on and branch off. So it's sort of like point-to-point packet switching. One of the things that really excited me in your presentation that I didn't know as well is you talked about kind of the sustainability, the energy of this compared to other options, as well as the affordability. Something that really could help a lot of environments. Could you speak to those? Yeah, so... There is absolute science about the substitution rates that will go to a faster mode of transportation if the price is right. So, our model as we analyze opportunities around the world, in the United States, in Europe, Northern Europe, Canada, India, and the Middle East, where we see a lot of our projects today... If we price at the same price level of the current mode of transport, you'll get almost 100% conversion, because why not? Why wouldn't I go, in nine minutes, to Abu Dhabi from Dubai, instead of what could be a two-hour car drive? But why not price it for the ticket of a metro ride? Then you'll get really high ridership, high utilization. The economics of building infrastructure, a PPP structure that would bring private equity, debt, pension funds, sovereign funds together, to invest in that new infrastructure, that's how it's going to work. So that's the passenger case. And then on the freight side, you know, seriously, we forgot that this on-demand economy is based on a transportation network that effectively is 100 to 200 years old. Steel cans, right? This idea of a container was invented, a standard-sized container that goes on ships. The ships unload them in ports. They sit a couple of days. Then a truck puts it on the back, and they drive through our cities. Or it goes on the back of a train and takes seven to ten days to get to its consumer. That doesn't work anymore, in this world of Amazon, on-demand, Alibaba commerce. The only option they have is to pay for air freight, which is five to six times more than it would cost to carry those same packages and goods in a Hyperloop cargo system. Huge opportunity. Rob, speak about sustainability, kind of the energy required for this compared to other modes of transportation. We take some energy to remove the pressure inside the tube which obviously reduces resistance. It's an all-electric motor. Because we have little resistance and no friction, because we're floating on magnets, effectively floating on a magnetic cushion, once you're up to speed, you're pretty much gliding, like gliding in space. >> Stu: What speed do we think that'll be? Well, by the way, this really is, I'm being very candid, it depends on the route. It depends on how straight we can get a right-of-way. It depends on the levels, so flat and straight means you can go fast. If you're going to go 300 kilometers, we can go six, seven, eight hundred miles an hour which is faster than an aircraft. And obviously city center to city center, then we don't have the drive of an hour and a half, the vagaries of weather, and all that other stuff, which has made air travel for most of us just a somewhat demoralizing experience. So, solar power, wind power, and in some environments where we do have a lot of sun, we can just have the tube covered with solar panels and make the entire thing energy neutral, which is really, really amazing. A new mode of transportation that doesn't consume any energy. Yeah, maybe Elon can help with some of the solar stuff. Elon's got that stuff. How much is Elon involved? So he's not involved in our company. His idea, right? His brainchild. Our company was formed to commercialize that, and there are others that are now in this market. I think we're the leader. No, I know we're the leader. We've demonstrated the technology no one else has. And we're there. I mean, this is a go-for-it business. So we're going for it. Well you just had a new partnership with Virgin announced recently. So Richard Branson, you know... Yeah, so Virgin Hyperloop One, a brand that actually has been known for customer experience, thinking of the customer, delivering an experience, taking on the giants as he did with Virgin Atlantic, putting people into space now from a commercial perspective, as well as satellites. So think of his companies and transportation and how that brings comfort to governments and investors, that we're here to actually really make something big happen, and Richard's done that. He's a serial entrepreneur. And that brand typically stands for an excellent experience. Yeah. He has pretty good track record as a risk taker out there, too. Some of the extreme things that he had done, but absolutely, the comfort and the brand there... Pre-revenue, you said a couple of years until we're there, but you mentioned even that you've got kind of a pipeline of orders already, so sounds like-- Well the projects are big, so this is infrastructure. We won't be financing that. That will be done by people that find governments and pension funds and sovereign funds and insurance companies that invest in infrastructure. But if you take a look at the projects because they're big, they start with billions and they go up from there. So it's kind of fun to think that you're first order could be three billion. It's kind of neat to go from this pre-revenue stage to the size of projects that we'll have. That three billion will be spent on, some will be on contractors, some will be on infrastructure, but for us, the revenues that will come will be high margin. We're building a software platform that will connect with other modes of transport and manage the massive amounts of data we'll be collecting off the pod and the track, the headway between these vehicles, which could be as close as ten seconds traveling at that speed, and then obviously you've got to have a whole lot of control software and a whole IoT Platform built in. Last question I have for you. We're here at a technology show. Just throw out there: software, massive amounts of data, I've got to have the analytics going into it, and there, is the tech all ready? How's the industry doing to support some of these kind of moonshot-type of activities? High-speed networking is going to be a big deal for us. So we probably need kind of an evolution of 5G because we're moving so fast inside that enclosed area that we're going to need some radio technology to keep all of those devices connected. That's a little bit of a push. Listen, we're starting from scratch. So we have a clean sheet. So we have legacy to integrate. That's typically an advantage. We're not trying to do mechanical switching. We'll do a digital switch, which means you'll actually just bump a vehicle off onto an on-ramp and weave it back in with software, kind of like packets on the network. But clean sheet. I think we have tools required to do everything that we're looking for today, an industry that's evolved, has developed around IoT, and a plethora of options that our architects and engineers are working on today. Gosh, all my background thinking about packet loss and things like that, it gets me a little bit nervous, but I know you've got lots of engineers working to solve that problem. Rob Lloyd, Hyperloop One. Really appreciate you joining us. I'm Stu Miniman. We'll be back with lots more coverage here from Nutanix .NEXT in Nice, France. You're watching theCUBE.

>> Announcer: Live from New Orleans, it's theCube. Covering VeeamOn 2017, brought to you by Veeam. >> We're back, Mahmoud Yassin is here, he's the Data Center Manager of the National Bank of Abu Dhabi. >> Good to see you. >> Nice to meet you. >> I'm Dave Vellante with my co-host Stu Miniman, this is theCube, the leader in live tech coverage. So, welcome to theCube. >> Thank you. >> Tell us about VeeamOn, what's your experience been like so far? >> Actually it is not the first time for me, I was here in the last few years. It's a very nice experience, mix it up with all IT companies, listening to people, leaders like Cisco, VMWare, Amazon, understanding what is the technology, how the market is moving, this is a great experience, great experience. >> Tell us about what's going on in the banking industry in your world in terms of the challenges and in particular, what's happening with the need for availability and uptime. >> I think you heard about what's happening last two days about Crayon, all the mobiles of all the IT people never stopped about the people and the need for restoring and restoring the machine cause of the people hit by crime virus or malware that encrypted the whole machine and you need to restore the data. This is happening all the time, there's not only banks in there, across different sections, three four days back, UK, the whole healthcare sector was stopped due to cyber attacks so availability and security has become so tight and of course banking means money, money is a big target for cyber-criminals. So we are caring about availability much much much more than before, it's not a matter of just fulfilling the checkbox and like what we have done in many years in IT, backup was a checkbox, just a checkbox, it's not anymore , no luxury to have the backup as a checkbox anymore. >> Checkbox meaning, okay I have-- >> I'm compliant, I have backup. >> We did it, we don't know if it failed or not but we did the backup. >> We did the backup, we tick it, we have the backup, we have the backup process, everything is okay. But have you never restored, restore in time, ensure the data availability is okay. How much data for how long? Regulation became as well very tough for the financial sector so you look at countries now that are asking for 15 to 20 years of data retention. So imagine your backups you need to maintain, multimedia, media is not sufficient anymore. Which tape drives will be sufficient for 15 to 20 years? After ten years, the tape will be rotten, it will not work, it will not be readable in the machine. And the data side as well is becoming a challenge so you need to offload the data to a desk, you need to offload the data to somewhere else that you ensure your availability and you need to ensure all that you can restore this data back. >> It's interesting you know, in IT we've known ransomware as something that's been discussed for a while, but now all of your customers know what it is. >> All of the customers, every one of them. >> So does that change the role? >> It's hitting the kids in the school, it's hitting everyone. >> You know, Dave's been talking for the last year that security has been like a board level discussion. Now it's your users, how much do your end users start coming and wanting to understand how secure money is. >> A lot, a lot. >> And how does that impact your role in IT? >> A lot, actually National Bank for Abu Dhabi security is one of our label, one of the safest banks, one of the 50 safest banks, this is one of our label. And we take security, we are the first customer in the Middle East to implement the RSA talking for login for online banking. This was eight years back. >> What about, I got to ask you, I follow a little bit of the banking executives and see what they're talking about and blockchain comes up a lot. This notion of trust between two parties and so forth. Do you see that as a mega-trend, is it something that's sort of an interesting trend? I mean what're your thoughts on that? >> It is the future, this is the future. >> It's the future? >> This is the future of the money. Money will be part to part with encryption and with the mechanism to get keys. And this is, people who don't want, this is where the money is moving in. >> So what happens to-- >> Actually what blocks this from happening on a wider scale is it's still, the regulation is not enough around this area, there is not enough regulation, so good money can mix with bad money and to be untraceables, he says this is one of the things. So people are starting putting a certain regulation across to start regulating, it will take time but it will be there. >> So blockchain is interesting, banking executives saying it's the future because everybody says oh blockchain's going to disrupt the banks but what I'm hearing from you is it's both, maybe it's a threat but it's also an opportunity because right now it's all done in secret, and so there needs to be. >> It's not in secret, it's done in Swift, the only platform for exchanging money worldwide is Swift. And sooner or later this will be changing, though some people are blockers, some people are, but it will be changing and the banks will realize this, adapt to blockchain technology. There's some legal services for blockchain and sooner you'll find central banks across the whole worldwide are starting regulating the blockchain. >> Yeah, okay it's very interesting because everybody says it's such a disruptive force which it is. >> It is a disruptive force. >> But it's also an, as you say, an opportunity. Where does Veeam fit with your availability strategy? >> It is in the center of our availability strategy, >> Really? >> Veeam is, I'm running my data centers and 90% of my data center is virtualized. So Veeam is running the whole virtual world in my data center, the 10% is running on traditional backup solution, which is, still we can't get rid of because you know in banking you have a critical system that measures 20 to 80 so you have running 80% of your system in virtual but actually the core system is the 20% so this is still not virtualized. Your core banking legacy application and some other stuff, so you have still to take the back up in traditional ways. And we mix both together, we mix back up data backing up the information, back up the virtual environment, this is very important for me. >> Dave: And you have a service catalog essentially? >> Mahmoud: We have service catalog for restore. >> For your data protection services right? >> For data protection of course. >> And what, like bronze, silver, gold levels or is it more granular than that or less granular? >> We have more, actually, in discussion with business we all were trying to meet the business requirements. So the most important for business in the banking section is the availability of the communication, mailboxes, availability of the critical detail in the databases. This is the things that we are taking care of. And Veeam has done a lot of development over the time, I'm first customer for Veeam from the Middle East by the way. >> Really? >> Yes. (laughter) >> Pioneer. (laughter) >> We are pioneer, and we've done it after trying them extensively in our environment and we decided that this is the best solution this time to go for virtual environment. It was extensive evaluation done across multiple vendor and we select them. >> And did that give you a competitive advantage? >> Of course, of course. >> How so? >> The ability to restore faster, the ability to do uptime faster, the ability to recover and ensure your back up is secure. This is something very valuable. >> Some of the other customers we've spoken to today have said that the announcements were meeting some of the wishlist that they have. Anything jump out at you with the announcements made so far? Things on your list that they-- >> Actually the continuous application is a very good feature. >> In the CDP, yeah. >> Yeah. It is one of the most important features we used as a traditional application of Vim backup. Last year, to move my data center from place to place, we were hosted somewhere and we moved the data center, the whole data center. It is good, but it was taking time, so continuous application will give you the availability of all those, just divert your backup somewhere and you'll be up and running. This is a very important feature. >> Anything that is on your wishlist that they haven't gotten to yet or things that you're looking for? >> I see, I see, Veeam should more personal devices, we are talking about IoT, internet of things, bring your own devices to work, so we should go more backing up the usual details on mobiles on at least the corporate one on the corporate bubble like Citrix, like whatever good solution, whatever solution is used. You can backing up design, backup solution for this, for end users this will be a huge thing. This will be, and part of the security of the organization cause you need all those to ensure if you add device of one employee you can restore this data back and ensure this data is restorable. >> This is the pain point for you today. >> It is. >> And it's going to get worse. I'll give you the last word, things have been exciting you at the show or conversations that you've had. >> No actually the keynote speech today was amazing, especially when you're understanding the direction of big companies like Cisco, VMWare, this is what's very valuable, very valuable. >> Excellent, well listen, thanks very much for coming we really appreciate it. >> Thank you. >> You're welcome. Alright, keep it right there everybody, Stu and I will be back rapid fire from VeeamOn 2017, be right back. (funky music) (tense music)

>> Narrator: Live from Las Vegas, it's the CUBE (light electronic music) covering Interconnect 2017. Brought to you by IBM. >> So, my first question for you is, as we digitize our worlds with business, the value chains and all the processes are changing, there's a new value equation model around digital business. What's your view on the digital business value creation equation? >> Sure, John, thank you for having me here, today, and Dave, as well. Thank you for having me. So, I think that automation in combination with cognitive computing, AI, machine learning, is really going to revolutionize the way we work, the way we interact, and it's going to create new experiences for people, experiences that we don't even know that exist in the future. They're going to be real value, and that value is not just about cost take-up, that value's going to be around innovation, that value's going to be around the combination of block chain, machine learning, ubiquitous computing, and I think that this is going to create new industries, new business models, that we could take really advantage of in many different industries. >> One of the cool things that's happening that I like in the computer science, and how society in general now is seeing cloud computing, which has been around for awhile getting full-steam ahead, big data industry evolving very rapidly, and what's kind of pulling them together in this gravity is machine learning, data, cognitive, iterative things, and AI is kind of the over-arching, you know, sizzle, if you will. So, the sci-fi aspect of AI. Everyone can relate to some sort of mental image of AI. You know, robots taking over the world, to automated things just make us smarter, augmented reality, what-not. But iterative things, and data science, that's connecting the power of the cloud with data is changing the game. So, one little change in a value equation, in a company, could change their business model. >> Absolutely. >> How do you rationalize that with your customers (laughing)? Hey, you know, full steam ahead, or slow down, it depends. What's your perspective on that? >> So, it's interesting you mention about science fiction, right, because science fiction inspired robots and automation for centuries, now. But, the reality, today, is that we are already using automation. You know, it's been used ubiquitously across production lines, manufacturing, logistics. So, we've started this journey, already, for many, many years. I think, quite rightfully, like you described in the cloud world, what we're seeing now, in automation, you're combining Artificial Intelligence, you're combining cognitive computing, and what that will do is it will create new value for companies out there, right. That new value is going to be about creating new industries, creating new data, and in the IOT space, it's going to create a new level of intelligence for us that's really going to change the experience that we could deliver. >> So, I've said this before, the greatest chess player in the world is not a machine, it's not a supercomputer, it's a combination of humans and computers. And, so to the point, we were talking off camera, machines hae always replaced humans. It's now cognitive functions are being augmented. And so, it seems like the scarce resources, the creativity to combine innovations. For decades, we've marched to the cadences of Moore's Law. >> John: Yeah. >> Right. The innovation is not coming from Moore's Law anymore. You know, whether or not it's tapering. We can argue, let's assume it is for a moment. >> Reinventions. >> So, where's the innovation coming from? Clearly the innovation curve's not slowing down. >> Dave: So, what's IBM's point of view on that innovation and where it comes from? >> So, you started by talking about robots and machines and how it's kind of changing jobs and, let's say, taken over jobs. The reality is that only a small percentage of work, five to 10%, will be fully automated in the future, because we've seen this throughout history. Technology advances in the last 20 years has created new professions. You know, 25% of the work type and profession in the last 20 years are new type of work. And John, you were mentioning about the ATM machine just a couple of minutes ago. >> Yep. >> The ATM machine actually has created a new economy. >> John: It was supposed to kill the teller. >> Yeah. >> It kind of did, but it created more jobs because more branches were opening up. >> Exactly, more branches and new ways of interacting, and new, and so on. Now, you have mobile apps, but actually you have to develop applications which you never had to do in the past before, and exactly the same with automation. We're going to have, and robotics and Internet things, combined them together, we'll create a new economy, and the value of that economy is going to be in a couple of areas. One, I think one of the fundamental changes is that our work type, the type of work we do, is going to be automated, about 30% of our work type is going to be automated in certain industries, industries which are highly tasked orientated, highly manual orientated, highly data orientated. They'll all change, that's the reality of it. But, that's also going to create a new type of work, a new profession and people will be up-skilling to that. But, our prediction is that, you know, in the next few years we're going to see between one to one and a half percent GDP increase as a result of cognitive computing and AI. >> Incremental. >> Incremental, incremental, so yes, there'll be some changes of jobs, changes in profession, but incremental, they'll be increasing, and that, for the aging population issue that we know very well, is going to really help to boost a lot of economy out there. >> That scares people, too, this whole notion of job loss and, again, we were talking about before camera. It's not so much controversial, it's more education, both educating people on what the narrative is of the future scenario. >> Exactly. >> But also, education for people to get the new skill. I mean, the stat after the stat, but it's high percentage of jobs are even created yet. So, you know, cross-disciplinary education in higher eds changing, but the skills gap is a huge issue. So, how do you talk to that point because, certainly, that's an area we heard on stage today. Mark Benioff and Ginni Rometty talking about, you know, having a societal impact, and having a mission, education, is a big one. What's your thoughts? >> Absolutely. >> I mean, so I think it starts right from the way we teach, because you can't necessarily always teach the future, but what you can do is you could prepare for the future. So, we need to start teaching our children to our graduates who start in our companies with new skills around creativity, right. High emotional intelligence. I believe that a robot is never going to be able to manage emotional intelligence, right. So, how do use more emotional intelligence? How do we provide more discipline around education? How do we provide them vital skills? >> Critical thinking. >> Critical thinking, absolutely. You know, and science, but also, these Artificial Intelligence going to age human being, you know, it's going to help us discover new remedies for problems that we have today in our society, problems that we have in healthcare, problems that we have in political systems, you know, which we are seeing now and, hopefully, provide more confidence in our system because of the data and intelligence that we see. >> So, now, I've got to throw in the augmented reality because AI is obviously kind of a concept that people are getting. It's not clear, yet, what that is. What really is AI? Well, that chapter will be written, certainly as it evolves. But, augmented reality is happening. So, IoT, you can have googles on that look at meters and get new data, that's not even there. You can do automation around getting predictive analytics around machine, industrial IoT, these kinds of things. You're seeing consumer devices having augmented reality. >> Shamayum: Yep. >> That's here, right. That's here and now. So, how do you advise your clients and customers, the big IBM customers you service, to prepare for augmented reality? Because, is there a playbook? Are they nodding their heads, are they going, "Oh!," face palm. Or, I mean, what's happening? >> So, augmented reality is here and it's here to stay. The difference between augmented reality, now, or if you looked at it, let's say, five years ago when we had Google glasses. One was hype versus reality. One was a use case, now, where actually is transformational, and it's having real impact in ROI. Like the example you gave around manufacturing, or how you use it in logistics, when you are looking at airlines, and how you look at training people. Now you could train people using augmented reality and speed the level of adoption required or the time required to skill people. And then in the past, we never had that. Is there a playbook? I don't think there is a playbook, John, because I think the use cases are so diverse. But I think what we really need to do is go back to fundamental of consulting. What do we look for, you know, in business problem solving? We look for problems. We analyze that problem through design thinking, or whatever methodology we use. We look up what the impact. Is it speed, quality, and cost? And, if we can answer these questions, speed, quality, and cost, and the human impact unto it, those are the factors that's going to determine what are the use case of augmented reality that's really going to transform, and have impact, in industries. >> I find it interesting, too, you mentioned that the old way of doing things, is not going to be there, but the older way of doing software was general purpose, computing, and software. Buy a shrink wrap package, load it, does some function. Now, the composability of APIs and micro services allow for common building blocks. >> Yep. >> Son ow , essentially every solution is custom. >> Shamayum: Yes. >> So, you have a diverse use case. Remember, beauty is in the eye of the beholder. So, that's how it is in the enterprise. So, that's a reality. So, with that as kind of a backdrop, what are some of the cool things that you're working on now that you can point to and say, "These are examples of the kinds of journeys customers are going through." It could be a crazy idea that's implemented or a something, a great idea. Share a story about some of the highlights, some of this new way of building apps, new way of being agile, new way of discovering value creation. >> Sure, so you're absolutely right. You know, we're moving into a world of consumable services, if I could describe it that way, API services, micro-services, pulling data from different sources, augmenting your data source, having functions that you get from your competitors, even, to augment the capability that you want and to create new business processes. And I think we'll see more and more of this, and, you know, I was speaking to a bank, even last week, and in Abu Dhabi where they're saying, "What's the future of a bank? "Do I need a processing bank? "Do I need a back office anymore? "Do I need a branch? "Can it not just be a virtual bank? "Can I not just connect to fin-tech to provide my services, "and I have the customer and own the customer?" So, I think there's an advancement in terms of thinking, now, and that thinking is possible because the possibilities are endless and we have never seen more access to technology at relatively low cost, even, than ever before, and, also, open source is making it more possible, I think. Open source has given power to the people and companies to have world-class technology, you know, combined with IBM technology to provide, you know, real great value. So... >> Oh, go ahead, please carry on. >> Just, in terms of use case. Another example is that I recently sent a use case around, "Know your customer." You know, one example was, you know, opening up accounts for high-worth customers could take months and months to make sure the security checks, and so... You may have an account, but in terms of fully transactional, it takes months. Now, using machine learning, you go and search over a million databases and look for a million different patterns and make a recommendation to your work advisor to see what kind of customer you're going to be. You know, by analyzing movies, watching four movies that you love, we could predict, by 95%, what all the movies that you're going to love in the rest of your life. Those are the use cases I've seen. I just find it fascinating. >> Netflix is doing... They're getting all the data from me. >> Yes, yes. >> An arbitraging out the back door. >> Recommending books, I mean it's getting more and more. >> I want to own my own data. That's what Ginny was saying on stage, we should own our own data. >> Yeah, and there's certainly consumers out there who want to own their data and I think there's going to be this shift where you can have digital ident in the future where you own the data and could like trading your data. So, instead of just giving your data, you could start monetizing your own data, and saying what kind of information do you want, and what kind of experience do you want? You know, how do you want to trade? Who do you want to trade with? Do you want to share the data with your family? With your friends? With your business partner? And you become the owner of data, and that certainly an area that we're seeing a movement to, but, also, it's going to help with the identity. Your identity will be known only to you, not to service providers. >> I think you're on to something, and one of the things we were just talking with Don T was, the block chain, and The Block Chain Revolution, his new book, is when you get the transactional cost of business reduced, you mentioned that virtual bank, makes total sense. Why should I spend all this money to have a company? I can reduce my transactional cost of doing business and still provide great value. >> Well, I don't know. I mean, you talk about the future's hard to predict, sometimes, but the bank in Abu Dhabi, right. I mean, you see banks, we talk to them all the time, re-imagining the banking experience, but not necessarily eliminating the physical. >> Sha: Absolutely. >> And so, you know, to me it's fascinating. Like the list of things that machines can't do, that humans can changes, seemingly, every year, whether it's climbing stairs, or even autonomous vehicles, five years ago nobody thought was... I was and IBM conference, not that long ago, five years ago, they said it's 25 years before you'll see that. Then, wow, just overnight. >> Self-starting cars is another prediction. >> So, do your clients... How much do they try to, you know, skate to the puck, which seems to be a harder endeavor versus saying, you know, "Okay, we can apply this today, "and save money, or tap a new business opportunity." >> So, you make some great points here. The first point I'd just like to elaborate a little bit more which you mentioned about the physical and the digital. >> Yeah, right. >> Which you might, in your example was the branch. What's the role of the branch if you have a fully digital bank in the future? We still need a branch. And, why do we need a branch? Because in the branch, the branch is going to be different in the future. We all hate cueing up in the branch. We all hate going to a generic person that's says, "Can I help you?" >> John: What's your account number? >> "What's your account number?" >> Exactly. >> No, I'm John. >> Come on, you should know me. >> You should know as soon as I walk in, you should know, you know, what are the three things that I'm looking for. You should know how long I've been a customer, what my family is. >> How many Twitter followers you have. If you're an influencer. (laughter) >> Exactly, exactly. And more importantly, you should know that I love speaking to an expert. I don't want to speak to a generic person. So, the future bank is going to be when you walk into your bank, you're going to sit there in a room, in a very nice room, you're going to be in a screen, you're going to talk to someone who's an expert, who knows everything about you, through video conference. You can even order a coffee that someone comes in your room. You don't feel that it's just virtual. You have some emotional connections, as well. You'll have digital printers in there. You can connect. You have a different experience and by the time you go out, your app has already been updated with the loan that you wanted or the mortgages that you wanted. And then, coming back to the point that John and I were talking about, the consumer services, well, actually I might want my loan from one bank, my mortgage from another bank, and my car account from one bank, and I should be able to trade between that. >> Dave: Right. >> So, there's that connection, whether physical or digital, and then different service providers. I think there will be a mash-up if I think of it that way. >> It's that level& of intimacy that has been lacking for so many years in that example, financial services, which it seems like cognitive can help close that gap. >> Yeah, yeah, and cognitive absolutely can because cognitive is now, the technology's here. I think it's advanced, so much is here. The use cases are amazing and you heard about the use cases in healthcare and in customer services and aging assist, which is helping people with self-application repair. So, I think the advancement is here. I mean, the possibilities are huge. We just need to connect those dots together in order to create those new use case. >> And they did model that's come out of that conversation that is domain specific data, and you guys talk about that as verticals. But, you know, that's important because you need to specialism of the data. >> Sha: That's correct. >> But you also want the horizontally scalable cloud, as well. So that's the data challenge right there. >> Absolutely, absolutely. But one thing that's going to be critical, I think, even in the future, is that industry knowledge and how you use that industry knowledge to augment your data. How do you find that, you know... Computers always give you those patterns. How do you interpret that pattern, and how do you create that new experience? That's where the human value is. >> So, you know, we talked yesterday. You're in the consulting side of the business, but 60% of IBM's business remains services. But a key value that you bring to the marketplace is the ability, at least in concept, to codify those services into software. Talk about how you're doing that, and to the degree to which you're succeeding. >> So, we started a conversation in automation. So, if I go back to that. In automation, every client is thinking about automation. Every client is experimenting with automation now, to some level. And, what we have done with our services is that we create frameworks, maturity assessments, business component modeling. So now, what we can do when we go into a bank, we go into an example bank, we could say, "Hey, Mr. Customer, I've done it "with these 30 banks. "I know what does best-in-class bank look like. "You might not, necessarily, and trying to answer your initial question, You know, what's the roadmap look like. "You may want to go over here, "but your level of maturity's here." So, how do you get to that level of maturity, your kind of aspiration, and we could help with those tools and methods and our assessment capability and strategy engagement framework that we bring with the clients. Also, we don't just look at banks. Because, if you're a bank, banks are interesting, but you may want to look at retailers. You might want to look at pharmaceutical companies. You might want to look at Starbucks and all the people that around here, what are they doing, in terms of innovation, so you can bring all the innovation on to this and look at business functions. You know, what does the best-in-class logistic look like? What is the best-in-class back off function look like outside of my industry? And that's the kind of codifying that we have the knack of solving things we can bring to the market. >> Can I even jump industries because digital allows me to actually traverse horizontally, as John was saying. >> And the threat is there. You know, the threat is live today, to be Uber-ized or be a Uber. You know, you decide. So, you are going to jump through these industries because you have now a global platform which allows you to transform your industry, and jump from one to another, and monetize what you have very, very fast, and the barrier to entry is lower than ever before, not just because of technology, but because how industry works on the consumers' demand. Shamayum, than so much for coming on. Great insight. Thanks for sharing. Love that content. Really good insight. >> Pleasure. And the future's here. >> Thank you very much. The future's here, absolutely. Thank you very much. >> The future's here, now. This is the CUBE bringing you all the action, here, live in Las Vegas. Stay with us. We've got a lot more today to come, and all day tomorrow. We'll be right back. I'm John Furrier with Dave Vellante. (light electronic music)